This is the kind of thinking that turned foreign aid budgets into slush funds for producer interests in donor countries, until their governments agreed to untie aid, and led to the Pergau dam scandal. Has May learned nothing from history? bit.ly/2PbxhWO
Short thread 1. What exactly is May up to here? The obvious way to make aid "unashamedly benefit British private firms" would be to revert to the practice of "tying" it to the award of contracts and orders by the countries receiving aid. But that was made illegal by the UK
2. International Development Act 2002 and would violate commitments on untying made in the OECD DAC. There are other reasons why tying aid again would be bad. It is blatant protectionism that reduces international competition and means recipients get poor value for money. It has
3. been estimated to add up to 30% to project costs. It also does little in practice to increase donor countries' exports. Why would a UK government that preaches global free trade want to do any of these things? Parliament needs to ask ministers once it reconvenes.
4. Finally, tying aid creates open season for producer special pleading and incestuous relationships between businesses and government. And ultimately it leads to shameful episodes like this @StephenTwigg bit.ly/2ogKpij
