SHARP FALL IN POOR COUNTRIES’ DEPENDENCY ON FOREIGN AID SAYS ACTIONAID REPORT

*(London, 13 Sept 2011) *Aid dependency among 54 of the world’s poorest
countries has declined by a third over the last decade, according to a new
report from ActionAid. The Real Aid 3 report also reveals that since 2006
there has been an increase in good quality aid – real aid – from 51 per cent
to 55 per cent.

Some of the world’s poorest countries are now far less reliant on aid than
10 years ago. For example Ghana has reduced its dependency on foreign aid
from 46 per cent to 27 per cent, Mozambique from 74 per cent to 58 per
cent, Rwanda from 86 per cent to 45 per cent and Nepal from 53 per cent to
34 per cent. ****

ActionAid’s Head of Economic & Social Development, Dr Anna Thomas said: *“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. These results show we’re moving in the right direction –
and means that good quality aid – real aid – is working.***

* *

*“Not all aid is the same. Real aid is effective and has few strings
attached. It puts developing countries where they should be – in the driving
seat of their own development. It makes governments answerable to their own
citizens, rather than to the donors. And real aid can help countries do
things like raising tax revenues more effectively, so they can generate more
of their own funds for development.”*

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ActionAid’s Real Aid 3 report also reveals that the quality of aid is
improving so that each dollar spent is getting more results which is a
contributing factor to the reduction in aid dependence. But while some
countries, like the UK, Ireland and Denmark are giving a high proportion of
real aid, in other parts of the world, it is a very different story.****

** **

Dr Thomas continued: *“This should be a wake-up call to governments that say
they are committed to poverty reduction. Our report highlights which
countries are delivering substandard aid that whilst well-intentioned, is
not as effective as real aid. Some of the richest countries are the worst
offenders, including Germany and France.”*****

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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. Real aid is not tied, is administered efficiently and is
used in the recipient country. If it comes in the form of technical
assistance, it must be wanted by the recipient and competitively priced. And
debt cancellation should not be reported as aid.****

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Dr Thomas concluded: *“We are calling on governments around the world to
provide much more real aid so that more poor countries can reduce their aid
dependency even faster. Donors and recipient governments can do this in
November this year at the High Level Forum on Aid in Busan, South Korea.

This is the perfect opportunity to work together to make sure the poorest
countries get more of the real aid they need to tackle poverty more
effectively.” *

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Ends****