British plans to double global aid to Africa were today boosted after Germany announced it would back the move.
German chancellor Gerhard Schröder announced at the Davos summit of world business leaders that he would support Gordon Brown's plan to raise $100bn (£53bn) in aid for the poverty-stricken continent.
Mr Brown wants to set up an international finance facility (IFF), which would see bonds issued in the capital markets using rich countries' long-term funding commitment as collateral. The IFF is the cornerstone of the Chancellor's plans to help Africa.
France and Italy have already backed the IFF. Mr Brown has been courting G7 partners, including Germany, but had not expected Mr Schröder to come on board so soon. Mr Brown has yet to convince other G7 nations: the US, Canada and Japan.
Mr Schröder made the surprise announcement at the World Economic Forum in Davos, Switzerland. "The question is how on earth we can finance the Millennium [Development Goals] targets," he said.
"The British government has come in and made a proper proposal here. They have said we should have an international financial facility that will help us in the short run ensure we reach the Millennium goals with a greater degree of certainty.
"I think the proposals of the British government are good proposals and therefore we should discuss them properly and hopefully implement some of them during the G8 summit."
Mr Brown later welcomed Mr Schröder's commitment. "What is remarkable is the willingness and the unity to do something about the desperate plight of Africa," he said.
"And what is fascinating this morning is the statement from Chancellor Schröder that he would support the British initiative - the international finance facility - and he is interested in moving that forward as quickly as possible."
Germany's backing means all four European G7 members are on board. Mr Brown said that was a significant breakthrough and he would now push to sign the other rich nations up to the plan.
He said he hoped progress would be made at next Friday's London meeting of G7 finance ministers. Speaking on Sky News, Mr Brown said aid alone would not solve the problems of Africa, and trade was also vital.
"It is in the interests of the richest nations that the poorest countries can trade with the rest of the world," he said.
"I will be suggesting we need to do more to build up the capacity of poorer countries, their infrastructure, electricity, communications, the skills, the legal systems to enable them to trade and to lead." Mr Brown said more trade and worldwide prosperity would benefit the UK.
The IFF was proposed by the Government in 2003 and is designed to "frontload" aid to help meet the Millennium Development Goals.
It is estimated that development assistance must be doubled and focused on the poorest countries if the goals - which include halving world poverty by 2015 - are to be met. That would need an increase of at least $50bn a year.
In 2002, donors pledged an additional $16bn a year from 2006. But that leaves a significant gap if the goals are to be reached.
The IFF would provide up to an additional $50bn a year in development assistance between now and 2015. It would also lever in extra money from the international capital markets. It is intended to act as an interim vehicle to provide billions of pounds while donor nations move to meet the UN aid target of 0.7% of national income.
The money would be used to improve health, education, infrastructure and access to water, helping African nations drag themselves out of poverty.
