The world economy is well into its worst crisis of a century. At the same time, the worlds population is hit by a food crisis, an energy crisis, climate change, soaring poverty and a distressing uncertainty about how the economic turmoil will play out in the coming period. This is a crisis of the prevailing political and economic model of development focussed so unilaterally on economic growth.
Despite their economical size, the long-time industrialized countries have already fallen into recession. People living in developing countries notice a decrease in development assistance, due to the financial difficulties in the world. These trends and impacts could have tragic consequences for the most vulnerable and marginalized groups.
The decisions European leaders will take in the coming months will affect people around the world therefore, especially in this time of crisis, European leaders need to be accountable to their own citizens, but also respect the human rights of all people when deciding on the wide range of policies that are necessary to address the current crisis.
What should be the key components of a comprehensive EU response to the crisis?
-International financial and economic reform
-EU governments must systematically reform and regulate the jurisdictions
-Innovative Finance
-Foreign Direct Investment (FDI) as a development resource
ODA is a key component of the fight against poverty, and as a source of development finance is more important than ever.
EU must clearly recognise the need for greater coherence in policies across sectors that affect developing countries in favour of development.
Source: CONCORD
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