Introduction In recent times the word “Foreign Aid” is gaining popularity and third world countries are embracing it with open arms. Most of the developed countries are adopting this philanthropic method and helping out the poorer countries. The transfer of money, expertise, machinery, and every related resource that would help another country is known as foreign aid. Foreign aid is an integral part of creating equality amongst the nations. Although total equality among the nations can’t be achieved foreign aid acts as a stepping stone in the entire process. Strategic and Business alliances are one of the positive aspects of foreign aid and both the sender and the receiver get benefits out of it. Foreign Aid helps out the turbulent countries in establishing their economy, human resources and reduces elements like employment, uncertainty, etc. Besides certain developed countries there are certain organizations like International Monetary Funds (IMF), World Bank, and numerous NGOs that help out the poorer countries. In order to come out from the menace of poverty these organizations have set certain targets and plan to help the underdeveloped countries (Lancaster 2008). A number of economists and strategists are criticizing that foreign aid posses adverse effects and it is negatively affecting the developing and the under developing countries. They criticize the point that the element of dependency is lost in the case of foreign aid and these underdeveloped countries are becoming dependent day by day. The USA- A major donor The United States of America is currently known as the superpower of the world. Its history is very rich as far as foreign aid is concerned and nearly all the developing and underdeveloped countries have received aids from the US on numerous bases. The USA is one of the major partners of the International Monetary Fund (IMF) and the World Bank. Statistics reveal that the USA’s aid is $21,197(million) in 2007 and the figure kept on increasing. Some individuals believe that the “War on Terrorism” is one of the major issues why the USA is stressing foreign aid. The USA is gaining a strategic advantage over most of the countries and on the other hand, the element of terrorism is decreasing. Thus the policies of the US are showing positive signs as they are helping out the poor and reducing terrorism too. Besides monetary aids, certain counties like Afghanistan, Bosnia, Iraq, and Columbia are provided with military and strategic aids. These countries are resolving their internal uncontrollable disputes with the help of foreign aid supplied by the US. US aid to Columbia Columbia is a country that is linked with the Amazon River and shares its borders with Venezuela and Brazil. Columbia is an undeveloped country and is facing issues like financial crises, social and political uncertainty, etc. A certain issue like unemployment, drug addiction, and smuggling of drugs is considered to be the biggest problem of this country. Financial problems have risen up so much that this country is going towards bankruptcy. Therefore countries like the USA, Germany, China, and other giants of the world help underdeveloped countries financially in order to remain stable. Columbia has historical relationships with