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Economists urge George Osborne to maintain aid spending in budget Economists urge George Osborne to maintain aid spending in budget
(6 months later)
The lives of thousands of children are under threat unless the UK maintains its aid spending, more than 100 economists said in a letter to George Osborne ahead of the budget.The lives of thousands of children are under threat unless the UK maintains its aid spending, more than 100 economists said in a letter to George Osborne ahead of the budget.
Life-saving projects funded through UK aid will be come to an end should the chancellor cave in to demands for cuts to the Department for International Development (DfID), said the group, which includes UN adviser and director of the Columbia University Earth Institute, Jeffrey Sachs.Life-saving projects funded through UK aid will be come to an end should the chancellor cave in to demands for cuts to the Department for International Development (DfID), said the group, which includes UN adviser and director of the Columbia University Earth Institute, Jeffrey Sachs.
The call came as a group of 170 aid charities stepped up their If campaign against hunger, which asks rich countries to invest more in agriculture across the developing world.The call came as a group of 170 aid charities stepped up their If campaign against hunger, which asks rich countries to invest more in agriculture across the developing world.
The If group said the UK, which is playing host to the G8 group of rich nations this year, must act following a fall in the proportion of aid spent on agriculture from 17% in the 1980s to 4% in 2011.The If group said the UK, which is playing host to the G8 group of rich nations this year, must act following a fall in the proportion of aid spent on agriculture from 17% in the 1980s to 4% in 2011.
"In 2011 the UK spent just 1.9% of aid on agriculture despite the fact that two million children die from malnutrition every year," it said."In 2011 the UK spent just 1.9% of aid on agriculture despite the fact that two million children die from malnutrition every year," it said.
Business leaders from many of the UK's largest firms wrote to the Financial Times last week in support of the UK's aid budget.Business leaders from many of the UK's largest firms wrote to the Financial Times last week in support of the UK's aid budget.
Bosses, including Sir Andrew Witty, chief executive of GlaxoSmithKline, and Sir Michael Rake, chairman of BT and easyJet, said: "One reason these economies are doing better (Africa contains many of the fastest-growing economies in the world) is because of the impact of development assistance. Aid has contributed to improving education, health, sanitation and other public services in many of the world's poorest countries."Bosses, including Sir Andrew Witty, chief executive of GlaxoSmithKline, and Sir Michael Rake, chairman of BT and easyJet, said: "One reason these economies are doing better (Africa contains many of the fastest-growing economies in the world) is because of the impact of development assistance. Aid has contributed to improving education, health, sanitation and other public services in many of the world's poorest countries."
The UK's official development assistance (ODA) budget grew by 2.1% in 2011 to £8.6bn, with DfID accounting for £7.7bn. By next year, when aid hits the UN target of 0.7% of gross national income (GNI), the total is expected to rise to £11.3bn. The coalition government's decision to stick to Labour's pledge of meeting the UN target has angered many Tories, who believe DfID's budget should not be spared cuts faced by other departments.The UK's official development assistance (ODA) budget grew by 2.1% in 2011 to £8.6bn, with DfID accounting for £7.7bn. By next year, when aid hits the UN target of 0.7% of gross national income (GNI), the total is expected to rise to £11.3bn. The coalition government's decision to stick to Labour's pledge of meeting the UN target has angered many Tories, who believe DfID's budget should not be spared cuts faced by other departments.
Oxfam, which wrote the letter to Osborne on behalf of 100 economists, said it was concerned the chancellor's resolve may be weakened by the persistent campaigning by some MPs to reduce the aid budget.Oxfam, which wrote the letter to Osborne on behalf of 100 economists, said it was concerned the chancellor's resolve may be weakened by the persistent campaigning by some MPs to reduce the aid budget.
A report by a committee of MPs said this year it was concerned DfID's growing commitments would overwhelm civil servants and lead to poor spending decisions.A report by a committee of MPs said this year it was concerned DfID's growing commitments would overwhelm civil servants and lead to poor spending decisions.
"We are worried that pressure to meet targets to increase overseas development aid could lead to DfID making poor spending decisions," said Malcolm Bruce, chair of the international development committee, following publication of its report on DfID's annual report and accounts 2011-12."We are worried that pressure to meet targets to increase overseas development aid could lead to DfID making poor spending decisions," said Malcolm Bruce, chair of the international development committee, following publication of its report on DfID's annual report and accounts 2011-12.
"The department should be prepared to miss aid targets where there are delays or cancellations to its planned projects and it does not have good value alternatives," he said."The department should be prepared to miss aid targets where there are delays or cancellations to its planned projects and it does not have good value alternatives," he said.
British and Japanese officials will hold a conference in London later this week to discuss joint projects in Africa and how to overcome corruption, threats of kidnapping and violence in some parts of the continent.British and Japanese officials will hold a conference in London later this week to discuss joint projects in Africa and how to overcome corruption, threats of kidnapping and violence in some parts of the continent.
Japan is keen to increase its influence in Africa following a surge in investment by China over the last decade.Japan is keen to increase its influence in Africa following a surge in investment by China over the last decade.
Sachs said the UK should maintain its commitment to development aid. He said: "The bravery of George Osborne and the UK government in sticking to this historic promise will save millions of lives. It is something all British people should be proud of."Sachs said the UK should maintain its commitment to development aid. He said: "The bravery of George Osborne and the UK government in sticking to this historic promise will save millions of lives. It is something all British people should be proud of."
The letter said: "Aid not only protects people from the worst effects of poverty, it also increases the options available to them and encourages enterprise both directly and indirectly.The letter said: "Aid not only protects people from the worst effects of poverty, it also increases the options available to them and encourages enterprise both directly and indirectly.
"By providing farmers with seeds and equipment, for example, aid can make the difference between them growing just enough to feed their families and having a surplus to sell at market. It gives peasants the chance to become businessmen and women.""By providing farmers with seeds and equipment, for example, aid can make the difference between them growing just enough to feed their families and having a surplus to sell at market. It gives peasants the chance to become businessmen and women."
The group urged Osborne to consider the indirect effect of aid, which it said can be considerable.The group urged Osborne to consider the indirect effect of aid, which it said can be considerable.
"Investment in infrastructure helps to pay for the roads and the ports which are vital to both domestic and international trade. By giving children the chance to go to school, aid pays to educate the entrepreneurs and business people of the future," the letter said."Investment in infrastructure helps to pay for the roads and the ports which are vital to both domestic and international trade. By giving children the chance to go to school, aid pays to educate the entrepreneurs and business people of the future," the letter said.
"And the potential returns on further investment are massive. Malaria alone costs the African economy £33m a day – eliminating it would boost economic growth by 1.2% per year."And the potential returns on further investment are massive. Malaria alone costs the African economy £33m a day – eliminating it would boost economic growth by 1.2% per year.
"Relatively small investments – even after the UK meets the pledge, aid will account for just 70p in every £100 of UK national income – help to create a virtuous circle. Economic growth creates a larger tax base, so poor country governments are able to pay their own way with less reliance on aid.""Relatively small investments – even after the UK meets the pledge, aid will account for just 70p in every £100 of UK national income – help to create a virtuous circle. Economic growth creates a larger tax base, so poor country governments are able to pay their own way with less reliance on aid."
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