Below is an informative clip from The Economist on foreign aid. Useful for A2 students looking at developing economies and foreign aid.
Rich countries are giving away more in aid than at any other time on record. In 2016 more than $140bn was distributed around the world. According to the latest breakdown in 2015 America gave the most money away – nearly $31bn to at least 40 countries and organisations such as the world bank. This included $770m to Pakistan and $250m to Mexico. This may sound generous but the United States has the largest economy in the world. American foreign aid spending in 2015 was only 0.17% of the gross national income. Far less than other rich countries. Sweden and Norway are the biggest givers, donating over 1% of their gross national income to foreign aid. The biggest receivers of aid in 2015 were Afghanistan, India, Vietnam, Ethiopia and Indonesia. Afghanistan received $3.8bn and India $3.1bn. Despite being the second biggest economy in the world, China received $1.5bn in development aid in 2015. This included around $750m from Germany and $67m from Britain. The total amount of foreign aid is at an all time high – up 9% in 2016. This is largely down to the generosity of six countries who meet or exceed the United Nations foreign aid target, donating more than 0.7% of gross national income.