The funding challenge

The global economic crisis is already placing pressure on the world's most vulnerable populations who, after being hit by food and fuel price hikes in early 2008, now face fallout from much softer prices and a slump in world trade. Risks will quickly loom if donor countries do not honour their aid commitments.

A new survey of donors' forward spending plans suggests an 11% increase in programmed aid between 2008 and 2010, including larger disbursements by some multilateral agencies. Debt relief may also increase slightly. However, even with the rise in 2008 and the projected increases to 2010, at least $10-15 billion must still be added to forward spending plans if donors are to meet their current 2010 commitments.

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