As the world continues to deal with economic financial crises, there is still a need for global contribution and aid to countries of extreme poverty. With the amounts of Western foreign aid decreasing, there is a need for new and innovative means of development to lift people out of poverty. The main themes that are the current focus include taxing, gender equality laws, inclusive growth and regional integration.
The Chief Economist and Vice President of the African Development Bank, Mthuli Ncube, urged the need for transparency between investors and the African people. He points out that it is problematic how even when commodity prices increase, African governments’ revenues do not follow the pattern. He suggests that international investments in African natural resources should be monitored so that they “benefit the African people through job creation, protecting the environment, developing African entrepreneurs,” and then using all the resulted revenues to create a diverse African economy.
The Organization for Economic Cooperation and Development (OECD) has stated that there has been a shift in aid from extremely poor countries to those of middle-income, and it emphasizes the point that in order to meet the U.N. Millennium Goals by 2015, this shift must be reversed to prioritize and address the extremely poor countries. A professor of Development Policy and Practice at the University of Warwick in the U.K., Franklyn Lisk, discussed how African countries suffer from an irony where their natural resources have not been giving them any returns on improving human development. He argues for tax justice, citing that there are many extranational companies who enter developing nations “paying little or no taxes, through manipulation and connivance with corrupt regimes.” With taxation, Lisk says, revenue would increase to 6 times the amount of total aid.
In 2012, 9 members of the Development Assistance Committee increased their aid, and those members are: Australia, Iceland, Austria, Korea, Luxembourg, Canada, Norway, Switzerland, with other donors including Poland, Turkey, and the United Arab Emirates.
– Leen Abdallah
Source: All Africa
Photo: National Geographic