OECD to increase foreign aid, curbing crisis effects
CHERYL M. ARCIBAL, GMANews.TV
04/09/2009 | 12:09 PM
MANILA, Philippines - The global recession has failed to prevent rich countries from cutting aid to poor ones.
The Organization for Economic Co-operation and Development (OECD) announced plans to increase its assistance for 2009, even after its financial aid to poor and developing countries reached the highest dollar figure ever recorded.
The move intends counter the ill effects of the global downturn particularly vulnerable countries, the thirty-member OECD said.
In 2008, total net official development assistance from members of the OECD’s Development Assistance Committee (DAC) rose by 10.2 percent in real terms to $119.8 billion, the highest dollar figure ever recorded.
“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 (MDGs)," the OECD said in a statement.
MDGs, a set of eight goals previously formulated by the United Nations, intend to halve global poverty, provide universal education, among others, by 2015.
The DAC is set to meet at the end of May to discuss the effects of the financial crisis on development in 2009 and thereafter, and how to create and support developing countries during the crisis.
During previous economic crises, aid has played a crucial role in expediting recovery of developing countries, citing the case of the Mexican debt crisis in 1982, when commercial lending was significantly reduced for about a decade but official development assistance (ODA) still rose, “playing a strong role in maintaining flows to Latin America."
“Whilst the full effects and duration of the financial crisis are still to be seen, it is important for aid to play a countercyclical role to help balance the sharp reversal in overall flows to developing countries," the group said.
Bilateral development projects and programs have been rising in recent years, increasing significantly by 12.5 percent in real terms in 2008, showing that donors are substantially scaling up their core aid programs.
The largest donors in 2008, by volume, were the US, Germany, UK, France and Japan.
Largest volume increases came from the US, UK, Spain, Germany, Japan and Canada. In addition, significant increases were recorded in Australia, Belgium, Greece, New Zealand and Portugal.
Development aid granted by the United States, the world’s largest economy, reached $26 billion in 2008, an increase of 16.8 percent in real terms.
For its part, the contribution of Japan, the world’s second-largest economy, was at $9.4 billion, 8.2 percent higher than the previous year. - GMANews.TV
The Organization for Economic Co-operation and Development (OECD) announced plans to increase its assistance for 2009, even after its financial aid to poor and developing countries reached the highest dollar figure ever recorded.
The move intends counter the ill effects of the global downturn particularly vulnerable countries, the thirty-member OECD said.
In 2008, total net official development assistance from members of the OECD’s Development Assistance Committee (DAC) rose by 10.2 percent in real terms to $119.8 billion, the highest dollar figure ever recorded.
“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 (MDGs)," the OECD said in a statement.
MDGs, a set of eight goals previously formulated by the United Nations, intend to halve global poverty, provide universal education, among others, by 2015.
The DAC is set to meet at the end of May to discuss the effects of the financial crisis on development in 2009 and thereafter, and how to create and support developing countries during the crisis.
During previous economic crises, aid has played a crucial role in expediting recovery of developing countries, citing the case of the Mexican debt crisis in 1982, when commercial lending was significantly reduced for about a decade but official development assistance (ODA) still rose, “playing a strong role in maintaining flows to Latin America."
“Whilst the full effects and duration of the financial crisis are still to be seen, it is important for aid to play a countercyclical role to help balance the sharp reversal in overall flows to developing countries," the group said.
Bilateral development projects and programs have been rising in recent years, increasing significantly by 12.5 percent in real terms in 2008, showing that donors are substantially scaling up their core aid programs.
The largest donors in 2008, by volume, were the US, Germany, UK, France and Japan.
Largest volume increases came from the US, UK, Spain, Germany, Japan and Canada. In addition, significant increases were recorded in Australia, Belgium, Greece, New Zealand and Portugal.
Development aid granted by the United States, the world’s largest economy, reached $26 billion in 2008, an increase of 16.8 percent in real terms.
For its part, the contribution of Japan, the world’s second-largest economy, was at $9.4 billion, 8.2 percent higher than the previous year. - GMANews.TV
