Foreign Aid

Probably the only firm conclusion that emerged from the Global Assets Project and Open Technology Institute's (OTI) standing-room only February 9th event, “Mobile Disconnect: Can Mobile Solutions Really Combat Poverty?” was that expert opinion is divided. It was generally agreed that mobile connectivity is a critical infrastructure of the information age and, as the Arab Spring has exemplified, a solid foundation for a more empowered, connected, and inclusive society. However, the potential of mobile technologies to revolutionize international development was met by cautious optimism by some and outright skepticism by others.

It seems that in the field of international development, there is a new catch phrase being thrown around: “Social Protection”. If you haven’t heard it yet, you will. It has been a key focus of poverty reduction strategies at such institutions as the International Labour Organization, the World Bank, and the United Nations.

With mobile phones spreading like wildfire in developing countries, they are becoming vital tools in the fight to improve health, educational and economic outcomes for aspiring families around the world (as we have pointed out in a variety of contexts). A recent World Economic Forum report, “Big Data, Big Impact: New Possibilities for International Development,” highlights some of the amazing potential and remaining challenges in the field.

As we approach the second anniversary of the devastating Haiti earthquake, which killed around 150,000 people and destroyed much of Port-au-Prince, there has been mixed progress.  About half of the rubble has been cleared (if that sounds slow, consider it took five years to remove far less rubble in Aceh after the 2004 Indian Ocean tsunami). About half a million people are still living in camps in Haiti -- but that is down from closer to 1.5 million two years ago. Meanwhile cholera, introduced by U.N.

The Global Assets Project has written extensively about the virtues of international aid agencies and national governments transferring money directly to poor households. As such, we are thrilled to see a US-based NGO, GiveDirectly, taking this idea "to the streets" and enabling people to directly donate money to poor households in Kenya via their mobile phones. Similar to other cash-transfer programs, GiveDirectly’s model is incredibly efficient, with around 90 cents of every dollar ending up in the hands of beneficiaries, and enables recipients to decide for themselves how to go about meeting their needs.

It seems a hard time to be confident about the state of the country – or the state of the planet. We are still facing the aftershocks of the worst recession since the great depression and a significant risk of dipping back into it. Europe's economy looks increasingly old and enfeebled compared with the virile young tigers of Asia. Terrorism strikes fear at home while war drags on in Afghanistan and violence is used against protesters in Syria and elsewhere. And the condition of the global environment appears fragile at best.

On January 6, 2011, then Egyptian President Hosni Mubarak invited Israeli Prime Minister Benjamin Netanyahu to Sharm el Sheikh in an effort to resuscitate the flagging peace process. Egypt for many years played the role of regional protector of an Israeli-Palestinian peace process, which was extremely heavy on process while being ever-more transparently light on delivering peace. It is a role that the new Egypt is unlikely to volunteer for.

Let us stipulate some ugly facts up front. Iraq remains a weak state. The political institutions are—charitably—immature. The business climate is not overly attractive and corruption is endemic. Were it not for oil, there would be no real economy. There is a serious terrorism problem. Relationships with all the neighboring states are problematic. Sectarian divides remain tense, with some key fault lines unresolved. The country’s armed forces remain incapable of defending its international borders.

United Nations officials have issued a warning that the Government of Israel's plans for Palestinian Bedouin communities living in Jerusalem's periphery could constitute "mass forcible transfers" and "grave breaches" of international law. A pending plan in the West Bank threatens to displace Khan al-Ahmar, a Bedouin village of refugees originally from Israel's south, pushed off their indigenous land in the early 1950's. Khan al-Ahmar lies on the side of a major West Bank thoroughfare and is sandwiched between the Israeli settlement of Maale Adumin and Jerusalem.

This year proved a tipping point for China’s approach to the world. The confluence of Europe’s debt crisis and America’s contracting defence budget has created rising expectations that China will shoulder ever greater power burdens for international stability. No longer can it keep a low profile in international strategic and economic affairs. Could it join America as a world policeman sooner than expected?