Dáil Éireann debate -
Wednesday, 13 Nov 2002

Vol. 557 No. 2

Written Answers. - Overseas Development Aid.

Seán Ryan

Question:

98 Mr. S. Ryan asked the Minister for Foreign Affairs if his attention has been drawn to the severe difficulties created for the Ireland Aid Programme in Ethiopia as a result of the reduction in the overall Ireland Aid budget; if his attention has further been drawn to fact that a number of specific important projects will have to be cut back; if he will review the reduction in the budget, in view of the current and forecast food shortage problems which Ethiopia is experiencing; and if he will make a statement on the matter. [21455/02]

Minister for Foreign Affairs (Mr. Cowen)

There has been no reduction in the overall aid budget. The total aid budget for 2002 is at an unprecedented level representing 0.41% of gross national income, GNI, showing an increase of €100 million over 2001.

Ireland Aid is deeply committed to Ethiopia, which is one of the poorest countries in the world. Since our engagement there began in the mid-1990s, the country has been one of the highest priority areas for the programme because of its endemic poverty, its chronic food insecurity and the fact that such a large population, 64 million, seeks a livelihood from a finite and inadequate land and water base.

In 2001 Ireland Aid spent over €21 million on a range of interventions in the country. These included, in particular, support to the health and education sectors. We are actively engaged in tackling the challenge of HIV-AIDS, promoting civil service reform and infrastructural projects like roads building.

In addition to our involvement in these sectors, we administer five so-called area based programmes which help the authorities of regions selected to improve the level of services they provide to their people. Assistance is provided in relation to agriculture and food security, health, education, water and sanitation, rural access roads, public accountability and good governance. Of the 2001 budget for Ethiopia, over €21 million, nearly €15 million was spent on the area based programmes, ABPs.

A number of problems have arisen as a result of decentralisation measures introduced by the Ethiopian Government last year. A decision by the Government of Ethiopia to abolish a particular level of local authority and to devolve administrative responsibility downwards has caused some disruption at local level and has reduced, I hope only temporarily, the ability of the local authorities to manage and absorb resources, including transfers from the centre. These problems are currently being addressed by the Ethiopian Government and by the donor community. Until they are resolved, spending levels under the area based programmes will show some reductionsvis-à-vis previous patterns.

The impending food crisis, which will affect up to 12 million people, presents a further challenge. Ireland Aid is monitoring the situation very closely in co-operation with Irish NGOs, the World Food Programme, the EU and other donors. The Minister of State has already committed as a first step €1 million to help purchase emergency food stocks. The Government stands ready to make further allocations in the light of developments.

Ethiopia was threatened by famine in 2000 and early action by donors and the Government helped to head it off. The hope is that it might be possible to do the same this year. On the development side, we hope and expect that the process of administrative reorganisation will be completed in coming months and that this will facilitate a resumption of normal expenditure in the area-based part of the programme.