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Wealthy Countries Richer… but Sending Less in Aid Author: Gary R. Hess
Even though countries like those in the G7 are wealthier than they have ever been before, they are giving far less in developmental assistance than what they did in 1960. The paltry assistance gives only $50 million dollars in foreign aid, while even less, about 40% is given to underdeveloped countries. The Oxam agency is looking to G7 countries to cancel all poor nations' debts and double their developmental aid. If the G7 does not agree to these terms, the MDG (Millennium Development Goals) for reducing poverty will be put out of reach. The MDG also called for universal primary education, halving the hunger, reduce by two thirds the mortality rate of children under five and by three quarters the maternal mortality rate; and halt the spread of HIV/AIDS and the occurrence of other deadly diseases, like malaria and tuberculosis. The G7 agreed in 2000 to reach these goals, however none have increased spending. The United States is actually ranked dead last with only 0.14 percent of GDP going to foreign aid, which is only 1/10th of what it spent on the Iraqi war in 2003. Foreign aid given by the United States is only 1/14th the spending of its annual defense budget. The report also shows that Italy and the United States are the worst in giving aid to poor nations. The Italians spend approximately 90% of its aid on Italian goods and services while the United States spends around 70% on its own companies. The report also shows that not only is the aid important, but also their influence on the World Bank and International Monetary Fund. If countries like the United States wished to do so, they could cancel their debt that is causing so many problems in places like Africa. The debt in fact, makes these countries pay three dollars for every two dollars they received in aid. This causes many indebted countries to spend more on the debt services than it does on its own health services for its people, which is especially hard on countries in Africa which have been stricken with wide spread HIV/AIDS. The latest report by Oxam showed that spending $30 billion would cancel the debt of 32 of the poorest countries; this would only cost $2.10 per person each year in the wealthiest countries. Oxfam states that if the current trends continue nearly 247 million more people in sub-Saharan Africa will live in poverty; 34 million more will suffer from hunger; and 45 million children will die. "Unless world leaders act now to deliver a historic breakthrough on poverty," said Jeremy Hobbs, Oxfam's executive director, "next year will end in shameful failure." About the Author Gary is a blogger for http://politically-insane.blogspot.com ">The Peoples Politics ... |
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