Daniel Korski

Getting rid of the 0.7 percent aid target

A leader in yesterday’s Times concentrated on the Conservatives’ aid policy – and, in particular, their commitment (shared by the government and by plenty of developed nations) to spend 0.7 percent of gross national income on development assistance. There was much to like in the article, but it misses a few key points and trains too much fire at the Tories.

The key points to make about the 0.7 percent commitment is that it is not based on any assessment of how much money is needed to achieve any defined set of objectives, and has not been revised since it was set forty years ago to take into account new trends – such as remittances from migrant workers, a rise in philanthropic giving, or the role of China and India.

Global philanthropy, remittances and private capital investment continued account for something like 83 percent of the developed world’s economic dealings with developing countries.

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