CGD in the News

Why Luxembourg Outranks the U.S. When It Comes to Helping Poor Nations (NPR)

December 18, 2015

From article

The United States spends more on international aid than any other nation — more than $32 billion a year. Yet it has come in near the bottom of a newly released ranking that scores the wealthiest nations according to how much they help the world's poorest people.

Perhaps not surprisingly, the famously generous Scandinavian nations lead the pack — Denmark, Sweden, Norway and Finland. Countries such as the United Kingdom and Canada rank fairly high as well. The United States, by contrast, falls 21st out of 27 — just behind Hungary, Luxembourg and the Czech Republic.

What gives?

For starters, the Commitment to Development Index doesn't just consider the dollar amount that a country spends on aid. Produced annually by the Center for Global Development, a D.C.-based think-tank, the ranking also factors in benchmarks such as how efficient that aid is and how large a share it represents of the giving country's income. On that last measure, for instance, top-ranking Denmark spends 0.85 percent of its gross national product. The United States spends about 0.18 percent.

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