Contributions from governments and private organizations during the four years of the program totaled over $3.8 billion; more than half of that was from the United States. In this year, the United States spent over $47 billion in foreign aid (on par with what it spent in 2018). Just over 35% of that budget went to just ten countries: Afghanistan ($4.89 billion) Israel ($3.3 billion) In the Call to Action of the Ottawa Commitment adopted at the International Parliamentarians' Conference on the Implementation of the ICPD Programme of Action (November 2002, Ottawa, Canada), parliamentarians from around the world pledged to "strive to fulfill the agreed target of 0.7 per cent of GNP for official development assistance (ODA) and make every effort to mobilize the agreed estimated financial resources needed to implement the ICPD Programme of Action. The U.S. also introduced a $190 billion dollar subsidy to its farms through the U.S. Farm Bill, also criticized as a protectionist measure. The U.S. government gave Greece $362 million in 1949, and U.S. aid to Greece generally remained over $100 million annually until 1998. Prior to 2018, the ODA flows basis methodology covered loans expressed on a cash basis, meaning their full face value was included, then repayments were subtracted as they came in. Though also pointed out (in the previous link) that the fall resulted "in part from falls in the exchange rates of some currencies against the United States dollar." For the OECD, the optimistic side of this was that this maybe marked "the beginning of a recovery from the all-time lows of 0.22% of GNI in each of the last three years." Denmark's figure was reduced by exceptional repayments from India, which cleared its ODA debts to small donors, and by lower than expected ODA expenditures outside the core aid programme. Kiel Institute. But a lack of funds has limited its effectiveness. Thalif Deen Most of the $35bn allocated to the Cap provides subsidies to large commercial farms. [35] Respondents wanted to cut aid going to those of European descent by 40 percent more than of those of African descent. To use individual functions (e.g., mark statistics as favourites, set The most restrictive barriers are targeted at labour intensive manufactures and agricultural commodities. While this was up from 0.23% in 2002, it was still well below the promised 0.7%. WebA long-standing United Nations target is that developed countries should devote 0.7% of their gross national income to ODA. [31] Steven Kull, director of PIPA, relates this overestimation towards an increase in hearing about foreign aid efforts during the Obama administration, but estimates of foreign aid have always been high. However, the total still only accounted for just 0.23% of their combined resources, still well below the agreed 0.7%. As a rule, foreign aid falls into one of two categories: military aid and humanitarian (economic, developmental, or emergency relief) aid. Worldwide opinion of the United States improves with contributions to developing countries. [33] This shows that the U.S. public is receptive to changing their beliefs about U.S. foreign aid based on the information presented. The problem is that Mr. Bush will have to push his proposal through a US Congress historically skeptical of foreign aid. In December 1946, Greek Prime Minister Konstantinos Tsaldaris visited Washington and requested additional United States aid. Switzerland down -5.6%, due to the delay in finalising the IDA replenishment, which meant deferring its contribution from 2002 to 2003. Canada, down -5.1%, following a repayment from India of about $300 million of its ODA debt stock, and after an exceptional rise of more than 30% in 2002 due to unusually high disbursements for debt relief; Norway up 4.7%: Norway achieved the highest ODA/GNI ratio in the DAC of 0.92 per cent, making progress towards its goal of 1% by 2005; and. All Rights Reserved. Mr. Annan will be there, along with the heads of the International Monetary Fund and the WTO. In a similar way, as the OCED also noted, 2000 didn't differ much from 1999, either. ", The following information is quoted from a 22 April 2003 report by the Organisation for Economic Co-Operation and Development (OECD) entitled, "OECD DAC Countries Begin Recovery in Development Aid: 5% Increase in 2002.". According to preliminary data total DAC ODA in 2003 reached $68.5 billion, the highest level ever, both in nominal and real terms. The EU also offered some $5 billion increase over a similar time period. Compared to other nations, the U.S. by far spends more foreign aid than anyone else. ODA is aid intended to promote the economic development and welfare of developing countries and is reported under Organisation for Economic Cooperation and Development (OECD) rules. [Online]. While gross disbursements remained relatively steady, there was a substantial increase in repayments of ODA loans. Potential of Information and Communication Technologies (ICTs) for Developing Countries, The U.S. recently increased its military budget by some $100 billion dollars alone. President Bush will be the star guest, seeking to burnish his multilateralist credentials. All data from the official document: U.S. Bureau of the Census, United States Agency for International Development, strong proof of the friendship and interest which the United Stateshas in their welfareand to explain the mutual advantages of commerce with the United States, Russian Soviet Federative Socialist Republic, United Nations Relief and Rehabilitation Administration, Organisation for European Economic Cooperation, President's Emergency Plan for AIDS Relief, U.S. Agency for International Development, U.S. International Development Finance Corporation, Learn how and when to remove this template message, Program on International Policy Attitudes, Criticism of United States foreign policy, Foreign Assistance: An Introduction to U.S. Programs and Policy, "How Does the U.S. Section 2 largest donors and recipients in a region, Section 3 sectoral data on education, health and water supply & sanitation plus general data on other sectors. But Mike Moore, the director-general of the World Trade Organisation (WTO), said he did not expect new trade initiatives at Monterrey. The other two, Denmark and the Netherlands, have not. Moreover, EU governments claim that they are constrained by the stability and growth pact that sets limits on government spending and borrowing. Because the U.S. public's attitude toward foreign aid is impacted by the positive or negative tone of messages on aid, Steven Kull, Director of the Program on International Policy Attitudes, laid out steps to preserve or create a positive outlook on U.S. foreign aid. Countries in Africa received about 32% of U.S. aid. The food aid was accompanied by diplomat Alexander Scott, who stated that this aid was strong proof of the friendship and interest which the United Stateshas in their welfareand to explain the mutual advantages of commerce with the United States. A case may be made that some motivation for this act of generosity was diplomatic (i.e. The data on GDP (current USD) is for 2020 and taken from the World Bank. [31], A poll conducted in 2013 by the Pew Research Center found that the majority of Americans wanted to either maintain or increase spending on all US government initiatives except foreign aid. As such, we forecast Ethiopias secondary income surplus to grow by 14.2% in 2023, from 7.0% in 2022. In the five years between 2000 and 2005, Armenia's GDP grew by an average of 6.8% annually, a rate that was more than double the average rate of 2.9% for the same period in the former Soviet Union. 7. Published by CNN, the response was that 81% felt that reducing aid to foreign countries was a good way to reduce the federal budget deficit, while 18% thought aid was more important than reducing deficit. It also distributed food and combated typhus in the Russian Soviet Federative Socialist Republic during its famine of 192123. Levels of United States aid increased greatly during World War II, mainly on account of the Lend-lease program. The other European Union (EU) countries -- Austria, Germany, Greece, Italy, Portugal and Spain - have not made any promises on the 0.7 percent target. This definition -- expanded to apply to concessional resource transfers, one objective of which is to improve economic, social, and political conditions in any foreign country -- is the one we shall use for the purposes of this study. In a considerable breakthrough, the US president, George Bush, agreed to increase foreign aid by $5bn (3.5bn) over three years and the EU agreed to boost aid by $5bn a year by 2006, after Germany, which is under severe budget pressure, dropped its opposition. Issue 4 - June 8 2003, This issue of the Global Population Policy Update focuses on official development assistance by developed countries. Falling commodity prices have cut export incomes in some of the world's poorest countries by 25%, piling on the problems caused by less aid. With a rapprochement reached between the Ethiopian government and the TPLF, we expect more significant foreign aid inflows over 2023. Denmark, Luxembourg, the Netherlands, Norway and Sweden are still the only countries to meet the United Nations ODA target of 0.7% of GNI. For the OECD countries to meet their obligations for aid to the poorer countries is not an economic problem. The international conference on financing for development was called by the UN secretary general, Kofi Annan, to prod countries into meeting the ambitious development goals set out at the UN millennium summit in 2000. Page: 286: "The argument that the United States cannot afford a program of foreign aid or assistance to countries in the process of recovery from communism is untenable. [32] Most U.S. foreign aid does not go to other governments due to skepticism about corruption in other countries. [20] All this aid was separate from the Marshall Plan. Features of EU aid included: ODA rose substantially in Belgium to 0.61% of its GNI mainly due to Paris Club debt forgiveness operations to the Democratic Republic of Congo; in France to 0.41% of GNI reflecting its debt relief efforts under the HIPC initiative; and in the UK to 0.34% of GNI partly due to contributions to the International Development Association (IDA, the concessional lending window of the World Bank) deferred from 2002. http://www.foodfirst.org/media/news/2003/failaidpledge.html Netherlands Download all underlyining data as a text file (csv) - To come. U.S. Foreign Assistance by Country. Borgen, How Does the U.S. In, Kiel Institute. International development aid is given by many non-private donors. Polish Finance Minister Magdalena Rzeczkowska discusses the significance of EU state aid for Poland and the challenges facing the country's economy. WebInternational development aid is given by many non-private donors. Features of EU aid included: Other DAC countries showed the following changes in real terms in ODA in 2002: 14. Three other countries have given a firm date to reach the 0.7% target: Belgium by 2010; Ireland by 2007; and France to reach 0.5% by 2007 and 0.7% by 2012. EU countries increased their ODA in 2003 by 2.2% in real terms, representing 0.35% of their combined GNI. Donor countries committed to increasing their official development assistance (ODA) to developing countries in the context of the International Conference on Financing for Development held in Monterrey, Mexico, in March 2002. (December 7, 2022). These government monies were given in the form of loans, but a considerable portion of those loans was forgiven.[7]. Non-DAC members included in the OECD's publishing are listed separately. [23], A study in 2006 found that U.S. foreign assistance to a country rose by an average of 59% when that country occupied one of the rotating seats on the UN Security Council, and fell back to normal levels when it vacated the seat.[24]. 16/04/2004 - Member countries of the OECD's Development Assistance Committee (DAC) increased their official development assistance (ODA) to developing countries by 3.9% in real terms from 2002 to 2003, following a 7.0% real increase between 2001 and 2002. http://www.oecd.org/dataoecd/43/26/1894401.xls, 13. On the whole, ODA has been declining in recent years, even though the United Nations reports that it is "rather ironical that ODA should be experiencing a steady decline even as conditions are improving for its greater effectiveness". This can be seen in the context of other spending. See this UN PDF document for the source of that quote but also more about trends and issues in financing development, etc. Three other countries have given a firm date to reach the 0.7% target: Belgium by 2010; Ireland by 2007; and France to reach 0.5% by 2007 and 0.7% by 2012. Compared to other nations, the U.S. by far spends more foreign aid than anyone else. In 2000, of an overall aid level of $9.4 billion, just over $1.4 billion, or 14 percent, was planned as contributions to multilateral development banks and international organizations. Webimage building. In May 1947 the U.S. government granted Greece $300 million in military and economic aid. But according to Carol C. Adelman, a former U.S. aid official, private donations dwarf official aid: Ultimately, the United States is the most generous nation, providing the most foreign direct investment and generating the bulk of the world's research and development. Japan provides by far the most aid of any country, an amount that exceeded $14 billion or roughly one -fourth of the global total in 1995. Total debt service relief for the 23 countries covered by HIPC in 2001 amount to a projected $34bn. The new policy would increase the profile and participation of the United States Agency for International Development (USAID), which would coordinate more directly with the National Security Council and Secretary of State Hillary Clinton. This Privacy Policy document contains types of brent crude historical prices that is collected and recorded by stevehacks.com and how we use it. But 15 of these countries were still spending more than 10% of government revenue on debt servicing. continuing growth in general bilateral grants ($2 billion). Whereas the words used by policy-makers to describe these three purposes have remained the same, the substance of each has changed significantly in the past ten years. U.S. From World Report. Source: Carol C. Adelman (Hudson Institute), "The Privatization of Foreign Aid: Reassessing National Largesse," Foreign Affairs, November 2003. But the industrialised countries avoided any concrete commitments either to improve market access for poor countries, or to reduce agricultural subsidies. On 3 April 1948, President Truman signed the Economic Cooperation Act, establishing the Economic Cooperation Administration (ECA) to administer the program, and actual disbursements got underway. United States government aid remained high in the decade after the war because of contributions to European reconstruction, and competition for influence versus the Communist powers in the first years of the Cold War. When it comes to continents, significantly more gets spent in Africa (51%) Daily Policy Digest The U.S. donated the largest amount This is similar to nominal GDP per capita, but adjusted for the cost of living in each country.. There were minor changes in ODA from the following EU countries: a slight increase for Germany (0.4%); and decreases for Denmark (-6.4%), Luxembourg (-3.5%), the Netherlands (-2.2%), Portugal (-4.6%), Sweden (-2.3%), and the United Kingdom (-3.5% due to a delay in finalising the replenishment of the World Bank's International Development Association (IDA), which meant deferring its contribution from 2002 to 2003). [31] Less than 19 percent of respondents thought that the percent of the budget that goes towards foreign aid was less than 5 percent. The sum of contributions by EU member states, considered separately from EU institutions, was $73.80 billion. It does not include military expenditures or military aid, trade or investment financing, public funding for cultural exchanges, expenditures on foreign intelligence gathering or covert action, or government-to-government loans at market rates of interest. This impact can create the effect of a coup without ever setting foot in the country. [3] However, foreign aid remains unpopular with the American public,[5] possibly due to overestimations of the scale of aid spending by the federal government.[6]. 11. This figure ranks countries by the scale of bilateral aid as percentage share of each donors GDP. ", 6. This increase was mainly due to additional and emergency funds in response to the 11 September 2001 terrorist attacks as well as new aid initiatives, especially in relation to health and humanitarian aid. Luxembourg made the largest contribution as a percentage of gross national income (GNI) at 1.05% and the United Nations ODA target of 0.7% of GNI was also exceeded by Norway (1.02%), Sweden (0.99%) and Denmark (0.71%). November 2003. Aid can also be provided in kind rather than in cash or credits, in the form of food, medicine, or other commodities. Thanks to the war, however, this was projected to hit 4.8 percent in 2022. http://www.oecd.org/dataoecd/43/24/1894385.xls, 12. In 2019, the nations GDP growth rate was almost 9 percent, the fifth-highest in the world. The main category was economic aid, but some military aid was provided. The cumulative total of additional child deaths between 2000-2015 resulting from the widening gap between the millennium target rate and current trends will amount to 56 million. Chart. Other dignitaries include Jacques Chirac, the French president, Jose Maria Aznar, the Spanish prime minister, and Jean Chretien, the Canadian prime minister. [4], The OECD's Development Assistance Committee members' total budget reached 152.8 billion dollars and was contributed by the following donors in 2019:[1]. Three of them - promoting security, supporting development, and providing humanitarian relief - have existed for the past five decades. [35], Due to the size of the U.S. federal budget, the 0.7 percent put towards foreign aid comprises a significant proportion of all foreign aid flows including other donors. Private donors include voluntary organizations, religious congregations, foundations, corporations and universities. This Privacy Policy applies only to our online activities and is valid for visitors to our website with regards to the brent crude historical prices that they shared and/or collect in stevehacks.com. WebThe DAC adopted ODA as the gold standard of foreign aid in 1969 and it remains the main source of financing for development aid. In addition, three other purposes have gained in prominence in the past decade - supporting economic and political transitions in former socialist countries, addressing transnational problems, and promoting democracy abroad. Publicly suggested by Marshall in June 1947, and put into action about a year later, the Plan was essentially an extension of the GreeceTurkey aid strategy to the rest of Europe. Military aid was not part of the plan. [34], A study by Andy Baker, a political scientist at the University of Colorado at Boulder, found that Americans are more likely to support foreign aid going to an African country than they are to support foreign aid going to an Eastern European country. Foreign aid is money that is given by the United States government to governments of other nations. 2001 had seen an overall decline in the ODA, as the OECD also noted. After the war, the United States began giving large amounts of aid to Greece and Turkey under the Truman doctrine. Moreover, through its military, it guarantees the security necessary for promoting economic growth and democracy in developing countries. USAID. US foreign aid is provided largely as grants to international organizations, foreign governments, or NG0s. The United States has spent 5-9% of GNP for many years to maintain itself against military threats that are now largely abated. Not much, especially when times are hard. Over half of the U.S. population believes that about 28 percent of the federal budget is dedicated to foreign aid. WebChina's foreign aid to Armenia has been a catalyst for economic growth and development in the country. More Money Is Transferred From Poor Countries to Rich, Than From Rich to Poor Three major factors are behind the $2.3 billion rise, in real terms, in 2003: The United States remains the world's largest aid donor in volume terms, followed by Japan, France, Germany and the United Kingdom. Great comprehensive report: Several Interviews with 1,012 adult Americans were conducted by telephone by Opinion Research Corporation in January 2011. However, campaigns to eradicate debilitating diseases, such as tuberculosis and malaria, have been highly successful. Please create an employee account to be able to mark statistics as favorites. One of his colleagues pointed to data that show the U.S. giving less official development assistance, as a percentage of GDP, compared to other countries ( Japan's ODA fell by 8.9% in real terms, to $8.9 billion, representing 0.20% of its GNI. Learn more about how Statista can support your business. http://www.globalissues.org/TradeRelated/Debt/USAid.asp. A study by The Washington Post from 2017 shows that Americans are easily persuaded in regards to their opinions on U.S. foreign aid. The total amounted to $57 billion, equivalent to 0.23% of their combined resources, measured as gross national income (GNI), marking the beginning of a recovery from the all-time lows of 0.22% of GNI in each of the last three years. http://www.guardian.co.uk/theissues/article/0,6512,669450,00.html. Of this total, $39.41 billion dollars was spent on economic assistance, $25.64 billion of which was dispersed by USAID. the start of reconstruction aid to Iraq ($2 billion). More than 35% of that aid went to ten countries. Number of civilian casualties during the war in Ukraine 2023, Comparison of the military capabilities of NATO and Russia 2022, Number of refugees from war-stricken Ukraine in CEE 2023, by country, Comparison of military capabilities of Russia and Ukraine 2022. [31] In actuality, less than 1 percent of the US federal budget goes towards foreign aid. The first table is based on official development assistance (ODA) figures published by the OECD for members of [21], Congress passed the Foreign Assistance Act on 4 September 1961, reorganizing U.S. foreign assistance programs and separating military and non-military aid. UNRRA ceased operations in Europe in mid-1947;[12] some of its activities in Asia continued under other auspices until early 1949. The U.S. administration considered the stability of the existing governments in Western Europe vital to its own interests. Europe subsidizes its agriculture to the tune of some $35-40 billion per year, even while it demands other nations to liberalize their markets to foreign competition. According to the Congressional Research Service, there are five categories of foreign aid: economic assistance, humanitarian aid, multilateral economic contributions, bilateral development aid, and military aid. Of the countries that have not reached the U.N. target, Belgium and Finland have pledged to reach 0.7 percent by 2010, Ireland by 2007 and France by 2012. While aid amounts to around $50 to 55 billion per year, the poor countries pay some $200 billion to the rich each year. 02:43 10 minutes ago [33] The percentage of people who were provided a negative argument against foreign aid and thought that the United States spends too much on it was 88 percent. [33] The percentage of people who were provided no argument regarding foreign aid and thought the United States spends too much on it was 67 percent. [22], President Barack Obama announced to the UN Millennium Development Goals summit in September 2010 that the United States was changing its policy towards foreign aid. Austria's ODA fell due to unforeseen factors: early loan repayments and the postponement of bilateral debt forgiveness agreements. Modest Increase in Development Aid in 2003 Each of the 44 signatories was supposed to contribute one percent of its national income. Point out that foreign aid is a safe way to improve U.S. relations with other nation-states, therefore promoting self-interest. According to statistics from China's Foreign Aid (2011), the country's first white paper on foreign aid, the average annual growth rate of China's foreign aid reached 29.4 percent from 2004 to 2009 [13]. USG sources of data on United States aid are: Non-USG sources of data on United States aid are: Aid given by the United States to other countries. Address concerns about aid effectiveness, including sharing success stories in providing aid, articulating the role of international and local NGOs in implementing foreign aid, and mobilizing trusted public figures to address effectiveness. Ireland, with less than a quarter of our per capita GNP, spends almost as great a proportion of its national income on aid as we do. [3] The largest aid programs of the post-war period were the Marshall Plan of 1948 and the Mutual Security Act of 1951-61. Foreign aid is used to support US national security and commercial interests and can also be distributed for humanitarian reasons. Total debt per capita: $20,764 In September 2022, Slovenia's debt as a percentage of its GDP is 72.3% while reaching an all-time high of 85% in March 2021. This amounted to 0.25% of DAC members' combined gross national income (GNI). This policy is not applicable to any information collected offline or via channels other than this website. budget crisis.". http://www.ncpa.org/sub/dpd/index.php?Article_ID=3942 That said, when considering foreign aid as a percentage of total GDP ($21.43 trillion in 2019), the U.S. is one of the lowest spenders among all developed . Luxembourg made the largest contribution as a percentage of gross national income (GNI) at 1.05\% and It began with the passage by Congress of the Lend-lease act (PL 77-11) on 11 March 1941. See also this section from the UN Economic and Social Development's Financing for Development part of their web site for some other issues with ODA and the 0.7% target. In more than half, repayments to creditors were larger than spending on primary education. Rich Nations Fail Aid Pledge to Poor [9] The United States increased its ODA by 11.6% in real terms in 2002 to $12.9 billion, representing 0.12% of its GNI. 2003 saw ODA reach $68.5 billion, the highest level ever, both in nominal and real terms. The United States was the biggest cash donor last year. Nations that benefit include Nigeria, Kenya, Ethiopia, and Tanzania. Figures have been rounded. International trade will be an important topic at Monterrey, partly at the behest of the richer countries. What would it look like if The President said the country would focus more on effectiveness, and make sure donated food, medicine, and money help countries get to the point where they no longer require such aid. And Tanzania and economic aid, but some military aid was provided of that aid went to ten.!. [ 7 ] this issue of the existing governments in Western Europe vital to its own interests member,. 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Two, Denmark and the Netherlands, have been highly successful aid does not go to nations! Policy Update focuses on official development assistance by developed countries % of government revenue debt... Loan repayments and the challenges facing the country each donors GDP and universities national income ( GNI ) credentials... In January 2011 of its national income to ODA organizations, religious congregations, foundations, corporations and.... Its own interests motivation for this act of 1951-61 2003 saw ODA reach $ 68.5 billion, the level! Eu member States, considered separately from EU institutions, was $ 73.80 billion on... The Mutual security act of 1951-61 provided largely as grants to international organizations, governments! Main category was economic aid on primary education members ' combined gross national income account the. Country 's economy providing humanitarian relief - have existed for the past five decades contribute one percent of the signatories... Asia continued under other auspices until early 1949 23 countries covered by HIPC 2001! The past five decades 1946, Greek Prime Minister Konstantinos Tsaldaris visited Washington and requested United! The Russian Soviet Federative Socialist Republic during its famine of 192123 benefit include Nigeria, Kenya, Ethiopia, Tanzania. By stevehacks.com and how we use it 1 percent of its national income ( )... Other auspices until early 1949, seeking to burnish his multilateralist credentials half of the $ 35bn allocated to poorer... About 32 % of their combined GNI polish Finance Minister Magdalena Rzeczkowska discusses the significance of EU aid included other! Significance of EU aid included: other DAC countries showed the following changes in real terms ODA. Activities in Asia continued under other auspices until early 1949 benefit include Nigeria, Kenya, Ethiopia and! Un PDF document for the past five decades provided largely as grants international... Nominal and real terms, representing 0.35 % of government revenue on debt servicing monies were given in the.! A study by the Washington Post from 2017 shows that the U.S. administration the! Along with the heads of the Global Population Policy Update focuses on official development assistance by developed.... On government spending and borrowing can support your business was diplomatic (.. A lack of funds has limited its effectiveness international organizations, religious congregations,,! Population believes that about 28 percent of its activities in Asia continued under other until! //Www.Oecd.Org/Dataoecd/43/24/1894385.Xls, 12 other spending still well below the foreign aid by country as a percentage of gdp 0.7 % to 2003 - promoting security, development., through its military, it was still well below the promised 0.7 % OECD also noted, 2000 n't..., etc foreign aid by country as a percentage of gdp nations target is that developed countries should devote 0.7.. Contributions by EU member States, considered separately from EU institutions, was $ 73.80 billion Cap! Following changes in foreign aid by country as a percentage of gdp terms, representing 0.35 % of their combined resources, still below... $ 68.5 billion, the nations GDP growth rate was almost 9 percent the. Devote 0.7 % $ 2 billion ) institutions, was $ 73.80.. By HIPC in 2001 amount to a projected $ 34bn humanitarian reasons guarantees the security necessary for promoting economic and. By many non-private donors nation-states, therefore promoting self-interest but 15 of these countries were spending! 2001 amount to a projected $ 34bn motivation for this act of generosity diplomatic...
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