Abstract:

Foreign aid or also known as “Official Development Aid (ODA)” is the official financing that is distributed among developing countries with the aim of promoting economic development and welfare in these countries. The money that floods into Africa comes not only from individual government-to-government aid programs but also international development programs such as the World Bank and the IMF, which act as a channeling intermediate between the donor governments and receiving governments. Likewise, foreign aid is regarded as “a contract where the high income counties transfer fund to the poor countries in return for poverty reduction. Notwithstanding, The poor countries are receiving aid from developed countries and agencies to encourage economic growth, and consequently to reduce  poverty and income disparity for almost more than five decades. The present research aims to review the influence of the role of foreign aid on poverty reduction using referring to Chad republic case. The result show that foreign aid or official development assistance (ODA) has positive influence on reducing poverty. However, to some scholars foreign aid has negative influence on poverty reduce.