The Future of Foreign Aid in a Globalizing World with Climate Change

Photo credit: Los Alamos National Laboratory via Foter.com / CC BY-NC-ND

This essay discusses a forward-looking integrated policy concept of foreign aid in a globalizing world with climate change. First, it opts for an integrated treatment of short-term aid, striving for the urgent fulfillment of basic human needs, and long-term aid, striving for socioeconomic development and self-dependence. It opts for an integrated treatment of the human-society-economy dimension and the biodiversity-nature-earth dimension as well. Second, it proposes a “global insurance for survival” fulfilling basic needs. Besides, it advocates a strong role of (multinational) enterprises and foreign direct investment in socioeconomic development to promote investment and technology diffusion. Firms' activities should be backed up and regulated by a reliable global legal framework. Third, it suggests financing foreign aid via a globally unified tax to foster global justice. As a novel suggestion, the allocation of aid project funding occurs on a market base with the help of a certificate trading scheme to foster efficiency.

Policy Implications

  • An integrated system of institutions dealing with foreign aid could be established within the UN framework.
  • A “global insurance for survival” fulfilling basic needs is an obligation.
  • Aid agencies define projects and sell certificates; aid agents (persons, firms, NGOs) buy certificates, carry out projects and receive corresponding funding.
  • Aid should foster foreign direct and local investments in capital and technology.
  • A global legal framework should address the activities of multinational enterprises.
  • A tax for financing aid should be globally applied and harmonized.
Access Article

Related