International aid is necessary for the achievement of the Millennium Development Goals (MDGs) because it supplements the domestic resources of poor countries allowing them to increase the quantity and quality of their public services – such as education and healthcare – and to fund the policies and investments necessary for development. Just increasing aid, however, is of limited relevance, if it is not used effectively. A lot of ODA is not spent well because of donor practices — not because of recipient’s corruption or incompetence. Improving donor practices, especially through aid harmonization can go a long way in helping achieve the MDG’s. By Eveline Herfkens
A large share of aid goes to middle income countries, which do not need external concessional resources to achieve the Millennium Goals: Germany spends almost half of its aid on middle income countries. A substantial amount of the remaining ODA is spent within donor countries ... ... this article is for subscribers only. For direct log in >>> click here.If you have no subscription >>> pick your option or >>>
After decades of isolation - imposed by major OECD countries out of concern for the country's human rights violations - Myanmar is emerging as a new darling of the "West" - judging by the accelerating succession of visits by senior officials and gurus. New groups of investors are waiting to enter the country as soon as possible.
Persistent high unemployment, the euro area debt crisis and premature fiscal austerity have already slowed global growth and factor into the possibility of a new recession. Now the United Nations have downgraded significantly its forecasts for the world economy in the next year.
Eastern European states are in for a new round of the crisis. The external control of the banking sector and high reliance on external credit has landed the countries of Eastern Europe in a vulnerable position. Now, credit flows from Western banks are drying up again. Hungary has been the first country in the region to ask for IMF support again.
While the G20 efforts to manage global aggregate demand, exchange rate management and stronger regulation of the international financial sector have not worked out quite as planned, in Cannes the Group was further solidifying its role in directing the system of multilateral institutions.
In November 2011, the German Federal Ministry for Economic Cooperation and Development (BMZ) is celebrating its 50th anniversary.The new Minister, Dirk Niebel of the (neo)-liberal FDP has launched a 'radical change of course'. In the recent edition of the Reality of Aid shadow report the change is analyzed.