While external debt situation of some developing countries hasimproved, the total external debt of developing countries has increased. And conditions that led to global debt crisis still re-main putting even those countries with improved debt situationat the risk of being dragged back through contagion.

The industrialized countries have failed to deliver on the ODA target of 0.7% in spite of recent promises of enhanced support and doubling of aid at the G8 summit at Gleneagles. The aid flow dropped to 0.30% as against 0.36% in 2005.