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Keeping aid in proportion

A 1993 poll found that Americans believe one fifth of government spending goes to foreign aid - more than 20 times the true figure. Canadians believe their aid budget is 5 times larger than it actually is. Many in the industrialized world also have an exaggerated view of the developing world's dependence on aid.

On average, government aid from rich nations now amounts to less than one third of 1% of GNP - or $70 a year from each person in the industrialized world. Put another way, the rich world spends more on wine than on aid for development.

As for the poor world's dependence, one obvious measure is the amount received as a proportion of the GNP of the developing countries. For the 50 poorest countries, aid received amounts to about 11% of GNP. But for all other developing nations, aid contributes an average of less than 1% of GNP.

Another measure of dependence is aid as a proportion of total government revenues. In Zambia, 70% of government revenue comes from foreign aid. In India, the proportion is about 4%.

The tables are based on data from a limited number of countries.

Aid and health
Aid for health as a percentage of government spending on health, 1990


Highest                           Lowest                  
------------------------------------------------------------
Sub-Saharan Africa
Mozambique            52.9        Zambia                 4.9
Uganda                48.4        Côte d'Ivoire          3.4

Middle East and North Africa
Sudan                  13.0       Turkey                 0.5
Jordan                 12.4       Algeria                0.1

South Asia
Nepal                  23.6       Pakistan               5.4
Bangladesh             17.9       India                  1.6

East Asia and Pacific
Lao Rep.                22.7      Malaysia               0.2
Viet Nam                15.9      Singapore              0.1

Latin America and Caribbean
Bolivia                 20.3      Argentina              0.2
Nicaragua               20.0      Venezuela              0.1

Sources: Health: World Bank World development report 1993 Richest 20% World Bank


Aid dependence
Aid is vital to the functioning of government in some nations of the developing world - and relatively insignificant for others.


                 Aid as % of                   Aid as % of
                 all central                   all central
                 government                    government 
                 revenues                      revenues
----------------------------------------------------------
Brazil               0*       Philippines             14
Dominican Rep.       0*       Namibia                 15
Korea, Rep.          0*       Yemen                   15
Singapore            0*       Guatemala               16
Venezuela            0*       Egypt                   17
Argentina            1        Jordan                  18
Iran                 1        Zimbabwe                20
Malaysia             1        Sri Lanka               21
Mexico               1        Papua New Guinea        24
Trinidad & Tobago    1        Cote d'Ivoire           26
Chile                2        Cameroon                27
Colombia             2        Lesotho                 27
Oman                 2        Zaire                   30
Turkey               2        Kenya                   34
Myanmar              3        El Salvador             35
Thailand             3        Ethiopia                37
Uruguay              3        Bolivia                 38
India                4        Liberia                 39
Panama               4        Ghana                   40
Syria                4        Guinea                  50
Botswana             5        Malawi                  54
Costa Rica           5        Nepal                   54
Mauritius            5        Nicaragua               55
Tunisia              5        Madagascar              57
Gabon                6        Bhutan                  59
Indonesia            7        Rwanda                  66
Morocco              7        Chad                    67
Ecuador              9        Sierra Leone            69
Pakistan            11        Zambia                  70
Paraguay            13        
Peru                13

*less than 0.5%

Sources: Central government revenue: World Bank, World development report 1994, and International Monetary Fund, Government finance statistics yearbook, 1993, 1994. Aid: OECD, Development cooperation 1994, 1995.


Aid and the top 20%
The table shows aid received compared with the incomes of the richest 20% of the people in the main aid-receiving countries.


                      Aid received         As % of
                      ($ millions)         income of
                         1993             richest 20%
-----------------------------------------------------
China                    3280                     1
India                    1533                     1
Indonesia                2024                     3
Pakistan                 1067                     5
Philippines              1485                     6
Egypt                    2256                    13
Bangladesh               1359                    14
Kenya                     929                    22
Ethiopia                 1209                    44
Tanzania                  978                    62
Mozambique               1155                     -


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