Aid hits record in 2008, targets in danger-OECD
LONDON, March 30 (Reuters) - Development aid from the world's biggest donors rose to a record level in 2008 but they will need to make substantial efforts to meet targets for 2010 because of the economic crisis, the OECD said on Monday.
The 22 member countries of the Organisation for Economic Cooperation and Development gave $119.8 billion in development assistance - which includes funding for programmes to boost education, healthcare and economic growth - in 2008.
That represented a rise of 10.2 percent from 2007 in real terms. Aid from OECD donors had fallen in the previous two years, partly due to the end of large debt relief packages.
Despite last year's increase, donors would need to add at least $10-15 billion to their forward spending plans to meet their 2010 commitments for boosting aid, the Paris-based OECD said in a statement.
"Only a special crisis-related effort can ensure that the 2010 targets for aid are met, which is even more important now that the economic crisis is reducing developing countries' growth prospects and their ability to make progress towards the Millennium Development Goals," it said.
At the 2005 Gleneagles G8 summit, major donors pledged to double aid by 2010 - amounting to an extra $50 billion globally, including $25 billion for Africa. The Millennium Declaration to reduce world poverty was agreed by world leaders in 2000.
DANGEROUS BURDEN
The OECD said the financial crisis was having a "serious impact" on poor nations as world trade experienced its biggest decline in 80 years and commodity prices and remittances fall. Aid must play an important role in balancing the sharp reversal of financial flows to developing countries.
"Aid cuts at this point in time would place a dangerous additional burden on developing countries already faced with restricted sources of income and increased poverty, and perhaps undo some of the progress already made towards meeting the Millennium Development Goals," it said.
Excluding volatile debt relief grants, bilateral aid to Africa from OECD donors rose 10.6 percent in real terms in 2008. Net assistance totalled $26 billion in 2008, of which $22.5 billion went to sub-Saharan Africa, the OECD said.
Oliver Buston, director of ONE Europe, an anti-poverty campaigning organisation founded by rock star Bono and other activists, said the 2008 aid increase must be accelerated to stop recent gains against poverty being undone.
"The downturn demands these resources be frontloaded - and complemented by innovative financing measures at the G20 summit," Buston said.
U.N. Secretary-General Ban Ki-moon has urged leaders of the world's most powerful economies to support a $1 trillion stimulus plan for developing countries when the G20 meet in London on Thursday.
Major donors have repeatedly committed to raise their aid spending to 0.7 of their gross national income (GNI), but some countries - including the United States and Japan - are still giving far less. OECD donors gave 0.3 percent of their combined national income in aid in 2008. (Reporting by Megan Rowling, editing by Farah Master)
The 22 member countries of the Organisation for Economic Cooperation and Development gave $119.8 billion in development assistance - which includes funding for programmes to boost education, healthcare and economic growth - in 2008.
That represented a rise of 10.2 percent from 2007 in real terms. Aid from OECD donors had fallen in the previous two years, partly due to the end of large debt relief packages.
Despite last year's increase, donors would need to add at least $10-15 billion to their forward spending plans to meet their 2010 commitments for boosting aid, the Paris-based OECD said in a statement.
"Only a special crisis-related effort can ensure that the 2010 targets for aid are met, which is even more important now that the economic crisis is reducing developing countries' growth prospects and their ability to make progress towards the Millennium Development Goals," it said.
At the 2005 Gleneagles G8 summit, major donors pledged to double aid by 2010 - amounting to an extra $50 billion globally, including $25 billion for Africa. The Millennium Declaration to reduce world poverty was agreed by world leaders in 2000.
DANGEROUS BURDEN
The OECD said the financial crisis was having a "serious impact" on poor nations as world trade experienced its biggest decline in 80 years and commodity prices and remittances fall. Aid must play an important role in balancing the sharp reversal of financial flows to developing countries.
"Aid cuts at this point in time would place a dangerous additional burden on developing countries already faced with restricted sources of income and increased poverty, and perhaps undo some of the progress already made towards meeting the Millennium Development Goals," it said.
Excluding volatile debt relief grants, bilateral aid to Africa from OECD donors rose 10.6 percent in real terms in 2008. Net assistance totalled $26 billion in 2008, of which $22.5 billion went to sub-Saharan Africa, the OECD said.
Oliver Buston, director of ONE Europe, an anti-poverty campaigning organisation founded by rock star Bono and other activists, said the 2008 aid increase must be accelerated to stop recent gains against poverty being undone.
"The downturn demands these resources be frontloaded - and complemented by innovative financing measures at the G20 summit," Buston said.
U.N. Secretary-General Ban Ki-moon has urged leaders of the world's most powerful economies to support a $1 trillion stimulus plan for developing countries when the G20 meet in London on Thursday.
Major donors have repeatedly committed to raise their aid spending to 0.7 of their gross national income (GNI), but some countries - including the United States and Japan - are still giving far less. OECD donors gave 0.3 percent of their combined national income in aid in 2008. (Reporting by Megan Rowling, editing by Farah Master)
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