• BEE winners and losers

    Creating real change and real jobs requires a new ideology, says Gerhard Papenfus.

  • Governance matters

    Addressing risk well and timeously can be a source of growth, says Ian Mann.

  • Road to riches

    Taxpayers keep funding structures with big plans but who knows what efficacy, says Mandi Smallhorne.

See More

Brics help boost donor aid funding

Mar 26 2012 14:55 Reuters

Related Articles

Brics move to unseat dollar as trade currency

World Bank race heats up as US makes pick

China to offer renminbi loans to Brics

Brics to discuss eurozone bailout in March

Brics vulnerable to global risks - survey

SA business must take advantage of Brics

New Delhi - Spending on foreign aid by the world’s main emerging economies is growing rapidly at a time when traditional donors in the West are struggling to keep up funding for global health and development programmes, a health charity said on Monday.

Some of the Brics countries (Brazil, Russia, India, China and South Africa) have traditionally received aid, but fast economic growth over the past decade is turning them into new donors to the world’s poor.

China and Brazil are leading the pack, increasing aid spending by more than 20% from 2005 to 2010, the GHS Initiatives global health charity said in a report.

India, Russia and South Africa’s aid budget increased by 11.36% and 8% respectively over the same period.

“The Brics are contributing significant new resources to global health and development efforts,” said David Gold, co-founder of GHS Initiatives.

“Just as importantly, they are establishing new models for cooperation that challenge the way we think about foreign assistance,” Gold said.

For example, Brazil’s 1996 commitment to provide universal access to effective HIV treatment influenced global policies on access to medicine.

China has been a leader on malaria treatment in Africa, while South Africa is pioneering the introduction of molecular diagnostics for tuberculosis.

But experts say that while the Brics are spending more on foreign aid than ever before, it still amounts to a drop in the ocean compared with what Western donors are giving.

In 2010, the five Brics countries disbursed a total of $6.4bn in foreign aid, the group said. By comparison, the United States spent $31bn on aid in the same year.

GHS Initiatives said while the Brics face significant development problems of their own, they are key to supporting healthcare for the world’s poor due to their low-cost production of drugs, diagnostics and vaccines for treatment of diseases such as HIV/Aids, polio and tuberculosis.

Leaders of the five Brics countries are due to meet in New Delhi on Thursday and will discuss an Indian initiative to establish a development bank billed as an alternative to the International Monetary Fund and the World Bank.

But privately, Indian officials have played down the chances of a Brics development bank being set up any time soon, partly because of disagreement over China’s role.

China is by far the largest donor in the group and would expect to lead any joint development efforts, with its spending on aid in 2010 estimated at $3.9bn.


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How will you manage Vodacom’s price hike for contracts?

Previous results · Suggest a vote