Taxpayer-Funded Projects in Wealthy Areas

A recent report by the Institute of Economic Affairs (IEA) has revealed that British taxpayer-funded foreign aid is being allocated to regions wealthier than some parts of the UK, including projects in affluent areas of China, Mexico, and Malaysia. The study highlights that while many areas in Britain suffer from a lack of investment, UK Official Development Assistance (ODA) has been used to support initiatives in prosperous cities, such as Shanghai and Ordos, which have GDPs per capita exceeding those of numerous UK regions. The IEA's findings indicate that over the past five years, British aid has funded various projects, including a £200,000 initiative to promote an all-female opera in Shanghai and another aimed at fostering creativity in the same city. Notably, Ordos, a city in China, has a GDP per capita of £27,000, surpassing that of 69 regions in the UK. The report criticizes this spending as a “Robin Hood in reverse” and urges the government to reassess its international aid priorities to focus on genuinely impoverished areas. The report also points out that the current aid distribution contradicts the spirit of the International Development Act 2002, which emphasizes poverty reduction. The IEA suggests amending the act to restrict aid to regions with a GDP per capita below £10,914, ensuring that UK taxpayer money is directed towards the world’s poorest communities. The findings come amid ongoing debates about the effectiveness and allocation of the UK’s foreign aid budget, particularly following cuts to aid for countries facing severe crises.