Union eight cut aid despite promises of increase

By David Cronin

Date: 13/05/04

The reduction of aid to poor countries by most EU governments has been criticized by a top-ranking official at the World Bank.

Latest data from the Organization for Economic Cooperation and Development (OECD) shows that eight of the EU's 15 'old' member states cut their official development assistance in 2002-03.

The decreases, reaching almost 25% in the case of Portugal, run counter to pledges of increased aid made by the Union at the 2002 international conference on financing development in Monterrey, Mexico.

"Developing countries have never been more able to absorb aid," Ian Goldin, a World Bank vice-president told European Voice. "And rich countries are richer than they ever were, even if they are suffering political restrictions."

According to the OECD, Italy, Austria, Denmark, Finland, the Netherlands, Portugal, Spain and Sweden cut their aid allocations in 2002-03. Overall, however, EU governments increased their donations in that period from €25.3 billion to €25.8bn.

A recent World Bank report stated that, based on current trends, the UN's Millennium Development Goals would not be met. Supported by the EU, they aim to reduce extreme hunger and poverty by half and slash by two-thirds the proportion of children who die before their fifth birthday by 2015, as well as halting the spread of major killers such as AIDS, tuberculosis and malaria.

The World Bank calculates that richer countries need to pay more than €42 billion per year in order to achieve "adequate progress" towards these goals.

Yet, since the Monterrey conference, they have only promised about €15.5bn per year between now and 2006.

A senior World Bank official has criticised the European Union for reducing aid to developing countries. According to the Organisation for Economic Co-operation and Development, Italy, Austria, Denmark, Finland, the Netherlands, Portugal, Spain and Sweden cut their aid allocations in 2002-03.

http://www.worldbank.org/ http://www.worldbank.org/

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