Developing countries now account for almost a third of the world’s production and consumption. By 2030, 80% of the world’s middle class are expected to live in ‘developing’ nations.
Since the G20 Gleneagles Agreement of 2005, aid has increased. Bilateral (country to country) aid for trade to sub-Saharan Africa almost doubled between 2005 and 2011. The UK has pledged to continue to donate 0.7% of its GDP to developing nations. The UK spends around £3.7 billion on aid every year.
Though some aid resources are misused, an increasing proportion has been directed at the poor. A recent report by the Overseas Development Institute shows that countries which received high levels of aid have reduced infant mortality and child malnutrition fastest.
Since 2000, aid dependency has fallen in Ghana from 46% to 27%. By the end of the decade, it is predicted Ghana will not require any aid. Rwanda has seen a fall on dependency on aid from 86% to 65%.
The Gleneagles Agreement cleared the debts of 35 countries, mostly in Africa. Writing off $40 billion of aid has helped some of the poorest nations, eg Malawi.