Paying the Price: Why rich countries must invest now in a war on poverty | Millennium Development Goals | Aids

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Progress towards meeting the Millennium Development Goals has fallen far short of the promises made in 2000. At the current rate, all but one of them will certainly be missed. The cost of failure will be high: 45 million more children will die between now and 2015 than would be the case if the world met the goal to reduce child mortality. The time for action is running out. 2005 offers an historic opportunity for rich countries to make good on their promises to finance the Goals effectively - and those promises are easily affordable. In 2005 the 'Global Call for Action Against Poverty' will tell world leaders that this injustice is not inevitable: they can make poverty history - if they act now.
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  Paying the Price Why rich countries must invest now in a war on poverty    S  a  r  a   h   E  r  r   i  n  g   t  o  n   /   O  x   f  a  m  Acknowledgements The main text of this report was written by Arabella Fraser. Bethan Emmett wrote Part 4.Special thanks to Max Lawson and Kate Raworth. Oxfam also acknowledges theassistance of Marta Arias, Catherine Barber, Phil Bloomer, Becky Buell, Ed Cairns,Edward Davey, Xavier Declercq, Sita Dewkalie, Sumi Dhanarajan, Janice Dolan, Polly Evans, Mark Fried, Claire Godfrey, Caroline Green, Barney Haward, Jonathan Hepburn, Adrienne Hopkins, Mohga Kamal-Smith, Jo Leadbeater, John Magrath,Ruth Mayne, Nicole Metz, Deborah Myaux, Mike Parkinson, Ben Phillips, David Redwood,Colin Roche, Bernice Romero, Geoff Sayer, Ines Smyth, Nicola Sutherland, Ted van Hees,Mark Waite, Kevin Watkins, Ben Whiston, Tania Wilson, Dereje Wordofa, Takumo Yamada, the UNDP HDR office, Oxfam GB offices in Ethiopia, Tanzania, and Uganda, and all those who participated in the production of the donor survey. The report was produced by Caroline Bastable, edited byCatherine Robinson, and designed by Alison BeaumontFirst published by Oxfam International in 2005© Oxfam International 2005ISBN: 0 85598 548 8A catalogue record for this publication is available from theBritish LibraryPublished byOxfam International Oxfam International SecretariatSuite 20, 266 Banbury Road Oxford OX2 7DLUnited Kingdom All rights reserved. This publication is copyright, but maybe reproduced by any method without fee for advocacy,campaigning, and teaching purposes, but not for resale.The copyright holder requests that all such use beregistered with them for impact assessment purposes. For copying in any other circumstances, or for re-use inother publications, or for translation or adaptation, priorwritten permission must be obtained from the publisher,and a fee may be payable. Front cover image: Ghana – Camp Number One PrimarySchool, near Sankore Back cover image: Kolkata, India – a morning wash at abroken water main for a family of street dwellers.This publication is distributed in print for the publisher byOxfam GB and is available fromOxfam Publishing274 Banbury RoadOxford OX2 7DZUnited KingdomEmail: publish@oxfam.org.ukFor details of local agents, stockists, and representativesthroughout the world, consult the website:www.oxfam.org.uk/publicationsCopies of this report and more information are available todownload at www.oxfam.org Oxfam GB is registered as a charity (no. 202918) and is amember of Oxfam International  Contents Acronyms and abbreviations 3Summary 5 The price is small 6Aid works … 7… and it could work even better 8Ensuring that Southern governments deliver development 10 Introduction 131 The argument for aid 17 Delivering justice, not charity 17Aid works 18Aid is a critical source of finance for the poorest countries 20Aid pessimism needs reassessment 25 2 Small change:the costs ofaid 29 The human cost of under-funding 29Small change: the current cost of aid 31A history of broken promises 36Affordable for the affluent 38 3 Value for money:how donors can make aid work better 47 Strategise – but for poverty reduction 48Cut the red tape 53Support nationally defined poverty programmes 59 4 Delivering development:how Southern governments can make aid work better 65 Combat corruption and build effective institutions 66Deliver policies and budgets for poor people, with poor people 70 Recommendations 75Notes 78References 85  List oftables Table 1: The Millennium Development Goals (MDGs) 13Table 2: Off track…and without a plan 35Table 3: G7 donors’ favourite aid recipients: failing to prioritise the poorest 49Table 4: The donor contest: how recipients rate donors’ practice 56 List offigures Figure 1: The poorest countries attract little global finance 23Figure 2: Aid is second only to export earnings in importance 24Figure 3: Rich countries – more wealthy, less generous 32Figure 4: Governments spend less than ever on aid 33Figure 5: Most donors fall short of the UN’s 0.7 per cent target 34Figure 6: Pledges to increase aid and debt relief: the rhetoric and the reality 37Figure 7: The personal price of debt cancellation in G7 countries 39Figure 8: The price of poverty reduction in perspective 41Figure 9: US spending priorities 42Figure 10: Aid for whom? G7 donors still serve their own domestic interests 51Figure 11: Revealed: where the aid budget really goes 52Figure 12: Bound in red tape – especially by the World Bank and the USA 57Figure 13: Expect delays in aid delivery – especially from the EC 58 List ofboxes Box 1: Improving road access in Ethiopia 21Box 2: Amplifying the voice of indigenous peoples in Bolivia 22Box 3: A golden opportunity – using IMF gold to cancel debt 40Box 4: Strings attached – Spanish aid to Nicaragua 50Box 5: The costs of managing aid in Ethiopia 54Box 6: Follow the money – tracking education budgets in Malawi 68Box 7: Removing the global incentives to corruption 69Box 8: Budgeting for equity: gender budgeting in Uganda 71Box 9: Clearly not in the interests of poor people: abolish user fees for health care 72
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