Madam, – Justin Kilcullen of Trócaire (April 20th) is highly critical of the Government’s decision to reduce the budget for Overseas Development Assistance in 2009. However, I question whether the image conjured up by the letter (of thousands of the world’s poorest marching in protest to the Department of Finance) represents a valid criticism of Ireland’s aid programme. Commentators would rightly accuse the Government of cynical and self-serving manipulation if we were to conjure up a counter-image of a march of millions of people from the poorest countries in Africa whose lives have been saved by the Irish Aid programme over the past 30 years.
The reality is that Irish Aid is saving countless lives in the world’s poorest countries every day. This reality shall be confirmed by a forthcoming OECD report on the effectiveness of Irish Aid. The effectiveness of our aid is, in part, due to the collaboration between the Government and NGO partners, including Trócaire. In the past six years alone, the Government has provided over €4 billon in total overseas aid. This year we will spend almost €700 million. Enormous sums by any standard. Notwithstanding the recent Government decision to reduce aid for this year, it is expected that Ireland will still be ranked the sixth most generous donor in the world in per capita terms.
I greatly regret that the aid budget has had to be reduced this year. This is one of many painful measures which the Government has had to take across all departments, with the sole objective of providing a solid foundation for future growth. It is only by taking these measures, at this stage, that the long term future of the Irish Aid programme will be assured. We are determined that, with renewed economic growth, we will resume the expansion of the aid programme in the same way that it was expanded in recent years.
Over the past five years the Government has channelled €800 million in aid through Irish NGOs such as Trócaire, at home and abroad. This is one of the highest levels of funding in the OECD. We are working in a real partnership with Trócaire and other Irish NGOs. In these difficult times we need to strengthen our partnership even when we disagree. We have, after all, a common purpose; to ensure that Ireland and the Irish people continue to make a cutting edge contribution to the fight against global poverty. – Yours, etc,
PETER POWER TD,
Minister of State for Overseas Development,
Irish Aid,
Department of Foreign Affairs,
Henry Street,
Limerick.
Madam, – The economic convulsions the world is experiencing demand that we do things differently. Your correspondent Paul Nulty (April 23rd) made this point forcefully.
His argument that each state in the world’s wealthiest 100 adopts a country and concentrates its aid budget accordingly, is one that Goal had been advocating for some years. We have also made the case to the Government, sadly to no effect.
Transparency International tells us that $150 billion is lost to the Third World in corruption annually. So, even if the world were not in the throes of a crash it is evident that our current system of spreading aid thinly across a host of countries – with corrupt leaders, who pocket much of it – has failed spectacularly.
There is a golden opportunity now to make a virtue out of necessity and to adopt a more entrepreneurial model which involves concentrating on an individual country and controlling projects, while employing locals in the host country.
In such a way accountability and conditionality can be enforced.
Transparency is also assured as control of all spending remains in the hands of the donor. If one does not get results, one pulls out. Our Government is currently cutting aid budgets, so there is an imperative that we get the best value for the poor who will suffer more gravely than anyone else in the global crisis.
In the long term, it is governments which have ultimate power over resources and it is they who must lead the charge. Missionaries and aid agencies will play their part as always. Indeed this sector has performed so well, that Ireland has garnered a unique reputation for caring, and generosity in the Third World.
This is a platform that our Government could use to become an innovator and leader in the field. By championing a single country and directing operations there is a unique chance to lay down a path that others might follow.
Unless we show a readiness to react to the seismic shift in global finances, the poor will be left exposed in this harsh new economic climate and will be cut down in their millions. – Yours, etc,
JOHN O’SHEA,
CEO Goal,
Dun Laoghaire,
Co Dublin.
Madam, – I write as a taxpayer increasingly alarmed about the claims Government is presently making on me, and will make on my children. I am provoked into writing by the debate unfolding between the academic economists (Opinion, April 17th) and Alan Ahearne (April 25th) on the Nama proposal.
My reading is that the banks are of systemic importance to the economy; we cannot start up a new State bank or import a substitute. In other words, the current set of Irish banks are utilities and accordingly Government must intervene to repair their balance sheets to get credit flowing as a necessary condition of economic recovery.
I believe that the material consideration is whether the Nama or nationalisation proposal is least risky to taxpayers.
The academics claim nationalisation at the market quoted share price substantially mitigates that risk, assuming the share price reflects the true state of impairment of the banks’ assets. Dr Ahearne claims the administrative asset valuation process will result in a fair value for taxpayers’ purchases of certain bank assets, when coupled with the levy against unforeseen losses and the potential gain in value of any subsequent State equity injection. The two proposals can be viewed as nationalisation and part-nationalisation – the only difference is the modality of the transfer of the assets.
Notwithstanding the calibre of the eventual Nama staff, it is riskier to taxpayers to rely on a case-by-case loan-by-loan valuation process, the details of which are not yet available. The academics have raised sufficient doubt and it is imperative that we as taxpayers are entitled to a thorough and thoughtful examination of this issue. – Yours, etc,
Dr FERGAL McNAMARA,
Cliftonville Road,
Dublin 9.