Abstract

Foreign aid is essential to enhance economies at poor countries. Regarding to the United Nations approved article that richer countries should assist poor countries by 0.7% of the rich Gross National Product. But still many of these countries did not offer this percentage, where this is restated in 2015 in the Millennium Development Goals Global Assembly. Trillions of US dollars are spent and offered as foreign aid but a little of economic growth has taken place. Political conditions and its reforms are essential to address the growth of Economic Rate of Return (ERR) on foreign aid investment. It appears a positive relationship between foreign aid and economic growth regarding to literature if there is good political environment. Evaluation and empirical studies address that institutional and individual capacity building is not sufficient for conducting evaluations or for accepting of managing foreign aid projects and programmes. Awareness and enforcing institutional and individual capacity building will help a lot to get better impact of these aids on development intervention especially if there is distinguish government support in decision making and facilitating issues.