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New OECD figures show international aid woefully inadequate to fight the coronavirus crisis, says Oxfam

April 17, 2020

New OECD figures show international aid woefully inadequate to fight the coronavirus crisis, says Oxfam

Rich countries barely increased international aid by 1.4 percent overall in 2019, while they cut humanitarian assistance by 2.9 percent, according to figures published today by the Organisation for Economic Co-operation and Development (OECD). Despite the small over-all increase, the current level of aid is far from enough for the world to tackle crises like the coronavirus and effectively achieve sustainable development, said Chema Vera, Oxfam International Interim Executive Director, reacting to the news:

“Current levels of aid from rich countries are woefully inadequate to help developing countries face the coronavirus crisis, which could force 500 million more people into poverty, and cause up to 40 million deaths. We can stop this pandemic’s spread if we act in every country and for every person. Governments need to radically and rapidly increase their aid now to a level we’ve never seen in our lifetimes.

“The coronavirus has caused widespread suffering in rich countries, overwhelming some of the best healthcare systems. In many poor countries, which face high levels of poverty and inequality, the challenges are even greater. The Central African Republic for example has only three ventilators, which are vital to treat Covid-19 patients.

“The UN estimate that developing countries need a USD$500 billion in increased life-saving aid now to have hope of tackling the coronavirus crisis. Rich countries should contribute their fair share by immediately injecting close to USD$300 billion in additional aid to fight the virus. This is less than the wealth of the world’s three richest men combined.

“Rich countries are facing tough times, and all that is needed is only a fraction of their trillion-dollar rescue programs to prevent millions dying and hundreds of millions falling into destitution. This would also mean that donors finally and collectively reach their 50-year-old promise to give at least 0.7% of their national income in aid.

Oxfam New Zealand’s Advocacy and Campaigns Director Joanna Spratt said: “Oxfam is asking the New Zealand government to step up to make sure we leave no one behind. As a first step, we’re asking for $25 million in extra emergency humanitarian funding. This is only 0.2% of what’s already been spent on domestic measures – a drop in the bucket. The coronavirus is a problem for us all and we need to make sure we help all countries to get rid of it, especially the poorest.

“Resources are needed now for public health, income support and protection from harm for the people in the most vulnerable situations across the world. In Papua New Guinea, for example, there are only 14 ventilators for their eight million people. The world’s response is only as strong as our weakest health system. Until we are all safe, no one is safe.”

Vera added: “Donors should now prioritise emergency support to the under-funded and ill-equipped public health systems in poor countries. They should also help countries improve social protection and provide direct support to people in need so they can deal with illnesses and income loss. This is particularly vital for women, who often have limited employment rights and are far more likely to be informal workers without any social protection. In 2018, less than one percent of aid was invested in social protection while more than four billion people don’t have formal social protection.”

“This crisis is the time for bold and visionary choices for our collective future. It’s time for donors to profoundly transform their aid to build a world that is free from poverty, that is more equal, feminist and sustainable. As the coronavirus is threatening to set back the fight against poverty by decades, we must now act and build a better future.”

Notes to editors:

· Oxfam New Zealand aid expert Joanna Spratt is available for interviews

· The 2019 aid figures are available on the OECD website here.

· Slight increase in development aid: The new OECD data shows that overall aid spending from 30 OECD members totalled USD 152.8 billion in 2019. This was a 1.4 percent increase from 2018. Rich countries only committed 0.30 percent of their gross national income (GNI) to development aid, down from 0.31 percent in 2018, and well below the 0.7 percent they promised back in 1970. In 2019, just five countries – Luxembourg, Norway, Sweden, Denmark, and the United Kingdom – have lived up to this promise.

· Slight increase in aid to the poorest countries: The proportion of bilateral aid spent in low income countries was up by 0.4 percent. The coronavirus will most likely have a devastating impact in developing countries.

· With limited resources, high debt levels, massive capital outflows and weak, underfunded and unequal health systems, poor countries are ill-equipped to protect their populations and their economies. Without urgent action, the economic, social and health toll in these countries will be incomparably devastating. The recent Oxfam report ‘Dignity not Destitution’ found that the economic fallout of the pandemic could force half a billion people into poverty unless dramatic action is taken. This could set back the fight against poverty by a decade, and as much as 30 years in some regions such as sub-Saharan Africa and the Middle East and North Africa.

· UN estimates developing countries need USD 500bn in aid to face the Coronavirus
On 30 March 2020, the UN called for a USD 2.5 trillion coronavirus crisis package for developing countries. This includes: a USD 1 trillion liquidity injections to be made available through the expanded use of special drawing rights; the cancellation of USD 1 trillion of debts owed by developing countries this year; and USD 500 billion in overseas aid to fund a Marshall Plan for health recovery and dispersed as grants.

· Methodology for calculating rich countries’ fair share of the coronavirus aid response: Oxfam bases its calculation of fair share on donors’ gross national income (GNI). The members of the OECD Development Assistance Committee (DAC) together account for 59% of total global GNI, so their collective fair share of any appeal or aid pledging target is 59%. The fair share of any individual DAC member is their GNI divided by the DAC collective GNI and multiplied by the DAC fair share.

· Oxfam’s vision for aid in times of extreme inequality: In its 2019 report ‘Hitting the target, an agenda for aid in times of extreme inequality’, Oxfam set out a 10-point action plan for donors to beat poverty by fighting inequality through: more spending in health, education, social protection, water and sanitation and small-scale agriculture; support to build equitable tax systems in developing countries; support for active citizenship and to fight gender inequality. These recommendations are all the more acute today, as the coronavirus is showing how deep and growing inequalities undermine our ability to face existential threats.

According to the Forbes magazine, the three richest men in the world are Jeff Bezos (USD 138 billion), Bill Gates (USD 104.4 billion) and Bernard Arnault (USD 93 billion). Their combined wealth is USD 335 billion.

Love in the time of COVID

April 17, 2020

LEFT: Oxfam humanitarian specialist Darren Brunk; RIGHT: Oxfam New Zealand’s partner, the Tonga National Youth Congress put together a team of youth volunteers for their emergency response work in Tonga after Hurricane Harold struck last week. Here a TNYC worker uses Oxfam equipment to clean contaminated water for a community of 100 on the remote island of Nukunuku Motu.

I write this on a laptop propped up in a hastily-cleared space on the kitchen table, during that small window of opportunity that is a two-year-old’s afternoon nap. Only just a fortnight ago, rapidly rising infection rates of the coronavirus made a country-wide lockdown essential and upended the working world as we knew it.

Everyday life has been turned upside down here and around the world, and while sheltering mostly at home, Kiwis across the country are quietly worrying about the devastating impact of the coronavirus crisis on the future of work and exactly how we’re going to pay the bills, if and when this is all over. Given the unprecedented disruption and the evident health risks, it’s hard not to focus our concern on those closest to us.

Through my work as an international humanitarian, the focus of my attention is often jolted far from my immediate situation to places where the need is the greatest. For people already living in poverty or crisis situations, any spread of this coronavirus will be far deadlier than what we’ve seen already, elsewhere in the world. And some of these people living in crisis are closer to our shores than we think.

It’s hard enough here in New Zealand getting ahead of this tricky new disease – where water is free, we have space to distance from each other, and soap is cheap and plentiful. Imagine being a parent of young children in the world’s slums or refugee camps, where dwellings are crowded and soap, or even water, is a scarce commodity. In refugee camps where Oxfam works, hundreds of people share a single water tap.

Or right now in the Pacific, where Cyclone Harold has raced through the region as a monster Category 5 storm – that means big and mean – and carved a high-velocity path of destruction through the heart of Vanuatu, before hitting Fiji and Tonga. When it comes to cyclones, the slow-moving ones like Harold are the worst kind, causing mayhem in the way of landslides, significant flooding and storm surges, and leaving behind smashed buildings, torn-up gardens and broken power and water systems.

Meanwhile families face the terrible choice of staying home to face the storm, or cramming into over-crowded evacuation centres along with thousands of others, where they are vulnerable to infectious diseases like Covid-19.

Pacific Islanders know if coronavirus gets a foothold, the impacts could be especially bad. For now, island communities are keeping the global pandemic at bay, but coronavirus represents an ominous new threat for many of our Pacific neighbours living in already at-risk communities. The basic tools and protections we take for granted in our fight against this pandemic – healthcare, handwashing and physical isolation – are simply out of reach for many people living in extreme poverty or grappling with the devastation of a disaster such as Cyclone Harold.

Many Pacific communities are using this time to do what they can to prepare, though any such preparations are blown out the window when a cyclone sweeps through the village. For starters, disasters such as Cyclone Harold sabotage any preventative measures such as lockdown or distancing. It also totally undermines a country’s ability to fund their already thinly-stretched public health services. Economically, the cyclone is a double disaster for Vanuatu, as almost half of this island nation’s economy is reliant on the tourism and hospitality that was just stopped in its tracks by the recent border restrictions.

A coronavirus outbreak in the Pacific may also disproportionately affect women and girls. Women are the primary care givers in the family and are key health care frontline responders placing them at increased risk and exposure to infection. Coronavirus risks increasing women’s workloads, as they care for children as schools close and the sick. There is a risk of increased family violence when families facing huge economic and mental stress are forced into isolation, especially in a region where pre-existing rates of violence against women are already very high.

In most Pacific countries, access to quality health services including intensive care is limited. In PNG for example, there is 0.5 doctors for every 10,000 people; by contrast, New Zealand has 30. Non-communicable diseases (NCDs) including diabetes and chronic respiratory diseases, represent the single largest cause of premature mortality in the Pacific. These are some of the conditions for which this coronavirus presents the greatest risk.

The challenges are real, but the situation is not without hope. A pandemic of this size and speed is not something we have seen in recent times, but the world has plenty of experience fighting disease. And Oxfam, alongside other NGOs and local agencies have much experience to draw on in supporting Pacific communities to deal with the devastation and aftermath of cyclones. While at-risk communities in the Pacific and elsewhere in the world lack access to even the most basic coronavirus-fighting tools, it’s one problem that humanitarian organisations like mine can help fix.

There are basic things that save lives. We can distribute emergency sanitation and water kits, locally-sourced soap and other hygiene supplies from local markets; we can build hand washing points; we can install water purification plants in vulnerable communities to make contaminated water safe. We can build emergency toilets to improve sanitation conditions; we can use local water committees to share hygiene messages and identify people who may be at risk or infected. We know we can, because we do it every day, for millions of people around the world.

Despite the many challenges, Oxfam is right now supporting community health workers to help the people worst hit by this crisis. Today, like every day, teams are working hard to channel life-saving resources into some of the world’s toughest places, helping to save and change lives. The people living in these places desperately need help from all of us.

This global pandemic suggests a new era of solidarity and care for strangers. Troubling times remind us how much we love our friends and family – it’s also a moment to respond in a loving way to people we haven’t yet met.

– Darren Brunk works as a Humanitarian Specialist with Oxfam New Zealand.

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Debt relief for poor countries essential in global fight against coronavirus

April 16, 2020

Oxfam New Zealand is calling on the New Zealand government to free up spending for global public health, by advocating for the immediate cancellation of all external debt payments due to be made in 2020 by developing country governments.

Oxfam New Zealand’s Advocacy and Campaigns Director Joanna Spratt said: “Countries around the world need to massively scale up their health budgets to fight the coronavirus crisis. But the very poorest countries are due to spend US$40 billion on debt payments in 2020 alone.

“World leaders are meeting this week to talk about debt cancellation at the IMF and World Bank Spring Meetings. While the G20 have already agreed to a suspension, this only kicks the problem down the road. This moment of unprecedented need requires at least a cancellation of all debt payments owing this year, so that money can instead help save millions of lives.

“Many of our neighbours in the Pacific region are already at high risk of debt distress. Countries like Papua New Guinea, where they only have 14 ventilators for their eight million people, currently spend more on debt repayments than public health. Until we are all safe, no one is safe.”

“New Zealand can be an advocate for debt cancellation at the World Bank and IMF meetings – as an aid donor that doesn’t give loans, our position on this is strong. We have a responsibility to advocate for our neighbours facing this intolerable situation.”

Oxfam’s recent report Dignity Not Destitution highlights how the coronavirus and the disruption caused to the global economy could push up to half a billion more people into poverty. It also shows that 46 countries were spending on average four times more money on paying debts than they were on public health services at the beginning of this year, when the coronavirus was spreading.

“This pandemic will require a massive injection of resources to support economies, so it makes no sense for poorer countries to be transferring vital resources to the rich world. The costs of the debt burden are paid by the poorest people, in cuts to government services, and women are the hardest hit.”

Over 200 organisations, including Oxfam, have signed a statement calling for the cancellation of all debt payments due from developing countries to bilateral, multilateral and private creditors. In addition more than 750,000 people have signed a petition calling for urgent debt relief.

The international aid agency is also advocating for the New Zealand government to provide NZ$25 million in immediate, additional humanitarian funding as part of an emergency coronavirus response package for people living in the world’s worst crisis and emergency situations; and for the protecting and maintaining of existing aid and climate finance budgets so that fewer people are thrown into poverty by the global pandemic.

-ends-

For more information, please contact:
Kelsey-Rae Taylor on Kelsey-Rae.Taylor@oxfam.org.nz or +6421 298 5894.

Notes to editors:
Over 200 organisations, including Oxfam, have signed a statement calling for the cancellation of all debt payments due from developing countries to bilateral, multilateral and private creditors, and more than 750,000 people have signed a petition calling for urgent debt relief.

Oxfam’s recent report ‘Dignity Not Destitution’ calls for an ‘Economic Rescue Package for All’ to support poor countries in tackling the crisis and rebuild a more equal world. Debt relief, together with aid and tax policy, is on the front line of these global plans for public health and economic rescue.

President Trump seeking to withhold funding to the World Health Organization

April 15, 2020

Reaction to President Trump hold on WHO funding

In reaction to reports that President Trump is seeking to withhold funding to the World Health Organization, Abby Maxman, President and CEO of Oxfam America, made the following comment:

“Picking a fight with the World Health Organization during a pandemic is shortsighted to say the least. Instead of bringing us together through this global crisis, President Trump has attacked leaders and agencies around the world, seeking to deflect blame for his own administration’s failings.

“With this latest move to hold back funding from the WHO, President Trump is crippling any hopes for the responsible international cooperation and solidarity that is critical to save lives and restore the global economy.

“Withholding funding and blame-shifting means wasted time and needless death, misery, and poverty. And it gets the US and the world no closer to an end to this disaster.

“As we at Oxfam scale up efforts to respond to the crisis in more than 50 countries around the world, we see firsthand that strong coordination and funding is vital to save lives on the ground.

“No one individual, community, or country can deal with this crisis alone. We must work together, in our communities and across borders, with dignity and compassion. No one is safe until everyone is safe. President Trump must immediately reverse course and act like the global leader the world expects.”

G7 backs debt moratorium for poor countries, if G20 and Paris Club agree: Oxfam reaction

April 15, 2020

Responding to a joint statement on Tuesday by G7 Finance Ministers saying they stand ready to provide a time-bound suspension on bilateral debt service payments for all countries eligible for World Bank concessional financing if they are joined by all G20 members and as agreed with the Paris Club group of official creditors, Jaime Atienza, Oxfam International’s Debt Policy Lead, said:

“The G7’s statement is a welcome step, but this unprecedented crisis requires the G7, G20, IMF and World bank to go a lot further. Without urgent action to relieve developing countries of all their external debt payments this year, and ensure they don’t accrue into the future, the coronavirus could lead to millions of deaths and force half a billion more people around the world into poverty. Countries that were already on the verge of debt crisis before the coronavirus outbreak need urgent support and debt relief now more than ever”.

Oxfam showed today that the IMF’s gold holdings have increased in value by almost $20 billion since the start of the global pandemic (putting total holdings over $150 billion). The IMF should use the windfall profits from gold sales for debt cancellation to avert catastrophic loss of life in developing countries. Averaging across 46 countries, debt payments this year will be 400 percent of their health budgets.

Atienza added “We expect clear leadership and decisive action from the world’s top economies tomorrow at the G20 meeting, following France’s lead. They have the power and the means to cancel all developing country debt payments for 2020 and to ratify such a move for the IMF and World Bank. They can’t keep making excuses and hiding behind one another or the private sector. G20 leaders must be adamant that they will do whatever it takes to help developing countries free up funds in their fight against the coronavirus pandemic”.

Notes to editors

Over 200 organisations, including Oxfam, have signed a statement calling for the cancellation of all debt payments due from developing countries to bilateral, multilateral and private creditors, and more than 750,000 people have signed a petition calling for urgent debt relief.

Together with Oxfam, healthcare workers from around the world are calling in an open letter for all developing country debt payments for 2020 to be cancelled immediately to support doctors and nurses on the frontlines of the pandemic.

Oxfam’s proposed Global Public Health Plan and Emergency Response outlines key actions to increase the capacity of public health systems and cope with the economic cost of the coronavirus. In addition, Oxfam’s recent report ‘Dignity Not Destitution’ calls for an ‘Economic Rescue Package for All’ to support poor countries in tackling the crisis and rebuild a more equal world. Debt relief, together with aid and tax policy, is on the front line of these public health and economic rescue global plans.

First Coronavirus Case Confirmed In Yemen

April 12, 2020

Photo: Moeen Alzuriqi (Protection Officer) at hygiene kit distribution in Alkoba IDP Camp, Taiz, Yemen. Hygiene kit distribution activities conducted by staff from Oxfam’s Taiz office took place over 3 days from 24th March 2020.

As the first case of coronavirus is confirmed in Yemen, Muhsin Siddiquey, Oxfam in Yemen’s Country Director said:

“The first confirmed case of coronavirus in Yemen is a devastating blow to a country that is ill-equipped after five years of brutal conflict to contain its spread.

“Over 17 million people have no access to clean water. For a third of Yemenis who are living in crowded camps and shelters, social distancing and frequent handwashing are extremely difficult.

“Only half of Yemen’s health centres are functioning, and there are widespread shortages of medicine, equipment and medical staff.

“The spread of coronavirus just as aid to parts of the country is reduced could be catastrophic for millions of people already living on the brink.

“The ceasefire must be urgently agreed by all parties to allow full, safe humanitarian access to ensure Yemeni families have the best chance to contain the virus.”

END//

Notes to editors

Oxfam is responding to the threat of the coronavirus pandemic in Yemen by ramping up public health promotion and awareness-raising initiatives as well as through the distribution of hygiene kits throughout the country. Our team is responding by training community health volunteers to raise awareness of the virus and help prevent the spread of the virus.
USAID has already announced a suspension in aid assistance to the North of Yemen.