Governments Cutting Back on Promised Responsibilities
The U.S., especially during the Clinton Administration, has tried a different approach to the issue of poverty, aid, debt etc. The common phrase heard is that third world nations want trade, not aid. While this is an important point, that people would rather do things themselves than always rely on handouts, it is also criticized by many as an excuse for the US to cut back aid that has been agreed and promised at the United Nations.
When the world's governments met at the Earth summit in Rio de Janeiro in 1992, they adopted a programme for action under the auspices of the United Nations -- Agenda 21. Amongst other things, this included an Official Development Assistance (ODA) aid target of 0.7% of gross domestic product (GDP) for rich nations, roughly 22 members of the OECD (Organization of Economic Cooperation and Development), known as the Development Assistance Committee (DAC). (Side Note: ODA is basically aid from the governments of the wealthy nations, but doesn't include private contributions or private capital flows and investments. The main objective of ODA is to promote development. It is therefore a kind of measure on the priorities that governments themselves put on such matters. Whether that necessarily reflects their citizen's wishes and priorities is a different matter! Other aid, such as private capital flows may be for investment purposes, etc.)
Even though these targets and agendas may have been set, the following is interesting to note:
· Almost all rich nations have constantly failed to reach this 0.7% target.
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For example, USA's aid, in terms of percentage of their GDP is already lowest of any industrialized nation in the world. · Since 1992, Japan had been the largest donor of aid, in terms of raw dollars. That was until 2001 when the United States reclaimed that position, a year that also saw Japan's amount of aid drop by nearly 4 billion dollars (as tables and charts below will also show).
· Commenting on the change in trend in 2001, the OECD · noted that:
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"Most of the United States' increase in 2001 was due to a $600 million disbursement to Pakistan for economic support in the September 11 aftermath. · Japan's ODA fell by nearly $4 billion. A key factor accounting for this was a 12.7 per cent depreciation of the Yen, which fell from 108 yen to the dollar in 2000 to 122 in 2001. Other factors included the timing of Japan's disbursements to multilateral organisations and loan repayments from Asian countries that have recovered from the Asian financial crisis. In real terms, Japan's ODA fell by 18 per cent."
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This · OECD chart (also shown below, underneath the table) shows that for 2001 in terms of raw amount of dollars in aid, the U.S. is the largest donor, followed by Japan.
· When looked at in terms of · percentage of its GNP, it is the last of the 22 donors.
· At the same time one must note that most nations, not only the US, do not meet their agreed obligations. · According to the World Bank, the official development assistance worldwide has been · decreasing about 20% since 1990.
· According to the British paper, the Guardian, if all countries from the OECD were spending 0.7% of GDP on aid, · aid flows would be $114bn higher than current levels. (The World Bank say some $40 to $60 billion extra is needed, while the international development organization, Oxfam, say some $100 billion is needed. So, regardless of those numbers, meeting the 0.7% promise is therefore important.)
http://www.globalissues.org/TradeRelated/Debt/USAid.asp