The UK’s new development strategy suggests its ready to ‘Talk the Talk’ – but will it really ‘Walk the Walk’?

 In analysis, op-ed

Yesterday the UK’s Foreign, Commonwealth and Development Office (FCDO) released their eagerly awaited International Development Strategy.

It has been an agonizing wait; the international development community have been expecting this strategy since the publication of the Integrated Review back in March 2021 and many have been particularly keen to understand what expert comments had been incorporated from the ‘Call for Submission’ organized by the International Development Committee back in September last year.

At the African-owned Consultancy where I work – Development Reimagined – we provided a number of expert contributions to the preparation of the strategy, focusing in particular around African development needs, local ownership – especially in light of the Black Lives Matter and decolonizing development movement -, and the importance of financing and trade in development. We were pleased to see some of these ideas reflected in the language of the new strategy.

However, the strategy has already come under fire from, in particular, British non-governmental organizations (NGOs) who are concerned about the lack of direct focus on poverty reduction within the strategy. Why? And what is our view?

Our view is that on balance, this new strategy could be positive for poverty reduction globally – but the devil is in the detail. Here is why.

First, the importance of infrastructure and concessional financing options has FINALLY been acknowledged as a critical area of sustainable development (something many other development professionals do not always promote). Let’s take Africa as an example – the African Development Bank estimates the continent’s financing gap to stand at a staggering US$68 billion to US$108 billion per year. In order to fulfil this gap, new and innovative programs are needed to provide developing countries with the financing they need to develop green infrastructure which is the bedrock for catalyzing sustainable development.

The new strategy outlines the UK’s willingness to support countries to obtain the investments they need to grow. Notably, the new British Support for Infrastructure Projects (BSIP) will “facilitate concessional loans to help partner governments access high quality and affordable infrastructure finance.” This alongside other mechanisms such as the British Investment Partnership (BIP) and British International Investment (BII) and the target to “mobilize up to £8 billion (US$9.97 billion) of UK-backed financing a year by 2025 including from the private sector” are a step in the right direction. That said, where the devil is relevant is that the strategy does not actually make a commitment towards providing more concessional loans from the UK, but help countries get more. Ultimately the UK is not offering to fork up more lending. The question remains, where will these loans come from. That’s where – for this area – more detail is needed.

Second, the role of trade for supporting poverty reduction and development is highlighted through the new “Developing Countries Trading Scheme” (DCTS). This scheme will aim to “give better access to the UK market for goods from low- and middle-income countries, through a set of simpler, more generous trading arrangements than those in the UK’s current arrangements.”

From our perspective, this is good news. For years we have been encouraging countries from China to the UK to open up their markets to Made in Africa products, and go beyond simple “aid for trade” projects that put all the onus on African exporters to adjust. But again, the new UK commitment comes with caveats. Back in November last year, myself and a colleague published an oped looking at the limitations of the DCTS including the need to focus on value added exports from developing countries and not just increase the volume of raw materials. Take Nigeria for example. In 2019, the UK imported US$1.45 billion worth of goods but 87 percent of this was crude oil. This focus on raw materials does not support increased job creation (through supply chain growth) and poverty reduction. For the DCTS to truly work we need a clear understanding of how value-added products will be able to enter the UK. We need more detail.

Third, one paragraph that many others might miss is an essential move by the FCDO. The document states, “those who benefit from our work must have a voice in what we do, and how we do it. The difficult reforms and good policies that drive progress must be locally owned. Our country partnerships will be anchored in our respect for the rights of our partners to self-determination. Our support will strengthen their sovereignty.” As an African organization, we believe the evidence that increased local ownership and power over development decisions leads to more effective development impact is clear. However, what is not clear in the strategy is exactly how this local ownership will be nurtured. Through what mechanisms and/or targets? The strategy highlights more power to Ambassadors and High Commissioners but what incentives will staff in HQ or embassies in countries actually have to channel finance through local partners? Indeed, the push for more British expertise goes against the grain of decolonizing development, challenging in a context in which the vast majority of UK aid contracts already go to UK firms. So once again, nice words, but the devil is in the detail.

Finally, overall, the strategy notes that “our approach to international development will be as a patient partner that champions openness, predictability and the rule of law – There are no quick fixes” yet the strategy isn’t clear on how the UK will role model this itself in order to support development abroad. There is little on improving migration rules, improving UK’s own tax rules to avoid illicit financial flows, or even tackling racism in the development sector (while tackling sexism is mentioned). The role of the UK in reforming multilateral organizations such as the IMF and World Bank – from their governance structures to use of Special Drawing Rights and their analytical tools, and the UK’s domestic role in influencing multilateral cooperation including on climate change action, is also left out. Except for trade, the onus seems to all be on other countries to shift… Begging the question – is this really a truly equal partnership?

So, what does this all mean?

The UK is certainly changing its traditional approach with this new strategy and it needs to. Other countries such as China are filling the gaps or “asks” by developing countries that many traditional donors have been leaving behind. For example, China is currently the largest bilateral trading partner for the African continent and the volume of Chinese loans increased significantly from US$129 million in 2000 to US$7.0 billion in 2019. Furthermore, from 2013 to 2018, China spent approximately US$3 billion annually in aid to African countries. The UK in comparison has cut foreign aid since 2020 – spending just under US$14 billion worldwide in 2021, and the new strategy doesn’t give a clear timeline for any significant increase. While quality of spending really matters, there is no doubt the UK can do more and better.

At Development Reimagined, while we welcome the UK governments’ more oblique focus on trade, investment and infrastructure to deliver development, rather than direct poverty reduction schemes, we still believe more can be done, and wonder if the UK can really ‘walk the walk’. For that, much more detail will be needed to avoid devils emerging.

 

This article was originally published on The Habari Network by Leah Lynch, Deputy Director of Development Reimagined

Recommended Posts

Leave a Comment

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text. captcha txt

EDMOND BOSILONG

Research Analyst

Edmond is a research analyst who is passionate about sustainable development, innovation, and the environment. Passionate about climate financing, he firmly believe there is a more reliable system to promote equality, growth, and welfare in societies without affecting the ecosystem. Through his skills, knowledge and experienced gained over 7 years, he wants to make an impact in the world of development. Edmond holds a Master’s Degree in Public Policy from Korea Development Institute and a BA Degree (Honors) in Business from University of Derby.

   HANNAH RYDER

    Founder and CEO

Hannah Ryder is the Founder & CEO of Development Reimagined. A former diplomat and economist with 20 years of experience, named one of 100 most influential Africans in 2021, she is also Senior Associate for the Africa Program of the Center for Strategic International Studies (CSIS), sits on the Board of the Environmental Defence Fund, and is a member of UAE's International Advisory Council on the New Economy. Prior to her role at DR, Ms Ryder led the United Nations Development Programme (UNDP)’s work with China to help it scale up and improve its cooperation with other developing countries, including in Africa. She has also played various advisory roles for the UN and OECD and co-authored the seminal Stern Review of the Economics of Climate Change in 2006.

LEAH LYNCH

Deputy Director

Leah Lynch is Deputy Director of Development Reimagined (DR), and head of the China office. Leah has over 10 years of experience in development and has lived in China for over 8 years. Leah has also travelled extensively around Asia and Africa for research. Leah supports the strategic direction of the team across China, with a mission to deliver high quality research on sustainable development and poverty reduction. Leah is also Chair of the Sustainability Forum at the British Chamber of Commerce in China, providing direction on sustainability initiatives for British and Chinese business. Leah has also consulted on various evaluations on UK aid (ICAI) and is a specialist on development cooperation from the UK and China. Leah has also consulted on various UN projects, including providing support to the UN China team during the COVID-19 Pandemic. Prior to DR, Leah was at the United Nations Development Programme (UNDP) China, supporting the UN’s portfolio on communication strategies, China’s South- South Cooperation and the Belt and Road Initiative (BRI). Before UNDP, Leah lived and worked in Kenya developing sustainable water policies for the Kenyan government.

YIKE FU

China-Africa Policy Analyst

Yike Fu is a Policy Analyst and has been responsible for leading numerous areas of work, including on debt analysis in Africa and beyond, and China-Africa trade and investment logistics and analysis. She is the co-author of “African Debt Guide”, in which she challenged the narrative that Africa is in the midst of a new debt crisis by analysing data back to the 1970s and adopting new metrics to present the real story behind the data. She also developed a benchmark to compare the financial distribution of development partners such as the UK, US, Japan, France and China in Africa. Prior to her role at DR she worked at the International Finance Corporation and African Union Representational Mission to the US. She holds a Masters in International Affairs from George Washington University.

JUDITH MWAI

Research Analyst

Judith is a Research and Policy Analyst, where she specialises in Africa-China relations, international development, and diplomacy. During her time at Development Reimagined, Judith has co-authored several articles published in The Diplomat on debt and China-Barbados relations and was quoted by China Daily in a piece on Women Rights in China. Previously, Judith worked as a research analyst for an Advocate and Commissioner and Oats office in Kenya.

OVIGWE EGUEGU

Policy Analyst

Ovigwe specialises in geopolitics with particular reference to Africa in a changing Global Order. He is adept at critically analysing the politics of contemporary development processes and providing insight into the geopolitical interests that influence them. His work includes research, publications, tailored briefings and advising on global and regional trends, and issues at the nexus of geopolitics and development. Ovigwe appears frequently in media around the world such as Al Jazeera, TRT World, SABC, CGTN, BBC Radio, and other platforms.

JING CAI

Policy Analyst

Jing leads China-African health and agriculture cooperation research at Development Reimagined, having managed our FOCAC Policy Analysis and Advocacy project. She is also the co-author of “China-Africa Health Cooperation under FOCAC Umbrella”, in which she analysed China’s commitments around health cooperation since the first FOCAC summit and deepdived into four African countries’ health overview, challenges and cooperation with China as cases studies. Before DR, Jing worked at GIZ Cambodia on M&E of a disability advocacy project. She also worked as a translator with Chinese medical team in Benin.

PATRICK ANAM

Trade Policy Analyst

Patrick is an International Trade Policy and Trade Law Expert with over 5 years of experience. His expertise includes trade law, trade policy analysis and regional integration. He is currently engaged with Development Reimagined as a Senior Trade Analyst and was the lead author of Development Reimagined's recent Report on Africa-China Relations titled "From China-Africa to Africa- China: A Blue Print for a Green and Inclusive Continent-Wide Strategy Towards China." and “Reimaging FOCAC Going Forward.” Patrick has previously consulted for the East African Community, UNECA and for the Kenya Ministry of Trade.

ROSIE FLOWERS

Senior Policy Analyst 

Rosemary is our Senior Policy Analyst. She is a skilled policy analyst and has previously worked as a UK civil servant. She is studying Human Rights at Birkbeck, University of London with a research focus on international law in the context of health crises such as the COVID-19 pandemic.

JADE SCARFE

Project Manager and Africa-China Communication Assistant

Jade is a Project Manager for Development Reimagined’s flagship project Africa Unconstrained, which focuses on financing needs and debt vulnerabilities of African countries. Her research focuses on China-Africa development finance alongside debt vulnerabilities, infrastructure needs and South-South cooperation. She has worked with a breadth of stakeholders from China, Africa and the wider international community, including governments, private sector, NGOs and civil society. Her writing has appeared in a number of publications, including The Africa Report, The China-Africa Project, The Diplomat and more. Jade holds a Master’s in China and Globalisation studies from King’s College London.

ROSIE WIGMORE

Programme Manager

Rosie is the Project Manager of Africa Reimagined (AR) at Development Reimagined (DR) where she supports high-end African brands with entering the Chinese market by operating services such as trademark protection, Chinese market research, Chinese partnership building, and Africa to China logistical support and import/export services. Rosie has worked with DR for over two years now with proven success in helping high-end African brands navigate the Chinese market. She is extremely passionate about her work because more African brands selling in the Chinese marketplace means African countries can export MORE value-added goods, create MORE jobs and foster MORE innovation in African countries.

Rosie is also alumni of the School of International Studies at Peking University in Beijing where she is also an editor at the Peking Africa Think Tank. PATT is led by a diverse group of scholars who specialise in African Studies within the context of Sino-Africa relations.

LAUREN ASHMORE

Consultant

Lauren has lived in six countries from the Americas to Europe and Asia and speaks both French and Spanish proficiently. At Development Reimagined, Lauren’s research focuses on climate action both in the Asia-Pacific and in Africa, and how countries are using tools such as SDGs and Covid-19 action to build a more climate-resilient future. She holds a Masters in International Relations from Leiden University.

ETSEHIWOT KEBRET

Consultant

Etsehiwot holds a Masters’s degree in Development Studies from the London School of Economics. She has diverse experience in humanitarian and development issues by working in both multilateral organizations and international non-governmental organizations. Etsehiwot is currently a consultant focusing on the SDGs and development finance.

DIBEKULU MULU

Economist Consultant

Dibekulu is an economist by training. He holds an MSc in International Development Studies from Palacky University Olomouc, an MSc in Development Economics from the University of Clermont Auvergne, and an MSc in Economics, Finance, and International Integration from the University of Pavia. At Development Reimagined, he works as an Economist consultant. He has strong data analysis skills, with research interests centring around development finance, impact assessment, food security, and agricultural insurance.

OSARU OMOSIGHO

Project Manager

Osaru is a health professional with an MSc in Health Systems Policy and an interest in women’s health and population management. At Development Reimagined, she applies her health sector experience to global health research and collating locally applicable development insights from China.

PIER FERDINANDO CINOTTO

Research Analyst

Ferdinando’s research at Development Reimagined is centred on South-South Cooperation dynamics, specifically on the analysis of Chinese investment and debt flows in Africa and their linkages to African industrialisation. He is currently a Yenching Scholar at Peking University, after having graduated from the University of Cambridge with an MPhil in Development Studies.

DAVID TINASHE NYAGWETA

Research Analyst

David is a Research and data analyst at Development Reimagined. His scholarly focus is mostly on interdisciplinary research in demographic economics and development with interests in migration, economic development and policy, education, health and subjective well-being. He is currently a PhD scholar at Nelson Mandela University from which he also holds B.com Economics and Statistics and M.com respectively.

IVORY KAIRO

Research Analyst Kenya

Ivory is a Kenyan lawyer with experience in policy research and analysis. She also supports the communications team at DR. Ivory speaks English, Swahili and French.

JOY ENE

Research And Data Analyst China 

Joy Ene is a Research and Data Analyst at DR. Joy is passionate about African/global development, poverty eradication and trade policies between underdeveloped and developing countries. She is also a fourth-year student of International Economics and Trade at the  Liaoning University, Shenyang, China. She serves as the President of the Student Union, Liaoning University, International Students chapter.

CHENSI LI

Research Analyst 

Chensi Li is a research analyst. She has previously worked for local NGOs in Nigeria and Cameroon and think-tanks in China.  Her research areas include Sino-African relations, African foreign affairs, public diplomacy, state-building and national governance.

Yixin Yu

Research Analyst 

Yixin is a Junior Research Analyst and her focus areas is on public-private partnership and entrepreneurship. She has over three years of working experience in both private and public sectors in Ethiopia. She was the China Liaison Officer for project ‘Partnership for Investment and Growth in Africa’ at International Trade Centre, where she accumulated rich experience in investment and trade promotion

HANNAH RYDER

Founder and CEO

Hannah Ryder is the Founder & CEO of Development Reimagined. A former diplomat and economist with 20 years of experience, named one of 100 most influential Africans in 2021, she is also Senior Associate for the Africa Program of the Center for Strategic International Studies (CSIS), sits on the Board of the Environmental Defence Fund, and is a member of UAE's International Advisory Council on the New Economy. Prior to her role at DR, Ms Ryder led the United Nations Development Programme (UNDP)’s work with China to help it scale up and improve its cooperation with other developing countries, including in Africa. She has also played various advisory roles for the UN and OECD and co-authored the seminal Stern Review of the Economics of Climate Change in 2006.