From poverty to power - Oxfam-Québec
From poverty to power - Oxfam-Québec From poverty to power - Oxfam-Québec
5 THE INTERNATIONAL SYSTEM AIDIt is noteworthy that the major INGOs are based in the same countriesthat won the Second World War and which came to dominate theinstitutions of global governance: the USA, Britain, and France.A second tier is made up of INGOs based in other former colonialpowers (the Netherlands, Belgium, Italy, Germany, Spain, Japan), with asmattering from rich countries with less historical baggage in thedeveloping world (Canada, Australia, New Zealand).The major agencies underwent a huge expansion in the 1980s,when they began attracting government funding and when the publicbegan to donate massively in response to humanitarian disasters,most notably the Ethiopian famine early in that decade. With growthcame scale, professionalism, co-ordination, and an increasing diversificationof activities.Total government support to INGOs concerned with developmentissues totalled an estimated $379m in 2003, a tiny fraction of overallaid, but nearly three times the amount given a decade earlier.Meanwhile, national NGOs operating in their own territories receivedsome four times that amount. 126 Total revenues from all sources,including public donations, to development NGOs are estimated atabout $12bn a year, just over one-tenth of the volume of officialgovernment aid. 127THE QUANTITY OF AIDIn a reflection of the geopolitical motivation for much aid, volumesdeclined precipitously when the Cold War ended, falling to a low of$58bn in 2000. However, the millennium marked an apparent turnaround,with global aid reaching $107bn in 2005, and promises that itwould increase even further. 128 Renewed faith in aid is due partly tocareful advocacy at the UN and among publics in donor countries,and partly to new concerns about failed states and their relationship toterrorism. However, some dubious accounting practices have inflatedthe figures. Debt cancellation for Iraq, which was clearly driven moreby geopolitical than by developmental concerns, single-handedlyboosted the aid figure by $12.2bn in 2005. 129 Moreover, total aid fellback to $104bn in 2006 (again inflated by Iraq) 130 and, barring miracles,was set to fall further in 2007, leaving a mountain to climb to meet thepromises made at the Gleneagles Summit in Scotland in 2005.357
FROM POVERTY TO POWERThe heightened international focus on security post-9/11 has alsoplayed a part in increased aid volumes, particularly to Iraq andAfghanistan. As Richard N. Haass, President George W. Bush’sDirector of Policy Planning Staff, put it within months of the 9/11attacks: ‘In the conduct of the global campaign against terrorism…our tool kit must also include effective foreign assistance.’ 131In 2005, rich countries pledged to increase their aid by a further$50bn by 2010, with half of this going to Africa. European governmentsmade the lion’s share of these promises, setting themselves anaid target of 0.51 per cent of their gross national income by 2010, onthe way to reaching 0.7 per cent of GNI by 2015 (see page 381 for thebackground to the 2005 breakthrough).If that schedule is kept to, foreign aid from traditional donorgovernments would be two-thirds European by 2010, and the EuropeanCommission would be a bigger donor than the World Bank. However,by early 2008, the promises of 2005 were starting to look very fragile.Aid from G8 nations to poor countries actually fell in 2006 for the firsttime since 1997. Based on the actual trend since 2005, the G8 wouldmiss the target of a $50bn increase by fully $30bn. The price of thisbroken promise? UNAIDS and the WHO say that it would cost fivemillion lives, providing the money were put to vital health interventionsfor women, children, and people living with HIV and AIDS. 132The past decade has also seen the entrance of new donor countries,including China, India, Brazil, South Africa, Russia, Venezuela, andSaudi Arabia, which are now a significant part of the aid picture.China is estimated to be providing some $1.5–$2bn a year in aid,about half of which goes to Africa. It is popular with African governments,as Senegal’s President Abdoulaye Wade explained during onetense exchange with the EU: ‘If I want to do five kilometres of roadwith the World Bank, or one of the international financial institutions,it takes at least five years. One year of discussions. One year ofback and forth. One year of I don’t know what. With the Chinese it isa few days and I say yes or no, they send a team, and we sign.’ 133Besides new national donors, ‘philanthropreneurs’ such as the Bill& Melinda Gates Foundation have also joined the big league. The scaleof international private philanthropy is difficult to measure, butestimates range from $10bn–$25bn annually. 134 While they are not on358
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FROM POVERTY TO POWERThe heightened international focus on security post-9/11 has alsoplayed a part in increased aid volumes, particularly <strong>to</strong> Iraq andAfghanistan. As Richard N. Haass, President George W. Bush’sDirec<strong>to</strong>r of Policy Planning Staff, put it within months of the 9/11attacks: ‘In the conduct of the global campaign against terrorism…our <strong>to</strong>ol kit must also include effective foreign assistance.’ 131In 2005, rich countries pledged <strong>to</strong> increase their aid by a further$50bn by 2010, with half of this going <strong>to</strong> Africa. European governmentsmade the lion’s share of these promises, setting themselves anaid target of 0.51 per cent of their gross national income by 2010, onthe way <strong>to</strong> reaching 0.7 per cent of GNI by 2015 (see page 381 for thebackground <strong>to</strong> the 2005 breakthrough).If that schedule is kept <strong>to</strong>, foreign aid from traditional donorgovernments would be two-thirds European by 2010, and the EuropeanCommission would be a bigger donor than the World Bank. However,by early 2008, the promises of 2005 were starting <strong>to</strong> look very fragile.Aid from G8 nations <strong>to</strong> poor countries actually fell in 2006 for the firsttime since 1997. Based on the actual trend since 2005, the G8 wouldmiss the target of a $50bn increase by fully $30bn. The price of thisbroken promise? UNAIDS and the WHO say that it would cost fivemillion lives, providing the money were put <strong>to</strong> vital health interventionsfor women, children, and people living with HIV and AIDS. 132The past decade has also seen the entrance of new donor countries,including China, India, Brazil, South Africa, Russia, Venezuela, andSaudi Arabia, which are now a significant part of the aid picture.China is estimated <strong>to</strong> be providing some $1.5–$2bn a year in aid,about half of which goes <strong>to</strong> Africa. It is popular with African governments,as Senegal’s President Abdoulaye Wade explained during onetense exchange with the EU: ‘If I want <strong>to</strong> do five kilometres of roadwith the World Bank, or one of the international financial institutions,it takes at least five years. One year of discussions. One year ofback and forth. One year of I don’t know what. With the Chinese it isa few days and I say yes or no, they send a team, and we sign.’ 133Besides new national donors, ‘philanthropreneurs’ such as the Bill& Melinda Gates Foundation have also joined the big league. The scaleof international private philanthropy is difficult <strong>to</strong> measure, butestimates range from $10bn–$25bn annually. 134 While they are not on358