According to media reports, the German government has decided to resume development aid to India, frozen
after the 1998 Nuclear tests, and announced about 100 million marks (45
million dollars) as assistance for next year with the bulk of the funds to
be allocated for tackling poverty.
The Federal Ministry for Development and Cooperation, which oversees
germany's official development assistance (ODA), simultaneously announced
resumption of aid to Pakistan with an allocation of 35 million DM (15
million dollars) for 2001.
According to the Development Cooperation Minister, Heidemarie
Wieczorek-Zeul, new approvals for India and Pakistan have been provided for
in the ministry's 2001 budget with the aim of "normalising" development
cooperation in a phased manner.
India had been receiving development aid from Germany since 1958 and is on
top of the list of German partners in development cooperation.
The assistance was abruptly suspended one day after the May 14 nuclear
tests, even as officials from Germany and India were finalising an aid
package at an inter-governmental meeting in Bonn.
The German government had earmarked 300 million marks for 1998 but froze the
aid in an apparent protest over the tests.
Germany is India`s second largest foreign donor after Japan with New Delhi
having received the highest development aid of 570 million marks from Berlin
in 1992-93.
German aid to India and other countries has been steadily declining in the
past few years owing to budgetary constraints.
- nriol.com report
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