Figure 10: The flow of money between rich and poor countries
ODA: $133.5bn
Developing Countries
Rich Countries
Net financial transfers plus illicit flows: $1.448tn
Note: In 2009, net financial transfers totalled $545bn and estimated illicit flows were $903bn. Source: UN Department of Economic and Social Affairs, Global Financial Integrity and OECD [see text for references].
There can be no justification for advanced economies redistributing so little of their national incomes to assist those living in extreme poverty around the world. Not only is it entirely feasible for donor countries to give 0.7% of their GNI in official aid, the target could be significantly increased to bring it more in line with urgent requirements. Some European countries have set credible timetables for reaching the 0.7% target by 2015, but Luxembourg, Denmark and the Netherlands have already exceeded the 0.7 target, while Sweden and Norway donate 1% or more of their GNI [see table 4].15 In the wake of a global economic crisis that is exacting a disproportionate blow on poor people and the finances of low-income countries, a more generous vision of international aid is sorely needed. If all donor countries committed 1% of their income to development assistance, aid flows would more than triple to almost $431bn a year, raising an additional $297.5bn annually – a figure more commensurate with the pressing requirements of many developing countries today.16 After more than forty years of failed commitments on aid, civil society must continue to demand that rich nations reform the way aid is donated and used, and call on donors to make the redistribution of at least 1% of their national incomes an integral part of government policy in the immediate term.
Increase international aid
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