DEVELOPMENT: New Pressures Likely Over 0.7 Percent Target

By Sanjay Suri Reprint | | Print |

Sanjay Suri

LONDON, Jul 13 2004 (IPS) - The G8 and the European Union are due to come under new pressure to spend more on official development assistance after Britain said it would increase its contribution to 0.7 percent of its GNI by 2013.

Britain will have presidency of both the G8, a group of leading industrialised countries – the United States, Canada, Britain, France, Germany, Italy, China and Russia û and the European Union (EU) next year.

Both Prime Minister Tony Blair and Chancellor of the Exchequer (finance minister) Gordon Brown have “trumpeted their intention to rally support of other governments to increase their aid budgets,” Howard Mollett from BOND, a group of about 280 British charities told IPS.

“The government is putting in place a substantial increase in development aid to 0.47 per cent (of the GNI, Gross National Income) by 2007-2008, and that combined with the target of 0.7 percent by 2013 means that Britain is in a really good position to pressure G8 and the EU next year,” Mollett said.

Britain, like other industrialised nations had pledged to set aside 0.7 percent of its GNI for official development assistance (ODA) before the United Nations in 1970. So far only Norway, the Netherlands, Sweden, Luxembourg and Denmark have reached or crossed the 0.7 percent mark.

Others besides Britain now that have set a timetable include France, Ireland, Belgium, Spain and Finland. France and Spain have said they will reach the 0.7 percent target by 2012.

“We have been pushing for more, but this is good news,” Mollett said. “We finally have the target even though it will be by 2013.” The target means that British aid will be more than doubled from its present 0.34 percent of GNI. That itself is a 140 percent rise since the Labour government came to power in 1997.

The British move has been received well by the United Nations.

Special adviser at the United Nations Development Programme (UNDP) Will Day said the move means “not just a commitment kept but it is an important part of the struggle against poverty.” Following recent reports of the rise in HIV and AIDS cases the increased assistance is particularly welcome, he said.

“This will set an example for other governments who have difficult choices to make as well,” Day said. “All governments should match their commitments with action.”

The increase in budget will mean an extra 4.2 billion dollars to assist poor countries, including 2.8 billion dollars more to tackle AIDS.

By 2013 the British aid budget would add up to more than 12 billion dollars a year from the present 7.6 billion dollars. But the government has said it can review its commitments if the economy does not grow at the projected pace.

The British move has not come without strong campaigning. More than 100,000 people sent emails and postcards to the offices of the Treasury asking for a commitment to the 0.7 percent target. In all 232 members of parliament signed an Early Day Motion (resolution).

Besides the NGOs, several union leaders, and religious and private sector leaders also lobbied the Chancellor and the Prime Minister.

The move is expected to put particular pressure on the United States, which commits no more than 0.12 percent of its GNI to aid. Given the size of its economy, however, that adds up in real terms to more than the aid package of several other countries.

Oxfam estimates that the increase from 0.34 percent now to 0.47 percent by 2008 could pay for clean water and sanitation for 14 million people, for two million more children to go to school and prevent 250 million infant deaths.

Brown has declared while announcing the increase that Britain will “play our part in addressing global injustices.” Much of the focus of the new aid is expected to be in Africa.