Aid To Poorer Nations 'Will Fall Short Of Promises'

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Aid to developing countries in 2010 from the richer nations will be less than what was promised five years ago at the Gleneagles summit, a study has suggested.

Paris-based Organisation for Economic Co-operation and Development says total aid will be $107 billion this year - less than the $128 billion pledged five years ago.

Of this $21 billion shortfall, $17 billion is the result of lower-than-promised giving by the donors and the rest is the result of lower-than-expected national incomes.

In 2005, fifteen countries that are members of the European Union and the OECD Development Assistance Committee committed to donate a minimum of 0.51% of their gross national income,

Many of that group will likely deliver on their promises, the OECD said, with Sweden at 1.03% of GNI leading the way. Other countries likely to hit their target include Luxembourg, Denmark, the Netherlands, Belgium, the U.K., Finland, the Republic of Ireland and Spain.

But others, including France, Germany and Italy, will fall short.

Africa will suffer the biggest shortfall in aid, the OECD said. The continent will likely receive only $12 billion of the $25 billion originally promised, due in large part to the underperformance of some European donors.

Eckhard Deutscher, who chairs the OECD's Development Assistance Committee, blamed Austria, France, Germany, Greece, Italy, Japan and Portugal for the aid shortfall.

"These commitments were made and confirmed repeatedly by heads of government and it is essential that they be made to the full extent," said Deutscher.

Aid to developing countries in 2010 from the richer nations will be less than what was promised five years ago at the Gleneagles summit, a study has suggested. (Market News Provided by RTTNews)