Britain has finally outlined a new aid strategy that will maintain to India while cutting support to some of the poorest parts of the world and ending its funding support for several international organisations.

Under the new plans unveiled this week, only Ethiopia and Pakistan will receive more aid than India up until 2015, with aid to 16 countries being scrapped.

Britain will spend an average of £280 million a year for the next four years in India, focusing on India's “poorest States and poorest people,” the Department of International Development announced in the review of bilateral aid, which began soon after the coalition-government took office last year.

Priority areas

The aid programme will adopt a new approach, involving sharing expertise, supporting innovation and building skills to ensure India's public and private resources go further.

Education and healthcare for the poorest women and children will get priority, as will working with the private sector to provide jobs and infrastructure in areas they were needed.

Bangladesh will get an average of £250 million pounds a year, while Pakistan will receive on average, £350 million a year; in the latter case the focus will be on building “peace and stability” in the region. Ethiopia will receive around £331 million pounds a year.

Under the proposals countries from Niger to Iraq and Vietnam will join China and Russia in being off the bilateral aid list, as Britain focused on countries where they could have significant long-term impact.

The International Development Secretary, Mr Andrew Mitchell, told MPs that it was right that Britain increased focus on helping countries build more open political systems (30 per cent of total aid will go to conflict-ridden and fragile states), as well as wealth creation.

Under a parallel review of multilateral funding, the government will halt payments to a number of organisations including the International Labour Organisation and the UN International Strategy for Disaster Reduction.

Controversial decision

In Britain, the move has proved controversial, with many questioning the logic of cutting aid to countries such as Niger and Burundi, which rank 167 and 166 out of 169 on the UNDP Human Development Index respectively.

Labour's spokesperson on international development Ms Harriet Harman asked for assurances that cutting aid to such countries was coordinated with other donors to ensure they weren't left high and dry.

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