After months of speculation inside the foreign aid community, President Trump’s vision for development assistance is coming into clearer focus. Foreign Policy this week published a leaked copy of an Administration planning document on the FY2018 foreign aid budget request. The bottom line: less aid, done less effectively. Here are a few major takeaways from the document.
CGD Policy Blogs
The Administration’s proposed skinny budget zeroes out the Overseas Private Investment Corporation (OPIC), the US government’s development finance institution (DFI). There are multiple reasons why shuttering OPIC would cost US taxpayers, hurt American businesses, and harm markets abroad. Here’s another reason to like OPIC: it’s one of the most publicly accountable DFIs out there.
Last year more than 83 million people in low and middle income countries were affected by natural disasters. We may not know when or where the next disaster will strike, but we know it will. So why do we still treat disasters like surprises? A new CGD report urges a different approach: make disasters predictable, using the principles and practices of insurance. Hear from four members of the working group in this week's podcast.
There is one intervention omitted from Ivanka and Jim’s must-do list: access to family planning as a pre-requisite and enabler of women’s economic empowerment.
On May 7, French voters will elect their new president—right-wing candidate Marine Le Pen or centrist Emmanuel Macron. France is a leader in development-friendly policies—currently ranking fourth on CGD’s Commitment to Development Index (CDI) and the highest ranking G7 country. So what will France’s choice mean for international development?
The international forest and climate communities have placed high hopes on the potential for compliance carbon markets to generate funding to reduce tropical deforestation through international forest offsets. At a meeting last week in San Francisco on “Navigating the American Carbon World” (NACW) it seemed as if these hopes are likely to be dashed. Or at least not realized in time to save the vast tropical forests in time for them to play a significant role in combatting dangerous climate change.
As Green Climate Fund Considers Results-Based Payments for Forests, Two Lessons from Earlier Initiatives
The Green Climate Fund (GCF) could begin offering results-based payments for protecting and restoring tropical forests as early as July. That’s good news for developing countries, where tropical deforestation can be nearly half of low-cost emission reductions. Yet funding to protect forests remains low and slow, as Frances Seymour and I explain in our book, Why Forests? Why Now? As the GCF moves to enable results-based payments for forests, earlier initiatives offer valuable lessons on two things the GCF should—and can—get right: 1) keep rules simple, and 2) recognize that institutional procedures built for upfront investments may not always be appropriate for results-based payments.
The informal sector is a major source of economic activity and job opportunities in poor countries as well as emerging economies. In sub-Saharan Africa, the size of the informal sector is estimated to employ over 70 percent of the population. Why do businesses remain informal? What gains in productivity or profitability do they forego by as a result of that choice?
A commission led by the UN's special envoy for education, Gordon Brown, is calling for a doubling of global aid for education, without any clear reform agenda to raise learning levels in the world's failing school systems. That might be ok: bad schools in poor countries still seem to produce big benefits.
Attention UK political parties: we know you are pretty busy right now, what with Prime Minister Theresa May calling a snap general election in a few weeks. So, we wrote an election manifesto on development for you. Feel free to plagiarize it; in fact, we’ve written it so you can just copy/paste parts of it if you want. To M Macron and Mme Le Pen, your manifestos are written, but you will find some good ideas here too. Needless to say, not all our CGD colleagues will agree with all our ideas, nor will many readers. So please let us know what we have missed or got wrong, in the comments below.