AGTI Annual Conference Galway October 2011

 After 60 years of aid, there are almost one billion people hungry in today’s world…...  "Government-to-government transfers are an excellent method of transferring money from poor people in rich countries to rich people in poor countries."  Peter Bauer - British academic  “It seems as if America needs hungry Africans to eat their surplus.”  Quote by an Ethiopian farmer

 More than $100 billion is transferred to the South every year in official aid and through private charities.  However, remittances account for more than twice as much as all official aid.  Sub-Saharan Africa – the world’s poorest region – receives the largest amount of aid of any region – approx $52 per year per capita.  Sub-Saharan Africa – the world’s poorest region – receives the largest amount of aid of any region – approx $52 per year per capita.

 Aid to South-East Asia and the Pacific is about $4 per capita per year.  Some African countries are very dependent on aid. For instance, aid to Liberia and Burundi equals about half of their GDP.  After several decades of receiving aid, Africans are poorer than ever!

 Aid is a partnership between donor countries and recipient countries.  Aid is an industry today.  Aid has been in operation since the middle of the 20 th century.

 Official aid  Bilateral aid  Multi-lateral aid  Emergency aid  Voluntary aid - NGOs  Short Term vs. Long Term aid

(A) The USA insisted that Africa’s governments purchase anti-AIDS drugs from the USA instead of buying cheaper generic products from South Africa, India or Brazil. (B) In Vietnam, a €2.3 million tied aid package from Italy is funding the building of the water system in an urban setting. An Italian company is setting up the Vietnamese flood monitoring system at a cost of €2.5 million.

 Only six countries – Ireland, Luxembourg, the Netherlands, Sweden Norway and the UK – provide more or less 100% untied aid.  Tied aid was made illegal in the UK with the International Development Act of 2001.

 Aid makes people lazy  It makes recipient governments lazy – they do not pursue tax revenues  Aid fuels corruption  It discourages enterprise

 Public services that governments should provide are provided by aid agencies  Aid dependence becomes an addiction  Outsiders call the shots.

 Cold turkey  Inward direct investment  A market economy

Aid must be targeted at real needs.  Aid must be targeted at real needs.  Aid Recipients must be accountable to donors. donors.

OTHER PRIORITY COUNTRIES:  Sierra Leone  Liberia  South Africa  Palestine OTHER PARTNER COUNTRIES:  Vietnam  East Timor IRELAND’S PARTNER COUNTRIES

ODA - %age of GNP

Ireland - ODA in €m

 Africa in 1960: A bright future  China in 1960: A basket case  Africa today: A continent in crisis  China today: ……….Double digit growth

 Tied Aid  Dependence  Food Aid