Five of the countries biggest overseas aid organisations will have their government funding cut by 20 per cent this year.Concern Worldwide, Goal, Trócaire, Christian Aid and Self Help Development International received €70.8 million under Irish Aid’s multi-annual programme scheme (Maps) in 2008, with Concern receiving €26 million, Trócaire €20 million and Goal €17.7 million.
The cutbacks are a direct result of the government’s decision to reduce its overseas development aid budget by €100million, reducing the budget to €696 million. The recent cut was the fourth to the aid budget since June 2008. The total budget is now €225 million less than it was ten months ago.
Many other non-governmental organisations (NGOs) have yet to learn of the effect the recent cuts will have on their funding, but a spokeswoman for Irish Aid said the news would be communicated this week.
Irish Aid funds NGOs through various programmes, including Maps, block grants, microprojects and emergency funding. Some of Irish Aid’s budget is also used to support UN agencies.
Concern chief executive Tom Arnold said the sector was being ‘‘hit on a number of fronts’’. He said exchange rates - they mainly deal in dollars - had not worked in the favour of NGOs.
Income from corporates and philanthropic donors is also down. Income from the general public continues to hold up, but there are fears that this may change with the continuing economic decline.
Hans Zomer, chief executive of Dóchas, the umbrella organisation of Irish NGOs, said that the global economic crisis was tipping many people and communities in the developing world into deeper poverty.
The International Monetary Fund (IMF) predicted that economic growth in Sub-Saharan Africa, which reached 6.9 per cent in 2007 was set to decrease to 3.25 per cent as demand for poor countries’ exports plummets.
The government promised to spend 0.7 per cent of gross national income (GNI) on aid by 2012.
It now looks unlikely to meet that commitment.
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(Source: SBP)