[US] aid groups fear loss of poverty relief focus

from The Financial Times

By Guy Dinmore in Washington

US aid organisations are becoming more concerned that the Bush administration’s proposed federal budget for 2007, released this week, and its recent appointment of a foreign aid chief demonstrate a further shift away from long-term, poverty-focused assistance.

The 2007 foreign operations budget of $23.7bn – less than 1 per cent of the total federal budget – contains cuts in child survival and health, development assistance and disaster relief. Strategic allies are the main beneficiaries, but not through development spending.

Foreign military financing is the largest component, with a small increase to total $4.6bn. Excluding Iraq, the largest recipient remains Israel with $2.34bn, followed by Egypt with $1.3bn and Pakistan with $300m.

“This foreign assistance reorganisation coupled with new cuts will undermine long-term development goals that would improve America’s security and save the lives of millions around the world,” said Joanne Carter, legislative director of Results, an anti-poverty action group.

Last month Condoleezza Rice, the secretary of state, announced the appointment of Randall Tobias, a retired pharmaceuticals executive, to the combined new position of director of foreign assistance and head of USAID, the official aid agency. Mr Tobias, a big donor to the Republicans and friend of President George W. Bush, heads the US global anti-HIV-Aids campaign.

US priorities, set out by Ms Rice, are to “empower developing countries to strengthen security, to consolidate democracy, to increase trade and investment, and to improve the lives of their people”.