Dvelopment Finance Information
November 10th, 2009 by admin
At their 2005 summit in Gleneagles, Scotland, the G-8 committed to raise aid by US$50 billion; but are still US$31.4 billion short. Aid fell by 8.4 per cent in 2007, after a 4.7 per cent fall in 2006.
Debt relief under the Heavily Indebted Poor Countries (HIPC) initiative and Multilateral Debt Relief initiative (MDRI) dominated aid over the last two years. It is questionable whether this debt relief should really count as ODA since the debts are unlikely to have been repaid (an issue discussed in our book).The G-8 committed to raise ODA to US$130 billion by 2010 at the Hokkaido summit this year. Will it happen? Bailing out the banking system will put pressure on aid budgets, although ODA is actually tiny in comparison.
Thus the US government is spending US$700 billion to help the financial system, while US aid was $22 billion in 2007. The so-called ‘new donors’ such as India and China will make their presence felt at Doha, and there is a drive to encourage them to become OECD-DAC members.
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