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Special Report on Development Assistance:
Foreign aid is an important component of reducing poverty in developing countries. This report provides a basic analysis of United States foreign aid, covers the important news of developed country pledges of increased development assistance, covers (some of) the important developments in foreign aid in 2005, and finally reports on debt forgiveness initiatives. Further description and analysis by Hunger Notes appears below.
Basic analysis of United States foreign aid
U.S. Foreign Aid Explained Lane Vanderslice June 5, 2005
This article describes the four principal components of U.S. foreign aid:
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development assistance ($8.4 billion in 2005) to assist in the development of poor (and other) countries. The principal components assisting poor countries are the USAID Child Survival account, the USAID development assistance account the State Departments Global HIV/AIDS initiative, the Millennium Challenge account, and contributions to multilateral development banks such as the World Bank. There are also two accounts assisting Eastern Europe and countries of the former Soviet Union, most of which are higher income countries.
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humanitarian assistance ($2.3 billion in 2005) goes to those very much in need, because they are in a natural or man-made disaster (such as war) or because they are refugees.
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military and security assistance ($7.8 billion in 2005) provides assistance to U.S. allies, principally through financing military purchases by these countries or making budget support payments to their governments.
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narcotics control initiatives ($1.0 billion) to assist countries in eradicating drugs and providing alternative employment. Assistance to country police forces is also made.
Official Development Assistance. How much are developed countries contributing to developing countries? What is official development assistance--what is counted and what is not?
Half of total assistance, $9.7 billion in 2005, is development and humanitarian assistance that goes to poor countries. (Some development and humanitarian assistance goes to countries that are not classified as poor, such as many countries in Eastern Europe and the former Soviet Union.)
Official development assistance (ODA) measures how much each developed country gives to developing countries, both in terms of United States dollars and as a percentage of each countries gross national product. The United States gives the largest amount of development assistance, but it only gives .17 of one percent of its gross national income (GNI), substantially below the average country contribution of .41 of one percent of GNI, and far below the agreed upon target of .7 percent (in 1992 at the Rio Earth Summit). For more information see How much are developed countries contributing to developing countries?
Official development assistance (ODA) is slightly broader than development assistance to developing countries--the $9.7 billion mentioned above. It is difficult to find a good explanation of what exactly ODA is and what it counts. Hunger Notes provides two: What is official development assistance? (based on information from the United States Agency for International Development) and a fuller explanation, "Foreign aid: understanding data used to compare donors" (six page pdf file) by Larry Nowells, a researcher with the Congressional Research Service of the Library of Congress. This article was originally done for Congress.
Pledges are made to Increase foreign assistance
Africa's 'aid year': What was accomplished? BBC News December 23, 2006 (You will leave this site)
Photo: BBC
Madonna sings at Live 8 concert
The G8 "Commitments" on Africa: Mostly Hot Air with Little Substance (Analysis) Charles Abugre August 3, 2005
After G-8 (developed countries) pledge to double assistance to Africa, doubts surface that G-8 countries will actually do so Paul Blustein Washington Post July 10, 2005 (You will leave this site and be required to register [once] with the Post.)
UN agencies call for increased aid for agriculture and rural development July 8, 2005
Millions rock to Live 8 concerts BBC News July 2, 2005 (You will leave this site.)
Among Ordinary Africans, G-8 Seems Out of Touch Emily Wax Washington Post July 1, 2005 (You will leave this site and be required to register [once] with the Post.)
Bush pledges (multi-year) $1.2 billion plan to fight malaria; vows to double aid to Africa by 2010 (though he will be out of office by then) Peter Baker Washington Post July 1, 2005 (You will leave this site and be required to register [once] with the Post.)
Bush, Blair Meet on Aid to Africa: More Famine Aid and Debt Forgiveness, Bush Rejects Blair Plan to Double Aid Jim VandeHei Washington Post June 8, 2005 (You will leave this site and be required to register [once] with the Post.)
European Union May Double Aid to Poor Countries BBC News May 24, 2005 (You will leave this site.)
High-Profile Help for Africa: Mandela, Tony Blair and Bono--Will the U.S. Respond? Sebastian Mallaby Washington Post May 23, 2005 (You will leave this site and be required to register [once] with the Post.)
Foreign assistance "on the ground." What is actually happening/making the news?
HIV/AIDS
Assistance to combat HIV/AIDS by foreign governments, especially the United States, has expanded dramatically. The two principal components of U.S assistance are the Global HIV/AIDS account (GHAI) also known as the President’s Emergency Plan for AIDS Relief (PEPFAR), and (a significant portion of) the USAID Child Survival and Health account. A key part of the developed countries contribution is the Global Fund to Combat AIDS, Tuberculosis and Malaria The major development is that anti-retroviral therapy is being introduced into developing countries for ordinary people for the first time. The WHO story below summarizes progress thus far. There has also been an issue with allowing U.S. (and other) funds to purchase non-U.S. and non-standard drug company HIV drugs, resulting in a significant cost saving and the ability to reach many more people. The Vedantam story covers this topic. Other stories cover various aspects and criticisms of the U.S. anti-AIDS program.
Thailand has announced it will offer anti-retroviral drugs for the treatment of HIV/AIDS to all 500,000 infected Thais, at virtually no cost to the patient Tony Cheng BBC News July 15, 2005 (You will leave this site.)
Botswana's gains against AIDS put U.S. claims to test Craig Timberg Washington Post July 1, 2005 (You will leave this site and be required to register [once] with the Post.)
Developing country access to HIV treatment continues to increase, but goal of three million in treatment this year will not be met, WHO and UNAIDS say WHO June 29, 2005
U.S. Backs Off Stipulation on AIDS Funds: Plan Had Called for Overseas Groups to Publicly Denounce Sex Trafficking David Brown Washington Post May 18, 2005 (You will leave this site and be required to register [once] with the Post.)
U.S. AIDS Policy: More Harm Than Good, Says Brazil Sandy Krawitz May 3, 2005
Foreign Drugs Approved for U.S. Global Anti-AIDS Program: Many More Will Be Helped, Major Dispute Resolved Shankar Vedantam Washington Post January 26, 2005 (You will leave this site and be required to register [once] with the Post.)
Other
Donors shape Malawi's food policies, USAID report says IRIN October 25, 2005 (You will leave this site.)
14 key myths about food aid and food-related nutrition programming Steve Hansch October 1, 2005 (pdf file)
Can aid do more harm than good? Henri Astier BBC News August 27, 2005 You will leave this site.)
UN agencies call for increased aid for agriculture and rural development Hunger Notes July 8, 2005
Gates Foundation (Microsoft) Gives $750 Million to Vaccinate Children in Poor Countries BBC News January 25, 2005 (You will leave this site.)
"Too Soon" To Say If an International Initiative To Combat Malaria Has Had an Impact, Its Leaders Say BBC News May 3, 2005 (You will leave this site.)
Developed Countries (G-8) Act To Forgive Development Debt to 18 Very Poor Countries; 20 More May Be Eligible BBC News June 11, 2005 (You will leave this site.)
Rich Countries Back Africa Debt Relief Plan BBC News February 6, 2005 (You will leave this site.) G-7 Take One Step, But Still Long Road to Debt Relief for World's Poorest Jim Lobe OneWorld February 7, 2005