Thaindian News

New Delhi, Sep 25 (IANS) The UN Millennium Campaign has just released figures which show that unless rich countries marshal additional resources at the ongoing G20 summit, they are likely to deliver $33 billion less aid than promised to the poor countries which are hardest hit by the global economic crisis.
At the same time, packages intended to help poor countries address the crisis might drive them deeper into debt, a spokesperson of the campaign said over e-mail.

The figures show that aid to poor countries will decline by at least $15 billion through 2010 because aid values are mostly a percentage of the Gross National Income (GNI) of donor countries, which has declined.

Additionally, donors are unlikely to meet their aid commitments — to provide 0.51 percent of GNI for aid in the case of EU countries and double aid in the case of G8 countries — and this will result in an additional loss of $18 billion in aid through 2010.

While at their last meeting G20 leaders pledged $50 billion to poor countries to address the crisis, it is estimated that only $23.6 billion has actually been delivered. So far, assessments suggest that less than five percent of the resources promised by the G20 for developing countries have been allocated for the 78 low-income countries which face the greatest obstacles to achieving the UN’s Millennium Development Goals (MDGs).

The spokesperson said: “A large part of the resources being provided by the G20 to poor countries take the form of loans, threatening to increase indebtedness for the poorest countries and lead to another debt crisis in the future. Already, the IMF reports that 33 low-income countries are at severe or moderate risk of debt distress.”

“While globally the economic situation may be improving, it is only getting worse for poor countries already bearing the brunt of the crisis created by some of the richest people in a few of the richest countries,” said Salil Shetty, director of the campaign.

“In Pittsburgh, G20 leaders must actually deliver the resources they have been promising, ensure that the resources go to the countries which need the most help achieving the Millennium Development Goals and prevent a new cycle of indebtedness.”