Aid Cuts Could Impact Global Supply chain
With the Covid-19 pandemic raging on, supply chains around the world have taken a hit. In the midst of it, the Prime Minister of the United Kingdom has been urged not to renounce an overseas aid commitment of 0.7%. Peter McAllister, the leader of the Ethical Trade Initiative (ETI), has recently joined others to put forward this request.
This includes leaders from Business Fights Poverty, International Chambers of Commerce, Business in the Community, and the Confederation of British Industry (CBI).
It also involves the leaders of the UN Global Compact Network UK and The Partnering Initiative. They have stated that while they do understand the effects of the pandemic on the UK, revoking the aid can have adverse effects on the social and economic development of businesses across the world.
That, in turn, hinders their ability to trade. The global business community is collectively facing a great threat, and this would certainly not be the best decision right now.
“UKAid is responsible for contributing to some of the most impactful projects across British businesses and across the economies in which they invest and source. Helping build more equitable and resilient societies also strengthens global supply chains. Investment overseas is an investment in the UK’s prosperity.”
They have also added, “As people are battling with significant financial, economic and social repercussions of the pandemic, they are looking to governments and businesses to act responsibly, step up and rebuild better. Now is not the time to withdraw.”
The government has since worked with parties involved in the supply chain to help them during these tough times. However, there have been questions regarding the priorities involved in the deliverance of the aid and the transparency of the process.
The Independent Commission for Aid Impact (ICAI) has also informed that the long-term impacts of the reduction in aids are yet to be seen.