Tied Aid- is foreign aid that must be spent the way the donor county sees fit.
Free/untied Aid- is Foreign aid given to a country that can choose where the money will be spent.

Advantages of Tied Aid:
1. Keeps the country true to the goals of Human Security
2. A way around Corruption
3. Accountability
Advantages of Free/untied Aid:
1. Less Paternalistic
2. Allows more options
3. Promotes independent thinking and actions
external image tied-aid.gif
external image untied-aid.gif

Disadvantages of Tied Aid:
1. Countries could become dependent
2. The donor country may not be aware of events going on and were the aid needs to go
3. Could cause conflict between nations
Disadvantages of Free/untied Aid:
1. Uncertainty of who the aid is benefiting
2. Demand of people to know where their tax dollars are being spent
3. The county could stray from promised goals

Tied Aid as defined by www.wikipedia.org is foreign aid that must be spent in the country providing the aid or in a group of selected countries. Another kind of aid, Untied Aid, is defined by www.wikipedia.org as assistance given to developing countries which can be used to purchase goods and services in virtually all countries. The difference between the two types of aid is simply whether the recieving end of the aid has some sort of obligation to the country providing the aid.
For an example, in the year 2003, the Canadian government spent $551.41 million on untied aid and $497.49 million on tied aid.

Both tied and untied aid have disadvantages and advantages to them for example, tied aid has advantages such as no corruption on either side of the aid and it holds both parties accountable. Some disadvantages of tied aid are a chance for dependancy or conflict. For untied aid the advantages include a promotion of independence and typically promotes good relations between the countries. However the disadvantages include the chance of one country taking advantage of the other and the uncertainty that the countries donations are being put towards aid.
external image TiedAid.png
A chart illustrating the amount of tied and untied development aid distributed.

Sources:
"Tied Aid.", http://en.wikipedia.org/wiki/Tied_aid, June 15, 2008.

Created by, dawson-rundle.