Are tough times ahead for countries graduating from foreign aid?

Policy Blog
This blog was originally published as part of the Future Development blog series of the Brookings Institution on March 8, 2018 and the original version can be found here. During the next few years, over a dozen middle-income countries are likely to transition away from multilateral concessional assistance—that is, grants and loans that offer flexible or lenient terms for repayment—including support from International Development Association (IDA) and Gavi, the Vaccine Alliance. There are good reasons to worry these countries, including Nigeria and Pakistan, will find the transition tough. Despite being middle-income economies, many of them still have high rates of child and maternal mortality, weak health systems, and large shares of the population living in poverty. This is not surprising. The real question is whether the countries are more vulnerable…
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