Recession weighs heavily on aid to poor countries

Poor countries, already hard hit by the global economic downturn, are now facing cutbacks in foreign assistance from traditional donors saddled with rapidly expanding deficits.
The worldwide recession has driven 50 million people into extreme poverty, according to the World Bank and the International Monetary Fund, which have exhorted rich countries to live up to promises to boost development aid.
"There's a risk that these promises will not be kept if the crisis deepens," warned Jose Gijon, head of the Africa-Middle East department at the Organisation for Economic Co-operation and Development.
Added Shanta Devarajan, chief economist for Africa at the World Bank: "The fiscal pressure that developed countries are facing, especially to address the problems of their citizens, is so high that it will be hard to get political support to maintain the level of foreign aid."
He said a 2005 pledge from the Group of Eight industrialised powers to double aid to Africa, made when the world economy was flourishing, had already fallen about 20 million dollars short of the target before the latest crisis erupted in late 2008.