Thursday, February 22, 2007

The Need for Rich Nations to Increase Aid

Rich nations 'must increase aid' - Source:

The Organisation for Economic Co-operation and Development (OECD) has stated that its goal of increasing aid to $130 billion by 2010 might not be realized. The organization also noted that its goal of doubling the amount of aid for Africa is also likely to fail.

While the amount of aid has been rising by approximately 5% each year, this percentage would have to increase to 11% for the years 2008 through 2010 in order for the the $130 billion goal to be realized.

In a report released by the OECD, the organization noted how important this aid is to some countries, pointing out that there are certain countries which receive almost half of the gross national income from such aid. However, the report stated that, while more aid is needed, the distribution of the aid also needs to improve. In addition, the report also made clear that more accountability is needed, as there is a gap of billions of dollars between what the donor countries report giving and what the recipients report receiving in their budgets.


(1) What can the OECD do to improve the distribution of aid?

(2) What can the OECD do to improve accountability among the donors and recipients of aid?

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