I am accompanied by the director general, Mr. Ronan Murphy, who was recently our ambassador to Moscow and Vienna — he is still a diplomat — Mr. Frank Sheridan, who is the director of our programme countries, Mr. Brendan Rogers, who is the director of emergency and recovery, and Mr. Paddy Fay, who is the director of support services in the Department.
It is a great honour to appear before this committee. I was not a member of it prior to my elevation to Minister of State but, as members probably know, my late father was the first Chairman of this committee. There is a certain emotional resonance in being here today.
I am here as a Minister of State in his first week or so in office. If members will bear with me I will allow the officials to field some of their more detailed questions. It is a great pleasure to be here and very much my own decision. Parliamentary accountability should be the first job of any Minister of State and it is in that vein that I start off today.
I thank the Chairman, Deputies and Senators who have bothered to pay a visit to our programme countries. We have great difficulty, through the Whip system, in getting Members to travel to these destinations because they are not comfortable. I very much regret the depiction of one such recent visit to Zambia by five Deputies as a junket. I firmly reject that suggestion. Part and parcel of the work of Development Co-operation Ireland and the Department is to encourage politicians, the policy formers and people who are interested in the whole public debate on Third World issues, to go there directly. I will be visiting between three and four of our programme countries prior to Christmas. It is important, if we are to debate these issues, that we in Parliament should not be subject to unnecessary and unwanted criticism for going to very poor countries to see exactly how our taxpayers' money is being spent. I resent the implication behind recent newspaper stories about that particular visit to Zambia. It was far from being a junket. For obvious reasons, even sometimes on grounds of health, Members of the Oireachtas can be reluctant to travel to these countries because there are obvious risks.
I welcome this opportunity to appear before the committee on the subject of Ireland's official programme of development co-operation. There is a good story to tell and while strengthening, improving and increasing the programme remains the objective, the Oireachtas and the Irish people can be proud of what has been achieved in their name in some of the poorest countries in the world. I know the committee is interested in and concerned about Ireland's commitment to reaching the UN target of 0.7% of GNP. Ireland's development programme has grown rapidly in recent years. In 1993 aid expenditure amounted to approximately €70 million. This year the aid budget will total approximately €475 million, the highest it has ever been in the history of the State. It is well above the European Union average and Ireland is among the top ten largest donors in the world, based on aid as a proportion of GNP. The most recent figures put Ireland in seventh place. This is by any standards a major achievement. I should at this stage pay full tribute to my two predecessors in this particular portfolio, Minister of State, Deputy Kitt, and Deputy O'Donnell.
These increases have obviously presented challenges to ensure that the delivery of this assistance is carried out in the most effective and efficient way possible and in a manner which benefits some of the poorest people in the world. International independent evaluations by our peers in the OECD have concluded that Ireland's development programme is of the highest quality. The latest OECD review was carried out last year and it demonstrates that the taxpayer is getting value for money through the programme which the Department of Foreign Affairs is rolling out in the Third World. The findings of the review were clear. Ireland's programme of development co-operation distinguishes itself by its sharp focus on poverty reduction and its commitment to partnership principles. The success of the programme is located by the review in the historical context of the active engagement by many Irish people in development activities in poor countries. The report recommends, inter alia, further increases in the aid budget and the generation of greater understanding and public support for the programme and its achievements, the reason I referred to the visit by members, as parliamentarians.
The aim of our development programme is relatively simple — the reduction of poverty in the developing world. This overall objective is in line with achieving the millennium development goals which, as members are aware, have been set by the international community as a framework by which the commitment to reduce poverty in the world can be judged. In that regard, I should inform the committee that on Friday evening the Minister for Foreign Affairs, Deputy Dermot Ahern, and I will hold in-depth discussions with Kofi Annan on how we can move closer to the goals. That will be the substance of our meeting with him on Friday.
The overall aim of the millennium development goals is to have global poverty halved by 2015. While we have ten years to go, it remains an enormous challenge. If we in Ireland are to make a difference to global poverty, we must, first, ensure our programme grows in size, while maintaining the focus and quality for which we are internationally recognised and, second, work closely with the international donor community and partners in the developing world as it is only through our combined and harmonised efforts that real change can be brought about.
The aim of our programme is to reduce poverty. To do this we must not only tackle the symptoms but also the underlying causes of poverty. It is essential to provide immediate relief for those suffering from conflict, disaster or famine. Many organisations do this effectively in respect of which considerable sums are expended from the programme to assist them. However, the core of our efforts is concentrated on contributing to the solution of the underlying causes of poverty. The focus is on economic growth as well as the provision of basic services. We have only to look at our own situation to understand the importance of the engine of growth in enhancing the lives and well-being of people.
We recognise the importance of good governance, inclusive political processes and human rights. Our development activities concentrate not only on the achievement of social and economic well-being but also the empowerment of people. Giving people choices is essential. Dire poverty comes with a sense of total lack of power over one's life. Without harping on about parliamentary visits, from the reports I have received from members who travelled to Zambia, the people there were very grateful for the advice on governance and civil society, as it is sometimes called, that they received from our parliamentarians. That is the real value of such visits. The people learn first-hand from our Deputies the way our country works successfully in a democratic sense.
Parliament is a real driver of change in people's lives. A few years ago a study entitled, Voices of the Poor, brought together the voices of 60,000 poor men and women in 60 countries. What they had to tell was shocking in a world of seeming abundance. The experience of poverty across continents reveals a great commonality — hunger, deprivation, powerlessness, resilience, social isolation, resourcefulness and gender inequity. When asked what would make the greatest difference in their lives, the poor replied that they did not want charity; they wanted opportunity. They want organisations of their own in order that they can negotiate with governments, non-governmental organisations and traders. They want community driven programmes to allow them shape their own destiny. They want local ownership of the development process and non-governmental and other power groups to be accountable to them.
The Irish programme is responsive to these needs. Partnership and participation are hallmarks of the programme. We work at national and local level to build official capacity to deliver basic social services in a sustainable manner. While we work closely with local authorities and communities on the ground, we must listen even more closely to the voices of the poor themselves who are clearly asking us to build their capacities to participate in local governance and demand transparency and accountability at local level.
Organisational capacity or social capital is perhaps the most important asset of the poor. As we move into this new millennium I can think of no better way to continue to build on the success of Ireland's development programme than by responding dynamically and positively to the organisational needs of the poor. The challenge for us is to maintain progress towards the target of 0.7% of GNP. Let me be clear. We remain committed to reaching this target. We are standing at approximately 0.4% of GNP, well above the European Union average of 0.35%, but we must be mindful that difficult economic circumstances have prevailed in the past two years in Ireland as well as internationally. Other donors in similar circumstances have scaled back on their programmes. An increase of over 600% in ten years is a substantial achievement. Very few donors in other countries can match what we have done over that period, but we can do even better.
Members will be aware that the economy is picking up and that the preliminary Exchequer returns have brought positive news for the Government. There are always tremendous demands on the public purse, yet the people have demonstrated time and again their sense of compassion and solidarity with those in less fortunate nations. Private contributions to the work of missionaries and non-governmental organisations have always been very generous. In that regard, it is worthwhile paying tribute to the many non-governmental organisations and charities which raise money here. It is important to recognise that on the private side we are among the most generous in the world. We are a very generous people, both on the private and public side. As I said, this is the seventh most generous nation in terms of our contribution to the Third World at state level.
This interest in the welfare of the developing world has been reflected in the survey of public attitudes towards development co-operation carried out in 2002. This interest is also shared at the political level. While politicians may occasionally differ in the emphasis we accord to different aspects of the development co-operation programme, there is broad agreement across the political spectrum and I hope in this committee in support of a strong programme of development assistance to address the challenge of a form of poverty which has no parallel in Ireland.
The Estimates process is under way and as always, the discussions will be intense. Members will be aware that there are limits to what I can say in advance of those discussions with the Minister for Finance, Deputy Cowen. My senior Minister, Deputy Ahern, will also be involved. We should maintain momentum towards achieving the goal of 0.7% of GNP which can be a fast moving target in a rapidly growing economy. Substantial increases in monetary terms can lag behind in percentage terms if GNP is ahead of expectation. That is the bottom line. As the economy continues to grow, the absolute figure in terms of our generosity and the level of assistance we are giving to the Third World also grows, but we are falling behind in percentage terms. We are, in a sense, victims of our own success. However, such an environment is positive in making the case for substantial increases in our aid budget. Members can be assured that the case for increasing it will be made with vigour in the context of the Estimates discussion that will occur in the coming weeks. I value their encouragement and invite them to lobby me in that regard because such support is appreciated.
I note that the European Union is committed to reaching an average figure of 0.42% by 2006 across the Union. This will necessitate the rich members of the Union playing their part by substantially increasing their outlays on development assistance. We must lead the way. We have done so to date and must continue to do so. The day is not far off when Ireland will climb up the rankings from being the seventh most generous nation in the world to a position where we will be in the top three. That will not be achieved in my term of office, but we should set ourselves a high bar in terms of what we wish to achieve. We should aspire to being among the top three donors in the world within ten years.
Dóchas and others have urged that we reach the 0.7% target by 2007. To achieve this aim we would have to increase our expenditures by up to €180 million per year, depending on the rate of GNP growth. Essentially, that would mean doubling the programme within three years. I want to be realistic. While I believe we could use a major infusion of additional funding, my preference is for a steady, planned and guaranteed increase that would facilitate the normal planning cycles which are the basis of effective programming. I welcome the comments made by the Chairman on returning to a position where we would have multi-annual programmes and a financial envelope from the Minister for Finance, as was the case up to 2001. It was disturbed in 2001 but my key goal in these Estimates discussions with the Minister is to revert to the position in 2001 when the tragic attack on the World Trade Centre knocked many things off course.
The goal over the next few weeks is to get us to a position of guaranteed funding over three years. I do not want to haggle with the Minister for Finance next year over the amount of money that we may receive. We want to keep firmly to a three year approach and know what level of funding we have so that the non-governmental organisations and the Department can plan the roll-out and expansion of our programme around the world.
In the Estimates discussions I will make a strong case for a major increase in our resources in 2005 and commitments for 2006 and beyond. The target of 0.7% is my objective and that of the Government and I want to move quickly towards it. Only five countries are members of that exclusive 0.7% club, namely, Denmark, the Netherlands, Sweden, Norway and Luxembourg. Most of these countries have been far wealthier for far longer than we have been, although that does not excuse anything we are doing or failing to do. They have been very wealthy for a long time and we are achieving in a short time what they achieved over many years, which is a great sign of our progress. Ireland should take its place in that exclusive group and it has the ability to do so.
Successful development does not depend simply on money, but on how we spend it. It requires value for money, effectiveness and accountability. The quality of our programme is vital. Our international reputation is built on the fact that we work in the poorest countries and demonstrate our partnership approach at every level. Of all the OECD members, Ireland delivers the largest share of its assistance to the least developed countries. We can continue this good work utilising additional funding which hopefully will become available from the Estimates process.
In addition to giving aid we must consider further ways of stimulating economic growth and social progress in the developing world. While aid has a vital role to play in facilitating economic and social advancement, much as membership of the European Union has had such a beneficial effect here, the real engines are increased production, new trading opportunities, sound policies and reduced debt. As we grow we can play an even greater role in these areas, through our programme and also at the international level as an untiring advocate for the poor and the disenfranchised. That has been Ireland's great contribution to world affairs. Many religious and missionary groups have made a significant contribution to this. Now the responsibility passes almost by the day into the hands of the State to fill the role established by the missionary fathers and sisters of the past. We will achieve that objective but we need the support of the committee in doing that. We are not trying to slide away from our commitments, we are moving towards our target as aggressively as we can.
