CBI and Greening link to boost growth in emerging economies

 

The UK has dramatically switched the focus of its overseas aid spending from simply fighting poverty to helping recipient countries develop their economies.

The Department for International Development (Dfid), which is responsible for managing Britain's foreign aid budget, has traditionally spent its funds on services such as health, education, water and sanitation.But under plans outlined yesterday, the department will place a much greater emphasis on helping to develop emerging economies such as Nigeria and Kenya – and this will be to the benefit of UK plc as well as the countries Dfid helps, said the International Development Secretary, Justine Greening.

"Our investment in international development is in our national interest – in fact, I believe it's critical. We are market making ultimately, if we approach international development effectively. Trade between nations creates growth, jobs and prosperity for both countries and people. It drives down prices and increases choice," said Ms Greening, announcing her plan in the London Stock Exchange.

"I want Dfid to help build up strong and investable business environments. That means helping countries to build their own tax base, squeezing out corruption and providing technical advice so that when economic growth does happen, countries are well placed to reap and then reinvest the gains."

Ms Greening has teamed up with the CBI for a campaign to drive growth in emerging economies, especially in sub-Saharan Africa and South Asia. She is calling on British business to join her in the development push, which she argues will be good for the UK because it will stimulate trade.

Jim Blight, the CBI's head of public services reform, said: "Experience from other countries which follow this approach shows that business engagement benefits both developing countries and businesses, helping to increase the capacity of the private sector to drive growth across the world."

Ms Greening announced a new unit that will sit within HM Revenue and Customs and will work with Dfid teams in developing countries to improve their tax systems, as well as a £51m investment in growth policy advice to governments in Burma, Malawi, Liberia and Nigeria.

Rwanda, Malawi, Botswana and Sri Lanka are among the other countries that Dfid is targeting in its economic development drive, which comes in three parts.

The first aims to reduce regulatory, infrastructure, legal or institutional barriers to trade and investment, Ms Greening said. The second will "unlock the ability of entrepreneurs and business people in developing countries to themselves drive economic growth through their own businesses being more and more successful".

Finally, British companies need to step up their investment, she said, to help build economies that can sustain themselves.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee