Smarter ways of using Development Aid

The Philippines has been slowly losing donations from foreign countries as its income is growing. Now considered a middle income country by the World Bank, the amounts of aid it gets particularly for those that are at the grass roots level is being replaced for support to other low income countries. However, the unequal distribution of wealth not captured by the measurement of its GNP masks this continuing need. However, in the light of the financial crisis most donor countries have as a result of the GFC, it will have to think smarter in using whatever donor money it get to have more bang for buck.

The Future of Development Aid

21 November 2011

WASHINGTON, DC – Even skeptics admit it: effective aid works. In the last 25 years, the share of poor people in developing countries has been cut by half, and the last decade has witnessed impressive development successes in countries once thought beyond help.

Globally, the mortality rate for children under five has declined by a third, and sub-Saharan economies grew by up to 6% per year on average. With the exception of fragile and conflict-affected countries, today’s poor countries are very different from the poor countries of the past.

In the 1990’s, developing countries’ economies accounted for only one-fifth of global economic growth. Today, many of them are driving the global economy. Some estimate that by 2025, six major emerging-market economies – China, South Korea, Indonesia, Brazil, India, and Russia – will collectively account for more than half of all global growth.

Click on web link below for the rest of the article

http://www.project-syndicate.org/commentary/indrawati2/English

 

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