U.K.’s Brexit Referendum To Impact Aid Amounts To Developing Nations
Devex: The best Brexit for aid
“…The instability caused by the referendum sent the British pound plummeting in the greatest one-day loss since the beginning of the Bretton Woods system. The currency now hovers at a 12 percent loss against the dollar, with knock-on effects for the U.K. aid budget. Currently valued at about $19 billion, British aid has lost $1.9 billion in value since the pound dropped. The aid budget, experts warned, is now under even greater threat. Spending is tied by law to 0.7 percent of gross national income, but growth of gross domestic product will drop by an estimated three percent for 2016. The accompanying decline in GNI will cause a net reduction in aid…” (Anders, 7/11).
Humanosphere: Developing countries take $3.8 billion loss thanks to Brexit
“…For developing countries, the short-term losses add up to about $3.8 billion, according [to a report from] the U.K.-based think tank the Overseas Development Institute. There are some potential benefits in the long term as the U.K. will hopefully stabilize its economy and work out new trade deals, but a lot of uncertainty remains. … The second hit comes from the value of foreign aid dropping by $18.7 billion (based on a 10 percent devaluation of the currency)…” (Murphy, 7/11).