Devex Newswire: The UK’s new investment-focused development policy

CDC Group, the U.K. government’s development finance institution — formerly the Commonwealth Development Corporation — will become British International Investment in April. What’s in a name?

The name change is part of a broader push to increase the United Kingdom’s development finance in line with the government’s focus on building economic ties with new markets. That includes a commitment to mobilize $10.67 billion by 2025.

To get to the bottom of what this rebrand means, Will Worley speaks to CDC Group head Nick O’Donohoe, who tells him that, among other things, this reform, “positions us as the U.K. government’s principal provider of climate finance to developing middle-income and lower-middle-income countries around the world.”

That climate focus is reflected in outreach to new geographical areas too: As well as a previously vaunted Indo-Pacific tilt, O’Donohoe says CDC Group’s venture will be expanding into the Caribbean region to tackle “significant” climate challenges.

Devex Pro: Truss putting investment at center of UK foreign policy, says CDC Group chief

The new name, long in the works, also serves a desire “to have this company be more visibly British,” says O’Donohoe. That tracks with the observations of Mark Miller, a program director at the Overseas Development Institute, who says the rebranding indicates a development policy focused on “[serving] British interests in an increasingly competitive world.”

Still, some development advocates worry that British commercial and diplomatic interests could trump development impact in decisions about where and how to invest. And of course the long list of foreign aid cuts under the current government isn’t helping.

“How are they [the government] deciding to put money there, rather than in Afghanistan right now? Or girls' education? The bandwidth required to do something like this tells you about where the Tories’ priorities are, in terms of branding everything British,” one observer tells Will.

Devex Pro: Does CDC Group's rebrand signal a shift in UK development strategy?

As the U.K. government slashes its aid budget and puts its own interests front and center in overseas spending, it raises the question: Is this the end of U.K. aid leadership? Will is hosting a timely conversation today, at 9 a.m. ET (3 p.m. CET), on that very topic, featuring experts from the Center for Global Development and ONE Campaign. Be sure to register — and if you have questions for the speakers, send them to devexpro@devex.com.

+ Read all our coverage on U.K. aid and see our timeline of the U.K.’s foreign aid cuts.  

Catch yourself up

Missed a few November Newswires? Get up to speed with the month’s most-read Pro articles, including key takeaways from COP 26 — and replays of our exclusive event there — a breakdown on the top climate donors, and analysis of the push toward localization from organizations large and small.

November's top reads: USAID grants breakdown, top climate donors, and a new green energy alliance 

+ Not a Pro subscriber yet? Sign up now to start your 15-day free trial and get access to deeper analysis of the development sector, exclusive digital events, and the world’s largest global development job board.

Keeping the faith

The annual climate finance gap hovers around $20 billion, according to the Organization for Economic Cooperation and Development. One group that could help fill it — but whose role in climate action has been largely overlooked — is faith groups, Rebecca Root reports.

“Faith money is very brave money. It’s not as risk-averse as traditional investment and it’s more patient,” says Ciara Feehely, head of fundraising and communications at Vita.

Read: Faith-based finance and the fight against climate change

Rumor has it

A recent study by CARE International suggests that women in low-income countries are less likely to get vaccinated against COVID-19 than men — the opposite of the situation in high-income countries, where vaccine hesitancy is higher among men. Madalitso Wills Kateta looks at the role of misinformation in Malawi.

Read: Are myths about infertility fuelling vaccine hesitancy in Malawi?

+ For more on COVID-19, and vaccine rollout and equity, sign up for Devex CheckUp, the must-read weekly newsletter for exclusive global health news and insider insights, and receive the latest edition tomorrow.

On the brink

The U.N. agency for Palestinian refugees is “on the brink of collapse” due to a severe funding shortfall. The warning from Philippe Lazzarini, the head of UNRWA, follows repeated pleas for financial support for the agency, which provides basic services to millions across the West Bank, Gaza Strip, Jordan, Lebanon, and Syria.

“I was forced to inform over 28,000 U.N. personnel that UNRWA does not have sufficient funds to pay their November salaries on time,” Lazzarini told a key advisory commission this week. “Our inability to pay staff will inevitably have an impact on services to millions of refugees. Interruption of services will fuel frustration, anger and disarray."

The United Nations said that even with the Biden administration’s decision to reengage with UNRWA, resources are strained as other large donors have cut back on funding. Lazzarini urged member states to find $60 million to cover the cost of services for the last two months of this year.

ICYMI: US resumes aid to Palestinians, but needs still outstrip budget

In other news

The EU is expected to unveil today its global investment plan dubbed the “Global Gateway,” seen as the bloc’s effort to counter China’s Belt and Road initiative. [BBC]

COVAX on Tuesday said it has allocated 4.7 million doses for North Korea, which has reported zero cases and turned down previous offers of vaccines. [New York Times]

While the number of people using the internet rose by 10% in 2020, the U.N. reports that some 3 billion, or 37% of the global population, have never been online. [The Guardian]

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