Aid to developing countries has increased steadily since 1997, reaching $106 billion - one third of one per cent of donors' combined national income - in 2005. Debt relief accounted for over half of the increase since 1997 and three quarters of it in 2005. This relief, while welcome, will not necessarily release more money for poverty reduction. Similarly, emergency
and disaster relief, also a large part of the increase in aid, although
essential, does not address long-term development needs. Other forms of aid rose by 9 per cent in 2005, continuing a recovery that started in 2004. The 50 least developed countries now receive about one third of all aid flows, and donors have pledged to double aid to Africa, where most of these countries are located, by 2010. |