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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

The Crisis in Official Development Assistance (ODA) Statistics: Needed Revamp Would Lift Japan, Lower France

Not to be melodramatic, but the official system for counting foreign aid is in crisis. The longstanding mathematical rule determining whether a loan’s interest rate is low enough to qualify it as aid has gone out of sync with the times. The rule’s benchmark interest rate of 10% per year was reasonable when adopted in 1972, but not now. Today, wealthy governments can borrow below 3%, lend a couple percent higher, come in well under the 10% bar, and count the potentially profitable lending as aid.

After France Attacks Radicals in Mali, What Next for the United States?

The unexpectedly sudden French military action in Mali is a first step toward reunifying the country, but it also highlights the risks for outsiders, including the United States. In the days ahead, the US will need to balance its cautious instincts on Mali with the imperative to help shape events as they unfold. In the months ahead, the US must reflect on the future of American counterterrorism and democracy strategies in places without a massive US military presence.

How NOT to Fix the Global Food Crisis -- France Says Poor Countries Should Provide EU-Style Farm Subsidies, while U.S. Farm Bill Puts Vested Interests First

And now for a really bad idea: according to the Financial Times Michel Barnier, France's farm minister, told a food crisis summit in Berne that Africa and Latin America should adopt their own versions of Europe's Common Agricultural Policy -- massive trade-distorting subsidies -- as a response to rising demand for food.