I support the UK’s International Development Secretary, Andrew Mitchell’s decision to relook at the at the UK’s aid commitments to the BRIC countries (Brazil, Russia, India and China). This money can now be shifted more towards countries with a greater need, and less ability to help themselves.
Also, I again urge the Minster to examine the way in which aid is spent, there must be a shift over the next few years to aid that supports growth and aims to increase the involvement of the private sector, allowing national governments to pay for their own social infrastructure. While the shift cannot be uniform, many of the poorest countries will still need support in social areas; there are other middle income countries that can begin the shift towards growth centred aid, so that they may hopefully follow in the BRIC’s footsteps.
Showing posts with label international aid. Show all posts
Showing posts with label international aid. Show all posts
Monday, 12 July 2010
Friday, 25 June 2010
Africa and Aid
At the beginning of the week I had the pleasure of opening our G8 Africa Business Forum in London. The Forum is an annual event that feeds African private sectors views into the G8’s deliberations. Considering the recent economic turmoil we thought it best to focus on the good, and highlight the myriad opportunities offered by Africa, hence the theme Success stories and new partnerships.
The Forum was addressed by the Prime Ministers of Togo and Cameroon and Ministers from Angola, Namibia and Zambia. We were also delighted to have 2 members of the UK’s new coalition government address the Forum.
One of the Key messages coming out of the forum, and one I think is particularly important, from both government and business is the need for Africa to accelerate its move away from dependence on foreign aid to wealth created by its own citizens.
Future foreign aid must be directed to concentrate on reforms to deliver sustainable results and improve value for money. Aid should be targeted to improve the basic economic infrastructure, to improve competitiveness and produce higher rates of growth. As a result African government’s tax revenues will increase, which will in turn allow them to focus on their own social infrastructure. This will shift the responsibility for their delivery of public services like health and education to African Governments.
Entrepreneurship and the private sector are the only sustainable drivers of growth in Africa, and targeting Aid to enhance them should accelerate the continents ability to create its own wealth and increase its prosperity. I have personally been advocating this message to Aid Agencies and Governments and have written to the Chair of the G8, the Canadian Prime Minister to reiterate it.
The Forum was addressed by the Prime Ministers of Togo and Cameroon and Ministers from Angola, Namibia and Zambia. We were also delighted to have 2 members of the UK’s new coalition government address the Forum.
One of the Key messages coming out of the forum, and one I think is particularly important, from both government and business is the need for Africa to accelerate its move away from dependence on foreign aid to wealth created by its own citizens.
Future foreign aid must be directed to concentrate on reforms to deliver sustainable results and improve value for money. Aid should be targeted to improve the basic economic infrastructure, to improve competitiveness and produce higher rates of growth. As a result African government’s tax revenues will increase, which will in turn allow them to focus on their own social infrastructure. This will shift the responsibility for their delivery of public services like health and education to African Governments.
Entrepreneurship and the private sector are the only sustainable drivers of growth in Africa, and targeting Aid to enhance them should accelerate the continents ability to create its own wealth and increase its prosperity. I have personally been advocating this message to Aid Agencies and Governments and have written to the Chair of the G8, the Canadian Prime Minister to reiterate it.
Tuesday, 8 June 2010
The new coalition government has a difficult tight rope to walk over the coming months, on one hand the deficit in public spending must be reduced – spending cuts and higher taxes will probably both be necessary. On the other hand the Government needs to be careful not to jeopardise the UK’s position as a global investment hub. The Budget on the 22nd of June must be carefully balanced to protect this, while delivering a tax system that is fairer to the less well off.
My suggestions for the government are:
The UK is more often than not either the largest or second largest source of investment in Commonwealth Countries. In return the UK is often the destination of choice for other Commonwealth countries outbound investment flows. This privileged position needs to be protected.
Government expenditure needs to reduced, there are many tasks currently undertaken by the public sector that the Private can deliver, particularly in international aid.
While I was pleased to hear in the Prime Minsters speech this morning that international aid is to be ring fenced, there is a need to refocus what it is spent on. Aid should be spent on improving the receiving countries ability to attract increased private sector investment that will promote job and wealth creation, creating a sustainable economy.
Finally the UK must preserve its Global Comparative advantage; it should implement a mechanism that attracts highly skilled and professional migrants to the UK.
My suggestions for the government are:
The UK is more often than not either the largest or second largest source of investment in Commonwealth Countries. In return the UK is often the destination of choice for other Commonwealth countries outbound investment flows. This privileged position needs to be protected.
Government expenditure needs to reduced, there are many tasks currently undertaken by the public sector that the Private can deliver, particularly in international aid.
While I was pleased to hear in the Prime Minsters speech this morning that international aid is to be ring fenced, there is a need to refocus what it is spent on. Aid should be spent on improving the receiving countries ability to attract increased private sector investment that will promote job and wealth creation, creating a sustainable economy.
Finally the UK must preserve its Global Comparative advantage; it should implement a mechanism that attracts highly skilled and professional migrants to the UK.
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