Developing World

Developing World - analysis and policy

 
Social Justice Ireland published its latest analysis and critique of Ireland's policy on the developing world  as well as its policy proposals in the annual Socio-Economic Review published in April, 2010. The full text can be accessed here.
 
 

Financial Crisis has created huge new problems for governments in Third World countries

The financial crisis has driven millions of people into poverty and put many more at risk according to a new report published by Oxfam. Written by Katerina Kyrili and Matthew Martin of Development Finance International this report shows that the world's poorest countries are struggling to fill huge budget deficits with less help from richer nations.

With the deadline for meeting the Millennium Development Goals (MDG) of slashing poverty just five years away, and aid budgets under pressure from the downturn, Oxfam is stressing the urgent need for new sources of help, such as a 'Robin Hood tax' on financial transactions.

This report examines the impact of the global financial crisis on the budgets of low-income countries, especially their spending to reach the Millennium Development Goals.
The crisis created a huge budget revenue short-fall of $65bn. Aid has filled only one-third of this gap. As a result, after some fiscal stimulus to combat the crisis in 2009, most Low Income Countries  (LICs) are cutting MDG spending, especially on education and social protection.
 
These countries have also had to borrow expensive domestic loans, and increase anti-poor sales taxes. Almost all LICs could absorb much more aid without negative economic consequences (whereas they have much less space to borrow or to raise taxes).

The report therefore urges the international community to make strong new aid commitments at the Millennium Summit in September 2010, funded by financial transaction taxes or other innovative financing:

  • The IMF to encourage LICs to spend more on MDG goals and on combating climate change and to report regularly on such spending;
  • LIC governments to increase spending on social protection and education; taxation of income; property and foreign investors; and efforts to fight tax avoidance.
Oxfam wants a tax on banks (such as a Robin Hood tax or a Tobin Tax) to save poor countries from financial disaster

Oxfam argues that much of the focus during and after the credit crunch has been on the fate of richer countries such as Greece, the US, Britain and Ireland, while continued growth in emerging markets such as Brazil and India has largely been taken as a sign the crisis was restricted to developed nations.

But this study of the budgets of 56 low-income countries, many of them in Africa, concludes that they too propped up their economies by borrowing in the earlier part of the crisis, and have now been left with gaping budget deficits.

 
Social Justice Ireland's latest analysis of the Millennium Development Goals and related developing world issues can be accessed here.

 

 

Lecture series on the Millennium Development Goals

Every year a series of public evening lectures is hosted in Trinity known as the Millennium Development Goal (MDG) Lecture Series. The goal of these lectures is to broaden the reach of development education in Trinity to the general public. This section provides information about upcoming or current lecture series as well as details and resources relating to previous series. This year's series runs on Thursday nights. They are open to all and free of charge.  Full details here.

Social Justice Ireland supports Act Now on 2015 campaign

On June 10, 2010 former Taoiseach Dr. Garret FitzGerald launched “Act Now on 2015”, a campaign led by 61 anti-poverty organisations to call on Government to deliver on its promise to reach the UN target of spending 0.7% of national income on overseas aid by 2015. Social Justice Ireland is a member of this campaign.
Launching the campaign Dr. Garret FitzGerald, the first Taoiseach to see the strategic importance to Ireland of having a dedicated development cooperation programme, said: “If we are to end extreme poverty, it is vital that all countries, rich and poor alike, deliver on the promises they have made. Ireland should honour its promise to raise, within a couple of years, its official aid to 0.7% of GNI.”
The launch of ‘Act Now on 2015’ comes ahead of the European Council meeting on the Millennium Development Goals (MDGs), which will take place in Brussels on 17-18 June. At this meeting, European heads of state will decide a common EU position for this September's MDG summit at the UN.
“Ireland has an opportunity in the coming weeks to push for an ambitious action plan by the European Union to deliver the Millennium Development Goals to tackle global poverty. The government should publish its own action plan showing how it will deliver on its aid promise over the next five years,” said Hans Zomer, Director of Dóchas and Chairperson of the campaign.
The campaign is calling on the government to:
- Announce binding annual targets to achieve 0.7% by 2015 at the latest;
- Enact legislation to guarantee Ireland's aid commitment.
Social Justice Ireland supports these calls and urges Government to act on them immediately. Action to support the poorest people on this planet should not be deferred until the economy recovers. We can and should act now.
The launch coincides with the release of the annual AidWatch report, which tracks the EU's progress towards achieving its aid quantity and quality commitments. The report is compiled by CONCORD, the European NGO confederation, and this year's report finds that EU donors, including Ireland, are falling short of the promises they made.
"Europe's leaders made - and reiterated - a promise to the world's poorest people, that they will not stand idly by when so many people die needlessly of preventable diseases and hunger. Now is the time to deliver on those promises,” said Justin Kilcullen, Director of Trócaire and President of the EU-wide NGO umbrella organisation CONCORD.
Further information and updates are available here.