Developing countries are characterised by lack of capital, technology and necessary skills which are vital for the growth of any economy and according to Nazneen (1993), the donors who provide development aid to the developing countries are just well placed to provide this economic development through providing capital which is inform of grants and loans, technology which is often in form of specific projects like that initiated by the American government in Malawi to upgrade the power production at Nkula and Tedzani falls and also that of the Malawi Communication Regulatory Authority which is meant for setting up rural Telecenters
The skills required for economic growth are provided through technical assistance and training of other civil servants and other people through scholarships.
Some scholars have also pinpointed the positive impact of development aid which come in form of social aid. Social aid includes education aid such as that provided by the GIZ and DFID in Malawi, health aid such as that was provided by the Global fund towards the fighting of HIV/AIDS and water aid like that provided by European Union and other Non-Governmental organisations funded by Foreign economies. According to Lohan (2004) if people in a country die at a young age due to preventable diseases, a country cannot be regarded as a developed country, similarly if most people in the country cannot read and write and does not have access to clean water and enough income to afford basic amenities of life. Since different components of social aid such as health aid, education aid and sanitary aid play a positive role in influencing the health and educational index of many developing countries then it can be hypothesised that social aid has a positive impact on human development. She concludes her analysis by stating that human development is intrinsically important towards the sustainability of economic growth because the improvement of people's health, education and nutrition will lead to an increase in their human capital, an improvement which can raise the people's productivity thereby will be able to contribute towards the generation of a higher GDP of the country's economy.