Ahead of Rescue Package, Ireland Slashes ODA

Cash-strapped Ireland will see its official development assistance shrink in 2011 as the Irish government decided to secure a bailout package from the European Union and International Monetary Fund.

Some euro35 million (USD46 million) will be slashed from the ODA component of the foreign affairs budget next year as part of Ireland’s national recovery plan, which maps out the country’s public spending cuts from 2011 to 2014.

The figure represents a reduction of around 5 percent of the country’s development aid budget and will bring the percentage share of ODA in the gross national income down from 0.54 percent in 2009 to 0.51 percent or 0.52 percent, says Rob Tew, economics and statistics advisor of U.K.-based consultancy Development Initiatives, in a blog.

The plan does not detail ODA levels for 2012 to 2014. Savings from the foreign affairs budget for 2012 to 2014 is projected at euro150 million.

“Thus it would seem reasonable to assume that ODA could fall even further, perhaps being €40-€50million lower in these three years compared to 2010,” according to Tew.

About the author

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    Ma. Rizza Leonzon

    As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.