U.S. Ranks 12th Among Richest Nations for
Foreign Aid
LA Times
By Sonni Efron, Times Staff Writer
August 30, 2005
WASHINGTON -- The United States has significantly increased its foreign aid
to poor countries but still ranks 12th among the 21 richest nations in its
overall performance in helping the world's poor, according to a widely watched
annual report.
Denmark ranks as the most generous country in the world, spending 89 cents
per person per day in government aid and one cent per person per day in private
giving, according to the "Ranking the Rich" survey released today by the Center
for Global Development and Foreign Policy magazine.
The United States spent 15 cents per person per day in government aid to
poor nations and 6 cents per person daily in private giving, the report
found.
The foreign aid statistics were based on 2003 data, and did not include the
unprecedented outpouring of charity sparked by last December's tsunami. The
United States pledged $950 million for tsunami relief, out of an estimated $12
billion promised by all Western donors.
More than 2 billion people live on less than $2 a day. The controversial
index attempts to measure how countries help these global poor, not only by
their direct foreign aid contributions but also by their policies on trade,
migration, the environment, technology, security and foreign investment.
For example, the index penalizes nations that sell expensive weapons systems
to undemocratic, impoverished dictatorships, but gives points to countries that
accept migrants from underdeveloped countries. It subtracts from the totals
interest payments made by underdevelopment countries to aid donors.
Japan ranked last among the 21 donors, mainly because of high trade
barriers, low per capita foreign aid spending, and a poor environmental record
in developing countries, the survey found.
After the tsunami, conservative opinion leaders and others were outraged by
suggestions that the U.S. response to the disaster had been "stingy" and
lambasted the index.
Among other criticisms, they argued that such measurements do not include
the amount Americans give to domestic charities. Nor do they give the United
States credit for the billions it spends in military operations that it says
provide the global security that allows other nations' economies to
flourish.
Responding to such criticisms, the 2005 Commitment to Development Index uses
a revised methodology, according to David Roodman, who heads the study at the
Center for Global Development, a liberal Washington think tank. For example,
this year's report gives the United States points for its military
contributions to keeping the world's sea lanes open for global trade, Roodman
said.
The United States, the European Union and Canada also are given points for
eliminating tariffs on textile imports from developing nations under a World
Trade Organization agreement. However, the United States, Britain and France
all lose points as the world's largest arms merchants, though the United States
was selling fewer weapons to undemocratic countries than it did in the past,
Roodman said.
The United States spent $18.7 billion in foreign aid in 2003, more than any
other nation. But more than $1 billion of that was write-offs for uncollectible
loans, mostly to the Democratic Republic of Congo, formerly Zaire, Roodman
said.
Such debt relief is "a good thing, but it's also overrated because most of
that money would never have come anyway," Roodman said. "It's more about rich
countries accepting reality" than truly helping the global poor, he said.
The index also subtracted from the U.S. aid total the $1.5 billion in debt
repayment that Washington received from the developing world, leaving a net
total of $15.8 billion in material foreign aid given in 2003, Roodman said.
Even measured by that stricter standard, U.S. foreign aid has increased
sharply, from $12.4 billion in 2001 and $14.7 billion in 2002. "Our aid really
has gone up a lot and the Bush administration deserves credit for that,"
Roodman said.
Overall, however, the U.S. rank slipped from 11th in last year's survey to
12th this year.
The United Nations has called on all nations to give 0.7% of their gross
domestic product in foreign aid, but the United States rejects that standard,
noting that it would require a U.S. foreign aid budget of $91 billion per
year.
If the United States were ever to spend that sum, it would so dominate the
global aid effort that it would be "imperial development by the United States,"
Andrew Natsios, head of the U.S. Agency for International Development, said at
the United Nations in June.
"We couldn't spend $91 billion if we wanted to," Natsios added, according to
the Associated Press.
Nevertheless, Roodman said, "if you want a meaningful measure of how much
countries are trying, you have to look at aid either per capita or as a share
of GDP," which measures countries by their capacity to give.
"We preach the values of political equality and economic opportunity all
over the world," he added. "What we do with this index is look at how each
country is pursuing those same ideas beyond their borders."
|