US blocks bid to boost aid

Published January 24, 2002

UNITED NATIONS: The US has declined to make a firm commitment to increase its official development assistance (ODA) despite an appeal by UN Secretary-General Kofi Annan urging rich nations to double their help to developing countries.

The upcoming International Conference on Financing for Development (FfD) is scheduled for March 18-22 in Monterrey, Mexico.

Delegates from around the world are hammering out a draft plan of action during preparatory talks here that are due to conclude on Friday.

Last week, Annan urged rich nations to double their ODA from the current average of $50 billion to $100 billion annually. Annan said this may sound ambitious but it would still be well short of the recognized goal of 0.7 per cent of gross national product (GNP) mandated for all donor nations.

A coalition of more than 50 NGOs said on Tuesday that it was deeply concerned about the direction of deliberations by the preparatory committee. The NGOs said that the proposed plan of action - called the ”Monterrey Consensus” - lacked firm commitments and time-frames on issues ranging from debt cancellation to poverty eradication.

In its statement on Tuesday, the coalition said early commitments to reform the international financial and economic system are being whittled away as governments cling to the policies of the “Washington Consensus”: de-regulation, privatization, cutbacks in social services, and trade and financial liberalization.

These failed policies, the coalition said, have led to massive job losses, increasing environmental degradation, and the escalating impoverishment of millions, “while a very few are becoming richer than ever.” Argentina’s economic crash, it said, is merely the latest example of a national economy destroyed by these policies.

The coalition is urging donor governments to establish a timetable for meeting the 0.7 ODA target, established years ago and since reiterated at the United Nations and the wealthy states’ Organization for Economic Cooperation and Development (OECD).

The NGOs also want governments to ensure the broad participation of civil society, particularly of women, in economic decision-making. The coalition has also urged governments to ensure that trade rules are fair, people-centred and gender sensitive. —Dawn/InterPress Service.

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