The Economics Show What future for aid and development? With Minouche Shafik
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Feb 27, 2025 Minouche Shafik, an accomplished economist and member of the House of Lords, shares her insights on the shifting landscape of international aid. She discusses the UK's recent budget cuts and the potential decline of generous health and education initiatives. The conversation highlights the rise of authoritarian powers like China in the aid sector and the need for quality over quantity in foreign assistance. Shafik also emphasizes the importance of long-term policy vision, especially in addressing challenges in global health and demographics.
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Shifting Landscape of Development
- The world of international development is changing fundamentally, moving away from the optimism and solidarity of the 2000s.
- Public cynicism, domestic concerns, and a zero-sum view of international relations are reshaping the landscape.
Loss of Expertise
- Merging development agencies with diplomatic services, as seen in the UK, Canada, and Australia, diminishes capacity.
- Addressing complex global challenges requires specialized expertise, which is lost when aid agencies are absorbed.
Drivers of Aid Cuts
- Two factors drove the widespread aid cuts: backlash against globalization and fiscal pressures.
- Despite cuts by traditional donors, total global aid spending continues to rise due to increased contributions from China, the Gulf states, Turkey, and South Korea.