Civil society organizations in the United Kingdom are warning that an overhaul of the country’s development finance institution, CDC Group, will “further dilute” U.K. aid’s poverty reduction mandate.
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Twelve prominent NGOs have signed an open letter charging that the Nov. 25 rebranding and widened mandate of CDC Group appears to “entirely remove” the organization’s poverty reduction mandate, my colleague William Worley reports. It is a claim that CDC group previously denied.
The complaint comes as CDC Group prepares to enact a series of changes, including dropping “development” from its initials and changing its name to British International Investment in April 2022. The organization also will enter new markets in Southeast Asia and the Caribbean. CDC Group recently announced a new five-year strategy, including objectives to invest productively, sustainably and inclusively.
Yet there are fears that development and humanitarian policy could fall further down the U.K. government’s agenda, after it was announced that Foreign Secretary Liz Truss would be taking on the notoriously difficult Brexit negotiations, in addition to her existing responsibilities as head of the Foreign, Commonwealth & Development Office.
“The Secretary of State already holds a huge portfolio as she leads both the UK’s foreign policy and humanitarian aid and development assistance,” says Stephanie Draper, chief executive at Bond, the network for U.K. NGOs. She added that there’s “a risk with this appointment that the UK’s critical humanitarian and development remit will fall further down the list at a time when the world faces some of the greatest global challenges, including Covid-19 and climate change.”
Draper called for the appointment of a minister for international development, so the decision “doesn’t come at the expense of the world’s most marginalised communities.”
Read: CDC Group reforms dilute UK aid's poverty reduction mandate, say NGOs
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FCDO's road map
FCDO has published its commercial pipeline, which provides early intelligence on future procurements. It included 49 opportunities worth £948.4 million ($1.25 billion) to be procured in the next three years, the highest number of forecasted contracts ever since the agency began its publication a year ago. Thirty-six of the opportunities — worth £775.3 million — were described as aid.
Devex Pro: FCDO's £948.4M in opportunities
+ Devex Pro subscribers can catch up on what experts think of what the trajectory of U.K. aid means for its role in international development.
And just like that
The World Economic Forum announced Monday that it would no longer host its annual meeting in Davos next month, citing concerns about the rapid spread of the omicron variant of COVID-19. The meeting has been postponed until “early summer,” WEF said in a statement.
“Participants will instead join a headline series of State of the World sessions bringing together global leaders online to focus on shaping solutions to the world’s most pressing challenges,” the statement reads.
ICYMI: Similar concerns loom over USAID’s back-to-office plans.
‘Status quo amélioré’
With preparations for the February summit between the European Union and African Union leaders gaining speed, French President Emmanuel Macron presented last week a three-minute overview of what he sees European development finance institutions can offer to their neighboring continent.
In response to a question from Devex, Macron confirmed that he believes the long-floated idea of a new EU development bank wouldn’t be efficient. The European Bank for Reconstruction and Development and the European Investment Bank should work better together, he said, while emphasizing that the main game is ensuring African banks have more sway. International donors can help get there by offering guarantees to take the first losses on risky investments, the French president said — which will be music to the ears of officials in Brussels who are busy preparing attempts to do exactly that.
Read: Macron’s plan for EU development finance in Africa
ICYMI: Brussels has six "key deliverables" for the summit between the AU and EU, with officials still working to pull together the final funding commitments from EU states.
Spotlight on philanthropy 2022
We care about a lot more than just billionaire philanthropists, and we know that not every foundation is as massive as the Bill & Melinda Gates Foundation. Devex wants to hear from you about other organizations that are doing good work and might not be getting enough press for a spotlight series that we plan to launch next year.
Send suggestions and tips to me at stephanie.beasley@devex.com.
A new attitude
“Vague commitments — such as 2030 interim targets representing a ‘fair share’ of the 50% decarbonization required by the Race to Zero campaign, with no clarity on what this means — just don’t cut it anymore.”
— Sharmeen Contractor, Oxfam America’s senior adviser for market systems and investorsIn an op-ed for Devex, Contractor looks back at COP 26 — and the failure of some countries to commit to shifting away from fossil fuel use, which she argues shows the “big role” that the financial sector must play in accelerating the transition away from fossil fuels.
Opinion: Today's financial flows determine tomorrow's climate action
In other news
The number of people who died in the aftermath of super Typhoon Rai in the Philippines is now at 375, with some 500 injured and at least 56 still missing. [BBC]
On Monday, China rejected a draft U.N. Security Council resolution by the United States to allow humanitarian exemptions to sanctions against Taliban-ruled Afghanistan. [France 24]
PepsiCo Foundation is looking to scale up its U.S. food aid program to feed 50 million people around the globe by 2030. [AP]
Vince Chadwick and William Worley contributed to this edition.
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About the author
Stephanie Beasley@Steph_Beasley
Stephanie Beasley is a Senior Reporter at Devex, where she covers global philanthropy with a focus on regulations and policy. She is an alumna of the UC Berkeley Graduate School of Journalism and Oberlin College and has a background in Latin American studies. She previously covered transportation security at POLITICO.
