Exporting stimulus and “shared prosperity”: Reinventing foreign aid for a retroliberal era

Abstract

The global aid world has changed, partly in response to the reconfigurations of geopolitical power and to the global financial crisis (GFC). Paradoxically, in the face of recession in most northern economies, collectively foreign aid contributions have not fallen. However there has been a qualitative shift in its narrative and nature. This new regime—which we term retroliberalism—projects the concept of “shared prosperity,” but constitutes a return to explicit self-interest designed to bolster private sector trade and investment. Drawing evidence from New Zealand and the United Kingdom, we argue that aid programmes are increasingly functioning as “exported stimulus” packages.