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UNICEF sees peril in new figures on development aid

Despite a steady rise in the number of people with incomes of less than $1 a day, overall aid to developing countries last year tumbled four per cent in real terms over 1995, to $55.1 billion from $58.9 billion, according to a report released by the 29-nation Organization for Economic Cooperation and Development (OECD).

"Let us be clear about what is at stake here," Ms. Bellamy said. "These are more than numbers in an accounting ledger; they represent a threat to millions of children and to the societies in which they are growing up. They are a testament to the persistence of appalling global inequalities -- and to the international community's shameful failure to eradicate them."

Ms. Bellamy noted that, according to UN estimates, 1.3 billion people are trapped in absolute poverty -- 650 million of them children -- and their numbers are growing in every region of the world except South-East Asia and the Pacific.

If governments summon the will to earmark 0.7 per cent of their Gross National Product for Official Development Assistance (ODA), Ms. Bellamy said, the additional proceeds would more than cover the additional $80 billion over 10 years that the UN estimates is required to eliminate the worst aspects of global poverty.

The Executive Director said that the tailspin in aid levels is a direct challenge to the Convention on the Rights of the Child, which speaks to the plight of the world's poorest children, and to the work of the United Nations generally -- including Secretary-General Kofi Annan's ongoing effort to reform the UN System.

"Without adequate and predictable flows of development aid," Ms. Bellamy said, "the United Nations can neither institute reform, nor meet the mandates laid down by Member States, especially those for the elimination of poverty and the creation of an enabling environment for sustainable economic growth and human development."

"Private investment and financing are absolutely vital if the poorest countries are to emerge from poverty," the UNICEF chief said, "yet they cannot attract the private sector without Official Development Assistance. ODA not only helps these countries weather painful economic reforms, but enables them to create the social and economic infrastructure that is vital to development."

According to the OECD report, made public on 19 June, average Official Development Assistance fell to 0.25 per cent of combined Gross National Product (GNP) compared to 0.27 per cent in 1995. These are the lowest ODA/GNP ratios recorded in the nearly 30 years since the United Nations set a global aid target of 0.7 per cent of GNP.

In 1996, only four countries met or exceeded the 0.7 per cent target: Denmark (1.04 per cent), the Netherlands (0.83 per cent), Norway (0.85 per cent) and Sweden (0.82 per cent).

The OECD report noted that while average Official Development Assistance fell in 1996, private flows to developing countries grew by nearly $80 billion, to $234 billion, mostly because of a steep rise in bond lending. However, most of this private-sector money went to a handful of developing countries with rapidly growing economies. The poorest countries, especially those in sub-Saharan Africa, saw only negligible amounts.

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