Report says aid budget falling behind target set by previous government

The rate of increase in Irish aid to developing countries is falling behind the target set by the previous government, according to a new review of development co-operation worldwide.

The Reality of Aid report, complied by a network of European aid agencies, finds that Ireland is the only OECD country which is becoming more generous in its disbursement of aid. The Irish Aid budget totalled £106 million in 1996, and will reach £122 million this year.

However, the rate of increase, at 0.03 per cent of Gross National Product, is lower than the 0.05 per cent promised by the then government at last year's World Food Summit.

The report also expresses concern that no specific time schedule has been set for achieving the UN target of 0.7 per cent of GNP in development aid.

Commenting yesterday on this trend, Mr David Begg, chief executive of Concern, said it was now unlikely the UN target would be reached before 2012.

However, the Minister of State for Foreign Affairs, Ms Liz O'Donnell, said Ireland's aid was the fastest-growing in the OECD. She also restated the present Government's commitment to increasing aid to 0.45 per cent of GNP in its lifetime.

The report highlights the way aid to developing countries is often compromised by other government policies. For example, the EU's policy of dumping beef in South Africa costs that country 95 per cent of the aid it receives from the Union.

The policy also undermines the South African farming and rural economy. Ironically, about £3 million of Irish aid has been invested in South African rural development programmes.

Mr Begg also said the failure of the international community to deliver "meaningful" debt relief to heavily indebted poor countries further undermined aid.

Last year, Irish aid amounted to £29.50 for each person in the State. More than 80 per cent of it goes to the poorest countries in sub-Saharan Africa.

According to the report, aid from the 21 OECD donors has fallen to its lowest level since records began. Last year, it totalled £34 billion.

The report, which provides a country-by-country analysis of aid trends in each of the OECD countries, was launched in Ireland yesterday by Concern, Trocaire, Oxfam and Action Aid. In a chapter reviewing EU aid policy, the report states that the European Commission does not have sufficient capacity to implement its aid programmes. As a result, about half the budget funds are not spent. This amounts to under-spending of about £2.3 billion a year.

Ms O'Donnell said her Department would continue to look at the efficiency and relevance of Irish Aid programmes in developing countries. These would increasingly move away from a charity-based approach, and concentrate on building equal, long-term relationships with aid recipients.

Ms O'Donnell yesterday announced a £1.9 million package of emergency and rehabilitation aid. The funding will go on emergency food aid to countries in West and East Africa, health, sanitation and education programmes in Somalia and Angola, and reconstruction projects in Bosnia. Support will also be given to de-mining projects in Cambodia and Chechnya.