ITALY-DEVELOPMENT: Aid Concentrated to Reach Critical Mass

By IPS Correspondents Reprint | | Print |

Jorge Piña

ROME, Jul 17 2000 (IPS) - The Italian government aims to concentrate its development aid, because according to the latest annual report on development aid and cooperation, aid must reach a critical mass to be effective, and targets cannot be met if the funds are distributed among too many countries and projects.

Italy’s development aid office, which answers to the ministry of foreign relations, has chosen to focus its attention on no more than 20 countries.

Eighty percent of funds will be earmarked for the Balkan countries (Albania, the republics of the former Yugoslavia), the Middle East (Palestinian National Authority, Jordan, Lebanon, Syria), North Africa (Egypt, Tunisia, Algeria, Morocco), the Horn of Africa, countries of the South Afican Development Community, China and India.

The remaining 20 percent will go to other Asian countries, Latin America and West Africa.

Around 65 percent of the aid will go toward poor countries classified as least developed, 25 percent will go to middle to low income countries, and no more than five percent will go to middle to high income countries.

With the financial resources available for development aid, the foreign relations ministry aims to carry out its 1999-2001 projects, as well as negotiate the start of new initiatives, such as a programme to fight poverty in Mediterranean countries and sub- Saharan Africa.

Italy’s development aid, especially resources to go to sub- Saharan Africa, has traditionally focussed on poverty reduction, and this year will concentrate on alleviating poverty among women and protection of minors in particular.

The countries of the Maghreb will be top priority beneficiaries of programmes for the development of small and medium businesses, with a special focus on microcredit and income-generating activities in the framework of poverty alleviation programmes.

Latin America will be the chief focus of Italy’s cooperation with international programmes aimed at eradication of drug crops, as well as Pakistan, South Africa and, if the conditions are right, Nigeria.

Another aim of Italy’s development aid is the valorisation of the cultural heritage of developing countries, in conjunction with the World Bank.

Poverty reduction programmes agreed by the Italian government and developing countries enjoy the decisive support of non- governmental organisations (NGOs). The ministry of foreign relations has steadily increased funding for programmes promoted by NGOs, from 15 million in 1998 to 22.5 million in 1999 and 40 million this year.

This year’s budget law allotted the ministry of foreign relations 534 million dollars in funds for development aid donations, while a rotating fund for loans to developing countries has been apportioned 1.1 billion dollars this year.