The problem addressed in this thesis is the role of external development aid in the growth process with special reference to Sudan's experience of growth and development with foreign aid resources over the past two decades (1960-1980). The study is taken in the light of the basic ideas on which foreign aid theories have been conceived and in view of the critics of aid argument. Chapter 1 presents the aim of the study, the method of approach and the outline of the study. In Chapters 2 and 3 we present a review of the basic approa to the theory of foreign aid in economic growth, and examine the criticisms regarding the validity of their assumptions and operation-11. al usefulness as well as the modifications introduced to them. In Chapters 4 and 5 we highlight the salient features of the structure of the Sudanese economy and analyze the development performance and constraints over the past two decades in the light of the growth constraints identified by aid growth models. Chapter 6 consists of an account of the general characteristics of the flow of external development aid received by the Sudan during the period of study. Chapters 7and 8 deal explicitly with the impact of foreign resources on domestic savings, investment and growth with reference to Sudan's experience over the past two decades. Chapter 9 considers the problems that hindered the effective use of foreign aid resources in the Sudan during the period of study and highlights the main areas in which reform measures are needed. In Chapter 10 an estimate of the savings gap and the foreign exchange gap for the Sudan for the forthcoming Six Year Plan 1983/84-1988/89 is provided on the basis of the two gap approach.