Aid giving by rich nations falls for second year

Development aid from rich countries to some of the world's poorest fell for a second year in a row in 2012, as big European donor countries hit by years of debt crisis cut their spending.

Data released by the Paris-based club of rich countries, the Organization for Economic Cooperation and Development, on Wednesday showed a 4 percent fall in aid last year by its Development Assistance Committee members to $125.7 billion. DAC comprises 15 European Union countries, along with the United States, Australia, Japan, South Korea and others. It is the first time since 1997 that aid spending has fallen for successive years, with a 2 percent drop in 2011.

Stung by austerity cuts to manage budgets, most EU countries slashed their aid spending, with large cuts by countries hard hit by the crisis, such as Italy, Spain, Greece, Portugal and Ireland.