This article explores foreign aid as a distinct legal institution situated at the international economic law tradition and contemporary development objectives. Shortly overviewing ancient mechanisms such as lex frumentaria, Islamic zakat, and medieval Christian charity. Post-1945 milestones—the Marshall Plan, United Nations frameworks, creation of the World Bank / IDA, and targets like the 0.7 % GNP norm, mark foreign aid’s transformation into a multidimensional pillar of international economic law (IEL). Comparing post-Soviet “Law of International Economic Aid” with Western “Law of Development,” the study highlights differing theoretical foundations yet converging trends toward sustainable-development paradigms. Finally, by mapping aid’s links to trade, investment, finance, and labor regimes, it underscores both the expanding legal architecture around assistance and the persistent dominance of soft-law obligations, which leave states reliant on discretionary rather than mandatory solidarity.
Keywords: Foreign aid; International economic law; Law of International Economic Aid; Law of Development; Soft law; Sustainable development; IEL sub-branches.
Иностранная помощь как правовой институт: между традицией публичного права и целями глобального развития
В этой статье иностранная помощь рассматривается как отдельный правовой институт, находящийся в традиции международного экономического права и современных целях развития. Кратко дается обзор древних механизмов, таких как lex frumentaria, исламский закят и средневековая христианская благотворительность. События после 1945 года — план Маршалла, формирование Организации Объединенных Наций, создание Всемирного банка/МАР и такие пункты, как норма ВНП в размере 0,7 %, знаменуют собой превращение иностранной помощи в многомерный столп международного экономического права (МЭП). Сравнивая постсоветское «Закон международной экономической помощи» с западным «Законом развития», исследование подчеркивает различные теоретические основы, но сходящиеся тенденции к парадигмам устойчивого развития. Наконец, отображая связи помощи с торговлей, инвестициями, финансами и трудовыми режимами, оно подчеркивает как расширяющуюся правовую архитектуру вокруг помощи, так и постоянное доминирование обязательств мягкого права, которые оставляют государства зависимыми от принудительной, а не правовой солидарности.
Ключевые слова: иностранная помощь; международное экономическое право; право международной экономической помощи; право развития; мягкое право; устойчивое развитие; подотрасли МЭП.
The evolution of international development aid is deeply rooted in historical traditions of mutual assistance, ranging from ancient tributes[1] and religious charity to early forms of state-organized relief[2]. Initially driven by geopolitical and religious motivations, these practices gradually institutionalized through systems such as Roman lex frumentaria [3] [4], Islamic zakat [5], and medieval Christian charity. [6] As societies evolved, so did the mechanisms and ideals surrounding aid, moving from sporadic and morally driven acts to more structured socio-economic interventions. By the post-medieval period, state and church institutions became central to charitable governance, paving the way for modern assistance systems. These early models laid the foundational logic of aid: addressing vulnerability, ensuring social cohesion, and expressing power through benevolence.
In the modern era, especially post-World War II, foreign aid transformed into a global legal and institutional phenomenon. Milestones such as the Marshall Plan[7], the creation of the UN, and the establishment of institutions like the World Bank and IDA marked a shift toward systemic, development-oriented aid. Legal frameworks and international commitments, such as the 0.7% GNP target, the Paris Declaration, and the Sustainable Development Goals, which all in all have progressively codified donor obligations and recipient rights. Aid has transitioned from unilateral charity to a multidimensional tool for achieving global objectives, including poverty reduction, human rights, climate resilience, and global governance. Today’s aid system reflects a synthesis of historical customs and modern legal instruments, evolving continuously in response to global challenges while remaining anchored in the principle of international solidarity. Throughout this article, we are going to study the concept and evolutive nature of foreign assistance or aid within the broader system of International economic law.
International assistance in the contemporary globalized world is considered as an integral institution of international economic law (IEL), which is a branch of international law. This institution is based on the several principles:
- the right of States to provide assistance;
- the right of States not to accept assistance;
- the prohibition to use economic assistance as a means of coercion or as a means of interference in the internal affairs of other States;
- the prohibition of discrimination in the provision of economic assistance.
International economic law regulates huge volume of affairs at the economic and international relations, which necessitates us to conduct further structurization of the important branch of the International Law.
In accord to the structurization conducted by the Professor Shumilov V.M.[8] all of the multiplicity of IEL subject regulation concentrates on the transboundary flow of several types of resources/economic development factors:
- Goods/Supplies;
- Investments;
- Finances;
- Workforce;
- Non-Supplies – which flows to the economy without further reimbursement, or to say it simply in a form of economic aid.
The relations interconnected with the flow & movement of the aforementioned factors are regulated by the solid and independent branches of the International Economic Law. In light of this Shumilov V.M. divides several sub-branches:
- International Trade Law;
- International Investment Law;
- International Financial Law;
- International Labor/Migration Law;
- Law of International Economic Aid.[9]
The review of the western scientific works, namely Professor S.P. Subedi[10] has demonstrated several topics/sub-branches apart from the ones listed by the professor Shumilov V.M. Particularly:
- International Economic Integration Law, including the law of the European Union, NAFTA and Mercosur;
- Private International Law, including international choice of law, choice of forum, enforcement of judgments and the law of international commerce;
- International tax law; and
- International intellectual property law;
- Another difference is that while the post-Soviet scholar divides the law of foreign aid/assistance, the western scholars regard the similar branch as a law of the development.
Listed differences are associated with the historical and philosophical mindset of the law schools. Russian legal scholars, including Shumilov, generally adopt a public law-oriented approach, focusing on state-to-state relations and the role of international organizations in economic regulation. While, western scholars, such as Subedi, incorporate a more mixed approach, including both public and private international law, emphasizing cross-border transactions and commercial law. Furthermore, at the beginning of the 21st century Russan scholars used to be more indifferent towards the integration sector, while the West placed more importance at the integration, which was evidenced by the accelerated development of EU, NAFTA, Mercosur etc. Currently, the situation is more different, as the transformation of EAEU, BRICS and other integrational institutions are necessitating Russia and Post Soviet area in general to place more importance on the role of the integration.
Another difference is correlated with the influence of the economic systems. Therefore, Western legal frameworks are heavily influenced by free-market principles and liberalized trade, leading to more detailed regulation of private economic actors, commercial arbitration, and cross-border transactions, while Russian scholarship, rooted in a state-centric model, historically emphasizes sovereign economic policies, financial regulations, and state responsibility. As a result, Western classifications include International Tax Law, while Russian frameworks view it as part of financial or fiscal law rather than a separate category.
The most important portion, conceptual foundations towards foreign aid and development. Rooted in the Soviet and post-Soviet tradition of state-centric economic relations. Views international aid as an instrument of economic and political relations between sovereign states. Primarily focuses on bilateral and multilateral aid agreements provided through state mechanisms, such as government grants, concessional loans, and intergovernmental programs. The subjects of the foreign aid & development sector as international organizations are considered as a state driven entity, which provide assistance under strict political and economic conditionalities. The western perspective, takes a broader socio-economic and human rights approach, emphasizing sustainable development rather than just financial transfers. It also, includes not just economic assistance, but also institutional capacity building, environmental protection, technology transfer, and human rights advancements. Development law recognizes the role of private actors, NGOs, multinational corporations, and international organizations in shaping development policies.
The post-Soviet concept of «Law of International Economic Aid» treats financial assistance as a state-centric tool primarily concerned with bilateral economic cooperation and political influence. Meanwhile, the Western concept of «Law of Development» incorporates a broader, institutionalized approach, embedding economic assistance within multilateral legal frameworks, sustainable development, and governance reforms.
Over time, as global legal trends shift toward sustainable development and multilateralism, the post-Soviet view on economic aid is evolving to align more closely with the Western Law of Development framework.
Scholar dualistic approach towards describing legal foundation proves the fact phenomena of foreign aid is definitely included as a substantive body of the international legal framework and a distinct legal institute. Moreover, the legal boundaries of foreign aid continue to evolve over time, becoming increasingly sophisticated, structured, and deeply integrated within the broader framework of international economic law.
In order to fully understand the synergy between the foreign aid and development throughout this paragraph we will consider the phenomena of foreign aid as in a correlation to the other branches of the International economic law.
Specific difference of the foreign aid from the other branches of the IEL is that the flow of the capital, goods, and services are distributed with no further reimbursement or in a form of subsidized credits. Absence of the material reimbursement for the finances and investments make this sphere quite specific. As the international law and specifically IEL branches regulate the markets, namely the international trade law regulates the trade market, International financial law regulates the credit and monetary market, international investment law seeks to regulate and encourage cross-border investment flows. Further detailed approach in assessment of the correlations between the foreign aid and bodies of international economic law to be conducted.
Foreign Aid and International Trade Law
Foreign aid has long been linked with international trade rules and policies. Under the World Trade Organization (WTO) framework, developing countries benefit from special legal provisions intended to support development. For example, the 1979 GATT “Enabling Clause”[11] allows developed countries to grant preferential tariff treatment to developing and least-developed countries without violating the most-favored-nation rule. In effect, this permits programs like the Generalized System of Preferences (GSP) and initiatives such as the EU’s “Everything But Arms” (duty-free access for least-developed countries) – trade concessions that function as a form of development assistance by boosting developing-country exports.
WTO-led development programs explicitly merge aid and trade. The Aid for Trade initiative, launched at the 2005 WTO Hong Kong Ministerial, is aimed at helping developing countries build the capacity and infrastructure needed to benefit from global trade liberalization.[12]
Foreign Aid and International Investment Law
Foreign investment is a crucial driver of development, and international investment law seeks to regulate and encourage cross-border investment flows. Development assistance intersects with investment law in multiple ways. At the institutional level, the World Bank’s creation of the ICSID arbitration system and the Multilateral Investment Guarantee Agency (MIGA) were explicitly justified by development goals. The ICSID Convention (1965) – which provides a framework for resolving investor-state disputes – opens by “considering the need for international cooperation for economic development, and the role of private international investment therein”.[13]
Bilateral and regional investment treaties also connect to foreign aid agendas. Donor countries often encourage or require aid recipients to sign Bilateral Investment Treaties (BITs) or improve their investment climate as a condition for receiving assistance. Investment treaties grant protections (like fair and equitable treatment and capital transfer rights) to foreign investors, which is intended to make developing countries more attractive to FDI.
Foreign aid is also used to catalyze private investment through “blended finance” initiatives. Donors may channel aid funds into investment guarantee trusts, public-private partnership support, or project preparation facilities that lower the risk for private investors in infrastructure and other development projects. For example, the World Bank’s IDA (International Development Association) offers a Private Sector Window that uses donor resources to backstop investments in high-risk environments. Likewise, aid-funded technical assistance helps countries strengthen legal frameworks (investment laws, contract enforcement, arbitration institutions) to attract FDI. These capacity-building programs, often led by the World Bank, UNDP, or UNCTAD, improve governance so that investment can translate into sustainable development.
In summary, international investment law intersects with foreign aid by creating legal conditions favorable to investment in developing states and by directly providing financial instruments to mitigate investment risk.
Foreign Aid and International Financial Law
Perhaps the most direct interplay between development aid and international economic law is in the realm of international financial law, which includes the rules and institutions governing monetary policy, lending, and development finance. The Bretton Woods institutions – the International Monetary Fund (IMF) and the World Bank – sit at the center of this nexus. They not only provide financial assistance to countries (often counted as part of “official development assistance” when concessional) but do so under legal frameworks that integrate aid with economic policy conditions.
The IMF’s mandate, as set out in its Articles of Agreement, is to promote global monetary stability and provide temporary balance-of-payments support to members. When the IMF lends to developing countries (for example, under facilities like the Extended Credit Facility for low-income countries), it typically negotiates a set of policy reforms – known as IMF conditionality – that the borrower must implement. These conditions often include macroeconomic austerity measures, financial liberalization, and other structural reforms. In the 1980s and 1990s, such Structural Adjustment Programs (SAPs) became pervasive: the IMF and World Bank conditioned their aid on recipients adopting Washington Consensus policies (privatization, deregulation, trade and investment openness, fiscal discipline). “IMF assistance to developing countries was made conditional upon acceptance of structural adjustment programmes, i.e. economic reforms aimed at [stabilization and growth]”.[14]
The World Bank (comprising the IBRD and IDA) provides project loans, grants, and policy loans to developing states. Its operations are governed by its Articles of Agreement and further guided by soft-law policies (safeguards, anticorruption measures, etc.). Aid in this context often takes the form of concessional loans or grants to fund development projects (infrastructure, health, education) in line with international development goals.
Beyond the Bretton Woods system, international financial law covers global standards and coordination that affect aid. For instance, the OECD’s Development Assistance Committee sets definitions for what counts as official development assistance (ODA) and encourages best practices (like untying aid and focusing on recipient-driven priorities).
Foreign Aid and International Labor/Migration Law
The intersection of development assistance with international labor and migration law is increasingly evident, as the movement of people becomes intertwined with economic development strategies. International labor law, mainly through the International Labour Organization (ILO), sets standards for worker rights including migrant workers, while international migration law (a more nascent field) involves norms and agreements on the treatment and flow of migrants. Foreign aid plays a role in both protecting migrant labor and in leveraging migration for development ends. A fundamental link is the migration-development nexus. Migration can have significant development benefits: migrant workers often send home remittances which fund education, healthcare, and businesses in origin countries. According to the ILO, “Migrant workers contribute to growth and development in their countries of destination, while countries of origin greatly benefit from their remittances.”[15]
ILO conventions and standards provide the labor rights baseline in these contexts. Many G77 countries have ratified conventions protecting migrant workers from exploitation and ensuring equality of treatment. Donors often incorporate labor standards into aid projects – for example, requiring that infrastructure built with aid funds adheres to decent work standards (no forced or child labor, fair wages per local law).
Despite the perpetuation into the sub-boundaries of the international economic law, Foreign aid driven International law offers only a thin scope of binding duties when it comes to foreign assistance, even the article 55 of the UN charter which is positioned at the cornerstone of the global development cooperation and foreign aid distribution, which “encourages countries to promote higher standards of living, full employment and economic and social progress”[16] possess more of a soft law character. Other a handful of “must-do” obligations, such as the Geneva Conventions’ requirement that warring parties let impartial relief reach civilians, or the International Covenant on Economic, Social and Cultural Rights’ promise to “take steps … through international assistance and co-operation”, sound robust but are framed so vaguely, or apply so narrowly, that they rarely force a financier to act. Because the existing architecture relies on conditional “should” language, countries in crisis are left to depend on discretionary charity instead of guaranteed solidarity.
Literature:
- “Tribute. Noun – Definition, pictures, pronunciation and usage notes” // Oxford Advanced Learner’s Dictionary. URL: https://www.oxfordlearnersdictionaries.com
- Генезис европейской благотворительности в Средние века (VI–XV вв.) // Вестник ТГУ. 2019. № 442. С. 108–113. DOI: 10.17223/15617793/442/13.
- Poor Relief in Ancient Rome // Hazlitt.org. URL: https://www.hazlitt.org/e-texts/poverty/ch6.html
- Feeding Rome, or feeding Mars? A long-term approach to C. Gracchus’ «lex frumentaria» // JSTOR. URL: https://www.jstor.org/stable/44079806 (accessed 19 Jul. 2024)
- Zulkipli Lessy. Historical Development of the Zakat System… // Jurnal Ilmu Kesejahteraan Sosial. 2013. Vol. 2, № 1
- Генезис европейской благотворительности в Средние века (VI–XV вв.) // Вестник ТГУ. 2019. № 442. С. 108–113. DOI: 10.17223/15617793/442/13.
- John L. Harper Lessons of the Marshall Plan for Eastern Europe the International Spectator Volume XXXIII No. 2 (April-June 1998) // URL: https://ciaotest.cc.columbia.edu/olj/iai/iai_98haj01.html
- Шумилов В.М. Международное Экономическое Право в эпоху глобализации // Москва «Международные Отношения» 2003
- International economic law Section A: Evolution and Principles of IEL // London 2006 // URL: https://www.london. ac.uk/sites/default/files/uploads/study-guide-postgraduate-laws-international-economic law.pdf (accessed 30 Mar. 2025).
- WTO. Repertory: Repertory of appellate body reports Enabling Clause // URL: https://www.wto.org/english/tratop_e /dispu_e/repertory_e/e1_e.htm (accessed 17 Jun. 2024).
- OECD. Repertory: About Aid for Trade // URL: https://www.oecd.org/en/about/programmes/aid-for-trade.html
- ICSID Convention (Washington, 1965). URL: // URL: https://sice.oas.org/dispute/comarb/icsid/w_co nv1.asp# (accessed 29 Jul. 2024).
- Cesare Pinelli. Conditionality in the Practice of the IMF, of the World Bank and of the WTO. Oxford public international law // https://opil.ouplaw.com/display/10.1093/law:epil/9780199231690/law-9780199231690-e1383 (accessed 09 Feb. 2025).
- ILO agenda and action on fair migration // URL: https://www.ilo.org/topics-and-sectors/labour-migration (accessed 14 Oct. 2024).
- Charter of the United Nations and Statute of the International Cour of Justice // San Francisco 1945 // URL: https:// treaties.un.org/ doc/publication/ctc/uncharter.pdf
Information about the authors:
Saidmukhtorov Alisher, PhD in Law, Director of the Research Institute of Political Processes, Diplomacy and Globalization Problems of the Academy of Public Administration under the President of the Republic of Tajikistan, Senior Lecturer of the Department of International Law at RUDN University
Khidirov Ismoil, Research Student at Graduate School of International Cooperation Studies (GSICS) of Kobe University
Информация об авторах:
Саидмухторов Алишер , к.ю.н., Директор НИИ политических процессов, дипломатии и проблем глобализации Академии государственного управления при Президенте Республики Таджикистан, старший преподаватель кафедры международного права РУДН.
Хидиров Исмоил, аспирант Высшей школы исследований международного сотрудничества (GSICS) Университета Кобе.
[1] “Tribute. Noun – Definition, pictures, pronunciation and usage notes” // Oxford Advanced Learner’s Dictionary. URL: https://www.oxfordlearnersdictionaries.com
[2] Генезис европейской благотворительности в Средние века (VI–XV вв.) // Вестник ТГУ. 2019. № 442. С. 108–113. DOI: 10.17223/15617793/442/13.
[3] Poor Relief in Ancient Rome // Hazlitt.org. URL: https://www.hazlitt.org/e-texts/poverty/ch6.html
[4] Feeding Rome, or feeding Mars? A long-term approach to C. Gracchus’ «lex frumentaria» // JSTOR. URL: https://www.jstor.org/stable/44079806 (accessed 19 Jul. 2024)
[5] Zulkipli Lessy. Historical Development of the Zakat System… // Jurnal Ilmu Kesejahteraan Sosial. 2013. Vol. 2, № 1
[6] Генезис европейской благотворительности в Средние века (VI–XV вв.) // Вестник ТГУ. 2019. № 442. С. 108–113. DOI: 10.17223/15617793/442/13.
[7] John L. Harper Lessons of the Marshall Plan for Eastern Europe the International Spectator Volume XXXIII No. 2 (April-June 1998) // URL: https://ciaotest.cc.columbia.edu/olj/iai/iai_98haj01.html
[8] Шумилов В.М. Международное Экономическое Право в эпоху глобализации // Москва «Международные Отношения» 2003
[9] Ibid
[10] International economic law Section A: Evolution and Principles of IEL // London 2006 // URL: https://www.london. ac.uk/sites/default/files/uploads/study-guide-postgraduate-laws-international-economic law.pdf (accessed 30 Mar. 2025).
[11] WTO. Repertory: Repertory of appellate body reports Enabling Clause // URL: https://www.wto.org/english/tratop_e /dispu_e/repertory_e/e1_e.htm (accessed 17 Jun. 2024).
[12] OECD. Repertory: About Aid for Trade // URL: https://www.oecd.org/en/about/programmes/aid-for-trade.html
[13] ICSID Convention (Washington, 1965). URL: // URL: https://sice.oas.org/dispute/comarb/icsid/w_co nv1.asp# (accessed 29 Jul. 2024).
[14] Cesare Pinelli. Conditionality in the Practice of the IMF, of the World Bank and of the WTO. Oxford public international law // https://opil.ouplaw.com/display/10.1093/law:epil/9780199231690/law-9780199231690-e1383 (accessed 09 Feb. 2025).
[15] ILO agenda and action on fair migration // URL: https://www.ilo.org/topics-and-sectors/labour-migration (accessed 14 Oct. 2024).
[16] Charter of the United Nations and Statute of the International Cour of Justice // San Francisco 1945 // URL: https:// treaties.un.org/ doc/publication/ctc/uncharter.pdf
