DEVELOPMENT: EU Faces the Aid Test

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Stefania Bianchi

BRUSSELS, May 23 2005 (IPS) - As European Union development ministers prepare to meet Tuesday in a bid to boost the level of development aid, civil society groups are warning that some of the bloc’s wealthiest member states may undermine an agreement.

The ‘Global Call to Action against Poverty’, a worldwide alliance of non-governmental organisations (NGOs) committed to making a breakthrough on poverty in 2005 is warning that Germany, Italy, Greece, Portugal and Hungary may try to block a deal to bring the European Union (EU) aid level to 0.56 percent of gross national income (GNI) by 2010.

EU foreign and development ministers meeting Tuesday (May 24) will discuss proposals from the European Commission, the EU executive, on how the bloc can meet a pledge of 0.7 percent of gross national income in official development aid (ODA) by 2015.

Under the proposals drafted by Louis Michel, EU Commissioner for development and humanitarian aid, the EU’s ‘old’ member states would spend 0.51 percent of their national wealth by 2010 and the ten new member states 0.17 percent.

The increase in aid would mean 20 billion euros (25.3 billion dollars) more in aid for Africa, but it would cost EU taxpayers in the 15 old member states only an additional 49 euros (61 dollars) a year, Michel told media representatives Friday (May 20).

In addition, a joint average level of development aid will be set for all 25 EU member states. The European Commission has proposed to raise the EU aid level from 0.33 percent of GNI to an average of 0.56 percent by 2010.

"The Global Call to Action against Poverty cannot understand why Germany, Italy, Greece, Portugal and Hungary would possibly want to block a deal on increased aid when a child dies as a result of poverty every three seconds," Barbara Kwateng, spokesperson for the International Confederation of Free Trade Unions (ICFTU) which is part of the group told IPS Monday.

"We can’t imagine that these countries and other EU member states would witness such a travesty. Yet these countries have even failed to sign up to the EU aid level of 0.56 percent of overall GNI by 2010. We want to see them commit to more aid to tackle startling levels of poverty," she added.

Only four EU states – Denmark, Sweden, the Netherlands and Luxembourg – have so far fulfilled a promise made in 1970 by the world’s rich countries to give at least 0.7 percent of their national wealth as foreign aid.

Britain, France, Finland, Ireland, Belgium and Spain have fixed timetables to reach the 0.7 percent target before 2015, but other countries such as Italy and Austria are falling short of their longstanding commitments to fight poverty.

The campaigners are insisting that all member states honour their commitments to reach the 1970 target.

"The Commission’s proposal is a step in the right direction but it’s not enough. Thirty-five years ago rich countries pledged to spend 0.7 percent of their income on aid. How many more people have to die before they deliver?" Christiane Overkamp from the coalition said Monday.

The coalition says a binding target of 0.7 percent in aid would exert "substantial political influence" over other countries which have been reluctant to agree on "meaningful increase" in aid.

The NGOs say the goal is possible in spite of the poor track record of some EU member states. They say this week’s development meeting is particularly important in view of the upcoming G7 (group of seven rich nations including the United States, Canada, Britain, Germany, France, Italy and Japan) finance ministers meeting in June and G8 meeting in Gleneagles in Scotland in July (G8 includes also Russia).

"It’s not unrealistic; it’s what many EU countries signed up to before the cameras. The coalition is only asking for the rhetoric to be followed up by action," said Kwateng.

"Now is the ideal time for the EU to live up to its promises. The reality is that if the EU delivers on the promises it has itself made, we can make a breakthrough on poverty. Increases in aid in the next couple of days could be the necessary impetus for the G8 to provide its fair share of extra financing to combat poverty," she added.