Committed to PEOPLE'S RIGHT TO KNOW
Vol. 4 Num 244 Fri. January 30, 2004  
   
Business


Development aid set to rise by 50pc in 5 years: OECD


Development aid flows are set to rise by 50 percent in the five years to 2006 but much depends on the United States and leading European countries that are behind in meeting targets, the OECD reported on Wednesday.

But the organisation noted that emergency humanitarian help, rather than long-term aid to the poorest, was rising as a proportion of all aid.

Developing countries must make progress in many areas, "including by creating an environment where the private sector can thrive", the OECD said in its annual development co-operation report.

OECD countries must do more to promote growth in poor countries with coherent policies taking account of the countries' needs.

However, the proposed aid increases, if achieved, would be the biggest in the 43-year history of the development assistance committee (DAC) of the Organisation for Economic Cooperation and Development.

But even if the 2006 targets were met, "aid would still be under 0.3 percent of DAC members' aggregate gross national income, compared with a UN target of 0.7 percent."

And regarding progress towards another set of targets for 2015, the Millennium Development goals set at the UN millennium summit in 2000, the report concluded that "many of these goals will not be met -- for health in most regions and in sub-Saharan Africa for many others".

The DAC committee co-ordinates development aid policies by the main donor nations in the world.

The OECD said that "aid flows are set to rise to 75 billion dollars (59.52 billion euros) by 2006 from 52 billion in 2001, according to pledges made in Monterrey". This was a reference to the UN financing for development conference held in Monterrey, Mexico, in March 2002.