Effective Aid?

I recently read this book, which advocates for aid to be distributed on a neo-Marshall Plan model. I agree with the idea that charity, while well-intentioned, often leaves countries' economies upsidedown. Take Nicaragua, for example: The entire country's economy is dependent on NGO aid agencies. At one point nearly 23% of the GDP originated from such aid. Professionals aspire to land a job with an NGO. Therefore, there is neither incentive nor capacity to move beyond this aid. Furthermore, many NGO's revolve around unsustainable projects that require a foreign presence to maintain them, and inadequately consider input from the community. There is a general lack of understanding and empowerment in the current aid system.

However, before completely adapting to the "business model" of aid, I would need some clarifications. Where do environmental restrictions fit in? What about aid for education, etc? I think it has become clear that developing a thriving domestic business sector leads to the largest leaps of income for developing countries, but exactly how the aid system must change to cater to this need is still murky.