By Will Dunham

WASHINGTON, May 8 (Reuters) - Egypt made the most progress among developing countries in cutting deaths of children under age 5 from 1990 to 2005 while Iraq deteriorated the most, a U.S.-based charity said in a report on Tuesday.

The humanitarian group Save the Children tracked child mortality trends in 60 developing countries during this period. Twenty either made no progress in reducing these deaths or had higher death rates.

These 60 countries accounted for 94 percent of child deaths worldwide, the report said. About 10.2 million children under age 5 die annually around the world -- 99 percent in developing nations amid poverty, disease and malnutrition -- with 28,000 deaths a day.

Nearly three-quarters of all such deaths were due to pneumonia, diarrhea and newborn disorders like premature birth, birth asphyxia and birth defects, the report said.

Deaths of children under 5 declined 68 percent in Egypt from 1990 to 2005, the report said. Iraq, gripped by war since a U.S.-led invasion in March 2003 and subjected to years of economic sanctions before that, had a 150 percent increase in child mortality, it added.

"Even before the latest war, Iraqi mothers and children were facing a grave humanitarian crisis caused by years of repression, conflict and external sanctions," the report said.

Wartime electricity shortages, insufficient clean water, deteriorating health services and soaring inflation have worsened already difficult living conditions, it said.

In 2005, it added, 122,000 Iraqi children -- one in eight -- died before age 5, half in the first month of life.

The report also ranked 140 countries for how good they are for mothers and children, based on a number of factors. Sweden, Iceland and Norway were on top. The United States placed 26th, tied with Hungary. Niger was last.

EGYPT'S SUCCESS

The report called Egypt a success story.

"They have invested in extending access to basic maternal, newborn and child health services," Save the Children health director David Oot told reporters.

"The country has aimed to reduce the fertility rate, reduce the maternal mortality rate and improve pregnancy outcomes. Since 1990, use of contraceptives has increased to nearly 60 percent, and the fertility rate has slowly declined from 4.3 to 3.1 births per woman," the report said.

Joining Egypt among the five most-improved were: Indonesia with a 60 percent lower child death rate amid major investments in public health; Bangladesh, 51 percent lower; Nepal, 49 percent lower; and the Philippines, 47 percent lower.

Joining Iraq among the nations whose child death rates deteriorated the most were Botswana, 107 percent worse; Zimbabwe, 65 percent worse; Swaziland, 45 percent worse; and Cote d'Ivoire, Kenya and Cambodia, all 24 percent worse.

Life-saving measures -- vaccines, oral rehydration therapy for diarrhea and insecticide-treated mosquito nets for malaria -- are inexpensive, but remain out of reach in many places, Save the Children chief Charles MacCormack said.

Nine of the 10 countries with the highest under-5 mortality rates are currently embroiled in or recently emerged from war.

The report said the highest child mortality rates are in Sierra Leone, with 282 deaths of children under 5 per 1,000 live births; Angola, at 260 per 1,000; Afghanistan, at 257 per 1,000; and Niger, at 256 per 1,000.

India leads the world with 1.9 million children under age 5 dying annually, the report said.

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