Between them, these new revenue flows dwarf aid.

A rapid increase in aid flows was necessary.

C. Financial issues capital flows, aid and debt

Some progress in streamlining conditionality of aid flows is emerging.

Aid flows should be predictable and aligned with countries' needs.

Least developed countries are especially in need of larger flows of aid.

Developments and trends in international aid policies and flows will be closely monitored.

After a prolonged decline in aid flows during the 1990s, aid levels have begun to increase again, as figure 1 demonstrates.

Over the 1990s, the shares of debt relief, emergency aid and technical assistance in total aid flows have all been increasing.

This therefore calls for careful consideration and implementation of measures for streamlining the inflow of aid flows and avoiding harmful surges of flows.

Trade, private capital flows, remittances and private transfers currently dwarfed amounts contributed through aid.

Third, the international community would have to increase the level and effectiveness of aid flows.

There are positive signs, too, that momentum is indeed building to increase investment and aid flows.

It was unfortunate that aid flows had dwindled just when they could have the biggest impact.

They should also ensure open financial and commercial markets and, where appropriate, provide concessional aid flows.

The entire aid flows to the 60 countries of the bottom billion last year were 34 billion.

Increased aid flows from bilateral development partners and multilateral financial institutions are essential for enhancing resilience capacities.

This would allow recipient countries to better integrate aid flows into the design of their development strategy.

It is thus especially disconcerting that DAC aid flows have also begun to decline in recent years.

There is also a need to secure more stable, predictable and flexible aid flows for the poorest countries.

Aid flows are growing, but predominantly outside the United Nations system, and increasingly targeted to direct budgetary support.

For five of these indicators, targets were tentatively agreed in Paris (a) partner countries should have operational development strategies (b) aid flows should be reported in partners' national budgets (c) aid flows should be released on schedule (d) a significant proportion of aid should be provided as programme based approaches and (e) partner countries should have results oriented frameworks.

In most countries, the Goals will simply not be met under existing financing schemes and restrictions on aid flows.

Africa's development partners would need to meet their commitments to significantly increase aid flows in a predictable and coherent manner.

Indicators, including those on the advancement of women, for monitoring progress on aid flows and their impact were also proposed.

37. As noted above, aid flows to the developing countries, in general, and to Africa, in particular, have been decreasing.

Its unique feature would be to front load aid flows through the issuance of bonds guaranteed by participating Governments that will allow aid commitments to be spent before they are budgeted.

The Millennium Development Goals imply larger aid flows for sub Saharan countries if they are to achieve the goals by 2015.

In the OECD official flows to countries with economies in transition are considered as official aid rather than official development assistance.

Rising average incomes should lead to increases in domestic savings, which should help to gradually reduce dependence on external concessionary aid flows.

All of these developments should have attracted larger ODA flows into Africa under the new aid policies, but this has not happened.

Also, as aid is scaled up, it is especially important to be aware of the complex relationships between aid flows, the macroeconomic framework, national budgets and the spending needed to meet the Millennium Development Goals.

That is equivalent to about five times aid flows and budget savings from debt service relief provided by high income countries in 2002.

Despite the reversal of trend, the changing composition of aid flows has made their contribution to meeting the Millennium Development Goals less efficient.

In 2002, remittances accounted for 1.3 of the GDP, 55.9 of foreign direct investment and 140 of aid flows in the developing world.

Speakers welcomed the progress made earlier this year at Paris on the effectiveness of aid and increased flows of donor funding as budget support.

Although these flows have important objectives, emergency aid does not assist long term development, and debt relief provides little fresh money to debtor countries.

we strongly believe that the lack of stability and predictability in aid and financing flows is a major impediment to the fight against poverty

There is a strong endogeneity there if aid flows were more stable, they could be absorbed and administered more effectively, and in larger amounts.

Without adequate flows of development aid, the elimination of poverty and the creation of an environment for sustainable economic growth would remain elusive goals.

24. Confronted with scarce flows, donor Governments have of late addressed a great deal of attention to the most effective use of such aid.

Domestic resource mobilization, remittances from expatriate workers, private debt and equity flows, and philanthropic contributions exceed official international aid by a wide margin. Private flows are no longer the tail, but the dog that wags the development agenda.

I thank the G 8 leaders who, in their Gleneagles Summit, agreed to increase annual aid flows and cancel the debts of least developed countries.

It was underlined, however, that for such debt relief to contribute to achieving the MDGs, it must not come at the expense of aid flows.

That could be done by reorienting a significant proportion of aid flows towards activities aimed at facilitating Africa apos s entry into the world economy.