The Future of Foreign Aid in a Globalizing World with Climate Change

Abstract

This essay discusses a forward-looking integrated policy concept of foreign aid in a globalizing world with climate change. First, it opts for an integrated treatment of short-term aid, striving for the urgent fulfillment of basic human needs, and long-term aid, striving for socioeconomic development and self-dependence. It opts for an integrated treatment of the human-society-economy dimension and the biodiversity-nature-earth dimension as well. Second, it proposes a “global insurance for survival” fulfilling basic needs. Besides, it advocates a strong role of (multinational) enterprises and foreign direct investment in socioeconomic development to promote investment and technology diffusion. Firms' activities should be backed up and regulated by a reliable global legal framework. Third, it suggests financing foreign aid via a globally unified tax to foster global justice. As a novel suggestion, the allocation of aid project funding occurs on a market base with the help of a certificate trading scheme to foster efficiency.