- UK aid cuts defended
- Concerns over global poverty
- Calls for increased contributions
The development minister, Andrew Mitchell, has refuted criticism regarding aid reductions for the world’s impoverished by asserting that the United Kingdom remains a “very dominant force.”
According to Mr. Mitchell, the United Kingdom was the third largest contributor to the World Bank’s fund for the world’s weakest countries.
Anti-poverty organizations had accused the United Kingdom of inflicting “real pain” through recent foreign aid cuts.
However, Mr. Mitchell conceded that the timing of the cutbacks might have been unfavorable.
The United Kingdom halved contributions to the International Development Association fund of the World Bank. It now sends £500 million per year.
The government stated that the reduction was temporary until the public finances of the United Kingdom were restored.
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The Bank expects the United Kingdom to “return to higher levels” of funding in the near future.
The senior managing director of the World Bank, Axel van Trotsenburg, described how every dollar counts. He stated, “Each and every dime we receive saves lives. This fund is how I consider it possible to save lives; therefore, this caused considerable suffering.”
Also stating that donor contributions had been essentially “flat” was Mr. van Trotsenburg, the Bank’s second-in-command.
There is pressure on the World Bank to raise funds for a new crisis response fund, the purpose of which is to assist nations in coping with the impact of rising food prices on poverty levels.
Mr. van Trotsenburg further stated, “Our intention is to expand upon it.” Additionally, we desire the United Kingdom to return at elevated levels.
Decades-long advancements in the fight against global poverty have been abruptly halted by a three-year crisis.
The prevalence of absolute poverty, characterized by subsistence on less than $2 (£1.63) per day, has increased by approximately 100 million individuals since the onset of the pandemic.
Amidst this context, the World Bank asserts that it will require additional funds by December of this year in order to assist crisis-stricken impoverished nations.
However, as additional funds are redirected to refugee assistance, other aid streams are affected. For instance, foreign direct investments in sub-Saharan Africa have decreased by over 7% in real terms.
