Plan criticises bailouts and urges nations not to cut back aid

Children living in poverty will be hit hardest by cuts in aid and trade

17 October 2008: Plan has criticised rich nations for bailing out the financial sector while foot-dragging and breaking promises on poverty, human rights and climate change.

In a joint statement with Amnesty International, Oxfam International, World Vision International, Greenpeace and CARE International, Plan warns of the devastating consequences that will follow if rich nations use the financial crisis to cut back on aid.

Double standards

Last week the US government brought its total bail-out of insurance giant AIG to US$123 billion – that’s twice the amount needed to achieve the internationally-agreed Millennium Development Goals (MDGs) to reduce poverty by 2015.

European governments have also been pumping billions into their ailing banking sectors.

In stark contrast, a United Nations meeting in September revealed that very few governments will meet the targets set by the MDGs, and that rising food and energy prices have wiped away much of the progress made so far.

Under threat

The economic downturn and lower foreign investment will threaten fragile social protection and services in developing countries.

Migrants and refugees could be pushed back to untenable positions, social tensions could increase and already fragile states could slide back into instability and violence, warns the statement.

Worse could follow if rich nations decide to use the financial crisis as an excuse to cut aid and trade.

Governments must act

Plan and its partners are calling on governments to reduce the volatility in energy prices, food prices and the financial markets by ensuring:

• sensible regulation
• adequate protection for the rights of poor and vulnerable people
• long-term environmental sustainability.

The statement concludes: “Governments must show decisive leadership to build a global economy that is green and where better lives and livelihoods for all is more important than a system that rewards the privileged few”.

Download the statement:

Full partner statement (24kb | 2 pages)