June 26, 2006

Has the G8 met its promises to Africa?

Has the G8 met its promises to Africa?
Child in a neighbourhood of Freetown, Sierra Leone

The BBC is investigating how Africa is faring one year on from the promises of increased aid made at the G8 summit in Gleneagles.

BBC Developing World correspondent David Loyn asks if G8 countries are meeting their promises to boost aid and write off debts in Africa.

The Gleneagles G8 summit was unusual in requiring leaders to sign up to a series of specific measures.

British Prime Minister Tony Blair wanted to put the seal on his "year for Africa", not with vague offers of goodwill, but concrete measures.

When he launched his Commission for Africa report earlier that year he said that the radical and costly package of measures in it would now be British government policy.

A year on Britain remains committed, and even publishes a monthly account of "milestones" achieved, but much more remains to be done.

Fractured

World leaders gather as the G8 summit in Gleneagles ends

Even before Gleneagles, the G8 countries had agreed to increase debt write-offs, and at the summit itself Mr Blair won the endorsement he wanted for major increases in aid, as well as a promise to make Aids treatment free and provide universal access to free primary education and health care.

But keeping the commitments - and the funding needed for them - has been harder than making them.

The coalition of support for the Gleneagles process fractured even before the ink was dry on the declaration.

At one end, Bob Geldof said: "On aid 10 out of 10, on debt eight out of 10."

At the other, Kumi Naidoo of the Global Campaign against Poverty, said: "The people have roared but the G8 has whispered."

The decision to phase in the aid increases by 2010 was "like waiting five years before responding to the tsunami", according to Mr Naidoo.

Since then, much of the attention from campaigners has been on whether the promised $50bn increase in aid for Africa was really new money, and whether it was right to count debt cancellation as part of the development budget - as has traditionally been done - or whether this is, in the words of Oxfam, "double counting".

Broken promises?

Now even those who were most enthusiastic about the progress made at Gleneagles are hardening their positions.

Kenyan children

Bob Geldof's close ally in this, Bono, said after the latest pre-summit G8 Finance Ministers' meeting in St Petersburg that "last year's promises to Africa are already in danger of being broken".

He was speaking after a decision was delayed on funding for new research into vaccines for diseases that affect the poor.

It is in details like this that the hopes of Gleneagles will be lost if the funding does not come.

Apart from Britain, the other European G8 members - Germany, France and Italy - have not yet committed themselves to the funding they promised. Germany in particular, under Angela Merkel, is proving to be lukewarm.

In the US, President Bush is battling with Congress over keeping his promises. He requested a $3bn rise in his aid budget, but Congress has cut that by two-thirds.

Funding boost

The debt picture, though, looks much clearer.

Free health care in Zambia, better roads and more secure food supplies are all now more possible because many countries have access to funds that they were previously remitting to service their debt.

It will be easier for campaigners to say that it is not enough, but harder to make the case stick than the case for higher aid.

On the other big element that aimed to make a big difference - fairer trade rules - there is little progress.

Although the current round of world trade talks was supposed to be "the round for the developing world", it has now broken through several deadlines without agreement.

There is increasing concern among the poorest countries in the world that they may suffer from imposed liberalisation, rather than being able to trade their way out of poverty on their own terms.

A new proposal is due to emerge from the World Trade Organization in Geneva before the end of this month.
BBC News

2 comments:

Anonymous said...

Buffett donates $37bn to charity
Warren Buffett
Warren Buffett says he was "wired at birth to allocate capital"
Billionaire investor Warren Buffett is to donate about $37bn (£20bn) - most of his vast personal fortune - to Bill Gates' charitable foundation.

Mr Buffett will hand 10 million shares in his Berkshire Hathaway firm to the Bill and Melinda Gates Foundation.

In a statement, Mr and Mrs Gates said they were "awed" by the donation, thought to be the largest charitable gift ever made in the United States.

The foundation aims to fight disease and promote education around the world.

News of the donation comes shortly after Mr Gates announced he is to step away from his day-to-day role at software giant Microsoft.

By July 2008 Mr Gates, the world's richest businessman, will concentrate on the foundation, which is currently worth just under $30bn.

New will

Warren Buffett, known as "the oracle of Omaha" for his relentless success in investments, is worth an estimated $44bn, according to Forbes magazine.


Bill and Melinda Gates Foundation
Microsoft co-founder and chairman Bill Gates
Fund of $29.1bn
$10.5bn in grants since 1994
Aims: reducing poverty and improving health and access to education
Largest grant: $1bn to the United Negro College Fund
70% of aid spent outside US

The billionaire philanthropist

As well as donating to the Gates foundation, he also pledged shares for his three children and a substantial gift for a foundation established for his late wife, Susan Thompson Buffett.

All the gifts will be awarded yearly, with 5% of each donation passed on each year, it was announced.

He confirmed his decision in letters to the recipients, and said he would write a new will to ensure the money continues to be distributed after his death.

"We are awed by our friend Warren Buffett's decision to use his fortune to address the world's most challenging inequities, and we are humbled that he has chosen to direct a large portion of it to the Bill and Melinda Gates Foundation," the couple's statement said.


TOP FIVE BILLIONAIRES
Bill Gates (US, Microsoft) -
$50bn
Warren Buffett (US, investor) - $42bn
Carlos Slim (Mexico, industrialist) - $30bn
Ingvar Kamprad (Sweden, Ikea) - $28bn
Lakshmi Mittal (India, steel) $23.5bn

Meeting Warren Buffett

In making his award, Mr Buffett - who plays bridge with Mr Gates - said he chose to distribute his wealth to an existing foundation out of respect for its current work.

"Who wouldn't select Tiger Woods to take his place in a high-stakes golf game? That's how I feel about this decision with my money," he told Fortune magazine.

One of the terms of the donation is that at least one of Bill or Melinda Gates continues to be involved with the foundation.

The foundation has evolved into one of the leading philanthropical organisations in the world, listing as one of its primary goals "reducing the 'unconscionable disparity' that exists between the way that we live and the way that the people of the developing world live".

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