A critical assessment of German development policy
In November 2011, the German Federal Ministry for Economic Cooperation and Development (BMZ) is celebrating its 50th anniversary. This anniversary comes at a time when North-South relationships are fundamentally changing, and so the conditions that frame German development aid policy. The new Minister, Dirk Niebel of the (neo)-liberal FDP has launched a ‘radical change of course’. In the recent edition of the Reality of Aid shadow report (see reference) the change is analyzed. A WDEV summary
In the light of shifting global economic and political power structures - particularly manifest in the increasing significance of China - it appears that to divide the world into two distinct sections of ‘industrialised countries’ and ‘developing countries’, or into the ‘rich North’ and the ‘poor South’, is becoming increasingly anachronistic. China is now investing billions in crisis-afflicted Greece; Brazil in 2011 owns more US government bonds than Germany and Switzerland combined. And this global economic and political upheaval has also put concepts and strategies behind traditional development aid policies on the spot ...
Marking the 30th anniversary of one of the world's more influential economic annuals experts pointed out that themes long sounded in UNCTAD's Trade and Development Report retain current prominence - particularly those citing the questionable wisdom of unbridled free markets.
In an open letter a global coalition of development activists and non-governmental organisations (NGOs) is calling on the World Bank's governors to ensure that the next president is chosen in an "open and merit-based process" that will give borrowing countries a major say in the selection.
After decades of isolation - imposed by major OECD countries out of concern for the country's human rights violations - Myanmar is emerging as a new darling of the "West" - judging by the accelerating succession of visits by senior officials and gurus. New groups of investors are waiting to enter the country as soon as possible.
Persistent high unemployment, the euro area debt crisis and premature fiscal austerity have already slowed global growth and factor into the possibility of a new recession. Now the United Nations have downgraded significantly its forecasts for the world economy in the next year.
Eastern European states are in for a new round of the crisis. The external control of the banking sector and high reliance on external credit has landed the countries of Eastern Europe in a vulnerable position. Now, credit flows from Western banks are drying up again. Hungary has been the first country in the region to ask for IMF support again.