Mikaela Gavas, Co-Director of Development Cooperation in Europe and Senior Policy Fellow was invited to share her expertise with the Development Committee of the European Parliament on the European Financial Architecture for Development (EFAD).
Mikaela placed the discussion on the European Financial Architecture for Development firmly in the present, with a focus on the context that the conflict in Ukraine has created.
Mikaela explained that the world’s poorest people will be hit hardest by increase in food and energy prices we are seeing as a result of the conflict, and argued that the unity, determination, and speed the EU has shown in reacting to the to the conflict in Ukraine should be reflected in their approach to development.
Given the pressure member states are facing to increase military budgets as well as the current economic climate, other budgets are likely to come under intense pressure, with aid budgets will be the first to be targeted. This is already happening in Germany and Sweden.
Mikaela called for the multilateral banks, development finance institutions and development agencies that make up the European Financial Architecture for Development to come together to respond to this crisis, and to agree to take on more risks and accept sub-market returns.
And for the European Commission to act as a unifying center force in that mission:
You can watch the full session of the Committee here.
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