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Tsunami update - Aid, are we stingy?

Just over two weeks after the dreadful calamity in SE Asia, there has been an almost obscene scramble as countries attempt to out-pledge one another in pledges for aid. In a previous article I observed that pledges are rarely honoured, but this time we must make it so.

Sometimes, countries fail to deliver because of changes on the ground; a new donor country government, a civil war in the target country, all sorts of reasons can be found for not following up on a pledge. This is why debt relief, which the G8 agreed upon last week for heavily indebted poor countries, is so important. It is difficult to rescind upon a cancelled debt, and it means that the money that would have gone to servicing debt is already in the country and ready to be used. This is no small amount, the agreed debt relief program being worth $3 billion per year for the affected countries.

I want you now to imagine that the relief effort is being effective and the survivors are getting what they can of their lives back together. Then I want you to imagine a disaster on three or four times this scale happening every month, that's right, each and every month for the rest of time. Each month 165,000 will die from malaria, 240,000 will die of AIDS and 140,000 will die of diaorrhea. That's 545,000 people dying from preventable diseases each and every month. That's just over 6.5 million people each year, some put the estimate at 8 million people.

It's a disturbing thought. But we're doing all we can right? Or are we? Let's take a look at some interesting figures. When looking at the Gross Domestic Product or GDP (a measure of a nations wealth) a clear picture emerges. Denmark is top of the table, giving 1.01% of GDP, while the US manages just 0.1%, placing the US at 22nd in the leaugue of developed nations. These nations agreed with the United Nations a target of 0.7% GDP for development assistance, although only four countries actually achieve this: Denmark, 1.01%; Norway, 0.91%; the Netherlands, 0.79%; Sweden, 0.7%.

Let's look at this another way.

Out of every $100 of national income given to poor countries Denmark gives 84 cents, the Netherlands gives 80 cents, Belgium gives 60 cents, France gives 41 cents, and Greece gives 21 cents. The US gives 15 cents. Some rightly argue that the US gives money through private charitable donations but according to the OECD that bumps up the US charitable donations figure to 21 cents, still leaving it at number 22 neck a neck with Greece.

But the US is a rich country and insists that we should be looking at the total amount that it gives rather than the percentage that each person gives of the national wealth. But this has to be squared with the fact that 50% of its aid budget is not spent on poor countries but middle income countries in the middle east or countries such as Pakistan, countries well able to support themselves, with Israel being the biggest single recipient of US foreign aid. Further, 80% of the aid given goes to American companies in those countries. They further point out that the US provides massive logistical assistance in the form of ships and helicopters in times of crisis, but while this is certainly so, these logistics are already in place and are operational on a daily basis whether used for aid or for nothing much at all, which again reduces the overall contribution that the US appears to make.

In short, the US is not terribly generous at all compared to rest of the developed countries. In fact it is one of the stingiest as former Presideny Jimmy Carter observed.

The US spends $421 billion per year on its military budget, that's almost more than the rest of the world put together. Add together all the other country's military budget and you get nearly $900 billion being spent on arms. It would take just $2 billion a year to save 1 million lives from malaria alone. Think about that. Even a simple mosquito net here in Cambodia costs just $2 and lasts for years. It's $1 dollar a dose to save a child with malaria in Africa.

It's time the world woke up to the fact that with a little effort we can save millions of lives each year, that there is an ongoing disaster that far exceeds the dreadful event two weeks ago. The obvious generosity that is apparent when a disaster hits can be tapped, the will is there we must simply find the way. And one of those ways is for each country to recognise that it is not doing enough, that they so not live up to their words, that they do not deliver on their pledges and they fail to deliver on their promises. And that they are nowhere near as generous as they like to believe.

Commit to the 0.7% of GDP that everyone agreed upon years ago. Follow up the pledges with money to the full, and if the money is no longer needed for a specific cause, use it sensibly elsewhere. And what about this, a 1% cut across the board on military spending. That would make $9 billion dollars available each year for targetted relief for poor countries. If the US in particular committed to this, then it could indeed hold its head up high and claim to be one the world's most generous nation - instead of one of the stingiest.

yechydda,

A visitor made this comment,
What did Wales give?

StingyAmerican

comment added :: 14th January 2005, 04:09 GMT
A visitor made this comment,
Stingy American,

Wales have donated fifty sheep and three tractors. This as a proportion of our GDP is 50% making us the most generous country in the world. In addition, we have cut our defence budget by 10%, meaning that Owain ap Gryfydd, our only soldier, will have to make his pitchfork last just one year longer. Which is risky considering all those millions of lunatic Englishmen massed the other side of Offa's dyke.

yechydda!

VBA

comment added :: 15th January 2005, 04:28 GMT
john mchugh made this comment,
Western nations lauded for their generosity following the south east Asian tsunami disaster are failing to honour pledges of aid, leaving shortfalls of millions of pounds in the recovery programme.

Despite the huge response by international governments when the tidal wave hit on Boxing Day, the United Nations humanitarian appeal is still underfunded by a third, with just $723 million received out of a total of nearly $1 billion originally demanded and pledged.

According to an Oxfam report to be published this week, donations have followed the same pattern as pledges to other recent disasters such as the Bam earthquake in Iran and Hurricane Mitch in central America, where initial promises were not honoured.

The report will also attack western governments for refusing to push ahead with debt and trade reforms that would free reconstruction money for the region.

It will be particularly critical of the debt relief deal hammered out by the Chancellor, Gordon Brown, with other members of the Paris Club of creditor nations, which suspended repayments rather than wiping out debt. There are concerns that interest payments will continue and the debts will have grown when the moratorium ends.

Oxfam is demanding a full assessment of the level of debt sustainable for each country hit by the tsunami. It will also demand reform to trade tariffs from Europe and the US on textile and clothing from the affected region.

Bernice Romero, Oxfam International Advocacy Director, said: 'In the immediate aftermath the public and governments responded admirably. Pledges were made and the world focused on the disaster. Rich country governments sadly appear to be dragging their feet on vital trade and debt reforms to help relieve poverty in the long term.

'The world must not let the spotlight shift away from the devastation caused by the tsunami until rich countries have done all that they can to help victims for the long term. So far they haven't made the tough choices needed to bring fundamental change.'

A World Bank official in New York said: 'It's all very well that a freeze on debt repayments has been agreed, but countries will be hit by repayments as soon as the moratorium ends.' The official confirmed that wealthy countries are likely to fall short of the $1billion demanded by the United Nations.

Meanwhile, the European Commission is expected to say it will lift tariffs on clothing exports from poor countries hit by the tsunami. Sri Lanka and Indonesia paid more than $900m on goods sold to the US and EU last year - almost equivalent to the aid promised by wealthy countries.

The generosity of the British in the wake of the crisis has also been called into question by figures comparing the charity of private donors around the world.

Per capita figures compiled by Reuters and UN agencies from the first 15 days of the disaster show that the people of Norway contributed most, averaging £7.06 for every man, woman and child. The Swedes raised an average figure of £6.44, while the British contributed on average £1.65.
UK donations have now topped £200 million and the average donation per person has moved closer to £3.50, but it is still behind many other western nations.

While Mark Astarita, director of fundraising at the British Red Cross, insists, 'We have one of the most vibrant voluntary sectors in the world,' the Giving Campaign has calculated that voluntary donation fell from 1.2 to 0.9 per cent of Britain's GDP between 1992 and 2002.

The promises per person
Private donations made to the tsunami appeal in the first 15 days. In £ per head of population.

Norway £7.06
Sweden £6.44
Netherlands £4.90
Australia £2.80
Germany £2.77
Saudi Arabia £2.14
Canada £1.99
Austria £1.67
Britain £1.65
Greece £1.11
United States 58p
France 43p

comment added :: 19th January 2005, 05:41 GMT
A visitor made this comment,
Dont know, dont care. We are already being bled dry literally from trying to help the world.

Stingy? Maybe we should be

Bring home our troops, keep the billions we spend on foreign aid trying to stabilize the world condition. Let us keep the money in the U.S. We have our own problems. Close our borders, cut Israel loose from our tit.

Time to practice some good old isolationism.

Hell lets channel the money we save on NOT policing the world into alternate energy sources. Then give them away to the world
I'd love to see the guys over in the Middle East sit on thier sand piles loaded with oil and have no use for it.
The thought warms my heart to the core. What a great way to fight terrorism.

TRC

Paul

comment added :: 20th January 2005, 03:12 GMT
john mchugh made this comment,
Paul,

It must seem tempting to isolate yourself from the world, especially when you're up to your ears in problems, but let's face it most of them are of your own making. Besides, the USA consumes 30% of the worlds natural resources - what would you do without oil? Trade in your SUVs for bicyles? Well at least that might solve the US obesity problem!

It's interesting, but your the first American to suggest cutting Israel loose that I've met. I wonder what the effect of that would be if the US said, okay, from now on, no more money for you!

Peace? Or would they lay waste to their Arab neighbours pre-emptively?

yechydda,

comment added :: 23rd January 2005, 04:55 GMT
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