This article focuses on how reducing humanitarian aid to developing nations is a better approach for decreasing their dependence on foreign aid and boosting their private investments. The United Nations (UN) set a target for developed nations to contribute 0.7% of their gross national income (GNI) as foreign aid. However, among the 33 members of the Organisation for Economic Co-operation and Development (OECD), only 4 nations met the UN's target, while 22 nations cut their aid budgets dramatically. These actions have created a ripple effect around the world as aid commitments are seeing a more effective strategy; this is the first annual drop in aid in 6 years. For instance, US President Donald Trump pulled apart the US Agency for International Development (USAID) and cut almost all foreign aid. While other countries are set to slowly reduce aid, the UK has a goal set by 2027 that aid should be cut by 0.2%.
Although these cuts are dramatic, there are investments elsewhere that are leading developing countries on a path of reduced dependence. The combination of trade, investment, infrastructure, green technology, and digital connectivity is strengthening these nations to reduce energy poverty and increase public services. A prime example of China's infrastructure investment in Sub-Saharan Africa has increased nighttime luminosity and boosted economic activity. With benefits that are only rising, this shows the immediate investment site has impacted a large area and will continue over time.
https://www.project-syndicate.org/commentary/developing-countries-must-reduce-foreign-aid-dependence-by-justin-yifu-lin-and-yan-wang-2025-10
1 comment:
Has the United States publicly made a statement about where this Aid money that was cut is moving to? I have heard about the success of China's investment in Africa, however I am not sure what teh US is planning on doing with this cut budget.
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