One early result of today’s global recession is that many donor governments are trimming their foreign aid programs. But by far the biggest transfer of assets from rich countries to the developing world takes place through migrant workers’ remittances, and it is this system that rich-country governments should be seeking to strengthen.
HELSINKI – One early result of today’s global recession is that many donor governments are trimming their foreign aid programs. Before taking office, President Barack Obama had promised a doubling of American foreign assistance, from $25 billion to $50 billion, but since then Vice-President Joe Biden has warned that this commitment will probably be achieved more slowly because of the downturn.
Here in Finland, our aid decreased by 62% in the early 1990’s, a period that Finns still call “The Depression.” Japan’s overseas aid declined by 44% when that country hit hard times. The current worldwide slump could bring a cut in official development assistance (ODA) of 30%.
It is also easy to predict that donor governments will be looking carefully at the ever-growing expenditure on the United Nations’ 14 peacekeeping operations around the world. The total bill for all UN operations in the 12 months to mid-2008 reached $6.7 billion, about twice the level 15 years ago. One can only imagine the grave consequences if operations that are already spread thin are cut. Recall that the Rwandan genocide was preceded by a similar lack of enthusiasm for financing the UN mission there. Recent events in Congo and elsewhere suggest that there is no room for complacency.
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Howard Davies
fears that bringing the current bout of inflation under control will carry high costs, suggests ways monetary policymakers can protect their reputations, defends the UK Treasury from accusations that it is too powerful, and more.
For decades, relative global stability, sound economic-policy management, and the steady expansion of trade to and from emerging markets combined to keep costs down. But now all these conditions have been overturned, and the world is settling into a dangerous and destabilizing new regime.
explains why the long era of low inflation, cheap imports, and consistent growth is now over.
If it passes, the US Inflation Reduction Act would be a landmark legislative achievement. With provisions to accelerate America's clean-energy transition, control health-care costs, and restore some sanity to the tax code, it will not only curtail inflation but also bolster America's long-term competitiveness.
explains how the legislation would address several key longstanding problems facing America.
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HELSINKI – One early result of today’s global recession is that many donor governments are trimming their foreign aid programs. Before taking office, President Barack Obama had promised a doubling of American foreign assistance, from $25 billion to $50 billion, but since then Vice-President Joe Biden has warned that this commitment will probably be achieved more slowly because of the downturn.
Here in Finland, our aid decreased by 62% in the early 1990’s, a period that Finns still call “The Depression.” Japan’s overseas aid declined by 44% when that country hit hard times. The current worldwide slump could bring a cut in official development assistance (ODA) of 30%.
It is also easy to predict that donor governments will be looking carefully at the ever-growing expenditure on the United Nations’ 14 peacekeeping operations around the world. The total bill for all UN operations in the 12 months to mid-2008 reached $6.7 billion, about twice the level 15 years ago. One can only imagine the grave consequences if operations that are already spread thin are cut. Recall that the Rwandan genocide was preceded by a similar lack of enthusiasm for financing the UN mission there. Recent events in Congo and elsewhere suggest that there is no room for complacency.
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