	Summit Results

Major Africa commitments at Gleneagles included the following: 
increasing official developmentassistance to Africa by $25 billion per year by 2010,doubling assistance as compared to2004;
developing and implementing "apackage for HIV prevention, treatment, and care, with theaim as close as possible to universal access to treatment forall those who need it by 2010"; (1)
increasing investment in thedevelopment of an HIV/AIDS vaccine, and "taking forwardwork" on market incentives for the development ofvaccines, microbicides, and drugs to combat AIDS,tuberculosis, malaria, as well as other neglecteddiseases;
investing in improved health systemsand helping Africa train and retain doctors, nurses, andcommunity health workers; and
contributing an additional $1.5 billionper year to preventing and treatingmalaria. Reactions

Britain's Prime Minister Tony Blair, who chaired the G8 summit, did not win theendorsement he had sought for an International Finance Facility (IFF, see below), which would havechanneled $25 billion in additional annual aid to Africa beginning in 2006. Background

Prime Minister Tony Blair and his Chancellor of the Exchequer (Treasury), [author name scrubbed],prior to the Gleneagles summit, launched a major diplomatic effort aimed at marshaling theresources they see as needed to eradicate extreme poverty in sub-Saharan Africa. Their objectiveis the realization, in Africa, of the Millennium Development Goals (MDGs). (13) Specifically, Blair and Brown sought a substantial aid increase for Africa through the IFF, 100%forgiveness of African debt, and the removal of barriers to African exports. Climate change was the second focus of the G8 meeting. For additional information, see CRS Report RL32489(pdf) , Africa: Development Issues and Policy Options , and CRS Issue Brief IB95052, Africa: U.S. Foreign Assistance Issues . Overview

Prime Minister Blair has championed a "Marshall Plan" for sub-Saharan Africa for severalyears. On March 11, 2005, the commission issued a 450-page report (15) that helped set theGleneagles agenda. The report recommended $25 billion in additional annual aid over the next three to fiveyears, followed by a review and a move to $50 billion if there has been sufficient progress inimproving the managerial and administrative capabilities of African governments. Donors would commit themselves to repaying the bonds in the years after2015. (19) Rice went on to suggestthat the IFF would lack a mechanism to assure that the money was well spent. Supporters of the IFFargued that since it would disburse funds through existing aid agencies, such as the World Bank andbilateral G7 aid organizations, with their own mechanisms for oversight and evaluation,accountability should not be a problem. Another increase in U.S. foreign aid was agreed to in late February 2005, when the United Statesgave its support to a three-year 25% boost in the resources of the World Bank's InternationalDevelopment Association (IDA), which assists poor countries. Noting that considerable progress has already been made in forgiving bilateraldebt, the report called for a focus on multilateral debt, owed principally to the World Bank'sInternational Development Association (IDA) and the African Development Bank's AfricanDevelopment Fund. In addition, Blair's initiative sought forgiveness of Africa's debt to the International Monetary Fund (IMF). Blair and Brown, meanwhile, urged that debt to the IMF be repaid either by "revaluing"or selling gold held by the IMF. The IMF will absorb theloss from its own resources and will not sell gold. However, some were concerned that this commitment would be difficult tomonitor; and some also argued that an agreement on the IFF at the London meeting would have beenof far greater benefit to Africa. Many feel that the G8 have not done nearly enough.
Prior to the July 2005 G8 summit, Britain's Prime Minister Tony Blair launched a majordiplomatic effort to marshal the resources he sees as needed to eradicate extreme poverty insub-Saharan Africa. As summit chair, he focused the meeting, held at Gleneagles Hotel in Scotland,July 6-8, on this initiative. Blair pushed for a substantial aid increase for Africa beginning in 2006,through an "International Finance Facility" (IFF), and for 100% forgiveness of poor country debt tothe international financial institutions. The IFF would have issued bonds to finance an additional $25billion in annual aid to Africa for three to five years, followed by another $25 billion boost if Africangovernments improved their managerial and administrative capabilities. IFF bonds would have beenbacked by a promise from the G7 leading economic powers to repay them after 2015. Poor countrydebts to the World Bank and the African Development Bank would have been repaid by the G7,while debts to the International Monetary Fund (IMF) would have been paid by revaluing or sellingIMF gold. Finally, Blair sought the removal of barriers to Africa's exports.
Blair has long championed a "Marshall Plan" for Africa as part of a "deal" to help the regionachieve the Millennium Development Goals (MDGs), U.N.-endorsed targets for 2015 that includeuniversal primary education and sharp cuts in poverty. In exchange, he expects further governanceand free-market economic reforms in Africa. On March 11, 2005 a high-level Commission forAfrica appointed by Blair issued a comprehensive report elaborating the initiative, which wonsupport from President Chirac of France and Germany's Chancellor Schroeder.
The Bush Administration reacted cooly to the proposed IFF on grounds that it lacks a meansof assuring that new aid funds would be well spent. Officials also argued that the IFF wouldunconstitutionally bind future Congresses to appropriations. IFF supporters noted that the fundswould be passed through existing aid agencies with their own monitoring mechanisms. Some alsoargued that the United States routinely agrees to repay debt in the future. At Gleneagles, the IFFproposal was dropped, but the participants agreed on a $25 billion increase in annual aid to Africaby 2010. Moreover, the G8 ratified an agreement on debt forgiveness for 18 of the world's poorestcountries, including 14 in Africa. The donors are to compensate the World Bank and the AfricanDevelopment Bank for the lost repayments. The IMF will fund the loss from its own resources, butnot sell gold. Participants reiterated that they supported the removal of trade barriers, but no specificactions were taken. Many development experts welcomed the summit's results as an important stepforward; but several non-governmental organizations argued that the summit had done too little ontrade or to mobilize "new money."
Previous G8 meetings have also focused on Africa. There has been much debate overwhether G8 countries have fulfilled past promises -- and over whether the African states have mettheir own promises of reforms. This report will not be updated. For further information see CRS Report RL32489(pdf) , Africa: Development Issues and Policy Options , and CRS Issue Brief IB95052, Africa: U.S. Foreign Assistance Issues .