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Pardee Logo International Futures at the Pardee Center

International Futures Help System

Policy Equations Foreign Aid

IFs uses a "pool" approach to aid (AID) rather than indicating bilateral flows from particular donors to particular recipients. That is, all aid from all donors flows into the pool and then all recipients draw proportions of the pool.

IFs uses the aid value parameter (AIDDON) to calculate the aid (AID) from donors and AIDREC to calculate the targeted aid to recipients. The pool of aid donations determines the actual total level of interstate aid flows, however, and is allocated among potential recipients according to the proportions targeted for each.


Aid outflows are negative and the total aid pool given (AIDP) is the sum of the negative flows, while the total desired aid of recipients (AIDR) is the sum of positive flows.



A recomputation of aid for recipients distributes the aid pool across their demands.