Class of G8 'Must do better'

Since 2005, the number of chronically hungry people worldwide has increased from 850 million to 1.02 billion. As a result of the global economic crisis an additional 63 million people will fall into extreme poverty by the end of 2010.

The Class of G8: Five Years on from Gleneagles report grades the UK and other G8 nations on whether they have delivered on their 2005 promises to double aid to Africa, cancel 100% of outstanding debts of eligible highly indebted poor countries (HIPCs), and 'make trade work for Africa'.

Key points in the report include:

Aid: grade C

The G7 countries (G8 minus Russia) promised to increase aid to Africa by $25 billion by 2010. Despite this figure being revised downwards to $22.6 billion it is projected that the G8 will now deliver less than two-thirds of this by the end of the year.

Whilst the UK is on track to meet its commitments, Italy is now providing less aid to Africa than it did in 2005. Little progress has also been made on increasing the transparency and predictability of aid to ensure it benefits the poorest people.

So far, $100 billion of debt has been canceled since 2000. However, the poorest 48 countries still have debts totalling $222 billion*. The impact of the global economic crisis has increased the level of unsustainable debt for many African countries and the G8 nations are failing to provide the long term financial support promised.

Despite much progress, the UK is still holding $2 billion* in debt from poor countries not eligible for HIPC debt relief including Kenya and Ecuador which desperately need funds to support basic services such as healthcare and education.

Trade: grade F

At Gleneagles there was a clear commitment to make trade work for Africa through the World Trade Organisation negotiations. This has not happened. The Doha round of global trade talks collapsed in 2008 and the EU and G8 countries have negotiated individual deals with developing nations, often undermining poor nations’ ability to develop their own domestic markets.

G8 subsidies for their own agricultural sectors (over $219 billion spent by the USA, Canada, Japan and the EU in 2008) are continuing to give an unfair advantage to producers from developed nations. The subsidies can lead to artificially cheap products being exported to poor countries which can prevent subsistence farmers from selling their own products.

SCIAF’s Head of Education and Communications, Mary Cullen said:

“Whilst some progress has been made in the areas of aid and debt cancellation, the G8’s promises to help Africa achieve the Millennium Development Goals which include halving extreme poverty and hunger by 2015, remain way off track. A dire lack of political will by the G8 nations underlies this latest round of broken promises.

“The G8 has failed miserably in making trade work for Africa. Tackling unfair trade, unsustainable debt and tax evasion must be a priority. There is also an urgent need to explore and adopt new and innovative solutions to tackle global poverty, such as introducing a Robin Hood Tax of 0.05% on all financial transactions in the banking sector. This would raise huge sums for tackling poverty and help poor countries adapt to the challenges being caused by dangerous climate change.

“The G8 meetings in Canada on Friday will be David Cameron’s first outing on the world stage. It is crucial that he builds on the commitments given by the previous government to drive the UK and its G8 counterparts to honour their Gleneagles’ promises to help the poorest people in the world to work their way out of poverty.”

Read SCIAF's new report now.

* Jubilee Debt Campaign