Which type of aid comes with specific spending requirements or conditions attached?

The answer is tied aid, which is characterized by specific conditions or requirements that dictate how the assistance must be spent. This type of aid is provided with the expectation that it will be used for particular purposes or to purchase goods and services from the donating country.

Tied aid ensures that the donor maintains influence over how the funds are utilized and can benefit economically from the arrangement. This often involves stipulations regarding the involvement of companies from the donor country or focusing on predetermined projects within the recipient country.

In contrast, untied aid allows recipient countries to use funds in a more flexible manner without stringent conditions, which can lead to more effective use aligned with local needs. Bilateral aid refers to assistance given directly from one country to another, which can be tied or untied, but does not inherently imply conditions in its nature. Development aid denotes a broad category focused on promoting economic development, which may include both tied and untied forms of support.