World Bank Group Directs $34.3 Billion in 2007 to Boost Growth and Overcome Poverty

During fiscal year 2007, ending June 30, the World Bank Group committed US $34.3 billion in loans, grants, equity investments, and guarantees to its members and to private business in its member countries – up $2.7 billion (7.8 percent) from fiscal year 2006. The recipients are using these funds in more than 620 projects designed to overcome poverty and enhance growth – for example, by improving education and health services, promoting private sector development, building infrastructure, and strengthening governance and institutions.

“During Fiscal Year 2007, the World Bank Group provided over $34 billion of financial support for developing countries to invest in practical plans to move from poverty to prosperity,” said World Bank Group President Robert B. Zoellick. “But we can and should do more. Given the great needs among diverse developing countries, the World Bank Group can make its capital work for people by creating development solutions for all. That would help advance an inclusive and sustainable globalization.”

The World Bank Group institutions contributing to this financial outcome are: the International Bank for Reconstruction and Development (IBRD), which provides financing, risk management products, and other financial services to members; the International Development Association (IDA), which provides interest-free loans and grants to the poorest countries; the International Finance Corporation (IFC), which makes equity investments, and provides loans, guarantees and advisory services to private-sector business in developing countries; and the Bank Group’s political risk insurance agency, the Multilateral Investment Guarantee Agency (MIGA).

IDA commitments were $11.9 billion, 25 percent higher than the previous year, and the highest in IDA’s history. IBRD commitments in FY07 totaled $12.8 billion. IFC committed $8.2 billion for private sector development in developing countries, an all-time high, which topped last year’s total by $1.5 billion – $3 billion of the total, went to IDA countries. Of MIGA’s $1.4 billion in guarantees, $387 million went to projects in IDA countries. MIGA’s exposure in IDA countries now stands at 41% of its portfolio.

In addition, IBRD carried out $5.4 billion in interest rate and currency risk management transactions on behalf of its members.This is an increase of more than three-fold over totals for the past several years and highlights the expanding portfolio of financial services we offer.

Financial commitments provided by the World Bank Group to the countries of sub-Saharan Africa increased by $1.8 billion in FY07 to $7.5 billion and included a record $5.8 billion in IDA credits, grants, and guarantees to sub-Saharan Africa, (up by $1billion from the previous year); $1.4 billion from IFC for private sector development projects, (double last year’s effort); and $311 million in MIGA guarantees for projects in the region, up $131 million from 2006.

While many challenges remain in Africa, there have been clear signs of progress, according to Obiageli Ezekwesili, Vice President for Africa. “We are now seeing increases in African countries’ per capita income consistent with those of other developing countries and African countries have made great strides in expanding access to health and education,” she said. “African leaders are well aware of the support that IDA provides and this is why they are strong supporters of a robust replenishment of IDA this year.”

IFC involvement in projects often serves to increase confidence in sectors or projects, which generates additional investment from the private sector. In FY07, IFC mobilized an additional $3.9 billion through loan participations, structured finance, and parallel loans. For example, IFC has helped increase cellular access in the Democratic Republic of Congo (DRC), Madagascar, Malawi, Sierra Leone, and Uganda by mobilizing loans from international commercial banks to rebuild the communications infrastructure and providing a basis for future economic growth, while at the same time encouraging investor confidence in other sectors in these countries.

Speaking of IFC’s activity in Africa, Lars Thunell, IFC Executive Vice President and CEO, said. “Last year we doubled our financial commitments to the private sector in Sub-Saharan Africa, which continues to be a priority frontier region for IFC. We helped 166,000 small African businesses get access to finance last year. Our projects gave 6 million new customers access to power and created 11 million new telephone connections across the region. We also substantially increased our advisory services and local currency financing capabilities in the region.”

MIGA Executive Vice President Yukiko Omura said, “Supporting investments into sub-Saharan Africa continues to be a priority for MIGA. Since the agency’s inception in 1988, we have issued $2.3 billion in guarantees in support of projects in 27 countries in the region. In fiscal year 2007, MIGA provided guarantees ranging from support to a micro-credit institution in Cameroon to backing a large telecommunications project in Guinea.”

Ireland on the way toward “0,7 percent” taget

Ireland spent some €814 million last year on overseas development aid to support projects in more than 90 countries, a report published today said.

Minister of State for Overseas Development Michael Kitt published the Irish Aid annual report for 2006, which also reveals that the State gave €100 million to 40 countries to assist them after natural disasters or humanitarian crises.

Mr Kitt said that spending more than 0.5 per cent of GNP on overseas aid last year places Ireland on course to reach the UN target of spending 0.7 per cent of GNP on overseas aid by 2012.

Development aid from OECD countries fell 5.1% in 2006

The 22 member countries of the OECD Development Assistance Committee, the world’s major donors, provided USD 103.9 billion in aid in 2006, down by 5.1% from 2005, in constant 2005 dollars. This figure includes USD 19.2 billion of debt relief, notably exceptional relief to Iraq and Nigeria. Excluding debt relief, other forms of aid fell by 1.8%.
Sixteen of the DAC’s 22 member countries met the 2006 targets for ODA that they set at the 2002 Monterrey Conference on Financing for Development. However, aid to sub-Saharan Africa, excluding debt relief, was static in 2006, leaving a challenge to meet the Gleneagles G8 summit commitment to double aid to Africa by 2010.

Total official development assistance (ODA) from members of the Development Assistance Committee (DAC) fell by 5.1% in 2006 to USD 103.9 billion. This represents 0.30% of members’ combined Gross National Income. In real terms this is the first fall in ODA since 1997, though the level is still the highest recorded with the exception of 2005.

The fall was predicted. ODA was exceptionally high in 2005 due to large Paris Club debt relief operations (notably for Iraq and Nigeria) which boosted ODA to its highest level ever at USD 106.8 billion. In 2006, net debt relief grants still represented a substantial share of net ODA, as members implemented further phases of the Paris Club agreements, providing a little over USD 3 billion for Iraq and nearly USD 11 billion for Nigeria. Excluding debt relief, ODA fell by 1.8%.
Preliminary data show that bilateral net ODA to sub-Saharan Africa rose by 23% in real terms, to about USD 28 billion. However most of the increase was due to debt relief grants. Excluding debt relief for Nigeria, aid to sub-Saharan Africa increased by only 2%.

The only countries to reach or exceed the United Nations target of 0.7% of GNI were Sweden, Luxembourg, Norway, the Netherlands and Denmark. The largest donor in 2006 was the United States, followed by the United Kingdom, Japan, France and Germany. The combined ODA of the fifteen members of the DAC that are EU members accounted for 57% of total net ODA.

In 2006, net ODA by the United States was USD 22.7 billion, a fall of 20% in real terms. Its ODA/GNI ratio also fell to 0.17%. The fall was mostly due to debt relief which was exceptionally high in 2005 as the United States forgave all its outstanding debt with Iraq in 2005 rather than spreading it over several years. US disbursements to Sub-Saharan Africa (USD 5.6 billion) reached a record high mainly due to debt relief (USD 1.4 billion, of which Nigeria was USD 0.6 billion) and increased disbursements for education, HIV/AIDS and malaria programmes. Net ODA flows to Iraq remained substantial (USD 4.8 billion), to Afghanistan increased (USD 1.6 billion) and to the least developed countries were at their highest level ever (USD 5.5 billion).

Japan’s net ODA was USD 11.6 billion, representing 0.25% of its GNI. The 9.6% fall in real terms since 2005 was partly due to exceptionally large expenditures in 2005, including humanitarian relief for the Indian Ocean tsunami and debt relief grants to Iraq. Japan’s net ODA has been on a downward trend since 2000, except for an increase in 2005 due to debt relief. The 2006 ODA total includes an increase in Japan’s contributions to the International Financial Institutions.
The combined ODA of the fifteen DAC-EU members rose slightly by 2.7% in real terms, from USD 55.7 billion in 2005 to USD 58.9 billion in 2006. This represented 0.43% of their combined GNI, surpassing the EU collective ODA/GNI target of 0.39%. The increase in 2006 was mainly due to debt relief grants.

Aid rose in ten DAC EU member countries as follows:

• Ireland (33.7%), reflecting increasing bilateral aid as well as large multilateral contributions,
• Spain (20.3%), due to a large increase in contributions to the UN and other multilateral, organisations, as well as an increase in disbursements by AECI, the Spanish Co-operation Agency
• Sweden (15%), due to general scaling up of its aid and debt relief,
• United Kingdom (13.1%), due to a substantial increase in contributions to international organisations,
• Aid also rose in Denmark (2.9%), France (1.4%), Germany (0.9%), Luxembourg (4.9%),
• Netherlands (4.2%) and Portugal (0.6%).

Falls were noted in Austria (-6.0%), Belgium (-2.7%), Finland (-9.9%), Greece (-4.1%) and Italy (-30%, mainly due to the timing of its contributions to international organisations).
Aid provided by the European Commission rose by 5.7% to USD 10.2 billion reflecting increased budget support and improved disbursement capacity from the higher level of commitments made in recent years.

ODA from other DAC countries rose, or fell, from 2005 to 2006 as follows:

• Australia (22.8%), primarily due to debt relief, notably to Iraq and the Multilateral Debt Relief Initiative,
• Canada (-9.2%), due to the decline in debt relief and lower levels of humanitarian aid compared to the extraordinary response to the Indian Ocean tsunami in 2005,
• New Zealand saw no change (0.0%),
• Norway (-2.2%),
• Switzerland (-7%), due to the lower volume of debt relief grants provided.

Net ODA data reported by seven non-DAC economies rose, or fell, from 2005 to 2006, as follows:

• Chinese Taipei (3.6%),
• Czech Republic (6.4%), due to increased contributions to the EC,
• Iceland (55.3%), due to a general scaling up of Iceland’s contribution to development cooperation,
• Korea (-44.6%), due to lower contributions to the World Bank and regional development banks,
• Latvia (-1.0%),
• Lithuania (15.2%), as it increased its contributions to the EC,
• Slovak Republic (-9.1%), as bilateral aid fell.

Top three of social networks for activists

To get inspiration, ideas and contacts to our work. You can become a member in some of the many social networks on the Internet. TellusBlog.com lists the three best ones.

TakingITGlobal.org

TakingITGlobal is an international organization – led by youth and empowered by technology. TakingITGlobal connects youth around the world to find inspiration, information and get involved in improving their local and global communities.

Headquartered in Toronto, Canada, with a growing worldwide presence, the organization’s flagship program’ TakingITGlobal.org, serves as the most popular online community for young people interested in connecting across cultures and making a difference, with hundreds of thousands of visitors each month.

TakingITGlobal works with global partners – from UN agencies, to major companies, and especially youth organizations – to build the capacity of youth for development, artistic and media expression, make education more engaging, and involve young people in global decision-making.

Link: http://www.takingitglobal.org

Change.org

Today as citizens of the world, we face a daunting array of social and environmental problems ranging from health care and civil rights to global warming and economic inequality. For each of these issues, whether local or global in scope, there are millions of people who care passionately about working toward a solution but have no way of connecting with each other to advance a common goal.

Change.org aims to transform social activism by serving as the central platform that connects likeminded people, whatever their interests, and enables them to exchange information, share ideas, and collectively act to address the issues they care about.

To augment the power of the grassroots networks that develop through Change.org, we help connect these networks to the many nonprofit organizations that are already working to advance worthy causes around the world – over 1 million in total. We facilitate dialogue and collaboration by creating a social network around each nonprofit, thereby allowing people to participate in ways never before possible – by posting ideas and suggestions, engaging in direct dialogue, and organizing communities of donors, volunteer events, and rallies.

Link: http://www.change.org

Idealist.org

Idealists.org/Action Without Borders connects people, organizations, and resources to help build a world where all people can live free and dignified lives.

AWB is independent of any government, political ideology, or religious creed. Our work is guided by the common desire of our members and supporters to find practical solutions to social and environmental problems, in a spirit of generosity and mutual respect.

Link: http://www.idealist.org

World Bank Approves US$30 Million in aid to Colombia

The World Bank’s Board of Directors today approved a US$30 million loan to support Colombia’s efforts to increase rural competitiveness and build up entrepreneurship in poor rural communities through partnership schemes with the commercial private sector.

 

“About 68 percent of the people living in Colombia’s rural areas are poor, most of them small farm families,” said Miguel Lopez-Bakovic, World Bank Country Manager for Colombia. “This project will help reduce rural poverty by enabling small producers to compete successfully in the national and global marketplace.”

 

Under the Second Rural Productive Partnerships Project, small farmers’ producer organizations will gain access to relevant markets by entering into a productive partnership with private sector companies, with the support of financial institutions, government and civil society. At the same time, agribusiness firms will be able to expand food processing activities by securing supplies from small producers.

 

The project builds upon the success of the ongoing Productive Partnerships Support Project which has allowed the creation of 117 partnership schemes with the commercial private sector, benefiting 10,400 rural families.  These include partnerships to improve farm infrastructure, such as irrigation canals, aquaculture facilities, greenhouses, machinery, equipment and special studies.   These schemes have generated additional income and employment, stimulated social cohesion in rural areas, spread entrepreneurial culture, and generated local capacity to implement rural partnerships.

 

The new project aims to finance at least 300 additional partnerships and reach 25,300 small and medium-sized farm families.  The project activities will have national coverage but focus on the departments that have potential for development through agriculture.

 

This US$30 million, fixed-spread loan from the International Bank for Reconstruction and Development (IBRD) is repayable in 17.5 years, and includes a grace period of 5.5 years.

Only five countries are giving what they promised

The world’s richest countries, the OECD-members have promised to give 0,7 percent of their GNI to foreign development aid. They made the first promise in the 1970is and have renewed it many times over the years.

This is the truth today.

The countries who make it
1. Norway, 0,94 %
2. Sweden, 0,94 %
3. Luxemburg, 0,84 %
4. Netherlands, 0,82 %
5. Denmark, 0,81 %

The countries who don´t make it
6. Belgium, 0,53 %
7. Austria, 0,53 %
8. France, 0,47 %
9. United Kingdom, 0,47 %
10. Finland, 0,46 %
11. Switzerland, 0,44 %
12. Ireland, 0,42 %
13. Germany, 0,36 %
14. Canada, 0,34 %
15. Italy, 0,29 %
16. Japan, 0,28 %
17. Spain, 0,27 %
18. New Zeeland, 0,27 %
19. Australia, 0,25 %
20. United States, 0,22 %
21. Portugal, 0,21 %
22. Greece, 0,17 %

This statistics are from 2005.

The new Swedish development aid focus

 The work against poverty in Africa will be the focus of the Swedish development aid. Focuses will the stronger on reform work in Eastern Europe, on peace/security, democracy and human rights.

- The focus will be on Africa where the needs are the highest, says the Swedish minister of development aid, Gunnilla Carlsson.

The focus will be on 30 countries:

Burkina Faso, Ethiopia, Kenya, Mali, Mozambique, Rwanda, Tanzania, Uganda, Zambia, Bangladesh, Cambodia and Bolivia will get a long-term bilateral support.

Burundi, Congo, Liberia, Sierra Leone, Somalia, Sudan, Afghanistan, Eastern Timor, Iraq, Palestine, Colombia and Guatemala will get a conflict support to build poverty reduction and a peace process.

Albania, Bosnia, Georgia, Kosovo, Macedonia, Moldova, Serbia, Turkey and Ukraine will get support from the Eastern Europe division.

The Director of the Swedish International Development Cooperation Agency, Göran Holmqvist, welcomes the initiative.

- Sida welcomes the Government’s work to reduce the number of countries in which we have development cooperation. For a long time we have communicated to the Government the need to make development cooperation more effective.

KIVA – Loans that change lives

Much too often reality of the world looks dark. We are watching the news and looking at the world, feeling that our arms are tied. As if the events on this planet are out of our control. Our planet is just too big and the problems far too irresolvable.

There are those however, who KNOW that they can make a difference, who know that it´s possible, who know that change is just beyond our reach. Some of these individuals started the organization Kiva. Kiva lets you connect with and lend money to unique small businesses in the developing world. By choosing a business on Kiva.org, you can “sponsor a business” and help the world’s working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the business you’ve sponsored. As loans are repaid, you get your loan money back. Thanks to the life changing technological progress we have made, also known as the Internet, Kiva can make, what used to be expensive and complicated, very simple and inexpensive.

People do want to make their own money and create their own life, their own happiness. And there are capable. Only in certain cases, just wanting it and being capable isn’t really enough. This is the reason I have fallen in love with this organisation. It is so simple. So easy. It’s actually so easy that I feel people could do it every day. I don’t how much the loans can affect people’s lives and their businesses in the long run, no one can guarantee that a business will continue to be successful. But without these loans a lot of them might never even have a chance to be.

The other day I got in to a discussion about the meaning of life…Just a simple lunch conversation. Those conversations often lead to more anxiety than anything else, however they get you thinking…And we do need to think about our world. Often. Life flies by and no one can really guaranty what happens next. But don’t we want to feel like we made a difference and made something good in our lifetime? This I guarantee: You CAN change the life for at least one person somewhere in the world. You could be the difference between happiness and misery. You could give love and support, which will lead to someone’s happiness. That, if nothing else, gives a major meaning to your life.

There is just enough happiness, food, money and much else…for each and every one of us. If only we make some efforts. There is absolutely nothing more worth it.

Quotes from loan givers:

“I loan because I can. Kiva makes possible and easy what was not, and I hope this can encourage more humanity in the world.”

“I loan because I want you to have the same opportunities as I do. Opportunities to build a future for my family in a way that will also benefit the community I live in.”

Mia Masnic

More information at http://www.kiva.org.

Stand Up against poverty on October 17

On October 17, join millions of people from around the world to Stand Up and Speak Out against poverty and inequality.

In 2000, world leaders from 189 countries signed up to the Millennium Development Goals, a global plan to halve extreme poverty by 2015.

Last year, more than 23 million people in 87 countries stood up and took action to remind them of this promise. It was the largest single coordinated mobilization in the history of the Guinness World Records.

In 2007, we are at half time – but the world is falling behind.

This year, you can join this growing movement of people calling on our leaders to take action now.

On October 17, 2007 Stand Up and Speak Out!

More information
Stand Up Against Poverty

UN seeks support for Peru program

Margareta Wahlström

An appeal seeking approximately $37 million to assist victims of the Peru earthquake would be officially launched early next week, Margareta Wahlström, Assistant Secretary-General for Humanitarian Affairs and Deputy Emergency Relief Coordinator, said at Headquarters this morning.

At a press conference where she briefed correspondents on United Nations relief efforts in response to natural disasters, she said $9.6 million from the Central Emergency Relief Fund (CERF) had already been allocated to ensure the availability of resources.  The Prime Minister of Peru had made the announcement at a press conference yesterday afternoon.

There had been an enormous outpouring of assistance from countries in the subregion, regional banks and non-governmental organizations, she said.  Relief efforts were proceeding well, despite some organizational issues in terms of distribution and access to people in need, and problems of hygiene and sanitation.  In the next few weeks, however, there would be efforts to clear the rubble from the widespread destruction of churches, public buildings and homes and to establish emergency employment schemes.  With 514 people dead so far and 1,000 injured, United Nations assessments were reaching out to rural areas and the Government was conducting a local census to establish the correct numbers of people in need.

Turning to Hurricane Dean, she said the category 5 storm had now been downgraded, although a hurricane warning remained in effect for the Gulf of Mexico coastline.  While only a relatively limited number of people had been killed, the hurricane had caused huge economic damage to power networks, as well as the agriculture and fisheries of many Caribbean islands.  Those left homeless in Haiti and Jamaica were being supported by the authorities, the United Nations system and voluntary organizations.  Hopefully, the disaster relief operation would be relatively short, with the focus on recovery.

She then turned to the floods in the Democratic People’s Republic of Korea, where a week of torrential rains had dumped up to 850 millimetres of rain — at least half of the country’s annual rainfall.  Momentum was building for an appeal to be launched early next week.  It had been agreed that about 400,000 people had been affected in 92 counties, with 221 dead.  Agriculture had been seriously hit, but the floodwaters were now receding.  The United Nations appeal would focus on providing food and emergency medical, water and sanitation needs.

She noted that the International Federation of Red Cross and Red Crescent Societies had launched an appeal on 20 August for $5.5 million.  There was a lot of interest by the donors, who were waiting for the United Nations to determine the first priorities, which would be available next week.  All the relevant United Nations agencies had staff in the Democratic People’s Republic of Korea, many of them having worked there for 10 years or more.  They knew the environment well and had actively led the needs assessments in all the affected areas.

Emphasizing the vulnerability of all countries to the increasing number of weather-related disasters, she noted the mid-western United States had also just suffered severe flooding.  There was a need for preparedness, early warning systems and consistent collaboration in reducing the human and economic impact of disasters.

In response to a question, she said the appeal for the Democratic People’s Republic of Korea was estimated at “somewhere between $15 million and $20 million”.

She told another correspondent that, while there were sufficient supplies of water, food, plastic sheeting, blankets and other needs in Peru, there was a need to improve coordination.

Asked whether there had been access problems in the Democratic People’s Republic of Korea, she said all the affected areas had been assessed.  Where areas had been difficult to reach, that had been the result of physical obstacles like collapsed bridges.  Those problems were mainly in the eastern and south-eastern parts of the country.

In response to a question about the Government of Somalia directing who should receive assistance, she said she was unaware of any efforts to prevent assistance reaching those in need.  However, many people had left the capital, Mogadishu, and a growing number needed assistance.