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Roula Khalaf, Editor of the FT, curates her top stories in this weekly newsletter.
The writer is an FT contributing editor and writes the Chartbook newsletter
Despite the ongoing process of globalization, there are still significant disparities between wealthy and impoverished nations. The terms “global north” and “global south” underscore these differences.
Regions like Central America, the Caribbean, Syria, the Sahel, and sub-Saharan Africa continue to face various challenges and struggles. The issue of development is complex, but the role of financial resources cannot be overlooked. Poor economies require more capital, with an estimated additional $3.8tn in investment needed annually worldwide, particularly for Africa’s sustainable development.
While private capital plays a role in development, it is not sufficient to bridge the gap. National and multilateral aid, as well as concessional funding, are essential components of development policy. However, current aid levels fall short of what is truly needed.
In terms of aid contributions, European countries like France and Germany allocate a larger percentage of their GNI compared to the US. Despite the positive impact of aid, many areas still lack adequate support, and success stories in development remain limited.
The article also discusses the challenges faced by African countries, debt crises, and the need for debt relief and bridging finance. It highlights the contrasting aid flows received by countries like Ukraine, emphasizing the disparities in aid allocation and the impact of geopolitical factors.
The author points out the importance of shared destiny and common purpose in unlocking aid on a global scale. The article also touches on the European response to conflicts in regions like Ukraine, highlighting the differences in aid approaches based on political and strategic interests.
Ultimately, the article raises questions about the unequal treatment of different regions in terms of aid allocation, refugee support, and economic development. It underscores the need for a more inclusive and equitable approach to aid distribution and global cooperation.