analysisSydney and Kuala Lumpur — Long a means for powerful nations to influence developing countries, development finance has gained renewed significance in the new Cold War. Trust deficitOver half a century ago, rich nations promised 0.7% of their gross national income (GNI) as development aid. But OECD estimates are much disputed - e.g., for double counting and including non-concessional commercial loans, 'rolled-over' loans and private finance. Cooperation, not conflictAlthough China is new to development finance, it is now among the world's biggest development financiers. The new Cold War may well spur more healthy and peaceful rivalry, inadvertently improving development aid and prospects for developing countries.

Source: The North Africa Journal July 13, 2022 19:22 UTC