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Still, the overall US economy faces little immediate danger from the plight of poorer countries, economists said. Less dependent upon trade than countries such as Germany or South Korea, the US is expected to grow at around 7 per cent this year even as the developing world languishes.
“You’re seeing a very strong recovery in some parts of the world. But if you look at the poor, developing countries, the recovery hasn’t really started,” said Masood Ahmed, president of the Centre for Global Development.
The Biden administration’s fiscal stimulus plans have come under attack from macroeconomists worried that they will trigger inflation. The unprecedented size of the package, at $1.9tn, certainly warrants anxiety. Yet some of the fiercest attacks have come from proponents of the secular stagnation hypothesis. This is curious because the hypothesis implies that higher inflation is a feature — not a bug — of any strategy to revive growth.
A recent analysis by the Center for Global Development found that “only 2% of governing board members across 10 of the largest international humanitarian aid organizations had personally experienced a humanitarian crisis or spent time as refugees.”
“To truly shift the power and reform, the aid sector must grapple with the governance of its own systems, including control over its resources and steering of its missions,” write Patrick Saez and Rose Worden.
Over the last few years, the Black Lives Matter Movement and #AIDToo scandals have ushered in a period of self-reflection in the humanitarian sector and elevated calls to “decolonize” its systems. To keep up the momentum and address systemic issues, humanitarian nonprofit organizations should focus on governance: specifically, their governing boards.
Starved for sources of long-term growth, the global economy is increasingly drawn towards Africa. Not only is Africa the world’s fastest-growing continent, but it is also demographically the youngest. In addition, recent trends suggest its growth is becoming more sustainable and equitable. Starting in the mid-2000s, the extractive industries such as oil and gas began declining as a share of overall FDI for the continent. A new trend of growth led by the service sector and manufacturing has emerged.