MFAN Partner on the G20 and the Future of Aid

GMFMFAN Partner the German Marshall Fund US recently posted a piece on the G20’s role in redefining development.  Authors Jonathan White, MFAN member and Senior Program Officer, and Asha Davis, Program Associate—both with the Economic Policy Program—argue that including new voices like China, India, and Brazil into the development discussion will have a positive impact on the future of aid delivery and the donor-recipient relationship. Moreover, White and Davis assert that sustainable growth will be best achieved if the G20 continues to consult and support Least Developed Countries (LDC) on development plans and delivers results. Read the full piece here or see key excerpts below:

“For the emerging economies, development is about more than just aid. It’s a package of policies connected to trade, finance, and investment – not charity. China, Brazil, and India view development through the lens of partnerships (South-South cooperation) and investment opportunities. These perspectives are shaping the G20 agenda. The current communiqué draft states that the level of aid is important, but economic growth is the primary driver of poverty reduction. The G20 “Seoul consensus for shared growth” agreement under consideration consists of a broad set of pillars: infrastructure, private investment, financial inclusion, social protection, good governance, and food security.”

“Achieving results will require heads of state to demonstrate leadership beyond just aid, an approach consistent with the new Seoul consensus.  Trade and engagement with the private sector are required to unlock entrepreneurship and growth in poor countries. The G20 countries have implemented 101 protectionist measures that negatively affected LDCs since the financial crisis began. Taking away market access with one hand and giving aid with the other is neither good for donor taxpayers nor the poor. This is no way to forge a credible G20 development agenda. The G20 must offer 100% duty-free and quota-free market access to the LDCs (Europe and some middle-income countries already do). This would be a very tangible benefit for the poor and have a minimal adverse impact on industrialized countries.”

You Might Also Like