Sharing the wealth?
Aid at lowest level in 45 years

Official development assistance (ODA) from the industrialized countries is in the doldrums, slumping to an average of just 0.27% of their combined GNP, the lowest level since aid statistics were first collected in 1950. The US gave the lowest portion of its GNP for aid: 0.10% in 1995, the latest year for which figures are available. In contrast, Denmark, the Netherlands, Norway and Sweden all allocated more than 0.7% of their GNP for development assistance, the international target agreed upon in 1969. Denmark tops the list, earmarking 1.04%.

In absolute dollars, Japan gave the most aid ($14.5 billion), almost double that of the US ($7.4 billion). The US dropped to fourth place from first place in 1990, when it gave $11.4 billion in aid. However, together with France and Germany, these four countries accounted for more than three fifths of the total $59 billion in aid provided by 21 Organisation for Economic Co-operation and Development (OECD) donors in 1995.

On the amount of aid per person, however, Denmark heads the list, giving $311 per capita. Three countries—Italy, Portugal and the US—gave $28, the lowest amount per capita.

Though private investments and loans flowing to developing countries have surged, tripling from $52 billion in 1990 to $159 billion in 1995, most have gone to a dozen or so emerging economies, including China, Mexico and the Republic of Korea. The poorest countries, particularly in sub-Saharan Africa, have received hardly any private loans or investment. Aid is crucial for these countries in combating poverty, repaying debt, supporting investment and financing social services.

A glimmer of hope in the disquieting aid picture is the evidence of a shift in aid allocations towards social sectors. This trend gains further impetus from the 20/20 initiative, supported by UNDP, UNESCO, UNFPA, UNICEF and WHO.

The initiative calls for allocating 20% of aid and 20% of developing countries’ budgets for basic social services—primary health care, including reproductive health and family planning, nutrition, basic education and safe drinking water supply and sanitation. These services are the foundation for sustainable human development.