A review of Ireland's aid programme was launched this week. Maura Leen looks at how the money can best be spent
The publication of the Ireland Aid Review could not come at a more critical time. An international coalition to fight terror has been formed, yet a global coalition to fight the terror that is hunger and poverty has not materialised.
Despite the commitment in 1970 by the the world's richest countries to raise aid levels to the UN target of 0.7 per cent of Gross National Product, aid flows represent only 0.22 per cent of the GNP of OECD member countries - the lowest level in a decade.
Irish aid as a share of GNP has gone in the opposite direction, however: from the low level of 0.16 per cent in 1992, it is set to reach 0.45 per cent this year and hit the UN's 0.7 per cent target by 2007.
Ireland, more than most countries, knows the value of overseas aid, a point emphasised by Bertie Ahern in his speech to the first European Union-Africa heads of state summit in April 2000 when he noted that "support from the EU through its regional development and cohesion funds played a role in our current economic success".
However, the limited aid flows from developed countries have not been focused on the world's poorest countries. Between 1990 and 1998, aid per capita to the poorest region in the world, sub-Saharan Africa, fell from $32 to $19. This happened before the widely cited Assessing Aid report, published by the World Bank in 1998, pointed out the importance that aid be targeted at high poverty-good policy environments.
While Africa is well known for its high poverty, it is also a continent with high levels of corruption. Yet Ireland Aid has, since its inception, prioritised its resource allocation towards Africa. The review report recommends the continuation of this focus on sub-Saharan Africa along with some expansion in other parts of the world. It also endorses Ireland's commitment to investing its aid resources in health, education and other key areas, most notably HIV/AIDS, an issue that cuts across all aid programmes.
The Ireland Aid Review makes many sensible recommendations on managing this growth. These include more staffing, a greater research capacity and greater operational flexibility in the management of the programme. Stronger policies and research capacity will assist Ireland Aid and the Minister in contextualising their efforts to better ensure that aid allocations are not undermined by financial or trade policies at odds with the objective of poverty reduction.
The core challenge in all this is to maximise the effectiveness of aid in a world where 1.2 billion people live on less than a dollar a day. The harsh reality is that some poor countries are more capable of benefiting from aid than others. Yet the challenge lies in building up the institutional capacity of those countries with weak governance - and not only in picking "winners" or helping those who are best able to help themselves. At the same time, Ireland Aid and non-governmental organisations must not ignore the problems of fragile states. Somalia, where Ireland Aid has supported Trócaire's work, is a stark example of a country with no national government.
The report recognises that the thorny issue of governance - highlighted this week in regard to Uganda - involves all areas of the aid programme. Corruption should not be used as a reason to deny aid resources. Instead, corruption should be tackled head on as part of a broader strategy of poverty reduction which should involve the empowerment of poor people and the creation of efficient and effective government.
In sub-Saharan Africa, where Ireland's bilateral aid programme will remain concentrated, the foundations for progress are being laid. Structural reforms, supported by aid, continue to be pursued in many countries, including Ethiopia, Mozambique, Tanzania and Uganda.
The report also recognises the need for new and more strategic partnerships between Ireland Aid and civil society, both at home with Irish NGOs and missionaries and also at field level with local participation as well as Irish personnel. There are many areas where a well-constructed division of labour between Ireland Aid and NGOs would be desirable.
The commitment of Ireland Aid to democratisation programmes and the defence of human rights is a case in point. Building active citizenship in developing countries is undoubtedly one of the best bulwarks against despotism and oppression. This is something NGOs, with their independence from governments, have taken up. Ireland Aid also has a role to play here and has enthusiastically contributed to voter education and election monitoring in many countries.
And aid is not the only channel for this: Ireland has a key voice at EU level and, for the rest of this year, on the UN Security Council.
The report recommends that Ireland Aid develop more strategic partnerships with key UN agencies - and this has been echoed by the Minister of State with responsibility for overseas development, Ms Liz O'Donnell. Ireland Aid should also explore opportunities to strengthen the role of the UN as a convenor and facilitator of policy dialogue and consensus building on global economic, financial and development issues. In particular, the UN and its specialised institutions should play an enhanced role in identifying emerging development issues and policy gaps.
The omens are good for the long-term impact of the Ireland Aid programme. It has gained much experience in what makes for good aid practice. It is well regarded by the international aid community and by the governments and peoples of the countries it works with in the developing world. Relationships between the official programme and the Irish NGOs are generally strong, though many NGOs would like more dialogue with Ireland Aid on policy and strategic issues, something promised in this report.
Ireland Aid requires a rapid expansion and upgrade of its management structures, and this is now in preparation. The programme faces complex questions on strategy and direction. These questions are being confronted.
And it is important to remember that Ireland, in moving towards the UN aid target, is being held up by its developing country partners as an exemplar to others.
This report holds out the promise that Ireland Aid will be at the leading edge, both in terms of the quantity and the quality of its programmes.
• Maura Leen is Trócaire's policy analyst