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Pound's plunge slashes value of foreign aid by £334m, claim Tories

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Published Date: 22 December 2008
By Gerri Peev
THE massive slide in sterling has wiped hundreds of millions of pounds off the value of Britain's aid to developing countries, it emerged today.
The slump in the currency has reduced the value of the UK's international aid budget by the equivalent of up to £334 million since Gordon Brown became Prime Minister, according to research by the Conservatives.

While the headlines have been dominated by the pound's fall against the euro, it has also devalued against other currencies of poorer countries.

It is down 22 per cent against the Bangladeshi taka since June last year; 19 per cent against the Tanzanian shilling and 17 per cent against the Nigerian naira.

The losses are worth more than Britain gives to South America, the Caribbean, central Asia and the Middle East combined, said Andrew Mitchell, the shadow international development secretary.

Mr Mitchell said: "Not only have Gordon Brown's economic policies been a disaster for people in Britain, but the slump in our currency is also directly affecting the value of our support to poor people around the world."

The economic downturn is also expected to make people more reluctant to give to international charities as they focus on their domestic finances.



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  • Last Updated: 21 December 2008 9:29 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

Daft Old Git,

22/12/2008 00:54:40
'While the headlines have been dominated by the pound's fall against the euro, it has also devalued against other currencies of poorer countries.'
It's devalued against every currency bar the Zimbabwean dollar thanks to droopy jaw. We'll be getting aid from Albania soon
2

East Lothian CLP,

22/12/2008 01:31:14
Brown keeps touting exports will save us but forgets we import everything. The man is a f'ing liability. I would not leave him in charge of a book badminton club "dues" fund, let alone an economy.The man is pile driving the economy to save his own neck and secure another term. The man needs to be stopped, it has gone too far.
3

drunken proffet,

Tassy 22/12/2008 07:40:50
You would be better letting him win another term. That is if you wanted to get rid of the Labour Party permanently. Maybe not. You are OK in Scotland with the SNP but it would be extremely unfair in England if at a later election the only folk they could vote for with any chance of winning would be the Conservatives. Margaret Thatcher, (may she be forever blessed), has retired. Even from this side of the world, the Conservatives to not appear to be inspirational. I would move the border down to the outskirts of London and see how you go.
4

Guga II,

Rockall 22/12/2008 08:36:42
Never mind the aid to developing countries. Maggie Broon, the Mugabe of the Northern hemisphere, has stuffed the economy so much that the unemployment is soaring; currently 2 million, and rising. By the end of next year it will be between 3 and 4 million.

The cost of living is going to soar as not only do we have nothing to export, but we import so much. We are going to have enough people on the poverty line in this country without worrying about many of these so-called developing countries.
5

The Former Mr. Angry,

Perth 22/12/2008 09:50:54
Africa - bottomless and corrupt pit. India and Pakistan - well able to support themselves. Stop it now before we need the aid ourselves courtesy of Brown printing presses.
6

Alan B,

22/12/2008 10:17:47
Browns economic management has been appalling.
7

,

22/12/2008 14:25:56
Comment Removed By Administrator
Reason:
8

Mcsnagpile,

22/12/2008 15:09:34
The fun has only started. Lets see what happens when weak economies have strong currencies. You can't buy because you have no money and you can't sell because your produce is too dear. We do not have to go to Africa to see this ----just over the channel.
9

Alan B,

22/12/2008 16:53:04
#sm753

I agree the pound we too strong before particularly when the pound was near $2. The long term rate was said to be about $1:55.

I think it has been ignored that Brown has been running too strong a pound for a while damaging uk trade position.

The scottish manufacturing recession of the late 90s and then the full blown recession of 2001/2002 was party due to an overvalued pound.

However the current collapse in the pound in such a short time tells its own story. It is largely due to the fact the markets see the uk as being in a very bad position to cope with current economic climate due to dreadful uk economic fundamentals, particularly compared to many others.

The euro will probably become the world reserve currency and replace the dollar over a period due to the tigher economic policies within the euro area. Although euro strength could be undermined do to allowing weaker economies entry for political reasons.



10

Alan B,

23/12/2008 10:43:57
#sm753

Firstly from your reply you not seem to get that i agree with you that the pound was overvalued and the current fall in the value of the pound brings it nearer it more long term rate against the dollar.

The MPC do not have the power or the mandate to control the level of the pound. (Brown also set up the mpc and gave them their mandate so trying to blame the mpc is stupid.)

Brown has ignored questions round the value of the pound and its effect on the competitiveness of the uk economy. A poor tory opposition anti euro with a histroy of poor mgt via the erm were in no position to hold Brown to account.

The trade balance under labour has deteriorated badly. Growth has been very short term and build on consumer debt via massive house price inflation, much employment growth is via public sector employment not improved economic output from the productive economy and that public sector spending has been build on massive debt.

The uk has moved away from export and investment lead growth to short term debt driven growth. That is down to brown.

"Massive overstatement, surely."
Why? The dollar has been the world reserve currency and there is no reason that the euro will not compete with it and could replace it as the world reserve currency. We will see over the next 20yrs.

Do not understand your last remark as i agree letting greece etc and other weaker eu economies into the euro for political reasons rather than economic will undermine the strenght of the euro. Although due to consistently low eu interest rates i do not think the interest rate level in the euro zone will really be a problem. More weaker economies poorly managed will not be able to under go competitive devaluations to bail themselves out and will have to focus on real economic restructuring. Something that some countries find politically difficult.


 

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