Is aid heading for extinction?
For the fifth straight year, aid for development provided by industrialized countries has declined, slipping to $55.5 billion in 1996, a decrease of 4% in real terms from 1995 and down by 16% from the highest aid level, in 1992. In fact, at the present rate of decline, official development assistance (ODA) would cease to exist by 2015.
This trend jeopardizes a commitment by donor countries to close gaps between the 'haves' and the 'have nots' within and between countries. Donor countries pledged to achieve by 2015 a 50% reduction in the number of people, currently 1.3 billion, living in absolute poverty -- on a dollar a day or less.
ODA as a proportion of donor countries' GNPs, a measure of their ability to provide aid, fell to an average of 0.25% in 1996, compared to 0.34% in 1990. That is the lowest proportion since 1970, when the aid target of 0.7% of donors' GNPs was agreed upon.
Only four countries -- Denmark, the Netherlands, Norway and Sweden -- consistently allocate more than the target. Denmark topped the list in 1996, allotting 1.05% of its GNP for aid, while the United States ranked lowest, giving 0.12%.
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Aid: Going, going... |
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Amounts (in 1996 $) |
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ODA as % of donor nations' GNP |
Total aid
($ billion) |
Aid per person ($) |
Change per person ($) |
|
|
% 1996 |
% 1990 |
1996 |
1996 |
since 1990 |
|
Denmark |
1.05 |
1.03 |
1.8 |
338 |
66 |
|
Sweden |
0.88 |
0.99 |
2.0 |
227 |
-23 |
|
Norway |
0.87 |
1.23 |
1.3 |
302 |
-9 |
|
Netherlands |
0.80 |
0.98 |
3.2 |
208 |
1 |
|
France |
0.49 |
0.65 |
7.5 |
128 |
-26 |
|
Luxembourg |
0.44 |
0.23 |
0.1 |
199 |
106 |
|
Belgium |
0.34 |
0.57 |
0.9 |
90 |
-24 |
|
Finland |
0.34 |
0.65 |
0.4 |
80 |
-79 |
|
Canada |
0.32 |
0.43 |
1.8 |
60 |
-22 |
|
Germany |
0.32 |
0.36 |
7.6 |
93 |
-8 |
|
Switzerland |
0.32 |
0.34 |
1.0 |
142 |
2 |
|
Australia |
0.31 |
0.33 |
1.1 |
62 |
-1 |
|
Ireland |
0.29 |
0.17 |
0.2 |
50 |
33 |
|
United Kingdom |
0.28 |
0.28 |
3.2 |
55 |
6 |
|
Austria |
0.24 |
0.27 |
0.6 |
69 |
3 |
|
New Zealand |
0.22 |
0.22 |
0.1 |
34 |
-2 |
|
Portugal |
0.22 |
0.31 |
0.2 |
22 |
0 |
|
Spain |
0.22 |
0.22 |
1.3 |
32 |
5 |
|
Italy |
0.21 |
0.35 |
2.4 |
42 |
-20 |
|
Japan |
0.18 |
0.29 |
9.4 |
75 |
-26 |
|
United States |
0.12 |
0.21 |
9.4 |
35 |
-17 |
|
Average |
0.25 |
0.34 |
Total $55.5 |
Avg. $68 |
-$15 |
Source: OECD, Development Co-operation (1997 report), 1998.
Denmark also led donors on the basis of aid per person, giving $338 per capita, while Portugal was the lowest per capita donor at $22. Japan and the United States were the largest donors in total dollar terms, each allocating $9.4 billion.
If all donors had met the aid target, annual ODA would be $100 billion above its current level. That amount, over 10 years, would be more than sufficient to ensure that everyone in developing countries had access to basic social services -- including basic education, health care, family planning, adequate nutrition and safe water and sanitation.
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