A British cabinet shakeup raises big questions about the future of U.K. aid. Experts weigh the developing world consequences of Brexit, and aid groups ponder the line between acceptable and unacceptable risk amid renewed fighting in South Sudan. This week in development news:
Priti Patel, a conservative member of the U.K. parliament, has been appointed secretary of state for international development, replacing Justine Greening as head of the world’s second largest bilateral aid agency, after Greening was named minister of education in new Prime Minister Theresa May’s administration. Greening has led the Department for International Development since 2012. Greening’s new appointment came as a surprise — and prompted immediate speculation about who would take her place. On Twitter, rumors circulated that May might not appoint a new head of DfID at all, opting instead to absorb the department into the country’s foreign office, now headed by former London Mayor Boris Johnson. Supporters of an independent DfID aren’t breathing easily yet. As Devex reporter Molly Anders pointed out, three years ago Patel argued for “scrapping” the department that she now will lead in favor of a trade-focused body.
In other Brexit news, short-term impacts of the United Kingdom’s vote to leave the European Union fall heavily on developing countries, which will suffer an estimated loss of $3.8 billion, according to the British think tank Overseas Development Institute. ODI estimates that the devaluation of the pound — coupled with a decrease in the U.K.’s gross domestic product — will reduce developing countries’ exports by $500 million and reduce the value of U.K. foreign aid to developing countries by roughly $1.9 billion. The report cautions that long-term impacts of Brexit remain unpredictable and depend in large part on the type of exit deal the U.K. negotiates with the EU.