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From Poverty to Power Green, Oxfam 2008 - weman

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FROM POVERTY TO POWERThe heightened international focus on security post-9/11 has alsoplayed a part in increased aid volumes, particularly <strong>to</strong> Iraq andAfghanistan. As Richard N. Haass, President George W. Bush’sDirec<strong>to</strong>r of Policy Planning Staff, put it within months of the 9/11attacks: ‘In the conduct of the global campaign against terrorism…our <strong>to</strong>ol kit must also include effective foreign assistance.’ 131In 2005, rich countries pledged <strong>to</strong> increase their aid by a further$50bn by 2010, with half of this going <strong>to</strong> Africa. European governmentsmade the lion’s share of these promises, setting themselves anaid target of 0.51 per cent of their gross national income by 2010, onthe way <strong>to</strong> reaching 0.7 per cent of GNI by 2015 (see page 381 for thebackground <strong>to</strong> the 2005 breakthrough).If that schedule is kept <strong>to</strong>, foreign aid from traditional donorgovernments would be two-thirds European by 2010, and the EuropeanCommission would be a bigger donor than the World Bank. However,by early <strong>2008</strong>, the promises of 2005 were starting <strong>to</strong> look very fragile.Aid from G8 nations <strong>to</strong> poor countries actually fell in 2006 for the firsttime since 1997. Based on the actual trend since 2005, the G8 wouldmiss the target of a $50bn increase by fully $30bn. The price of thisbroken promise? UNAIDS and the WHO say that it would cost fivemillion lives, providing the money were put <strong>to</strong> vital health interventionsfor women, children, and people living with HIV and AIDS. 132The past decade has also seen the entrance of new donor countries,including China, India, Brazil, South Africa, Russia, Venezuela, andSaudi Arabia, which are now a significant part of the aid picture.China is estimated <strong>to</strong> be providing some $1.5–$2bn a year in aid,about half of which goes <strong>to</strong> Africa. It is popular with African governments,as Senegal’s President Abdoulaye Wade explained during onetense exchange with the EU: ‘If I want <strong>to</strong> do five kilometres of roadwith the World Bank, or one of the international financial institutions,it takes at least five years. One year of discussions. One year ofback and forth. One year of I don’t know what. With the Chinese it isa few days and I say yes or no, they send a team, and we sign.’ 133Besides new national donors, ‘philanthropreneurs’ such as the Bill& Melinda Gates Foundation have also joined the big league. The scaleof international private philanthropy is difficult <strong>to</strong> measure, butestimates range from $10bn–$25bn annually. 134 While they are not on358

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