Accra (Greater Accra Region), 16 Nov, 1998
Foreign aid to developing countries has fallen to 0.22 per cent of donor countries' Gross Domestic
Product, the lowest since it was first institutionalised in 1947 with the Marshall Plan. A report by the World Bank issued in Accra yesterday said the list of countries that meet the criteria for using aid well has soared dramatically in the 1990's. It said foreign aid has been successful in reducing poverty in countries with sound economic management and robust government institutions. The report, based on studies under - Assessing Aid: What Works, What Doesn't and Why" says three out of four people afflicted by absolute poverty (nearly two billion) live in countries where more foreign aid would speed up poverty reduction. "Taking into account inflation, financial aid from rich countries to poor countries is one- third lower today than in 1990. "It is ironic and tragic that the volume of aid is declining just as the environment for effective aid is improving." The report quoted David Dollar, the lead author of the report and a senior World Bank research economist, as saying: "by increasing financial assistance to poor countries with good policies and decent institutions, we could help hundreds of millions of the poorest people in the world to improve their lives and those of their children."
