Students are leading the way on international development

The Warwick International Development Summit provides a platform for the spread of innovative new ideas.

International development nowadays often appears to be a topic that many governments profess to commit to but few actually act in a way designed to meet the needs of the people that they claim to be trying to help. Such non-committance is displayed by the fact that only 5 developing nations have yet to reach the donation target of 0.7 per cent of GNI set out by the UN in 1970.

Funding problems have only worsened following the recent economic crisis and the resulting austerity measures pursued by western governments have tightened public purse strings. Although a few countries such as the UK have committed themselves to maintaining their aid budget despite cuts to other areas of expenditure, such ring fencing has been pounced upon by longstanding opponents of aid. Extreme examples such as India’s receipt of aid despite its pursuit of a space capability are used to attack development budgets in general.

It doesn’t help the development cause that aid has had a problematic history. While there has been a move away from the top down, Western led approach followed in the past in favour of a recognition of localised specific and unique circumstances in developing areas, the pursuit of targets such as the Millennium Development Goals established in 2000 have so far met limited success.

Furthermore, aid has often had a (some may say inevitable) focus on the national interest of donor states. Favoured nations often receive significant grants to the detriment of poorer regions, which according to Oxfam undermines “the effectiveness of aid in meeting humanitarian needs and maximizing poverty reduction.”

Despite these issues with development, there is still a determined drive in the global community to improve the lives of the many millions of people who live in desperate conditions around the world in the 21st century. One increasingly recognised way in which development objectives can be met is by engaging young people.  Young people often have the passion and curiosity to be willing to tackle head on the problems that face developing nations. Such enthusiasm is displayed in the thousands of students that choose to travel the world during their gap year or summer holidays, often taking part in projects in deprived regions to improve the lives of others.

The UK is in an exceptional position to foster such engagement. UK universities are ranked second only to the US in demand by foreign students, fuelled by the prominent position that our nation’s institutions feature in international league tables. Last year there were 428,225 full time undergraduate international students studying in the UK, making up 14 per cent of the student population. Nowhere but in universities is there such a multinational mix of people that have a desire to improve the world as well as the backgrounds to offer a truly global perspective on development. This provides UK universities with the unique opportunity to promote engagement in development issues and ensure that both UK and international students have the ability to learn from each other.

One example of this is the establishment of student societies dedicated to culturing such connections. At the University of Warwick, the Warwick International Development Society is preparing for its 7th annual development summit, organised by students from all over the world. With past speakers including WTO Chief Economist Patrick Low, Under Secretary of State for Development Michael Foster MP, BBC reporter Jon Sopel and World Bank lead economist Branko Milanović, the Summit has attracted the attention of significant individuals within the field of development. This year it is due to feature among its speakers Mahmoud Mohieldin, Managing Director of the World Bank and Jeffrey Sachs, the prominent development economist and UN advisor.

The summit has proved exceptionally popular, with attendees including not just students from Warwick but those from other universities around the UK and Europe as well as members of the public. With such a wide audience, the summit has been able to provide a platform for the spread of innovative new ideas and engage young people from a variety of backgrounds. This year’s summit coordinator, Aleksandra Katolik, explains that “by presenting a large variety of topics and making the content of our conference accessible to attendees new to international development, we will be able to show fellow students, activists and members of the public the immense opportunities and ways of making a difference in development.”

The society has also demonstrated how it can engage students in development work. This year it expanded its reach abroad, forming a partnership with the International Rice Research Institute in the Philippines to provide the opportunity for students to contribute to improving sustainable agriculture techniques and policy. Through these opportunities, the society hopes to demonstrate that students can contribute to development in a variety of ways.

Solving development problems such as food scarcity, lack of clean drinking water and rampant disease in the developing world will not be achieved in a short time. While the Millennium Development Goals have made progress, it doesn’t appear that they will all be completed by 2015. To steal a tag line from the 2012 Olympic Games, to solve international development problems we need to ‘inspire a generation’ to continue the progress that has been made over the past years. Encouraging greater engagement in our diverse universities is one way of ensuring that the issue of development is firmly in the minds of future generations.

Farmers planting rice in Cavite, south of the Philippine capital Manila. Photograph: Getty Images.
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Leader: The unresolved Eurozone crisis

The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving.

The eurozone crisis was never resolved. It was merely conveniently forgotten. The vote for Brexit, the terrible war in Syria and Donald Trump’s election as US president all distracted from the single currency’s woes. Yet its contradictions endure, a permanent threat to continental European stability and the future cohesion of the European Union.

The resignation of the Italian prime minister Matteo Renzi, following defeat in a constitutional referendum on 4 December, was the moment at which some believed that Europe would be overwhelmed. Among the champions of the No campaign were the anti-euro Five Star Movement (which has led in some recent opinion polls) and the separatist Lega Nord. Opponents of the EU, such as Nigel Farage, hailed the result as a rejection of the single currency.

An Italian exit, if not unthinkable, is far from inevitable, however. The No campaign comprised not only Eurosceptics but pro-Europeans such as the former prime minister Mario Monti and members of Mr Renzi’s liberal-centrist Democratic Party. Few voters treated the referendum as a judgement on the monetary union.

To achieve withdrawal from the euro, the populist Five Star Movement would need first to form a government (no easy task under Italy’s complex multiparty system), then amend the constitution to allow a public vote on Italy’s membership of the currency. Opinion polls continue to show a majority opposed to the return of the lira.

But Europe faces far more immediate dangers. Italy’s fragile banking system has been imperilled by the referendum result and the accompanying fall in investor confidence. In the absence of state aid, the Banca Monte dei Paschi di Siena, the world’s oldest bank, could soon face ruin. Italy’s national debt stands at 132 per cent of GDP, severely limiting its firepower, and its financial sector has amassed $360bn of bad loans. The risk is of a new financial crisis that spreads across the eurozone.

EU leaders’ record to date does not encourage optimism. Seven years after the Greek crisis began, the German government is continuing to advocate the failed path of austerity. On 4 December, Germany’s finance minister, Wolfgang Schäuble, declared that Greece must choose between unpopular “structural reforms” (a euphemism for austerity) or withdrawal from the euro. He insisted that debt relief “would not help” the immiserated country.

Yet the argument that austerity is unsustainable is now heard far beyond the Syriza government. The International Monetary Fund is among those that have demanded “unconditional” debt relief. Under the current bailout terms, Greece’s interest payments on its debt (roughly €330bn) will continually rise, consuming 60 per cent of its budget by 2060. The IMF has rightly proposed an extended repayment period and a fixed interest rate of 1.5 per cent. Faced with German intransigence, it is refusing to provide further funding.

Ever since the European Central Bank president, Mario Draghi, declared in 2012 that he was prepared to do “whatever it takes” to preserve the single currency, EU member states have relied on monetary policy to contain the crisis. This complacent approach could unravel. From the euro’s inception, economists have warned of the dangers of a monetary union that is unmatched by fiscal and political union. The UK, partly for these reasons, wisely rejected membership, but other states have been condemned to stagnation. As Felix Martin writes on page 15, “Italy today is worse off than it was not just in 2007, but in 1997. National output per head has stagnated for 20 years – an astonishing . . . statistic.”

Germany’s refusal to support demand (having benefited from a fixed exchange rate) undermined the principles of European solidarity and shared prosperity. German unemployment has fallen to 4.1 per cent, the lowest level since 1981, but joblessness is at 23.4 per cent in Greece, 19 per cent in Spain and 11.6 per cent in Italy. The youngest have suffered most. Youth unemployment is 46.5 per cent in Greece, 42.6 per cent in Spain and 36.4 per cent in Italy. No social model should tolerate such waste.

“If the euro fails, then Europe fails,” the German chancellor, Angela Merkel, has often asserted. Yet it does not follow that Europe will succeed if the euro survives. The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving. In these circumstances, the surprise has been not voters’ intemperance, but their patience.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump