Progress on More Aid

How much did we get at Gleneagles?

The agreement at Gleneagles went a very long way. Extra money from the United States and Japan will be added to Europe’s commitment to reach the UN’s target of providing 0.7% of national income for development by 2015. This will release an extra $50 billion a year to poor countries by 2010, $25 billion of which will go to Africa, more than doubling aid to Africa compared to 2004.

But to get the results it so desperately needs, Africa needs this money now, not just in 5-years time. With thousands of people dying of poverty every single day, each day we delay really matters. A group of G8 countries, including the UK, are considering new things such as a tax on airline tickets, or the International Finance Facility (IFF) to get it now, to ‘front-load’ the aid. The IFF will allow donor countries to borrow money from the international markets now and pay it back over the long-term, a bit like a mortgage. 

How much is needed?

Earlier this year the Commission for Africa assessed what was needed to end poverty in Africa. They estimate that Africa needs an additional $75 billion every year to improve how African governments work, to build key infrastructure like roads and ports, to ensure that all African children get a proper education and that all Africans get the health care they need.

With the improvements recommended by the Commission, one-third of this money will come from Africa itself through economic growth and tax revenues. But the Commission recommends that two-thirds comes from the rich world. We will get there in two stages. From now until 2010, rich countries need to give an extra $25 billion per year, doubling to $50 billion per year until at least 2015. 

The Commission sees no alternative to additional aid. No other sources of finance will produce enough money, quickly enough. And the longer we delay, the harder it will be to tackle problems like the rapid and deadly advance of HIV and AIDS.

What will the money be spent on?

The new agreement at Gleneagles will save tens of millions of lives. There will be as close as possible to universal access to HIV/AIDS treatments by 2010; the eradication of Polio by 2008; funding for treatment and bed nets to tackle malaria, saving the lives of over 600,000 children under the age of 5 every year. 

By 2015 all children should have access to good quality, free and compulsory education. They will have access to basic health care, free where a country chooses to provide this. With proper education and healthcare the children of Africa have a future. Tony Blair said of Gleneagles “It isn't the end of poverty in Africa, but it is the hope that it can be ended.” We must now make sure that what was agreed at Gleneagles is delivered.

How do we know the money will be spent properly?

Some of the extra money will go to help African countries to be better governed and more accountable to their people. Organisations like the African Union and processes such as the Africa Peer Review Mechanism (APRM) will play a key role. Individual countries will be supported with advice and money to implement the APRM recommendations, including better public expenditure and financial management. 

Money will go to countries that tackle corruption. This could mean additional support for institutions such as the Nigerian Economic and Financial Crimes Commission, and Anti-Corruption Commissions in other African countries. The UK aims to ratify the UN Convention on Corruption by the end of 2005. The G8 also pledged its support to the Extractive Industries Transparency Initiative. This ensures that money from industries like mining and oil contribute to sustainable development and reducing poverty.

But aid is useless, isn’t it?

When done right, aid works. Properly used, aid has been seen to work around the world. In the 1950s South Korea was poorer than most African countries but because of aid at the time it is now an economic success story. Because of aid Botswana is now a middle-income country with little need for outside help. Because of aid, Tanzania was able to make education free and compulsory, helping 1.6 million children to go to school. And because of aid, Uganda has abolished almost all healthcare charges.

Africa has many problems but there are also many successes, and they need our support. At Gleneagles this July, we made incredible progress to finally Make Poverty History. We have achieved a lot, but there is still much more to do.

Next we will see how aid is only useful if it is good quality aid.

Last updated 17 November 2005