Irish overseas aid fails to reach target despite rapid growth

Ireland's overseas aid budget grew faster than that of any other Western state this decade, but the rate of increase is declining rapidly, according to an OECD report. Irish official aid expanded by 20 per cent a year in real terms between 1991 and 1997, when average aid from the 21 countries included in the survey fell by almost 5 per cent a year.

As a result, Ireland ranked 10th in the league table of aid givers in 1997, compared to 12th in the previous year's report. But the level of Irish aid, expressed as a proportion of gross national product, remained constant in both years, at 0.31 per cent of GNP. The overall average for the OECD is 0.22 per cent. Only four countries - Denmark, Norway, the Netherlands and Sweden - reached the United Nations' target of 0.7 per cent of GNP for development aid. Denmark, for example, gives 10 times the amount of aid donated by the US relative to each country's GNP.

Since the figures used in the report were compiled, Government commitment to overseas aid has dropped sharply.

Last year, aid dropped to 0.29 per cent of GNP, and this year's figure is likely to be about 0.25 per cent. On that figure, Ireland would drop to 16th of the 21 countries covered in the report.

The Government has pointed out that the amount of money allocated to aid has continued to increase. It has blamed the percentage fall on the boom in the economy.

The report also highlights the significant role played by aid agencies in Ireland compared to other Western countries. Irish non-governmental organisations top the table of aid spending relative to GNP; they donate twice as much as their counterparts in Germany, and five times as much as agencies in Denmark.

Overall, aid from the developed countries has continued to fall to the lowest levels in 50 years. The US cut its aid budget by more than a quarter in 1997, and Italy virtually halved its allocation. The largest donor, Japan, increased its aid spending by 10 per cent.

The Government says it remains committed to moving towards the UN target; however, there is now no chance of significant progress towards that goal, or the lower target of 0.45 per cent of GNP in the Programme for Government, in the lifetime of the current administration.

The main recipients of Irish aid are Ethiopia, Tanzania and Zambia. The report published by the development assistance committee of the OECD last week says the overall fall in aid is discouraging and frustrating. It means that not only are there fewer resources available for developing countries, but as a result development drops in priority among public policy issues in the wealthy countries.

It suggests that although people know that overall living conditions in developing countries are improving, they tend to be "overwhelmed" by news reports of disasters and other setbacks.