Global development leadership is faltering, yet remains necessary for advancing an equitable recovery from the COVID-19 pandemic, tackling global challenges, and driving progress towards the sustainable development agenda. We suggest that as traditional forums for leadership fail to make progress, informal groups provide an opportunity to advance common interests.
CGD Policy Blogs
CGD’s Mikaela Gavas joins Gyude to discuss barriers to private investment in health and infrastructure projects and how a new initiative—an Accelerator Hub—could help local businesses and institutions in Africa develop financially viable proposals and connect them with investors.
Through its European Investment Advisory Hub, the European Union (EU) has built solid experience in project preparation within its own borders by connecting project promoters and intermediaries with advisory partners who work directly together to help projects reach the financing stage. Building on this approach, we propose the establishment of an Accelerator Hub, which would provide targeted support to identify, prepare, and develop investment projects in Africa.
With a new government taking over the helm of the country and building on its financial firepower, Germany now has the opportunity to fully embrace a leadership role in the EU as an agenda-setter in development, driving forward innovative ideas, rather than as a mere broker.
A year ago, the UK Government announced the integration of the Department for International Development (DFID) into the Foreign and Commonwealth Office (FCO), which became the Foreign Commonwealth and Development Office (FCDO). Soon after the merger, the UK’s development budget was cut by £4.5 billion and reduced from 0.7 percent to 0.5 percent of gross national income (GNI). The cuts—which disproportionately hit bilateral spending and some UN agencies—have seen steep reductions in support for some of the world’s poorest countries.
Foreign ministers from the 27 European Union (EU) member states have agreed to set in motion work on a new global connectivity strategy to rival China’s Belt and Road Initiative (BRI). The Council Conclusions adopted in mid-July define a new “geostrategic and global approach to connectivity” for the EU and call on the European Commission and the High Representative to work on a joint EU global connectivity strategy by spring 2022 at the latest.
In early 2020, as the COVID-19 pandemic began to ravage the world, the European Union (EU) sprang into action with its member states and financial institutions to deliver a collective global response, laying the foundations of more unified European approach to international development that has been termed “Team Europe.”
As the EU prepares to significantly scale up its deployment of blended finance, guarantees, and other risk-sharing tools aimed at stimulating investment in developing countries, it has stated its intention to use its development budget to incentivise private investment in health and education.
Redesigning Global Europe: The EU’s Neighbourhood, Development, and International Cooperation Instrument
EU member states and the European Parliament’s Foreign Affairs and Development Committees finally approved the new Neighbourhood, Development, and International Cooperation Instrument (NDICI)—Global Europe. The instrument, worth €79.5 billion over the period 2021-2027, marks a profound transformation of EU development policy and spending.
It’s been almost a year and a half since the High-Level Group of Wise Persons published its report, setting out options for consolidating and streamlining the European development finance architecture. That report generated a sparring match between the two European development banks—the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) —as to which was better placed to become the new European Climate and Sustainable Development Bank (ECSDB)