Summary: 30 March 2009, Brussels - The European Commission today welcomed the increase of aid levels, following the official announcement of the 2008 figures by the OECD. Despite the financial crisis, aid volumes provided by Member States have increased by around 8 percent in 2008. Fears remain however that the unfolding economic crisis will have a negative impact on the 2009 aid levels putting agreed 2010 targets in jeopardy. The Commission urges Member States to stick to their aid commitments as aid plays a vital countercyclical role in poor countries severely hit by the economic crisis.
Louis Michel, Commissioner responsible for Development and Humanitarian Aid, said: "Last year's aid figures for the EU are quite positive, but a resolute effort still needs to be made to ensure key targets to fight global poverty are met. The impacts of the global economic downturn are becoming clear and we now know that developing countries are being hit by wave after wave of aftershocks and so soon after last year's oil and food price crises. That means next years' aid figures will be
critical, which is why I am appealing again today to Member States to stick to their promises. Our recovery, future prosperity and stability are inextricably linked to those of developing countries. Investing in developing countries is ultimately an investment in ourselves and so I will not allow the current recession to be used as an excuse to cut back on aid."
Following a decrease in 2007, EU aid figures for 2008 have gone up to more than € 49 billion (2007: € 46,1 billion). This increase is encouraging as it shows that Europe's aid effort is moving in the right direction again. At the 2005 European Council, EU leaders had pledged to increase aid levels collectively and individually by all Member States by 2015. Last year's rise is also encouraging because most of the increase is additional money rather than debt relief. In the past, debt relief
grants have largely contributed to the scaling up of overall aid levels.
The global trend is also encouraging: After two consecutive years of decreases, global aid provided by the 22 donors of the Development Assistance Committee (DAC) of the OECD has substantially increased. According to the figures released, global aid has reached USD around US$ 120 billion (€ 84 billion).
Despite these positive achievements, fears remain that this upward trend might not be sustained in the present global downturn. The Commission calls on Member States to continue to increase development assistance and encourages them to keep the promises made in 2005, and reconfirmed at the Doha Conference on Financing for Development in December 2008, by using multi-annual financing calendars to better track their aid commitments. Helping developing countries is more important than ever, as the
global economic crisis has a serious impact on low income countries.
With world trade declining, financial flows to developing countries are also in decline - this includes revenues from exports, Foreign Direct Investment (FDI) and remittances. In this situation, aid can play a vital countercyclical role that, combined with other macro-economic stabilisers, can help balance the reversal in overall flows.
Background:
a) The EU is the biggest donor in the world, with Official Development Assistance amounting to almost € 100 per citizen.
At the European Council in 2005, Member States pledged to increase aid development, expressed as a ratio Official Development Assistance (ODA) to Gross National Income (GNI). They promised to collectively reach 0.56% of ODA/GNI by 2010 and 0.7% ODA/GNI by 2015. In 2007, the EU reached 0.37% ODA/GNI, in 2008 0.40% ODA/GNI.
For more information on EU Development Assistance:
http://ec.europa.eu/development/how/monterrey_en.cfm
b) Earlier today, as part of the European Commission's overall action to assist developing countries during this period of global crisis, a € 314 million package of projects to support agriculture and improve the food security situation in 23 developing countries across the globe was adopted. This is the first financing decision in the framework of the € 1 billion Food Facility which was adopted at the end of last year as a response to the growing food security problems faced by many developing
countries. The Commission also agreed to an overall plan for the use of the entire amount of the Facility, targeting 50 developing countries in total.
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