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EU implores donors to honour pledges despite financial crisis

EU implores donors to honour pledges despite financial crisis
Written by Kabanda Chulu
Thursday, November 27, 2008 11:52:16 AM

THE global financial crisis cannot be an excuse for not meeting donor aid commitments, European Union director of aid financing Maciej Popowksi has said. And Popowksi has said there is need to have legitimacy in resolving global economic crises through a new world financial ‘architecture’ that would be all inclusive in policy and decision making.

During a satellite video conference in Lusaka on Monday, Popowksi said the financial crisis that is translating towards economic recession would put a lot of stress on public financing in most developed countries.

“But this is no time to postpone meeting the targets because these are our commitments and we need to fulfill them or else things will get from bad to worse. As the EU, we are ready to meet our pledges and we appeal to other donors especially the United States and Japan, to meet their commitments as well,” Popowksi said.

“And there is need to go beyond Overseas Development Assistance (ODA) if we have to address other emerging challenges like climate change but also developing countries need to improve on governance and fighting corruption.”

He said the cost of not attaining the millennium development goals (MDGs) would be very high for both the developed and third world countries.

“We should not postpone the MDGs target because already, remittances are declining and in some countries remittances are equivalent to 50 per cent of gross national incomes and the cost of not attaining the MDGs will be very high for both of us, for instance, the issue of migration will rise,” Popowksi said. “It is true the crisis will put stress on fulfilling development assistance but the EU will not curtail support for MDGs and other commitments.”

And Popowksi said there was need to improve on world trade and to legitimise global economic decisions by including developing countries in policy implementation.

“Inclusiveness is the key message and we need to engage emerging economies like South Africa, India, China, Brazil, among others, because they have also become donors hence including them in the financial architecture,” said Popowksi. “We need a new economic order, which we all can manage together, whether we call it Bretton Woods or whatever it does not matter but it should be all inclusive.”

Labels: DONORS, EU, MDGs, RECESSION

posted by MrK @ 11:54 AM