The United Nations 2030 Agenda for Sustainable Development covers 17 goals, the tenth of which is "Reduced inequalities", namely: Reduce inequality within and among countries. 

Under this major goal, there are ten targets, the ninth of which is "Encourage official development assistance and financial flows, including foreign direct investment, to States where the need is greatest, in particular least developed countries, African countries, small island developing States and landlocked developing countries, in accordance with their national plans and programmes".

● Current Situation

About the World

Official Development Assistance Declined Globally 

Financial assistance to the world’s 83 weakest economies fell by 15 per cent in 2020, to $35 billion as a direct result of the COVID-19 pandemic. According to UNCTAD’s World Investment Report 2021, total foreign direct investment also dropped by more than a third globally, to $1 trillion (from $1.5 trillion in 2019), threatening progress on sustainable development. According to UNCTAD’s latest report, investment to least developed countries, landlocked developing countries, and small island developing states, accounted for only 3.5 per cent of total foreign direct investment in 2020.

Text and photo source: un.org

About China

Foreign Aids in Diverse Forms 

China has provided other developing economies with even more aid in more diverse forms to boost common development. From 2013 to 2018, China allocated a total of RMB270.2 billion for foreign assistance in three categories – grants, interest-free loans, and concessional loans. Grants of RMB127.8 billion, accounting for 47.3 percent of the total, mainly went to help other developing countries build small and medium-sized social welfare projects and to fund projects for cooperation in human resources development, technical cooperation, material assistance, and emergency humanitarian assistance, as well as projects under the South-South Cooperation Assistance Fund. Interest-free loans of RMB11.3 billion, constituting 4.18 percent of the total, were mainly allocated to help developing countries construct public facilities and launch projects for improving local people's lives. Concessional loans of RMB131.1 billion, making up 48.52 percent of the total, were provided to help developing countries undertake industrial projects and large and medium-sized infrastructure projects that yield economic and social benefits, and for the supply of technical services, complete sets of equipment, mechanical and electrical products, and other goods and materials.

Text source: China's International Development Cooperation in the New Era

●  Cases

About the World

IMF Helping the Poorest Member Countries with Economic Crisis

The global economy suffered a heavy blow due to the COVID-19 pandemic. Facing extremely severe challenges, the International Monetary Fund (IMF) took action to provide debt relief to the poorest member countries through the trust for disaster control and mitigation, and expanded the limit of emergency loan mechanism under rapid credit and financing tools upon request, so as to strengthen crisis response capacity. In addition to exploring other ways to help IMF members face a shortage of foreign exchange loans.The IMF launched a fund-raising campaign to enable the trust fund for disaster control and mitigation to provide about $1 billion for the current pandemic. Ms. Kristalina Georgieva, Managing Director of the IMF, called on economically powerful member states to help replenish the trust fund for disaster control and mitigation, which currently provides only $200 million to the world's poorest countries.

Text source: un.org

About China 

Cameroon Solar Street Lamp Programme

Private sectors and research institutions are an important part of China's foreign aid. In 2012, the Chinese government donated 1.46 billion CFA francs (about US $3.02 million, 2014 price) to the Cameroonian government for the construction of solar energy demonstration projects. The Cameroonian government used this fund to install 409 solar street lights 15 on the road from Yaound é urban area to Yaound é Second University and on the university campus. Shenzhen Huawei Technology Co., Ltd. undertook the project.

In 2015, the Cameroonian government further expanded solar energy projects to other regions to provide more reliable and clean power supply. The Cameroonian government allocated 453 million CFA francs to build a 72kw solar power station in Mvomeka'a village, Dja et Lobo Province southern Cameroon, for street lighting in the village. The power station was the largest solar power station project in Cameroon. Huawei Technology Co., Ltd. once again became the contractor of the project.

Text source: China’s Renewable Energy Foreign Aid and International Development Cooperation

●  Background

Sustainable Development Goals (SDGs) Initiated by the United Nations

On 1 January, 2016, the 17 Sustainable Development Goals (SDGs), including 169 targets, of the 2030 Agenda for Sustainable Development — adopted by world leaders in September 2015 at an historic UN Summit — officially came into force. Countries will mobilize efforts to end all forms of poverty, fight inequalities and tackle climate change, while ensuring that no one is left behind.