The Impact of Aid Suspension on Niger’s Economy
Introduction
The recent coup in Niger, which resulted in the overthrow of the democratically elected president, has led to the suspension of aid by several nations and international agencies. This move is expected to have a significant impact on one of the world’s poorest countries.
Niger’s Aid Receipts
Niger, with a population of 26.2 million, received $1.8 billion in aid in 2021, according to the latest figures from the Organization for Economic Co-operation and Development (OECD). This amount is higher than any other West African country, except for its larger neighbor Nigeria, which received $3.5 billion for a population nearly 10 times bigger.
Despite receiving substantial aid, half of Niger’s population lives below the poverty line, surviving on less than $2.15 a day. The country faces frequent food shortages and ranks poorly on human development indices.
Role of International Organizations
International organizations, such as the World Bank, have been long-standing supporters of Niger, funding various projects on the ground. A significant portion of this financial support is in the form of military aid to combat jihadist forces associated with al-Qaida and Islamic State-affiliated groups. Several Western countries, including France, have stationed troops in Niger to assist in this effort.
Foreign aid constitutes a quarter of Niger’s public spending, and international aid, in the form of donations or loans at favorable rates, accounts for 9% of its GDP. However, only 62% of Niger’s budget is funded domestically, according to the European Union.
Aid Suspension Announcements
Following the coup, several countries have announced the suspension of aid to Niger:
- France was the first to announce the suspension of development aid, which amounted to $131.6 million in 2021.
- Germany followed suit by suspending a two-year aid package worth $131.6 million, although food aid will continue.
- The United Kingdom will maintain critical humanitarian aid while suspending long-term development aid.
The European Union’s foreign policy chief, Josep Borrell, has declared the immediate suspension of budgetary support and security cooperation with Niger. The EU’s aid package for 2022-2026 is valued at $2.5 billion.
As of now, the United States has not made any official statements regarding the suspension of its aid to Niger. However, U.S. Secretary of State Antony Blinken emphasized that aid is contingent on maintaining “democratic governance.” The U.S. aid to Niger for 2023 is set at $233 million.
In addition to aid suspension, West African nations have imposed an economic blockade on Niger. The World Bank has also announced the suspension of aid, excluding private-sector partnerships, until further notice.
Economic Consequences
Niger’s Prime Minister, Ouhoumoudou Mahamadou, expressed concern over the potential consequences of aid suspension, referring to it as “hara-kiri” or ritual suicide. He warned that sanctions would be disastrous for the country.
While it remains uncertain if all aid will completely cease, economist Dominique Fruchter suggests that aid may not disappear entirely, based on previous experiences in other countries. For instance, in Mali, where a military junta defied international condemnation of their coup in 2021, some programs funded by the World Bank have continued.
Nevertheless, the announced aid cuts will have a severe impact on Niger’s economy. The new regime may rely on the upcoming launch of a new oil pipeline by the end of the year to offset some of the lost international aid. According to estimates from the previous government, increased oil extraction is expected to boost the country’s GDP.
SDGs, Targets, and Indicators in the Article
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 1: No Poverty
- SDG 2: Zero Hunger
- SDG 3: Good Health and Well-being
- SDG 8: Decent Work and Economic Growth
- SDG 16: Peace, Justice, and Strong Institutions
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
- SDG 2.1: By 2030, end hunger and ensure access by all people, in particular, the poor and people in vulnerable situations, including infants, to safe, nutritious, and sufficient food all year round.
- SDG 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services, and access to safe, effective, quality, and affordable essential medicines and vaccines for all.
- SDG 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries.
- SDG 16.6: Develop effective, accountable, and transparent institutions at all levels.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
While the article does not explicitly mention indicators, we can infer some potential indicators based on the information provided:
- Indicator for SDG 1.2: Proportion of the population living below the national poverty line.
- Indicator for SDG 2.1: Prevalence of undernourishment and the proportion of the population with access to adequate food.
- Indicator for SDG 3.8: Coverage of essential health services and access to affordable essential medicines.
- Indicator for SDG 8.1: Annual growth rate of real GDP per capita.
- Indicator for SDG 16.6: Existence of effective, accountable, and transparent institutions at all levels.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions. | Proportion of the population living below the national poverty line. |
| SDG 2: Zero Hunger | Target 2.1: By 2030, end hunger and ensure access by all people, in particular, the poor and people in vulnerable situations, including infants, to safe, nutritious, and sufficient food all year round. | Prevalence of undernourishment and the proportion of the population with access to adequate food. |
| SDG 3: Good Health and Well-being | Target 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services, and access to safe, effective, quality, and affordable essential medicines and vaccines for all. | Coverage of essential health services and access to affordable essential medicines. |
| SDG 8: Decent Work and Economic Growth | Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries. | Annual growth rate of real GDP per capita. |
| SDG 16: Peace, Justice, and Strong Institutions | Target 16.6: Develop effective, accountable, and transparent institutions at all levels. | Existence of effective, accountable, and transparent institutions at all levels. |
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Source: voanews.com
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