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The 26 poorest countries in the world, which concentrate the 40% of the world population who lives under the poverty line, have the lowest levels of international aid since the beginning of the century, warned the World Bank (BM).
In a report published yesterday, the financial institution shows its concern about the fight against extreme poverty in these countries, which also face a record debt rate, since 2006.
These nations also suffer the increasingly marked consequences of global warming, as well as the political instabilityinsecurity or war.
Among these countries, the poorest have been especially affected by the pandemic, with a decrease of up to 14% in their gross domestic product (GDP) per inhabitant between 2020 and 2024, while they would have to invest the equivalent of 8% desu PIB per year to achieve its development objectives, the WB highlighted.
“These economies need more significant additional external aid, directly or indirectly through AIF (International Development Association, affiliate of the World Bank in charge of loans and donations to the poorest countries)”, he stressed Ayan Kose, Deputy Chief Economist of the World Bank, cited in the statement.
For these countries, AIF has become the main source of financing, while aid has fallen sharply to its lowest level in 21 years in 2022last year with data available.
“For these countries to emerge from a chronic state of emergency and achieve essential development goals, they will need to accelerate their investments” to an unprecedented level that they will not be able to achieve alone, warned the Bank’s chief economist, Indermit Gill.
However, the Banco underlines that poor states can also act by broadening their tax base to strengthen tax revenue and improve the efficiency of public spending.
At the same time, the proportion they dedicate to paying their debt has increased, reducing its effect, but also the interest rates, with issues being carried out more frequently in foreign currency, dollars or euros.
The 26 poorest countries have an average debt rate of 72% of GDP.