More and better aid, fairer trade, and debt relief

Trade | Better aid | More aid | Debt Relief | Aid Effectiveness | Conditionality | Global funds and partnerships

Trade

For developing countries to prosper, they need to be able to trade internationally under an open and fair system. Those countries also need more aid from richer countries to reduce poverty, as well as help with their debts.

Trade is not currently working for the poor. The world's 49 poorest countries together accounted for 0.4% of world trade in 1999 - half of the level of 1979. One of the biggest problems poorer countries face is barriers to markets in richer countries. The World Bank estimates that eliminating all barriers to trade in goods would generate US$350 billion for low and middle income countries. Find out why trade really matters in the fight against world poverty.

The targets in the global partnership for development Millennium Development Goal include a fairer trading and financial system.

Find out more about the work we are doing on trade.

Unfortunately, moves to reform global trading rules have been slow but we're committed to doing our best to get them back on track. Find out more about the Doha Development Agenda.

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Better aid

The big increases in aid that we saw in 2005 will only be helpful if they are spent properly. Development practitioners and partner governments alike agree that aid is more effective if it is spent in line with the country's own budget priorities, given in a coordinated way, focused on the poorest, predictable, untied to the provision of goods or services delivered through effective institutions and focused on results not inputs.

There is also consensus that aid works better if donors attach minimal conditions to their aid, strengthen accountability between governments and their citizens and ensure that policies are joined up behind the country's poverty reduction strategy.

• Aid Effectiveness newsletters
• Aid Instruments, Social Exclusion and Gender(678 kb)
• DFID's medium term action plan on aid effectiveness - Our response to the Paris Declaration(July 2006, 112 kb)

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More aid

We are also increasing our aid to poorer countries. UK aid was increased in 2002 by £1.5 billion to reach £4.6 billion a year by 2005-06 - that's an average increase of more than 8% a year in real terms.

Non-governmental organisations (NGOs) focused on these issues through theMake Poverty History campaign, which calls for Trade Justice, More Aid and Debt relief.

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Debt relief

One of the areas we have been most active in is encouraging wealthy countries to reduce the debt burden of the poorest economies. SeeMaking Globalisation a Force for Good for more details about what the UK government is doing to make this a reality.

We have also helped to co-ordinate international efforts that have led to debt relief worth more than $60 billion. Find out more about Debt Relief.

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Report on the UK's contributions to achieving the Millennium Development Goals.

In preparation for the review of the Millennium Declaration in 2005, European Union (EU) member states are compiling a joint report showing the EU's contributions to achieving the MDGs and priorities for further action. Each member state has first had to produce a national report setting out its own contributions. The UK's report(962 kb) is now available. This has been produced by DFID in collaboration with the Treasury, Department for Trade and Industry, Foreign Office and the Department for Environment, Food, and Rural Affairs (DEFRA).

Last updated: 3 April 2007

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