Developing Countries Becoming Less Aid Dependent

A recent report released Sept. 13 by international non-governmental organization ActionAid, asserts that some of the world’s poorest countries, including Ghana and Mozambique, have become less reliant on foreign aid in the past 10 years.  

The short Executive Summary:  There is good news. Developing countries are getting less dependent on aid.

ActionAid praises Ireland, Denmark and the United Kingdom for their focus on providing more “real aid” that “has few strings attached” and puts developing countries “in the driving seat of their own development.”

Excerpts from the report (linked here) below:

“Our research shows that more developing countries are becoming less dependent on aid and are able to rely increasingly on their own resources to deliver essential services,” Anna Thomas, ActionAid’s head of economic and social development, said in a statement. “These results show we’re moving in the right direction — and means that good quality aid — real aid — is working.”

The organization also noted the report shows a promising turn in how aid is provided, with more donors focusing on value for money and getting results. This contributes to a reduction in developing countries’ aid dependency, ActionAid says.

Some of the world’s richest countries, however, have yet to adopt this focus on “real aid,” ActionAid said, naming Germany and France as two of the countries still providing “substandard aid.”

“To qualify as real aid, the aid must be targeted at the poorest and the recipient country must be given the space to own and lead its own development plans,” the organization explained in a statement. “Real aid is not tied, is administered efficiently and is used in the recipient country.”

There has been growing recognition among donors and other members of the international community for the need to change how aid is provided to some of the world’s poorest countries. The U.K., in a relaunched aid approach, said it aims to help its recipient countries graduate from needing assistance and reach a point where they can meet the needs of their people using their own resources.

As reported in Devex, The Organization for Economic Development, meanwhile, recently adopted a new framework that recognizes the importance of promoting sustainable and inclusive economic growth and the need to continue to redefine the relationship between donors and developing countries. This framework is expected to become the foundation of a new OECD strategy for development.