The rise of emerging economies such as Brazil and China has not only lifted millions of people out of poverty, but offers new opportunities and resources for development elsewhere.
China, which is poised to become the world’s largest economy, is now a major source of aid and private investment for development, providing 20% of private foreign direct investment in developing countries. Brazil’s foreign aid budget has increased fivefold since 2005. Turkey gives more of its national income in aid than the average Organisation for Economic Co-operation and Development (OECD) country, while the United Arab Emirates is the most generous of today’s donors, handing over 1.25% of its national income for development assistance.
The contribution of emerging donors to global development could be even greater through closer cooperation with traditional donors. The 29 member countries of the OECD’s development assistance committee account for 90% of global development aid and have decades of experience behind them. Yet, they can learn a lot from countries that have recently made the transition out of poverty and know from their own experiences which policies work best.
If the world is to meet its goals for sustainable development, traditional donors must think more globally, cooperate more closely with emerging donors and mobilize the huge sums that exist in untapped resources.