Goverment commits to increase aid allocation before end of December

On October 27, the Government agreed on two bi-partisan parliamentary motion on increasing financial resources to development cooperation before the end of 2010. The minority motion was also accepted when mention to financial increase up to 500 million euro for the Ministry of Foreign Affairs was removed. Now it just engages the government to significantly increase resources for development cooperation

The minority motion also commits the Government to start the Parliamentary debate on aid reform again, taking into account discussions during the last legislature, and eventually to clearly state which aid financial commitments will be met in 2010 due to dearth of financial resources.

The majority requests are more vague than the previous ones, asking the Government to fulfil its commitments towards the Global Fund and international food aid agreements, while also increasing development cooperation staff.

Both texts commits the Government to increase aid allocation from current levels by the end of December. However, it is worth noting that the about to be issued decree on peace keeping missions in 2010 would have provided for an aid in fragile states contexts, in any case, in continuity with the past, with no need of any a Parliamentary activity. The actual fulfilment of this engagement by the government should be measured net of the Peace-keeping Decree.

The Italian and Development Aid

According to the recently released Eurobarometer poll on the EU citizens perception on “commitments towards development cooperation”, despite the financial crisis, 90% of the Italian public support development cooperation as important, with 47% asking to keep the aid financial promises versus 13% supporting a freeze or cut in current aid levels. Italian public is ranks 7^th as for awareness on the MDG, (32%) ,and 9^th for importance give to development cooperation. However, only for a small percentage (20%) consider public development aid as aimed to solidarity only without any self interest. 27% consider aid as an investment to ensure greater stability, 24% to prevent migration flows and 24% to counter terrorist spreading in developing countries

Italy and policy coherence for development in 2009

According to the recently EC report on Policy Coherence for Development (PCD), all 12 priority policy areas listed in 2005 have moved in the right direction, at national and the UE level. The report structure is not transparent and it does not allow to list which Member States are more progressive or at the bottom of the Policy Coherence reforms. According to the report, all PCD areas showed some progress with Italy being indirectly praised for its reform on migration policy ( multy-entry VISA), energy ( support to the Carbon fund) and medical research policies to support developing countries academic institutions. These remarks are quite contradictory with what Italy reported to the Commission when submitting its questionnaire. In its submission, Italy considered “very weak” the whole EU progress on the PCD agenda over the last 2 years. On average, it self-assessed its PCD performance positively, yet acknowledging the lack of any progress in terms of implementing the link between poverty reduction and migration, the support to e-government and lack of implementation for the EC strategy for Energetic needs in developing countries.

Italian Budget law: no increase to the 2009 minimal aid level

Today, the Parliamentary budget session has officially started in the Senate. The executive budget proposal restate the same financial level of the aid budget for the Ministry of Foreign Affairs as in 2009, despite the G8 pledges. The MFA proposed budget for development cooperation is set at 326 million euro, in real terms the same level as in 2009. However, only 173 million euro could be committed to new development initiatives, as the remaining is needed to fund on going multiannual activities and cover administrative costs. This financial amount is even more limited when compared with how much Italian NGOs are able to collectively fund raise from the private sector- up to 300 million euro per year. More broadly, the whole budget does not seem to allocate financial resources to actually pay the first Italian instalment to the IDA 15 - 284 million euro. Needless to say that the Italian contribution to the Global Find against AIDS, tubercolosis and malaria, together with the IFAD and the Asian development Funds contributions would need an extra budgetary appropriation to be met. The Government has to present a special law to cover almost 1 billion euros to fund peace-keeping and enforcement missions in 2010, that will provide the last opportunity for Italy to star honouring its aid pledges, to support countries facing the economic effects of the crisis.