CGD in the News

'Tough times are ahead': Observers anticipate drop in UK aid budget (Devex)

April 24, 2020

From the article:

“…The World Bank predicts that remittances — money sent home by migrant workers, which people in many countries depend on — could fall by nearly 20%, the sharpest decline in recent history, as unemployment grows and wages fall.

However, Ian Mitchell, senior policy fellow at the Center for Global Development, noted that the drop in ODA is not a given. The 0.7% target ‘is minimum, not a maximum,’ he said via email, highlighting that the government often exceeds its 2% defense spending target.

‘We’re in a global crisis where we’ve rightly massively expanded domestic U.K. spending in spite of the economy shrinking — public [spending] will increase by some £85.5 billion, or 10% according to the OBR — and it follows that poor countries will need support to save lives too,’ he said.”