BUSINESS

Why Poor Countries Need to Find New Ways to Get Money

Beijing, ChinaSat Nov 01 2025

The Problem

Money from rich countries to help poorer ones is drying up.

  • The US has almost stopped giving aid.
  • The UK is cutting back too.
  • Other countries are doing the same.

This is a big problem because many programs for health, education, and climate change rely on this money.

The Alternative

Relying on aid has never been a great plan.

  • It's unpredictable.
  • It's not always effective.

The answer is to look at different ways to get money.

  • Using banks.
  • Using investment funds.
  • Using partnerships between governments and businesses.

These options can help countries grow in a sustainable way without piling up debt.

Public Development Banks

One idea is to use public development banks.

  • They can provide long-term funding for green projects.
  • They can help countries move towards cleaner energy and better infrastructure.

This is important because infrastructure projects, like roads and power plants, can boost the economy and create jobs.

Holistic Approach

Another approach is to focus on the whole process of development, from start to finish.

  • Not just building things.
  • Also transferring technology and knowledge.

For example, China's Belt and Road Initiative has helped countries reduce their carbon emissions and improve their power sectors.

This kind of holistic approach can make a big difference.

Ripple Effect

Infrastructure projects can also have a ripple effect.

  • When one area gets a new road or power plant, nearby areas benefit too.
  • This can lead to more economic activity and better services for people.

So, investing in infrastructure is not just about the immediate project; it's about creating a better future for everyone.

The Future

In the end, it's clear that aid alone isn't enough.

  • Countries need to explore new ways to fund their development.
  • This means working together, sharing ideas, and taking responsibility.

It's a big challenge, but it's also a big opportunity to build a better world.

questions

    How can developing countries mitigate the immediate impacts of reduced aid on critical sectors like health and education?
    Should developing countries start a 'buy one, get one free' campaign to attract foreign investors?
    What alternative financing mechanisms can be rapidly scaled up to replace the funding gaps left by traditional donors?

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