DATA Report 2014: Only One-Third of Aid Goes to Countries Most in Need
WASHINGTON — The ONE Campaign’s 2014 DATA Report finds that only 37% of US foreign assistance — and only one-third of global aid — goes to the countries in greatest need. According to the report, increasing the global amount of assistance to least developed countries (LDCs) to 50 percent would see an additional $22 billion reach the world’s most vulnerable people.
The 2014 DATA Report, “Financing Africa’s Future: The Fight Against Poverty,” notes that important progress has been made — the proportion of people living on less than $1.25 a day has been cut in half in the last 20 years. Yet, the report finds that the majority of donors failed to meet their aid pledges. Although some governments deserve praise for stepping up aid efforts – such as the UK, Japan, Germany, and Norway – other countries, including France, Canada, Australia and the Netherlands, showed marked declines.
Collectively, the European Union fell short on its aid commitments by $52.5 billion in 2013. The United States remains the world’s largest donor and should maintain its leadership in development assistance, protecting the overall foreign assistance budget and making sure to focus assistance on the least developed countries.
Sara Harcourt, Policy Director of Research and Publications for ONE and an author of the report, said:
Next year, we want world leaders to agree to an ambitious and inspiring set of development goals that deliver for the very poorest. We need an equally ambitious plan to finance them. Both donor and African countries must play an equal part in meeting their commitments and empowering those on the front lines of poverty.
African governments are also failing to prioritize their spending on the essentials that could save lives and boost the fight against extreme poverty. Only six of 43 countries have met their own spending goals on health, and only eight met their goals on agriculture. Between 2010-2012 an additional $54.8 billion would have been mobilized for health if all sub-Saharan African countries had met their promises.
Dr. Sipho Moyo, Africa Executive Director at The ONE Campaign said:
First and foremost, public spending by African governments should be targeted towards the fight against poverty. In this regard, spending on agriculture is critically important for unlocking value chains, thus creating decent jobs and viable business opportunities, helping to secure a future for millions through inclusive economic growth.
Equally important is the need to increase public investments to build resilient health systems that will save lives and help countries prevent crises such as the Ebola outbreak devastating West Africa today.
The report also highlights the outdated rules on what counts as aid. The way official development assistance (ODA) is measured must be refined and improved. Since 2000, $250 billion, or a sixth of the total aid reported by governments, did not involve a real transfer of funds to developing countries. ODA levels have been given an artificial boost by including inflated valuations of debt relief, plus money spent by donors at home. ONE is also calling for more stringent guidelines on which loans to developing countries count as aid; if these had been in place in 2012, $19 billion of loans would not have qualified as aid.
The year 2015 is an opportunity to deliver for the very poorest and most vulnerable and to help developing nations transform their economies so that citizens everywhere can lead their lives with dignity. The key recommendations of the 2014 DATA Report are:
- It’s time donors made good on promises: Donor governments must meet their commitments on overseas aid and target half of all aid to least developed countries.
- African governments must meet their own pledges on health, education and agriculture spending: building the vital infrastructure that would equip them with the tools to address crises swiftly.
- The rules on aid need to change: When the Organization for Economic Co-Operation and Development’s Development Assistance Committee members agree on a new definition of ODA, they must ensure it reaches and empowers those who need it the most.
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