Aid Under Pressure: Support for Development Assistance in a Global Economic Downturn

HC 179-I, Fourth Report of Session 2008-09 - Volume I: Report, Together with Formal Minutes

Author:: House of Commons - International Development Committee
Publisher:: TSO (The Stationery Office)

Aid Under Pressure: Support for Development Assistance in a Global Economic Downturn (HC 179-I)

In the current economic crisis, poor countries are experiencing significantly reduced income from trade, remittances and foreign investment. As a result, an additional 90 million people are expected to be living in poverty by the end of 2010, and 400,000 more children are likely to die. Progress towards the Millennium Development Goal of eradicating hunger and extreme poverty has been set back three years.

At the April 2009 G20 summit in London, agreement was reached to provide billions of dollars of additional resources for the international financial institutions (IFIs), with the majority going to the International Monetary Fund (IMF). This will provide a much needed boost for balance of payments support, yet it remains unclear how much of the funding will benefit developing countries.

The huge increase in resources for the IFIs needs to be matched by governance reforms and developing countries need to be given a stronger voice on the boards and in the decision-making processes of the multilateral institutions.

The recession should not be used as an excuse to reduce aid flows but developing countries must also be assisted to derive the maximum benefit from their own resources. They lose billions of dollars each year to tax evasion by international companies.

The UK has a clear responsibility to address enforcement of international tax standards in relation to those British Overseas Territories that are tax havens. More effort is needed towards securing an agreement in the pro-development Doha round of World Trade Organisation negotiations.

Finally, DFID must do more to show the public the many and varied positive outcomes of its work in poor countries.

The accompanying 'Aid Under Pressure: Support for Development Assistance in a Global Economic Downturn - Volume II: Oral and Written Evidence (HC 179-II)' (ISBN 9780215530516) is available to buy separately, please see below.

Extent	65 pages	ISBN	9780215530509
Size	A4	Price	£13.50
Binding	Paperback	Published	02 Jun 2009
Availability	Colour copy: 3 - 5 days	Delivery	Delivery options and charges