NGOs say more could be done

European development agencies welcomed the commitment made at the Millennium Develpment Goals (MDGs) New York Summit by European and other world leaders to deliver on the MDGs by 2015. But they warned that with just five years to go European countries must get back on track to meet their aid spending targets.

They also welcomed the support by France and Spain for a tax on financial transactions to secure new money to accelerate progress towards the goals.

 “It could deliver up to $400 billion annually and complement European aid budgets, allowing the EU to target specific initiatives in countries that have made the least progress towards the goals,” said Justin Kilcullen, president of CONCORD, the European NGO confederation for relief and development. Its national associations and international networks represent over 1,600 NGOs.

On September 21 in front of other world leaders at the Summit French President Nicolas Sarkozy and Spanish Prime Minister Jose Luis Rodriguez Zapatero gave their support to the tax.

“My government is committed to defending the new tax, and making it a reality…” said Zapatero.

“Finance has globalized, so why should we not ask finance to participate in stabilizing the world by taking a tax on each financial transaction?” said Sarkozy.

The international community agrees that more money will be needed if there is to be any chance of the MDGs being hit but many national governments are less willing to direct more of their budgets towards development given that they are having to cut national public services as a result of the financial crisis.

Some supporters see the tax as a possible solution to government cuts to aid and development.

“The calls by President Sarkozy and Zapatero for a tax on the financial sector to raise money for development were a ray of hope at this summit,” says Emma Seery, a spokesperson for Oxfam.

But those who are sceptical of the tax worry that it would be a technical nightmare; it wouldn’t raise much money; and there is not the political will to push it through.

CONCORD expressed disappointment at the failure of the majority of EU member states to meet their aid commitments particularly Germany, France and Italy. The network of NGOs urged countries to deliver on the commitment to spend 0.7 per cent of national income on development aid by 2015.

“To truly eradicate poverty we must firstly meet our aid commitments. We also need to look at the structure that make and keep people poor. That means examining our global and bilateral deals on trade, dealing with the debt crisis of the poorest countries and facing up to our responsibility on climate change.”