Global Policy Forum

This article takes on Ethiopia's multiple problems that hinder the world's poorest country from achieving self-sufficiency. Huge military expenses, a missing land reform and 150 religious holidays a year fail to provide the necessary political framework. Although essential to keep people alive, food aid from rich countries has destroyed the local market prices. Nowadays, Ethiopians follow the aid convoys "the way they once followed rain clouds." (Der Spiegel)

The international response to natural disasters such as the South Asian Tsunami, Hurricane Katrina in the US and the earthquake in Pakistan was neither prompt nor coordinated enough. Britain's Chancellor of the Exchequer Gordon Brown and Secretary of State for International Development Hilary Benn point out the dire need for better funding for UN agencies. Countries should increase their donations to the UN's Central Emergency Revolving Fund and the UN Office for Coordination of Humanitarian Affairs. Additionally, the International Monetary Fund and the World Bank should offer emergency assistance to disaster-struck countries. (International Herald Tribune)

According to the UN report "World Economic and Social Survey 2005," if rich countries keep their promises, Official Development Assistance will increase to $130 billion by 2010. Many NGOs say that these additional funds will come too late, and poor countries will not reach the Millennium Development Goals. However, this article stresses that focusing the debate only on dollar amounts, distracts from the "systemic" problems in the global economy. (Inter Press Service)

Non-profit organizations are concerned that "donor fatigue" may limit relief resources for the South Asian earthquake. Indeed, the earthquake happened in the same year as the tsunami and hurricane Katrina, to which donors responded generously. A day and a half after the earthquake, donations were about 10 percent of what they were for the tsunami in the same period. (Chronicle of Philanthropy)

In many cases, international aid has not been successful in fighting poverty and promoting development mainly because projects were "not always aligned with a country's priorities." As this article insists, a good aid strategy should promote more accountability and also emphasize community participation. "Aid should be channeled directly to people rather than governments." (One World)

This piece from the conservative Cato Institute, using badly designed projects as examples, argues that aid cannot promote development. The author takes a rather cynical view of people, arguing that humanitarian aid, "at least from a statistical standpoint", exacerbates poverty by improving poor people's longevity. He finds that the ineffectiveness of aid stems from the dependency it creates, the bureaucratic growth of the "aid industry" as well as faulty institutions in poor countries. Despite acknowledging aid's humanitarian value, the author appeals to governments to reject the UN's call for doubling aid. (Cato Institute)

This working paper from the European Commission analyzes two different approaches to aviation taxes to finance development. Depending on whether governments make the tax mandatory or voluntary for passengers, the OECD Development Aid Committee could regard the revenues as official development assistance (ODA), allowing governments to escape responsibility to direct a larger part of national income to ODA. The report also stresses the importance of coordination among European members to express solidarity with developing countries.

This Humanitarian Policy Group report notes the growing diversity of countries giving humanitarian assistance. The author rebukes countries that prioritize aid to certain countries for political and ideological reasons. To counter this criticism, donor countries could coordinate efforts to make their intentions and allocations clear to the public so that humanitarian aid retains its legitimacy.

Fighting poverty requires more than just giving money. This report by the Center for Global Development analyzes the development financing pledges of the 21 richest countries, studying their policies on trade, investment, aid, and the environment. Not surprisingly, the US ranks among the countries that give the least amount of aid, but ranks high in the category of trade. Denmark and Norway top the list of nations contributing the most aid.

In an attempt to polish its public image, Japan is taking steps to boost its development assistance budget that has been shrinking for the past four years. Japan's move comes as the government seeks support from African countries for its bid to gain a permanent seat in the UN Security Council. (Inter Press Service)

Rich countries prefer to give aid "on the basis of news headlines and political priorities instead of need," and West Africans are paying the price, contends this Oxfam International press release. While Iraq receives on average $91 per person in aid per year, Niger, a much poorer country, gets just $12 per person. As a result, African nations are extremely vulnerable to hunger crises.

This Institute for Agriculture and Trade Policy research report provides a critical assessment of current food aid programs, particularly those of the US. According to the report, the US practice of providing commodities instead of cash aid is inefficient, expensive and slow, and benefits primarily US shipping and agribusiness companies as well as NGOs that act as food brokers to fund their development work.

In a statement to the General Assembly, Italian Ambassador Marcello Spatafora accused the G-4 countries of blackmailing countries into supporting their bid for Security Council permanent seats by leveraging aid money. Expressing outrage at the "improper and unethical behavior," Spatafora asked the GA to start a formal investigation on the matter. This "rare public attack by one European Union member against another" serves as an indicator of rising tensions and rising stakes over Council reform debates. (Associated Press)

In January 2003, the British government proposed establishing an International Finance Facility (IFF) that would raise new funds for development by issuing bonds on international capital markets. In this Global Policy Forum briefing paper, Jens Martens argues that the proposed IFF could actually produce more harm than good if the facility does not receive additional funding through global taxes or increased development budgets. Furthermore, governments and NGOs from poor countries should be able to participate in decision-making at the IFF, and the facility should work towards reducing conditions attached to development assistance.

Governments and individuals around the world responded to the 2004 Asian tsunami disaster with unprecedented generosity, pledging about US$13 billion in aid for the victims. But the pace of rebuilding has been slow, and local NGOs are now criticizing the rehabilitation efforts for being poorly targeted and favoring "big business" and the tourism industry at the expense of local communities. (Inter Press Service)

This Eurodad briefing paper provides a critical analysis of the G8 Gleneagles Summit outcome document. Eurodad commends the communiqué for addressing the need for more and better development assistance, but criticizes its vague language. The document contains only sketchy information on how much aid rich countries will make available, and what conditions poor countries will have to meet to receive any new aid. It also lacks means of enforcement to make rich countries accountable for their promises.

At the Group of Eight summit in Gleneagles, Japan announced that it would sizably increase its foreign aid budget by $10 billion over a five year period. Japan's current official development assistance rate lies at 0.19% of gross national income, below the UN's 0.7% target for member states. The decision to increase aid is likely a move to "make the country's presence felt as it seeks to win a permanent seat on the UN Security Council," says Finance24.

The European Union's announcement in May that it would double foreign aid was met with cheers from non-profits and the UN alike. This article examines the real forces behind international aid, and what this increase actually means-with no change in the terms of trade between rich and poor, perhaps it's nothing to shout about after all. (Guardian)

The world's richest nations greatly exaggerate their aid to poor countries, according to a report released by ActionAid International. The report states that two-thirds of the money donated by developed countries is "phantom aid"-it is not genuinely available for poverty reduction. Usually, wealthy countries divert Phantom Aid for other purposes within bureaucratic aid systems, such as excess administration costs, double-counting aid as debt relief, tying aid to certain goods from the donor country, and failing to fulfill aid pledges.

UN Under Secretary General for Humanitarian Affairs Jan Egeland claims that wealthy donor countries show favoritism, based on language, on who gets what in international aid. He finds that donor countries give English-speaking countries in Africa preferential treatment over French- and Portuguese-speaking countries. Consequently, donor countries "shut their eyes" to continuing crises in Northern Uganda, Mali, and Niger, "preferring to focus on high profile crises that are guaranteed public and media attention.'' (Inter Press Service)

This Global Campaign for Education research report addresses rich countries' contributions to universal primary education, issuing "school report cards" to political leaders on the quantity and quality of education aid they provide to poor countries. Despite some improvements, most rich countries still fail to deliver, and the report places five of the powerful G7 countries in the bottom half of the class.

The European Union has announced a series of proposals to increase EU spending and quality of development assistance. According to the new plan, the 15 old EU member states would increase their aid spending to 0.51 percent of gross national income by 2010, and to 0.7 percent by 2015. The 10 new member countries should reach an interim target of 0.17 percent by 2010. Development NGOs called the new proposals a "step in the right direction," but said that the level of ambition is not high enough. (Inter Press Service)

Official development assistance from member countries of the Organization for Economic Cooperation and Development (OECD) rose to a record level of US$78.6 billion in 2004. While most countries reported increases in assistance, only five - Denmark, Luxembourg, the Netherlands, Norway and Sweden - reached the 0.7 percent target of gross national income that the UN set in 1970. (Inter Press Service)

Five years after the Millennium Declaration, it is clear that most countries will not be able to achieve the Millennium Development Goals without an aggressive new approach. This report from the International Cooperation for Development and Solidarity (CIDSE) recommends that developed countries promote a more equal distribution of global wealth through the cancellation of unsustainable debt, the dedication of a minimum of 0.7% GDP in aid, and the implementation of global taxes such as a currency transactions tax and an aviation fuel tax.

Jeffrey Sachs, the director of the United Nations Millennium Project, argues in his forthcoming book that "our generation [...] can choose to end extreme poverty by the year 2025." However, reaching this goal requires that rich countries, especially the US, significantly increase the amount of foreign aid. "The richest and most powerful country [...] is barely participating in global efforts to end poverty and protect the environment, thus undermining its own security," Sachs says. (Guardian)

Paris Declaration on Aid Effectiveness (March 2, 2005)

During a High Level Forum in Paris, over 100 donor and partner countries signed this declaration to reform development aid. Although the Paris Declaration on Aid Effectiveness (PDA) is not legally binding, it has steered the development agenda with "buzzwords" such as "ownership, harmonization, alignment, results and mutual accountability." Many NGOs have criticized the PDA for being too focused on results, incomprehensible for the civilian population, and primarily driven by donor interests. (OECD)

Rich countries increasingly agree on the need to boost foreign aid, but will it be enough to eradicate poverty? According to this joint report from Oxfam and ActionAid, the answer is no, unless donors also show commitment to reform the aid system. Currently, just one fifth of aid funds actually goes to the very poorest countries, and only a half to basic services such as education and health care where aid could make a decisive difference in ending poverty.

The United Nations urges governments to live up to their pledges to help the Asian tsunami victims. Thus far, little more than a third of the promised $977 million has reached the world body. The organization also asks donors to convert their pledges into hard cash instead of sending material aid, such as food, clothing and building materials. (Associated Press)

This article comments on international disaster relief trends such as government failure to pay promised amounts and a lack of attention to long term recovery. The authors suggest that donor governments should pay mandatory assessments to UN relief agencies so that these agencies do not have to wait for voluntary contributions. Furthermore, relief efforts should include precautions to lessen the probability of a future disaster of equal magnitude to the 2004 tsunami. (British Medical Journal)

The US government has pledged $350 million to help the Asian tsunami victims. But more than 70 % of it will probably stay in the US, because the government requires aid distributors to purchase most relief materials and services from US companies and agencies. According to Foreign Policy in Focus, this kind of "corporate welfare" undermines the humanitarian purpose and the overall effectiveness of assistance.

In a follow-up report on the December 2004 tsunami relief efforts, Oxfam called for an accreditation system between national governments and the UN to ensure that aid agencies appropriately approach the tasks at hand. The report also urged NGOs to consult more with local communities in planning relief. The UN Office for the Coordination of Humanitarian Affairs, which would spearhead such a system, praised the outpouring of relief for the tsunami and welcomed the suggestions for better organization. (Guardian)

During his first term as US President, George W. Bush promised to boost funding to combat global poverty and HIV/AIDS, saying he carried "this commitment in his soul." Now, three years later, the aid has fallen billions of dollars short of what Bush originally pledged. (Wall Street Journal)

Commenting on the UN Millennium Project report, this article asks if governments will show enough political commitment to meet the Millennium Development Goals. It has been 35 years since the General Assembly first urged countries to spend of 0.7% of their gross national product on international aid. So far, only five countries have met that target. (Inter Press Service)

Shortly after Iran's 2004 earthquake and the devastating effects of Hurricane Mitch in Honduras, governments and aid agencies poured out sympathy and support, promising not only to "build back better," but assuring long term aid. In spite of noble pledges, the aid never reached affected areas, and the long-term pledges ended with money withdrawal after reduced media attention. (New York Times)

The US leads global economic aid in terms of amount but falls dead last in terms of percentage of national income. This International Relations Center article says the reason is the growing strategic link between aid and the "war on terrorism," as seen by economic aid to countries such as Iraq, Afghanistan, Poland (part of the coalition in Iraq) and Indonesia (a Muslim ally). But recipients be warned, says the author: US pledges likely end in broken promises.

The US has increased its initial pledge for the tsunami disaster from $35 million to $350 million, but the US Congress will not approve further emergency funds to expand the annual aid budget. The Bush administration, which remains firm on following through with national tax cuts, will move aid away from other famine and poverty stricken countries. (New York Times)

After learning from past experiences, both the United Nations and relief groups express skepticism about whether donor countries and institutions will follow through on their pledges of $2.5 billion to tsunami disaster relief operations. Another aspect of concern is donor nations' short attention spans on pledges. Aside from emergency aid, governments and development institutions need to focus on long-term goals and follow their promises of directing 0.7% of their gross domestic product to official development assistance. (Inter Press Service)

This publication by the Food and Agricultural Organization (FAO) provides broad information about food aid. By looking at the diverse forms in which such aid is provided, FAO demonstrates that most food aid remains tied to donor countries' interests. The report encourages organizations and governments to monitor and evaluate carefully food aid's distorting effects in recipient countries.

Three member countries of the Organization for Economic Cooperation and Development propose that the organization redefine peacekeeping operations and training of foreign armies as development aid. Non governmental organizations raise concerns that the already all-time low official development assistance will decrease further, as countries "artificially boost their aid budgets" by allocating money for military spending. (Guardian)

Oxfam International warns that unless rich countries comply with their pledges of official development assistance (ODA), global poverty and hunger will increase dramatically and therefore render the fulfillment of the Millennium Development Goals impossible. The organization criticizes rich countries, not only for giving less and less aid, but also for benefiting from ODA by tying aid money to self-serving requirements. (Common Dreams)

While 50 percent of the World Food Programme's funds go to Islamic countries, the organization's funding mainly comes from Western donors. This Wall Street Journal piece argues that the post-9/11 political environment has brought about an opinion shift in Islamic countries towards a more positive view of international aid organizations. The article cites increased scrutiny on donations to Islamic charities and Islamic governments' will to improve their image in the West as reasons for this change.

Jeffery Sachs, economist and Special Adviser to UN Secretary General on the Millennium Development Goals, advocates increased official development assistance and African debt cancellation. While donors and governments question whether aid actually works, Sachs argues that rich countries need to "push" poor countries out of poverty by significantly increasing aid money. This New York Times piece portrays Sachs as a "preacher" of the "push theory" in international aid and a convert from "shock therapy theory," used in transitions to the market economy in order to foster development.

The 2004 World Disasters Report criticizes governments and aid agencies for failing to listen to people on the "front line." Aid agencies need to consider local human resources and "help people to help themselves." The report states that aid too often fuels "disaster victim cliché" and portrays affected people as powerless. (Associated Press)

This article explores how British companies with the support of Britain's Department for International Development (DfID), push for water privatization in South Africa's poorest urban areas. The author criticizes Britain's export of water privatization models and accuses the DfID for breaking the law by linking aid money to specific British business interests. (Guardian)

The Bush Administration has been arm-twisting countries into signing bilateral agreements, which protect US citizens from International Criminal Court prosecution, by suspending foreign aid to those countries that do not cooperate. Several nations complain that such tactics set two standards of justice-one for "the bully" and one for the rest of the world. The author says withholding aid to certain countries that help fight the "wars on drugs and terrorism" harms the US as well. (Newsday)

This article looks at modern foreign aid and argues that this undemocratic and paradoxical "industry" has "become a problem posing as a solution." In search of a better aid strategy, the author suggests implementing "solidarity transfers" similar to those in the European Union as a means to maore fair and democratic public redistribution of aid. (Le Monde diplomatique)

The effects of Bangladesh's monsoons will be devastating because of the country's weak physical infrastructure and poor healthcare systems. For this reason, the UN presence and assistance is critical for the survival of thousands of people. (Boston Globe)

The Millennium Challenge Corp. is a Bush administration initiative aimed at making foreign aid more "effective" by evaluating and rewarding recipients. Through the Millennium Challenge Corp. the administration hopes to create "a sense of competition" among recipient countries so that they "improve their performance." The program means that those who do not comply with US policies can't get aid money. (Washington Post)

This study reveals a strong correlation between short-impact aid and growth and argues that the relationship does not depend significantly on the presence of "strong institutions." These findings are crucial considering that the current aid policy debate increasingly focuses on thwarting aid to countries that don't fulfill donors' expectancies of creating "strong democratic and market institutions". (Center for Global Development)

Donors increasingly link international aid to the analysis of "poor" or "good" country performance. This paper stresses that such concepts are flawed. "Poor performance" per se is not the problem, but the effect of weak national institutions combined with the inadequacy of donors to address problems integrally. (Overseas Development Institute)

The Bush administration has championed the fight against AIDS as one of its primary humanitarian endeavors. However, the methods it enlists, including non-generic drug treatment and abstinence-based prevention programs, are an inefficient way to address the epidemic. These strategies are not prioritized by other healthcare groups, who had hoped for multilateral cooperation in fighting the epidemic. As a result the US efforts are seen as another unilateral exertion of values and power. (New York Times)

Mongolian education tends to be "confined to wealthy urban areas," thereby failing to reach the rural poor. To address this, the Japan Fund for Information and Technology is beginning a computer-based program that will bring educational opportunities to rural areas. The fund hopes that such a program will bring new skills and economic opportunities to these communities. (Asian Development Bank)

Most donor countries give foreign aid conditionally, with stipulations guaranteeing that recipient governments will spend it on the donor's products or services. By minimizing competition and ability to purchase local or discounted material, this "tied aid"-- which accounts for 80% of US foreign aid and over 60% of Canadian aid--greatly diminishes recipients' autonomy and raises the costs of development projects. (Inter Press Service)

The US has stepped up its 20 year old "political aid and propaganda campaign to unseat Castro." The new international aid measures, which include a council to promote private business, "democracy promoting programs," and tighter travel and currency restrictions are intended to stimulate political transition and move Cuba into capitalism. (Interhemispheric Resource Center)

England is one of the "leading bilateral donors promoting direct budget support straight to governments with limited capacity." Though the British Development Department feels that this aid strengthens recipient governments and government programs, NGOs argue that it hinders their work and is ill appropriated, thereby causing more harm than benefit. (OneWorld)

The rhetoric of "with or against us," spread by the ongoing global "war on terror," is used as a tool by the world's richest countries whose polarizing logic is penetrating even the field of international aid. This Christian Aid report examines how donor countries base policies on strategic security interests, returning to the trends of the Cold War. (Christian Aid)

More than 600,000 women and children in Namibia face a deadly combination of severe poverty and food deficits, a worsening AIDS epidemic and erratic weather. The failure of donor governments to "come forward with any money" worsens this situation, which is ultimately crippling Namibia's social system. (News 24)

Aid agencies argue that the European Union (EU) must redouble its anti-poverty commitments to meet the Millennium Development Goals. Hans Zomer from the Irish national network of development charities criticizes the EU for spending just 0.35 percent of its GNP in 2003 on overseas aid, while 600 million children live in poverty. (Inter Press Service)

International aid from Britain is supplied to poor countries on the proviso that recipient governments privatize their services such as water and healthcare. A new report from "War on Want" argues that multinationals' profit-drive, repeatedly results in their failure to deliver good quality services to the world's poor. (Guardian)

The 'global gag rule,' reinstated by Bush in 2001, prohibits USAID from giving funds to organizations that perform abortions, educate patients on abortion or advocate to change abortion laws in their country. Some Kenyan family planning organizations have already closed due to these funding cuts, exacerbating the already high maternal mortality rate in this area. (Women's e-News)

In 2004, the US government will launch the Millennium Challenge Account. In this new foreign aid program, the US will grant funds only to "just rulers" in governments that welcome foreign investors. Countries like Bolivia, where a popular uprising forced out pro-US President Lozada, may have disqualified themselves. (Associated Press)

Some countries in Latin America receive more money from remittances sent by relatives living in North America than from foreign aid. The Washington Post dubiously claims that remittances constitute a "fully functioning system of wealth redistribution," and that they offer the "most powerful argument" against involving governments in a "new hemispheric social contract."

The levels of US foreign aid are based on self-interest not altruism. ABC News shows that this aid can never buy allegiance, but only temporarily rent friends.

The link between poverty and terrorism creates an interest in worldwide poverty reduction programs. Although the US wants to fight terrorism and poverty, it still seems reluctant to increase its development aid. (New York Times)

Britain's Chancellor of the Exchequer Gordon Brown argues for a "Marshall Plan" directed to long-term investments in the developing world. Gordon gives his view on what the developing world needs and how poverty reduction strategies can be improved. But where are the developing countries in this plan? (Washington Post)

The OECD presents the latest figures on Overseas Development Assistance (ODA) and other financial flows. Official funding for development was the lowest since 1990 but ODA flows in real terms changed little from 1999, down just 0.4%. (OECD)

Hit by recession and debt, Japan has been trimming its ODA budget. Though some worry that this may hurt Japan's influence in the region, recipient countries such as Vietnam have kicked their lobbying efforts into high gear to make sure they get their fair share of the pie. (Far Eastern Economic Review)

European Commission President Romano Prodi says that rich nations must increase foreign aid and follow their guidelines aimed at channeling 0.7 percent of GDP to poor countries. Otherwise the world will face more terrorism and North-South conflict. (International Herald Tribune)

UN Secretary-General Kofi Annan appeals for improvement of humanitarian assistance and protection to help victims of conflict and natural disasters. Annan calls for increased financial and political support from the Member States to meet these goals.(UN Integrated Regional Information Networks)

World Bank and International Monetary Fund sum up the weekend meeting with a plea for increasing aid to developing countries. According to the World Bank's President James Wolfensohn, more countries, except the US, now realize that aid "is not just charity; it's self interest". (Washington Post)

In the aftermath of World War II, U.S. aid to war-torn European countries allowed them to rebuild their economies. What the world needs now, argues the author, is another Marshall Plan that will reorient impoverished societies towards modernity. (Newsweek, Atlantic Edition)

Declining aid and rapid trade liberalization, have made sub-Saharan Africa poorer today than twenty years ago, UNCTAD reports. Greater external financing and a "bold approach to debt relief" are necessary for economic growth and poverty reduction. (UNCTAD Press Release)

Pakistan agreed to enact Freedom of Information Act as a conditionality to obtain loan of US $130 million from the Asian Development Bank. While the transparency of information may help public institutions to become more responsive to citizens needs, it is likely to open a developing economy like Pakistan to international scrutiny, especially of developed nations. (Dawn)

In formulating development policies, most African governments have relied on the dictates of Western donors for decades. The foreign technical assistance brought rapid expansion of secondary and tertiary education. However, its mismatch with the sluggish economic growth led to the unemployment crisis. (The Nation)

Rethinking ODA: Towards a Renewal of Official Development Assistance (April 2001)

We already know that when it comes to foreign aid, the US is the world's least generous donor. But it gets worse. This Washington Post article reveals that much of US development aid benefits US citizens and the US "development business," rather than those most in need. (Washington Post)

Senator Jesse Helms, long a critic of foreign development assistance, stated that he would lead a movement to increase foreign aid, but only if it was channeled through private and religious groups rather than the United States government. (New York Times)

World Bank president James Wolfensohn called current levels of official development assistance "a crime". The situation of a strong world economy should be used to increase aid to developing nations. But at the same time he rejected a total cancellation of debt. (BBC)

A doubling of today's development aid could trigger a virtuous circle of rising investment and increased consumption in underdeveloped countries in Sub-Saharan Africa, an UNCTAD study says. These countries' aid dependence could be ended within a decade.(UNCTAD Press Release)

Though the EU has announced a shift in aid allocation to need and merit-based criteria in future agreements, a report analyzing recent criteria for allocating EU ODA , has reflected a tendancy to make awards based on member state interests. (Interpress Service)

A study by World Bank economists Craig Burnside and David Dollar that examines the relationship between foreign aid, economic policies, and growth of per capita GDP. They conclude that aid has a positive impact on growth in what they call a "good" policy environment. (American Economic Review)

This article highlights the dearth of foreign aid and public contributions to Africa, as opposed to well publicized crisis spots such as Kosovo.

In an interview with UNDP's Choices, Secretary General Annan says donors must continue financing for development and not divert funds for emergency relief.

"Highly disparate aid delivery systems within each country... creates aid dependence and undermines ownership by the country." It is clearly time to rethink development assistence. (Overseas Development Council)

This New York Times editorial emphasizes the importance of foreign aid for global security and calls on Congress to fully approve Clinton's "modest" foreign aid request.

A New York Times article about the House's proposed foreign aid bill.

New York Times article on an appeal, by UN Secretary-General Kofi Annan, for world leaders of industrialized nations to provide more aid to the developing world.

Extensive data on countries' ODA. From Global Futures Bulletin.