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WHAT IF THREE QUARTERS OF THE WORLDS POOR LIVE (AND HAVE ALWAYS LIVED) IN LOW AID COUNTRIES?
By Jonathan Glennie
This Background Note suggests a further important factor for aid policy-makers to consider when assessing how to contribute to poverty reduction;
it looks at the geography of poverty in relation to country aid receipts as a proportion of GNI rather than in relation to country income. The proposition is that such an analysis is at least as useful, if not more so, for any reassessment of the role of aid. By analysing the levels of aid dependency in the countries that are home to the world’s poorest people, this note implies lessons about the role of aid in these countries in the past, and how that role might change in the future. The note finds that a large majority of poor people (around three quarters) live in Very Low Aid or Low Aid Countries (VLACs and LACs) – defined
respectively as countries that receive less than 1% and 2% of their GNI in aid (Glennie and Prizzon, 2012) – and have done for at least two decades. This is a story not of change but of continuity: most poor people have long lived in countries which receive very little aid.
It is therefore wrong to suggest that there are now more poor people living in non-aid dependent countries; if anything the data presented here implies the opposite. While the total number of income poor in the world has declined, the proportion of poor people living in High Aid Countries (HACs), where aid is over 10% of GNI, has in fact increased in the past 20 years, from 10% to 15%.
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