Foreign Investment and Aid

This topic explains how foreign investment (especially inward FDI) and different forms of foreign aid are used to promote economic growth (an increase in real output or real GDP) and broader economic development (improvements in living standards, education, health, infrastructure, equality, freedom and sustainability). It describes how FDI can raise investment, employment, technology transfer and exports, and how humanitarian aid, development aid, ODA, NGOs and debt relief contribute to immediate needs and long-term capacity. The text also stresses that benefits are not automatic and depend on governance, institutions and policies to distribute gains widely.