UK aid strategy
The UK’s new aid strategy has a strong focus on promoting Global Prosperity through engagement in emerging and developing economies. To achieve this, alongside other spending, a new cross-governmental Prosperity Fund will be created, and investment into CDC, the UK’s development bank,will be increased. The government will also invest in a new Energy Africa campaign which will focus on scaling up the household solar market. Thematic priorities will include improving the business climate; competitiveness of markets, energy and financial sector reform; and increasing the ability of governments to tackle corruption.
Building on existing work to support growth and sustainable economic development in many of the poorest developing countries, the government will unlock private and public investment in energy, infrastructure, urban development, and commercial agriculture, and provide help to scale up financial inclusion by harnessing technology (e.g. mobile phone banking) in Africa, the Middle East and Asia.
DFID PSD strategies and related documents
This document argues that accelerating progress in economic development is essential if the goal of zero extreme poverty by 2030 is to be achieved. According to DFID, this will require much higher growth rates in many countries, more inclusive growth – in particular for girls and women, and actions to tackle the structural barriers that deny poor people the chance to raise their incomes and find jobs.
DFID’s Economic Development Strategic Framework highlights the importance of the institutions that encourage private investment and export growth: free and fair markets; sound macroeconomic management; clear and consistently applied policies, regulations and laws; secure property rights; and functioning commercial courts.
The framework has five pillars where DFID will increase its work:
- Improving international rules for shared prosperity;
- Supporting the enabling environment for private sector growth;
- Catalysing capital flows and trade in frontier markets;
- Engaging with businesses to help their investments contribute to development; and,
- Ensuring growth is inclusive, and benefits girls and women
This document is primarily aimed at the public, business people and civil society, with a particular eye on those in the UK. It is not intended as a policy document, nor to give comprehensive coverage of all that DFID does or plans to do. Rather, it gives examples of activities outlined in the Operational Plans of DFID country, regional and central teams – and describes present and future activities aimed at transforming the environment for business and investment; at opening up economic opportunities for small businesses and poor women and men; and at providing them with better services.