Downturn to Cost Billions in Aid to World's Poor

Experts say it is hard to predict how far the global downturn will cut into aid budgets. Italy has halved its 2009 assistance and Ireland has cut 17 percent from its overseas aid in three reductions since July.

"We realise that the government finds itself in extremely difficult circumstances with tough choices to make, but it is shocking that the option taken has hit at the poorest and most vulnerable," said Tom Arnold, chief executive of Dublin-based agency Concern Worldwide.