The World Bank reports that the reduction in UK aid has resulted in tangible suffering.

12 Oct, 2023

The World Bank reports that the reduction in UK aid has resulted in tangible suffering.

The World Bank, a leading global anti-poverty institution, expressed its concern to the BBC, stating that recent reductions in the UK's foreign aid budget have inflicted genuine hardship.

The Bank emphasized its desire to see the UK increase its funding levels.

The UK government, until recently, held the position of the largest single donor to the Bank's fund dedicated to the world's most impoverished countries.

Since 2020, government officials have temporarily curtailed aid spending while they work to restore Britain's public finances.

The UK has reduced its contribution to the World Bank's International Development Association fund to £500 million annually.

The World Bank faces additional challenges as it strives to secure finances for a new crisis response fund designed to aid countries grappling with elevated poverty rates.

Axel van Trotsenberg, Senior Managing Director at the World Bank, commented, "Every dollar counts, every dollar that we get saved lives.

I view this fund as a direct means of saving lives, which is why the impact of these cuts has been genuinely distressing."

Mr. van Trotsenberg, who serves as the Bank's second-in-command, noted that donor contributions have largely remained stagnant, and he stressed the Bank's desire to expand funding, urging the UK to return to higher levels of support.

Three years of crises have abruptly reversed decades of progress in the global fight against poverty.

Absolute poverty, characterized by individuals living on less than $2 (£1.6) per day, has affected nearly 100 million more people than before the pandemic.

Given this backdrop, the World Bank highlights its need for additional funds to address impoverished nations in crisis, beginning as early as this December. However, as more resources are directed toward refugee assistance, it has ripple effects on other aid streams. For instance, funds allocated to sub-Saharan Africa have experienced a decline of over 7% in real terms.

Responding to Mr. van Trotsenberg's comments, a government representative affirmed, "The UK stands as one of the world's major aid contributors, with an expenditure of nearly £12.8 billion on humanitarian assistance 2022- This surpasses the allocations of several other G7 nations and plays a pivotal role in poverty reduction, mitigating the severe effects of climate change, and safeguarding the world's most vulnerable populations. Our foreign aid initiatives provide support to people worldwide. In the past year, we have addressed challenges such as drought in East Africa, food shortages in Afghanistan, and flooding in Pakistan.