Restoring Irish Overseas Aid Expenditure for a more Just and Stable World: TRÓCAIRE SUBMISSION FOR BUDGET 2020 - Trocaire

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Restoring Irish Overseas Aid Expenditure for a more Just and Stable World: TRÓCAIRE SUBMISSION FOR BUDGET 2020 - Trocaire
Restoring Irish Overseas
Aid Expenditure for a more
Just and Stable World:
TRÓCAIRE SUBMISSION FOR BUDGET 2020
Restoring Irish Overseas Aid Expenditure for a more Just and Stable World: TRÓCAIRE SUBMISSION FOR BUDGET 2020 - Trocaire
2 | Trócaire Submission for Budget 2020

    SUBMISSION FOR
    BUDGET 2020 SUMMARY
Trócaire welcomed the publication of the Government’s new policy on
international development co-operation, “A Better World” in February 2019 which
recommitted Ireland to reach 0.7% of GNI as official development assistance
(ODA) by 2030 and focuses Ireland’s aid programme on four main areas -
gender equality, reducing humanitarian need, climate action and strengthening
governance.1

                                             The €110m increase in ODA              pressure on land and water,
                                             in Budget 2019,2 an allocated          causing conflict and displacement.
                                             €817m in overseas aid, which           Trócaire’s largest humanitarian
                                             is approximately equivalent to         programmes have been in regions
                                             0.39 per cent of GNI* was vital,       where conflict and displacement
                                             particularly in the context of         have been normalised, such as
                                             extremely high humanitarian            the Middle East, South Sudan and
          Despite global                     needs globally, and gaps in
                                             financing for the realisation of
                                                                                    Myanmar. Humanitarian needs will
                                                                                    remain at exceptionally high levels
   development gains in                      the UN Sustainable Development         in Syria, the Democratic Republic
    recent years, in 2019,                   Goals (SDGs). While recognising
                                             the potential constraints that
                                                                                    of the Congo, Ethiopia, Yemen and
                                                                                    South Sudan in the coming years.
        nearly 132 million                   Ireland faces, particularly in light
                                             of uncertainty regarding Brexit,       Natural disasters and climate
  people in 42 countries                     Trócaire urges the Government          change are also having a
   around the world will                     to honour its commitment to the        devastating impact.3 In Southern
                                             most vulnerable in our world and       Africa, people are still picking
 still need humanitarian                     to provide an additional €144m         up the pieces from Cyclone Idai
   assistance, including                     in ODA in Budget 2020 to bring         earlier this year.   The cyclone
                                             Ireland a step closer to reaching      compounded the effects of
               protection.                   its historic commitment to the         persistent drought in the region
                                             UN target of 0.7% GNI.                 and food aid needs in the region
                                                                                    will remain exceptionally high
                                             Rising humanitarian needs              through to 2020 as a result.
                                                                                    Zimbabwe declared its “worst
                                             exacerbated by conflict and
                                                                                    ever” hunger crisis with an
                                             climate change                         estimated 5.5 million people in
                                             Despite global development gains       the rural areas experiencing food
                                             in recent years, in 2019, nearly       insecurity, of whom over 3 million
                                             132 million people in 42 countries     people – or 38% of the rural
                                             around the world will still need       population – are projected to be
                                             humanitarian assistance, including     in need of urgent humanitarian
  Cover photo:                               protection. Conflict and political     support between the period
  Maji Hka Ra (53) and her family fled       instability remains the main driver    October to December 2019.4 In
  the fighting in Myanmar’s Kachin state
  and are living in Lana Zup Ja camp for     of humanitarian needs. The impact      the context of severe droughts
  displaced people. She has received basic   of climate change is both a cause      affecting Eastern Africa, an
  assistance such as rice from Trócaire’s                                           estimated 11.4 million people
                                             and a compounding factor in many
  local partner KMSS to feed her family.
  (Photo: Gyung Dau)                         conflicts. It leads to increased       require urgent food assistance
Restoring Irish Overseas Aid Expenditure for a more Just and Stable World: TRÓCAIRE SUBMISSION FOR BUDGET 2020 - Trocaire
Trócaire Submission for Budget 2020 | 3

According to recently published OECD figures, ODA to the least-
developed countries fell by 3% between 2017 and 2018, aid to Africa fell
by 4%, and humanitarian aid fell by 8%.

in Ethiopia, Somalia, Kenya,                  the organisation’s head, Angel                   crisis is due to a combination of
and Uganda.5 After decades of                 Gurría, as a “worrying picture” of               more protracted and longer-lasting
declining levels of food insecurity           stagnating public aid that showed                humanitarian crises globally, and
across the globe, hunger began                that “donor countries are not living             the emergence of more self-
to increase again in 2015. More               up to their 2015 pledge to ramp                  interested policies in several
than 821 million people suffered              up development finance.”7 Whilst                 wealthy countries. In the context
from hunger worldwide last year,              it may seem that responding                      of a worrying trajectory among
according to a new United Nations             to the scale of humanitarian                     some states towards nationalism
report - the third year in a row that         needs is overwhelming, it is a                   and away from the values of
the number has risen.6                        question of global priorities. By                solidarity and peace, Ireland
                                              comparison, the world’s total                    often stands out as a continued
According to recently published               military expenditure has increased               champion of multilateralism and
OECD figures, ODA to the                      to €1.6 trillion. The cost of closing            human rights, including the right
least-developed countries fell                the humanitarian funding gap                     of people and organisations to
by 3% between 2017 and 2018,                  and providing people with basic                  mobilise peacefully and speak out
aid to Africa fell by 4%, and                 support is the equivalent of                     against injustice.
humanitarian aid fell by 8%.                  approximately 1% of this military
This trend was described by                   expenditure.8 The current funding

 Milka Irungu, Trócaire’s Emergency Programme Coordinator, helps to register people for assistance at our centre in Somalia.
 (Photo: Allan Gichigi)
Restoring Irish Overseas Aid Expenditure for a more Just and Stable World: TRÓCAIRE SUBMISSION FOR BUDGET 2020 - Trocaire
4 | Trócaire Submission for Budget 2020

    IRISH SUPPORT
    FOR ODA
Recent EU surveys suggest there is huge support from the Irish public for
international aid, with 93% believing that helping people in developing countries
is important.

                                             The Irish people have continually     review of Irish Aid in March 2018
           Ireland, through                  and generously supported Trócaire
                                             throughout our history and we
                                                                                   in the context of the development
                                                                                   of Ireland’s “A Better World”
        Irish Aid, is rightly                believe it is right that Government   policy. The positive reputation
       considered a world                    policy should continue to build
                                             on and reflect this feeling of
                                                                                   of the Irish Aid programme and
                                                                                   its high quality was a recurring
     leader in terms of the                  compassion towards the world’s        theme in discussions with, and
                                                                                   submissions from, stakeholders.
        quality and impact                   most vulnerable people. Ireland,
                                             through Irish Aid, is rightly         Committee Members,
            of our overseas                  considered a world leader in          overwhelmingly endorsed that
                                                                                   positive reputation and urged
                assistance.                  terms of the quality and impact
                                             of our overseas assistance.           that the focus on quality, untied
                                             Ireland has also been a notable       aid, directed to addressing
                                             leader in resisting the worrying      the needs of the poorest and
                                             international trend of diverting      most vulnerable people and
                                             development assistance funding        communities, would continue.
                                             away from poverty reduction and
                                             towards the security, commercial      The Committee took the view
                                             and migration objectives of donor     that a commitment to achieving
                                             countries.9                           ODA expenditure of 0.7% of GNI
                                                                                   by 2030 is critical to the future
 Pharmacist Essam Abed Rabo in the
 Caritas Jerusalem clinic in Nuseirat        The Joint Committee on Foreign        of international development.
 refugee camp in Gaza gives essential
                                             Affairs and Trade, and Defence        There was a strong cross party
 medicines to a family to treat intestinal
 worms. (Photo: Mark Steadman / Trócaire)    had concluded a comprehensive         endorsement on the importance
Trócaire Submission for Budget 2020 | 5

Financing for both mitigation and adaptation in developing countries
remains significantly underfunded and will have to be significantly scaled
up if the temperature limits and adaptation commitments set out in the
Paris Agreement are to be fulfilled.

of restoring Ireland’s ODA budget     and environmentally sustainable       international climate finance
with the Committee unanimously        societies.                            commitments can result in finance
and unequivocally supporting                                                being diverted away from pro-poor
calls for a multi- annual plan to     Further to Ireland’s longstanding     projects that have greater need
increase the aid budget on an         reputation for effective              for climate finance. Accounting
incremental, phased basis. The        development policy, Irish Aid is      methods are another means
Committee further proposed            recognised internationally for        used in many contexts to classify
that the Government submits           having developed a high quality,      existing or already committed
a clear, multi- annual plan to        poverty-focused approach to           finance flows as increases in
the Committee on Budgetary            climate and development policy,       climate finance without any
Oversight for consideration.          with an additional and vital focus    additional funds in practice on the
                                      on gender. “A Better World”           ground.
Ireland is actively campaigning       recognises that arresting climate
to ensure success in its bid to       change is the major global             While much climate finance, in
secure a non-permanent United         challenge of this generation, and     particular adaptation finance, will
Nations Security Council seat for     rightly highlights the importance     be channelled via ODA structures,
the term 2021-2022. Ireland’s         of a people-centred global            climate finance obligations differ
future reputation and credibility     response and a focus on the most      from ODA in that they stem from
as a leader on international          vulnerable. The commitment in         Article 4.3 of the United Nations
development pivots on meeting         the “A Better World” policy to        Framework Convention on Climate
its 0.7% UN target for ODA, and       advocate for greater allocations of   Change (UNFCCC). This commits
by maintaining its commitment         finance for grassroots adaptation     donor countries to providing “new
to high quality and high impact       are particularly welcome, as is       and additional financial resources”
poverty reduction focused aid. The    the reiteration of the policy of      for the “full incremental costs”
next DAC Peer Review of Ireland’s     one hundred percent of Ireland’s      of addressing climate change, as
development co-operation is           climate finance being untied and      a result of their proportionately
taking place this year. The review    grant-based.                          greater contribution to the causes
is an opportunity for Ireland to                                            of climate change, and the greater
share its experience on poverty       Financing for both mitigation and     resources at their disposal to
reduction and humanitarian            adaptation in developing countries    respond to it. To consolidate and
donorship.10                          remains significantly underfunded     build on the positive aspects of
                                      and will have to be significantly     Ireland’s contributions to climate
Climate Finance will need to          scaled up if the temperature limits   finance, climate finance allocations
                                      and adaptation commitments            will need to increase, within and
increase within, and alongside
                                      set out in the Paris Agreement        alongside increases in overall
increases in overall ODA              are to be fulfilled. Grant based      ODA. Allocations should increase
Climate change and environmental      and public finance are essential      taking into account Ireland’s
degradation are at existential        to ensure that the critical work      capacity and responsibility in
threat levels. We are living in the   to support those most affected        terms of historical and current
sixth age of mass extinction.11       by the impacts and with least         emissions. Climate finance should
The combination of species            capacity to cope and adapt receive    remain untied, grant-based and
decline and a warming world           adequate and appropriate funding.     focused on adaptation and the
means the Earth is careering          These are in many cases unlikely      most vulnerable, avoiding the risks
towards a catastrophic collapse       to lend themselves to - or be         of relying on private finance to
of ecosystems. Progress on all        appropriate for – certain finance     deliver and ensuring accounting is
other societal objectives hinges on   instruments requiring financial       guided by both transparency and
a stable climate and urgent action    returns. Increasing emphasis on       integrity.
to move towards low carbon            private sector financing to meet
6 | Trócaire Submission for Budget 2020

    SUMMARY OF KEY PROPOSALS
    FOR BUDGET 2020
Trócaire welcomes the commitments outlined by the Irish government in
“A Better World” which align closely with our work, and the work of our local
partner agencies around the world.

The key focus on strengthening                 for GNP, this would return the aid         by 2025 in order to reach the
governance and women’s                         budget to pre-recession levels by          Sustainable Development
empowerment, while tackling                    2023, allowing coherent forward            Goal targets by 2030.
climate change and humanitarian                planning for aid recipients which
need, reflects the major                       would maximise the impact of          3.   Budget 2020 should be used
challenges facing the world’s                  that aid.12                                as a platform for developing
poorest people.                                                                           this strategy towards fully
                                               1.    The Government should                reaching the 0.7% target.
Budget 2019 allocated €817m                          submit a clear, multi- annual        Specifically, for Budget 2020,
in overseas aid; an amount                           plan to the Committee on             an increase in the ODA spend
approximately equivalent to                          Budgetary Oversight for              by €144million would enable
0.39 per cent of GNI*. Trócaire                      consideration in line with           Ireland to reach an estimated
strongly welcomed this €110m                         recommendations of the Joint         interim 0.44% of GNI.*
increase in the ODA allocation in                    Committee on Foreign Affairs
Budget 2019. Given the historic                      and Trade.                      4.   To consolidate and build
commitment to reach the UN                                                                on the positive aspects of
target of 0.7% of GNP in 2000,                 2.    Given the scale of                   Ireland’s contributions to
the government should evidence                       global humanitarian and              climate finance, climate
its renewed commitment to                            development needs, Trócaire          finance allocations will need
this target by increasing the aid                    continues to urge a medium           to increase, within and in
budget over the next 5 years.                        term strategy for sustaining         addition to increases in
Table 1 (below) shows how the                        progress towards returning to        overall ODA.
Government can reach this target                     0.54% of GNI* by 2022 and
by 2025. Using GNI* as a proxy                       for the 0.7% target to be met

Table 1: Pathway to UN target of 0.70% of GNI* by 2025

                  GNI*                % of GNI* to achieve      Required budget for ODA      Increase in Budget
  Year
                  (€m)                0.7% target by 2025       in each year (€m)            allocation for ODA (€m)

  2019            207,600                     0.39                         817                           -

  2020            218,425                     0.44                         961                          144

  2021            227,650                     0.49                         1,115                        154

  2022            237,400                     0.54                         1,282                        166

  2023            247,750                     0.60                         1,487                        205

  2024            257,660                     0.65                         1,675                        188

  2025            267,966                     0.70                         1,876                        201

Figures from Social Justice Ireland Budget Choices 2020 13
Trócaire Submission for Budget 2020 | 7

    Siblings Richard (17), Godfrey (14), Reagan Oketayot (12), Ivan Agnerwot (9), Prossy (7) and Ivan Onono (5). After their parents were killed
    in South Sudan, the children fled to Uganda, where they are now living in a refugee camp. Trócaire is supporting refugees in northern
    Uganda with trauma counselling, skills training so they can earn an income and with kitchen gardens so they can grow their own food.
    (Photo: Mark Stedman / Trócaire)

With the support of the Irish
public, Irish Aid and other
                                                      Trócaire’s work at a glance 2018/19
institutional donors Trócaire’s
work improved the lives of 2.9                                       HUMAN RIGHTS
million people in some of the                                        €5m spent – 207,000 people supported directly
poorest countries in the world in
2018/2019.14
                                                                     RESOURCE RIGHTS
                                                                     €19.3m spent – 496,000 people supported directly

                                                                     WOMEN’S EMPOWERMENT
                                                                     €17.2m spent – 272,000 people supported directly

                                                                     HUMANITARIAN
                                                                     €24.8m spent – 1,900,000 people supported directly
ENDNOTES
1
      https://www.trocaire.org/news/trocaire-         7
                                                           http://www.oecd.org/development/            11
                                                                                                            https://horizon-magazine.eu/article/sixth-
      welcomes-new-aid-policy                              development-aid-drops-in-2018-especially-        mass-extinction-could-destroy-life-we-
2
      https://www.trocaire.org/news/trocaire-              to-neediest-countries.htm                        know-it-biodiversity-expert.html
      welcomes-overseas-aid-increase-ireland-         8
                                                           https://www.theguardian.com/global-         12
                                                                                                            https://www.socialjustice.ie/sites/
      moves-closer-delivering-its-long-held                development/2019/jul/16/alarming-                default/files/attach/publication/5860/
                                                           shortfall-foreign-aid-worlds-biggest-            budgetchoices2020.pdf?cs=true
3
      https://www.unocha.org/sites/unocha/
                                                           crises?CMP=Share_iOSApp_Other               13
                                                                                                            https://www.socialjustice.ie/content/
      files/GHO2019.pdf
                                                      9
                                                           https://concordeurope.org/wpcontent/             publications/budget-choices-2020
4
      https://reliefweb.int/report/zimbabwe/
                                                           uploads/2018/03/CONCORD_                    14
                                                                                                            https://www.trocaire.org/sites/default/
      government-un-launch-revised-
                                                           AidWatchPaper_Aid_Migration_2018_                files/trocaire_annual_report_2018-19.pdf
      humanitarian-appeal
                                                           online.pdf?d65bd5&d65bd5
5
      https://reliefweb.int/report/somalia/           10
                                                           https://www.oecd-ilibrary.org/sites/
      horn-africa-joint-call-action-major-regional-        941ec6f0-en/index.html?itemId=/content/
      humanitarian-crisis-joint-position-paper             component/5e331623-en&_csp_=b14d
6
      http://www.fao.org/3/ca5162en/ca5162en.              4f60505d057b456dd1730d8fcea3&item
      pdf                                                  IGO=oecd&itemContentType=chapter            * GNI - Gross National Income
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