Its foreign minister told Reuters last month the country, which has one of the highest HIV/AIDS infection rates in the world, was already feeling the impact of the aid cuts as its health sector had been reliant on them.

“The biggest losers are Africa and Southeast Asia,” said Denton, adding the move “risks further damaging the development prospects of countries already facing worsening terms of trade.”

But the formula is also sowing confusion among rich countries. For the European…