OECD estimates overall aid to sub-Saharan Africa increased by 10%

from African Business News

G7 aid levels fell 1% in 2007

* Japan, G8 hosts this year, see global aid levels plummet 24% to the lowest share of national income since 1964.
* Spain increased aid by 47%, Australia by 15%

Figures published by the OECD’s Development Assistance Committee* show that G7 official development assistance (ODA) levels fell by 1% in 2007, excluding debt relief**.

Non-G8 countries increased aid worldwide by 10.4% with several countries beginning to increase ODA sharply. Spain increased ODA by 47.6%, Australia by 15.6% and Norway by 12.4%, excluding debt relief.

ODA from all OECD countries rose 2.4%. OECD estimates that overall aid to sub-Saharan Africa increased by 10%.

DATA spokesperson Oliver Buston said:

“These aid figures are hugely disappointing. The world is dangerously off track in reaching the Millennium Development Goals and the richest countries are currently not playing their part. This should be treated as an emergency.

There are key events this year when decision makers can ensure we get back on track. The EU summit in June, the G8 in Japan, and the UN Emergency MDG meeting in September are moments when a step change must be made in the fight against global poverty.”

“If smaller economies like Spain and Australia can increase aid sharply, why can’t the world’s economic heavyweights? It is particularly disappointing to see Japan, this year’s G8 hosts, slipping off the scale.”

Among the G7 countries, the small overall decline in aid masks very mixed national performances.

United Kingdom:

ODA levels for 2007 fell 2% excluding debt relief, with aid to sub-Saharan Africa up only 1%. This is a disappointing but expected result for 2007 and has to be balanced against Britain’s clear three year budget commitment which will see aid levels rise in line with promises to increase aid to 0.7% of GNI by 2013.

France:

France’s total aid spending increased slightly in 2007, but its aid to sub Saharan Africa fell by 5% excluding debt relief. President Sarkozy has also indicated that he will no longer aim to meet his predecessor’s commitment to increase aid spending to 0.7% of GNI by 2012, instead aiming for the more modest EU target of 2015. The President must use the coming budget to get France on track to meet this new target. As EU President in the second half of the year, France has a critical role to play.

Germany:

Germany’s aid to sub-Saharan Africa increased by 12% in 2007, a year when Chancellor Merkel showed real commitment to fighting poverty. In absolute figures Germany now ranks third among donors worldwide excluding debt relief, but as a proportion of its economic power, Germanys’ ODA level is just 0.37% of GNI, up from 0.36% in 2006. The government is still a long way from the EU target of 0.51% by 2010 and will need to use the current budget negotiations to make further progress towards this goal.

Japan:

Japan’s performance is very disappointing. Total ODA fell 24% excluding debt relief in 2007, and the country simply failed to provide crucial data on debt relief for Africa, making it impossible to analyze its performance thoroughly. There is no sign in published budget projections that this decline is likely to turn around. At 0.17% of GNI, Japan’s ODA levels are their lowest share of national income since 1964. Japan, as host of the G8 in 2008, must turn this situation around very quickly

Italy:

Italy has recorded a 46.7% increase in development assistance in 2007 excluding debt relief, with aid to sub-Saharan Africa up 61%. However these increases did little more than offset massive falls in aid in 2006. Italy’s percentage of ODA to GNI was a mere 0.19%. The next Italian government will need to continue to increase aid sharply to stay on track to meet EU and G8 commitments and this will be a key issue of credibility when Italy hosts the G8 in 2009.

Canada:

Canada’s global ODA rose 4.3% in 2007 – however aid to Africa fell 9%, largely due to fluctuations in multilateral allocations. As the only G8 country in surplus and the host of the 2010 G8, this performance is particularly poor.

USA:

US foreign assistance globally fell 3.55 percent in 2007, largely due to declines in ODA to Iraq. For sub-Saharan Africa, while projections indicate that the US is likely to meet its pledge to double assistance to Africa by 2010, including an 8 percent increase this year, the pace has been slower than expected.

DATA’s European Director Oliver Buston said:

“We are more than half way between the historic MDG summit in 2000 and the target date of 2015 agreed by world leaders to halve extreme poverty. Progress by specific countries on specific goals shows we can achieve the goals, but collectively we are way off track to achieve that - in part because key G8 countries are not keeping their promises to help fund proven effective efforts.

Almost five thousand children die every day from severe diarrhea caused by dirty water. More than thirty million children in Africa don’t go to school. These are not problems that will solve themselves but they are problems that can be solved.”

Well designed assistance works.

- In Tanzania, debt cancellation and aid allowed the government to drop school fees and 3 million children enrolled almost overnight.

- In parts of Kenya, deaths from malaria have dropped by 40 per cent through simple bednet distribution programmes.

- Across sub-Saharan Africa, 1.3 million now have access to life-saving AIDS drugs.