Essay on The Volume Of Foreign Aid

787 Words Nov 1st, 2016 4 Pages
3. The volume of foreign aid is inadequate to reduce global poverty.
According to Lovett (2016), in 2014, overall foreign aid has increase by 3.5% (compare to the volume in 2013), but the volume of aid for Least Developed Countries had fallen by 4.6%. Refugee crisis contributed to this increase (ibid.). The donor countries tend to count in donor countries refugee cost as part of their ODA (ibid.). This cost increased foreign aid by $1.8 billion (ibid.). So, if we exclude the in donor countries refugee cost, actually there is no increase in the volume of foreign aid for poor country. This situation creates problem because the proportion of people living in extreme poverty actually had doubled in the last fifteen years (from 12% in 1990 to 30% in 2014) (Barder & Juden 2016). Consequently, with the situation where in the poorest countries – the foreign aid fall but the poverty increased sharply – it is highly likely that the current volume of foreign aid will be inadequate to reduce poverty in the poorest countries, which in turn, will make the effort to reduce the global poverty fail.

Moreover, most of the OECD (Organization for Economic Cooperation and Development) countries did not raise their foreign aid to 0.7 percent of gross national income (GNI) – the target (commitment) of ODA which is needed to fully finance the eight Millennium Development Goals (MDGs) (Haas & Hird 2013, p. 69). In 2011, the average of OECD’s ODA was only 0.32% from the combined GNI of those…

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