Paper short abstract:

The paper focuses on Germany as the second largest individual aid donor and role of development cooperation in realization of economy- and security-related goals of German foreign policy.

Paper long abstract:

Since the 1950s development aid has been long regarded as a tool of foreign policy that enabled donors to exercise power over developing countries. Recently development assistance and development cooperation have also been analysed within the context of economic diplomacy. Therefore the aim of the paper is to present development assistance as a tool of foreign policy and economic diplomacy. The paper focuses on Germany as the second largest individual aid donor and role of development cooperation in German foreign policy. The paper is divided into three major sections, which consecutively present aid as a tool of foreign policy and economic diplomacy, history and institutional arrangements of German development cooperation, as well as role of aid in German economic diplomacy.