Aid

After the devastating floods in Mozambique in 2000, those affected were given land and material to help rebuild their lives [Simon Rawles]

Aid is provided by governments and agencies such as the World Bank or IMF as grants or low interest loans, to be used for long-term development or emergencies by poorer countries

At a UN conference in 1970, industrialised countries agreed to give 0.7 per cent of their national income as aid to developing countries. By 2002 only five countries had reached this target (Norway, Denmark, Sweden, the Netherlands and Luxembourg).

G8 leaders have now reiterated their pledges to increase aid by $50 billion a year by 2010, with half of the increase going to Africa. But, unless the G8 takes urgent action, they will miss the target by up to $27 billion.

Put to good use

The quantity and quality of aid are both crucial - it is essential to ensure aid is available wherever it can be used to good effect, and that it actually reaches the poor.

Aid needs to be directed towards poverty reduction projects, it should not be given on condition that it is used to buy goods and services from the donor country, and ordinary people must contribute to how their government spends aid money.

Aid in itself does not provide a lasting solution to poor countries’ needs. CAFOD is also campaigning to change unfair trade rules and for an end to the debt crisis.

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