Where does all that development aid go?

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

Rich countries have been doling out more development aid to poor countries, but most of that is being used to pay off debt and rebuild after natural disasters, a United Nations report shows. Rich countries have been doling out more development aid to poor countries, but most of that is being used to pay off debt and rebuild after natural disasters, a United Nations report shows.

Official Direct Assistance (ODA) to developing countries has been on the rise, but the UN has called on international donors to keep a close eye on the quality of that aid.

Developing countries are not much better off today “such that the amount of aid going into development projects last year remain at the same level as in 1990,” the UN said in a statement to launch its World Economic and Social Survey 2005.

“Over the 1990s, the shares of debt relief, emergency aid and technical assistance in total aid flows were increasing. While these flows have important objectives, emergency aid is not designed to assist long-term development, and debt relief does not generally provide fresh money to debtor countries,” the report said.

“Technical cooperation, in turn, provides a variety of inputs towards developm