Berlin. The two NGOs, Welthungerhilfe and terre des homes, are raising critical voices in the face of a decline in Official Development Assistance (ODA) amongst the industrial nations from US$ 104.4 billion in 2006 (0.3% of GNP) to US$ 103.7 billion in 2007 (0.28% of GNP). The donor community is thereby failing to fulfill its pledges made within the framework of the European Union and the G8 summit.

The set target of spending 0.7% of GNP on development aid is currently being met by only Norway, Sweden, Luxemburg, Denmark and the Netherlands. Germany spends 0.37% on ODA and is ranked 12th amongst the 22 donor nations. Although the upward trend in ODA spending in the German federal budget is continuing, the government has only fulfilled its pledge by half. In order to achieve their own goals, the budget would have to be boosted by 1.6 billion euros per annum.

Welthungerhilfe and terre des hommes fear additional negative repercussions for developing countries. "The current financial crisis is having an effect on the real economy. Developing countries are particularly vulnerable and will be hit unfortunately hard on a long-term basis," says Hans-Joachim Preuss, Welthungerhilfe's Secretary General. Peter Mucke, Executive Director of terre des hommes, points out that "an economic stimulus package to stabilise the economy, as currently being launched by western nations, is therefore also vital for official German development assistance. We all know that money can be quickly mobilised if the political will is there."

Official funds in developing countries themselves also play a central role in the fight against hunger and poverty. Rough estimates claim that developing countries lose US$ 500 billion every year through embezzlement and tax evasion, a figure which is five times that of worldwide development assistance. Welthungerhilfe and terre de hommes are therefore calling for the formation of an international committee to supervise the flow of funds as well as support in establishing taxation and income systems.

The "Reality of Aid" report is conceived as a shadow report for the official figures of the Development Assistance Committee (DAC), a sub-organisation of the Organisation for Economic Cooperation Development (OECD). It assesses the quality and quantity of German and international development assistance.

For further information see www.welthungerhilfe.de and www.tdh.de