Study Finds Foreign Aid allocated to Wealthier Chinese Regions Surpassing Disadvantaged UK Areas

August 21, 2024 TruthUSA

Taxpayers’ money is being used to fund projects in wealthier areas of China, Mexico, and Malaysia, including an all-female opera in Shanghai and FinTech education in Mexico City.

According to a report by the Institute of Economic Affairs (IEA) published on Wednesday, taxpayers are funding projects in regions with higher GDP per capita compared to the UK’s poorest region, Ards and North Down. Official Development Assistance (ODA) is being allocated to regions like Ordos in China, which has a GDP per capita of £27,000, undermining efforts to combat global poverty.

Mark Tovey, the author of the paper, stated that redirecting funds to affluent regions like Ordos and Campeche in Mexico diverts resources from addressing poverty and urgent global needs.

Projects in Wealthy Regions

In China, projects such as reintroducing the Shanghai All-Female Yue Opera, promoting rural crafts in Shenzhen, and addressing air pollution impacts in Beijing have received international aid. Mexico City and Kuala Lumpur in Malaysia have also benefited from aid, focusing on smart city solutions and AI-driven anti-congestion measures.

Aid Eligibility and Recommendations

The IEA report highlighted the need to revise aid priorities to align with the spirit of poverty reduction outlined in the International Development Act 2002. The report proposes applying income-level cut-offs at both the country and regional levels to ensure aid targets the world’s poorest.

Notably, a significant portion of aid expenditure in the UK is directed towards in-donor refugee costs, prompting calls for increased overseas aid spending to meet international humanitarian needs. The UK’s commitment to allocating 0.7 percent of GDP to foreign aid has faced challenges, with recent efforts to restore funding levels to meet this target.

The FCDO was contacted for comment on these issues.

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