At the end of this year, Montserrat is expected to be removed from the global list of countries and territories eligible for official development assistance.
The Organisation for Economic Co-operation and Development’s Development Assistance Committee (OECD DAC) classifies who can receive financial aid, grants or concessional loans from developed nations.
In its list, the OECD DAC divides recipients into four income groups based on World Bank classifications: least developed, low income, lower middle income and upper middle income countries.
Currently, Montserrat sits in the last group, which includes nations with a gross national income per capita of between $4,466 and $13,845.
A decision will be made in October whether or not to remove Montserrat from the list, based on gross national income per capita data to be submitted by 1 July.
If the data shows that Montserrat is a high-income country as expected, it will be proposed for graduation as of January 1, 2026.
‘Accounting problem’
In the UK, the Foreign, Commonwealth and Development Office (FCDO) uses official development assistance to support and deliver its aid strategy in developing countries.
However, during a press conference on the UK’s recent budget support mission to Montserrat, the FCDO’s Adam Pile insisted that the move will not affect the amount of financial aid the island will receive.
“Ministers in the UK have been very clear that whilst Montserrat is graduating from eligibility to receive official development aid, that doesn’t mean we’re going to let Montserrat fall off a funding cliff,” he said.
“You have a commitment from our ministers in the UK, and you’ve got a new government in the UK who are very excited about working with Montserrat and the other overseas territories.
“They’ve been very clear that we will continue the funding for Montserrat. So in all honesty, it’s an accounting problem for me and my team in the government.”
Governor Sarah Tucker clarified that Montserrat will not be removed from the list for official development assistance until next year.
“We’re still getting official overseas aid at the moment, but that will change, and as Adam said, that’s an accounting issue,” she said.
The list can be viewed in full here.
