Aid Meanness at Home and Abroad

One of the most creditable achievements of the last Government was to increase spending on foreign aid and make specific commitments…

One of the most creditable achievements of the last Government was to increase spending on foreign aid and make specific commitments on further increases to reach UN targets. It seemed that Fianna Fáil, with some prodding from the Progressive Democrats, finally realised that Ireland has a duty to contribute a small share of its increasing wealth to help the less fortunate in the developing world.

Government ministers from the Taoiseach down won praise at home and abroad as they repeated the promise of a series of structured increases over the coming years.

How disappointing then that the world's poor have been chosen as the first victims of the new administration's decision to cut spending. The previously announced allocation for aid is being reduced by €32 million. The Government will inevitably point out that the aid budget is still increasing in money terms, but this is a specious argument. The UN measures nations' generosity in giving aid as a percentage of Gross National Product - that is, as a proportion of national wealth. On this basis, the Government's promise to devote 0.7 per cent of GNP to overseas aid by 2007 is seriously awry.

Foreign aid spending is an easy target for cuts; there are no voters to annoy, no powerful interest groups to discommode. But it seemed we had moved on from the type of opportunistic aid cuts practised in the late 1980s. There was unanimous support in the Oireachtas for reaching the UN target. These were reaffirmed in a review of Ireland Aid last March, in the election manifestoes of the Government parties, and in the Programme for Government. Yet within weeks, the Government has made its first U-turn and its first major cutback, at the point of least resistance.

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A similar picture emerged from the summit of the G8 group of wealthy nations held in Canada last week. In spite of the promises about aid to Africa which were made by the leaders beforehand, the final package was modest. The outcome shows that the G8 states are still not prepared to grapple seriously with Africa's problems. The leaders resolved to increase debt relief for the poorest countries by $1 billion. Aid agencies say this level of relief would barely make up for the fall in commodity prices such as coffee and cotton on which many developing countries rely. They point out that the sum is equivalent to just 50 days of debt repayment by poor states, and compare it unfavourably to the $40 billion the US Congress approved to fight terrorism last September.

The G8 leaders also agreed to target up to $6 billion a year in aid on Africa, provided nations can prove the money will be targeted on worthwhile projects, pledge to wipe out corruption and institute good governance. But this amount was already announced last March and only half of it is being released. The plan certainly doesn't amount to the much-hyped "Marshall Plan" for Africa. Like the Government here, the G8 leaders promised more than they are prepared to deliver. It seems that meanness is the order of the day.