 The Big Beautiful PolicyJean-Michel Severino
Working Papers from HAL Abstract: The following article diagnoses the collapse of the Official Development Aid system (ODA), this ODA system which had been rebuilt since the beginning of the century, after the earthquake of the fall of the Berlin Wall, with which it shares common points. The article points out that this second collapse began with the deep cuts in European bilateral aid that were extended by the massive overhaul of American interventions. The USA's interventions are characterized by the switch to a transactional system supported by an extended Development finance corporation (DFC). The article places these transformations in the context of a triple revolution in trade, migration, and finance. It notes that this situation has its roots in a global geopolitical evolution, characterized by a transition from a regime supported by a hegemon and its allies, which they no longer want to, nor can, support, to a new one. In this system, the new hegemon has not yet emerged and may not emerge, which is fraught with implications for the entire system. The article focuses on the financing aspect of the international development architecture. It notes that recent trends will have a significant impact on the economic growth of poor countries, particularly in Africa, for which it gives initial estimates, while noting that the countries concerned could develop dynamic strategic responses. The poorest countries will however find it difficult to make such responses. The article notes that Europe could suffer negative consequences in terms of migration and security, and that weaker economic growth in Africa will also have consequences for European economic growth, thus reducing the net savings Europe hopes to make from the reduction in its aid. However the article notes that the crisis in aid, is perhaps because aid policy has become too complex to survive, and has dug its own grave by a dangerous extension to an unsustainable "agenda of morals", but it should not be reduced to budgetary considerations alone. The schizophrenic posture of its beneficiaries in the South, divided between growing criticism and growing demands must be considered. It identifies five systemic dimensions to this crisis, and qualifies it as a crisis of definition, distribution, governance, structure, and operation. In France, where the massive cuts in aid budgets have not been the subject of any public discourse, it proposes the start of an in-depth overhaul. We had a Big Beautiful Policy. Its very survival is now in question. Keywords: Foreign aid; Official development Assistance; Aide public au développement (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-05365133 Access Statistics for this paper More papers in Working Papers from HAL |
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