International development: Better to give

by / Thursday, 15 October 2015 / Published in Economy

UK Only Article: 
UK article only


The reluctant European

Fly Title: 

International development


Britain is the biggest foreign aid donor in the EU

AT THE Tory party conference in Manchester, David Cameron proudly touted his promise to spend 0.7% of national income on foreign aid. Overseas aid has been a feature of Mr Cameron’s conference speeches since 2010. Yet a growing economy and shrinking public spending elsewhere means a rising share of government spending goes on aid, to the annoyance of other cash-strapped departments. Since 2010, the aid budget has risen by 40%. Only America disburses more. Has the money been spent well?
The increased budget has been a boon for multilateral organisations. Some 62% of Department for International Development (DFID) spending now goes to such bodies, up from 56% in 2009. They are a useful way to spend money fast. But they are also good at operating on a large scale and are insulated from short-term political considerations. Getting multilateral organisations to hand out money frees DFID staff to focus on …
Source: The Economy