Italian debt relief activities since 2001 to 2009

The annual progress report on the implementation of the Italian law on international debt relief (Law n° 209/01) has been published. Since it has been implemented, from 2001 until June 2009, Italian bilateral debt relief activities amounted at 6,47 billion euro, with 61% in Africa and 68% included in the top five countries (Iraq, Nigeria, Congo, Mozambique and Ethiopia). Italian debt relief financially skyrocketed in 2005 (56% of the total amount). Later, each annual share is around 1%, showing the quick and successful implementation of Law 209/01. Moreover, Italian shaky aid quantity performance was yearly boosted by 22%, thanks to the reporting of debt relief operations. In the near future, Italian aid heavy reliance on debt relief operations and the exhaustion of the Italian debt stocks towards developing country is to bring about a significant and stable reduction in Italian aid levels. Eventually, 86% of the whole debt stemmed from the Italian export credit agency initiatives to support Italian firms abroad and not from concessional lending developing countries could not afford to pay back.

Ranking Italian response to Humanitarian emergencies

Last week, the DARA research center published the third edition of the Humanitarian response index, ranking 23 donors countries as for quantity and quality of their responses to Humanitarian crises. In 2009, Italy ranks third last, only followed by Greece and Portugal. In every index dimension, Italy performs consistently far below its peer donors average.

It ranks: 20th as for its response to humanitarian needs and for its generosity, second last in prevention, ability to work with humanitarian partners and evaluation of humanitarian interventions.
Italy’s recorded best scores concern timeliness of funding for onset disasters (ranking 4th best donor) and Italy is among the best 10 performers as for the investments in forgotten crisis.

Looking at the details in the Index dimensions, Italian flaws in responding to emergencies get clearer and clearer. Italy ranks: 4th last as for need assessment capacity; 3rd last at contributing to human rights protection, transparency in funding, ability to save human lives and protect human dignity and it is the worst donor as for funding timeliness to complex emergencies.

In order to increase its index performance Italy should reform her strategic and management response to humanitarian emergency following Norway, Sweden and Ireland examples; all scoring among the top three donors for all index dimensions.

Italian commitment to IFAD and conflict scenarios

During the 7^th IFAD replenishment Conference, Italy pledged 41 million euro to be disbursed by the end of 2009. So far, Italy has disbursed just 36%, ranking last among donors in terms of commitments/disbursement ratio, followed by Belgium (50%) France (67%) and the UK (74%). All IFAD donors, including developing countries, have already fully met their pledges. Last year, at the end of the 8^th replenishment, Italy further increased its financial commitment to IFAD by 56%, ranking as the second “virtual” contributor after the USA. Due to its relevant financial share, the low level in the Italian financial disbursement could financially harm the IFAD planned activities.

At the end of October, the Government issued the third Decree extending Italian military missions abroad till the end of 2009. Although it provides financial resourses for the army, the Decree generally includes a financial envelope to fund development cooperation activities in countries in crisis. This last decree appropriates 6.8 million euro to development cooperation activities with the total level for 2009 up to 82 million euro. In comparison to last year, 2009 ended with a 12 million euro gap for development cooperation initiatives.

Italian scores in the Commitment to Development Index, 2009

The Centre for Global Development has recently published the 2009 Index for Commitment to Global Development - CDI. The Index is supposed to assess the overall policy framework of each OECD country under the global/economic development lenses. The aim is to understand which donors policies should be reviewed or replicated in order to foster global development. The index is built on 7 policy areas - such as development, trade, investment, migration, environment, security and technology - and it allows cross country comparison.

In 2009 Italy ranks fourth last, improving one position from last year. Thanks to the 2008 increase in aid financial quantity and the numbers of unskilled migrants, Italy could raise its overall score in 2009. Since the index inception, the Italian performance has been very low due its technology, development and migration policies. As for the latter, Italy hosts a limited percentage of unskilled migrant workers and refugees fleeing from humanitarian crises. The Italian aid initiatives are financially inadequate, too fragmented and tied to the purchase of national goods and services. Eventually, Italy neither publicly invests nor encourages private investment in R&D, via tax incentives. As for regions, Italy is deemed to achieve the best results in terms of external policies fostering development in North Africa and Middle East while the Far East seems to be harmed the most.