Many developing nations in Central America and the Caribbean struggle to finance infrastructure, manage public debt, and improve human development indicators due to structural vulnerabilities and exposure to extreme weather events. To overcome these constraints, many receive official bilateral development assistance. This aid aims to support economic growth, strengthen governance, and reduce poverty.
Fig. 1 shows the bilateral aid per capita received by six countries in the region alongside their GDP per capita in 2022, presented as index figures.
Fig. 1: Index figures for bilateral aid per capita and GDP per capita 2022
| Country | Index of bilateral aid per capita (X) | Index of GDP per capita (Y) |
|---|---|---|
| Panama | 80 | 160 |
| Costa Rica | 95 | 150 |
| Dominican Republic | 110 | 110 |
| Guatemala | 250 | 85 |
| Honduras | 210 | 50 |
| Haiti | 450 | 15 |
Explain if the relationship in Fig. 1 between bilateral aid per capita and GDP per capita is the expected one.
