OneWorld.net (U.S.)

Seven years after 189 countries signed the Millennium Declaration, which included specific goals and targets to reduce global poverty by 2015, the UN member nations are still behind in their aid commitments to the world's poorest countries. Without an increase in funding, there is little chance that the Millennium Development Goals (MDGs) will be achieved, say analysts and activists worldwide.

According to the UN's Millennium Project, the world's wealthiest nations are currently giving less than 0.3 percent of their national budgets, or GNP, in international aid to help achieve the MDGs. Officials of the Project suggest that donor nations need to contribute at least 0.54 percent to achieve the goals by 2015. In real terms, this means that if aid remains at its current levels, an additional 45 million children under five will die and 247 million more people in sub-Saharan Africa will be forced to live on less than $1 a day by 2015, says Oxfam International, a confederation of 13 organizations in over 100 countries seeking lasting solutions to poverty and injustice.

Even an increase to 0.54 percent, however, still wouldn't provide for expenditures beyond the MDGs, such as funds to reduce climate change or decrease poverty levels past those targeted by the Goals. To account for such added expenses, donor nations will need to contribute 0.7 percent of their GNPs, says Oxfam. Ironically, this is the same percentage 22 countries committed to providing in 1970. The prospects of significantly increasing aid levels, however, fall between unlikely and unrealistic, say analysts. Despite overall aid hitting record levels, data from the Organization for Economic Co-Operation and Development (OECD) show that aid as a percentage of GNP has been cut in half since 1960. OECD data shows only five of 22 of the world's wealthiest nations meeting the 0.7 percent target they set in 1970, while 16 donor nations still contribute less than 0.43 percent of their GNP. The United States, whose aid contributions are 0.16 percent of its GNP, provides the second-lowest amount of aid relative to its national budget of any donor country.

It will be hard to secure funding increases, say many analysts, as long as donors continue to have doubts about how effectively their money is being used. According to Oxfam International, developing countries use only 41 percent of aid money for development and emergency aid. Instead, the majority of the money is used to offer technical assistance, to provide debt relief, to support refugees in donor countries, and to administer aid programs. A 2004 Oxfam survey confirms similar findings. That survey also found that donor aid arrived over six months late 31 percent of the time, and most donors commit aid for only three years or less, undermining the prospects for securing long-term improvements in living standards.

Despite such skepticism -- perhaps as a reaction to it -- private individuals and philanthropic foundations have made significant strides in recent years toward filling international funding gaps, especially regarding the MDGs.

Joseph Zimet, a member of Agence Franciase de Developpement (AFD), says American foundations have specifically targeted the health and environment sectors, though significant questions remain about the methods they use to help achieve the MDGs. Only 17 percent of aid from these foundations, for example, is provided directly to sub-Saharan Africa. Instead, donations are often provided to intermediary organizations headquartered in northern countries and direct investment is typically favored only with emerging countries such as India, China, Brazil, or Mexico.

The world's wealthiest countries currently give less than 0.3 percent of their GNPs in development aid.This is not to say aid levels cannot improve in the future and that American foundations cannot be an important catalyst for that improvement. In recent years, American foundations have made a commitment to supporting social causes including reducing inequality, fighting poverty, promoting free trade, and combating the undesirable effects of globalization.

Individual gifts to philanthropic foundations have also risen recently. The Chronicle of Philanthropy cited a "Giving USA" study showing contributions to foundations rising 8 percent in 2006. Paul Schervish and John Havens, researchers at the Social Welfare Research Institute, predict transfers of wealth from this generation will be $41,000 billion, $6,000 billion of which will be used to support American philanthropies by 2052.

With the additional funds, American philanthropies could contribute over $300 billion a year, say the researchers. But getting this money to people living in poverty in developing countries will likely remain a challenge.

Adam Kornblau is a student in American University's International Media program.