The global economic landscape has evolved dramatically since 2000: developing and emerging economies have been driving global growth, new sources of development finance have mushroomed and the diversification of actors, instruments and delivery mechanisms has continued. Transformations in the poverty map and new forces on the supply side of development finance are challenging the international development architecture. This paper aims to stimulate debate on the future of this architecture.
The authors project that, by 2025, the locus of global poverty will overwhelmingly be in fragile, mainly low-income and African, states, contrary to current policy preoccupations with the transitory phenomenon of poverty concentration in middle-income countries. Moreover, a smaller share of industrialised country income than ever before will potentially close the remaining global poverty gap, although direct income transfers are not yet feasible in many fragile country contexts.
Against this backdrop, new institutions, business models and practices are challenging long-established ‘aid industry’ actors. Agencies providing development finance for improved social welfare, for mutual self-interest in growth and trade and for the provision of global public goods will find that, in each area, disruptors to their programmes may force a change in positioning.
Kirsten Newitt on 09 Apr 13To eradicate poverty, the international community should pursue a wider and more far-reaching approach to development than was captured in the MDGs, European thinktanks say in the 2013 ERD. Although poverty should remain a core focus of the new agenda, the objective should be to tackle its causes by adopting a more inclusive and sustainable development model that emphasises jobs and addresses inequality, according to ODI, the European Council for Development Policy Management and the German Development Institute.
