Developing nations in dire need

The EU spent 8% more on development aid last year, despite the onset of the economic crisis.

Collectively, member countries provided €49bn in assistance to the world’s poorest countries – about 0.4% of the bloc’s gross income. The money goes to a range of projects – from schools and hospitals to new roads.

The commission welcomed the higher numbers, urging EU members not to ease spending in the face of the downturn.

“The recession must not, cannot, will not be used as an excuse for going back on our promises to keep on increasing aid,” said president Barroso.

Developing nations have already been weakened by food and fuel price rises over the past two years. Now they are suffering from falling commodity prices, waning foreign direct investment and the likelihood of a significant drop in remittances from migrant labourers.

This makes it all the more crucial that donor countries honour their commitments, despite pressures on their own economies.

In 2005, EU countries pledged to increase aid to 0.56% of gross income by 2010. To reach that target, they would need to contribute about €69bn. But there is concern that some may not follow through because of falling tax returns and growing budget deficits.

At their recent summit, leaders from 20 of the world’s top economies reaffirmed their commitment to increasing aid in line with the development goals adopted by UN member states in 2001.

The EU will speed up delivery of €4bn earmarked for aid this year. This includes at least €500m in welfare assistance for countries hit by falling revenues and €1bn for those affected by high food prices.

To get the most out of development funds, the commission recommends tailoring aid to attract private investment. Aid should also be accelerated and refocused in light of the crisis.

Closer cooperation between member countries and the commission could also make development aid more effective. Currently the commission manages about 20% of EU aid. The rest is given directly by EU countries.