ETI responds to reductions in international aid

The Ethical Trading Initiative (ETI) is deeply concerned by the UK government’s recent decision to cut foreign aid by £6 billion, to fund defence spending. This decision risks exacerbating conditions that fuel inequality for the most vulnerable, placing greater pressure on underfunded NGOs, trade unions and businesses driving sustainable development. But there are options to minimise the negative impact on human rights. 

Slashing aid has far reaching and devasting consequences around the world, removing access to life saving assistance that only serves to further marginalise the worlds’ most vulnerable people, putting them at greater risk of exploitation. Part of the problem is that the UK’s cuts aren’t happening in a vacuum. They follow devastatingly large cuts by the world’s biggest donor, the US, and further reductions in countries including Belgium, France, Germany, the Netherlands and Sweden, among others.

As the leading alliance of NGOs, trade unions and businesses dedicated to advancing human rights in supply chains globally, we recognise the profound impact these cuts will have on vulnerable workers, communities, and NGOs worldwide.  So how these cuts are made really matters.

ETI’s work, in partnership with both governments and our members worldwide, aims to create systems and norms that ensure workers’ rights are respected, also helping to strengthen supply chains for businesses and drive sustainable development. We know that businesses can be the true engine of development, but it’s the quality and security of the jobs they provide that significantly determines the speed of that development – and the stability of societies around them. 

The withdrawal of support by donors inevitably means that businesses will be under more pressure to ensure decent work themselves. Meanwhile, in the absence of government action, civil society and trade unions will need to place even greater scrutiny on business practices and their impacts on human rights. But the UK, alongside other governments, can continue to help in two ways.   

First is to ensure that aid cuts do not disproportionately undermine initiatives aimed at promoting human rights, particularly for the most vulnerable workers and communities. 

Second is to strengthen the use of non-financial instruments that can support business progress on human rights.  This includes clear and consistent legislation and guidance on the expectations of businesses, rooted in ensuring meaningful dialogue with workers and communities themselves, as they are the people who can best identify what 
matters most.

The impact of these cuts shouldn’t be underestimated. They will have a detrimental impact on the organisations providing assistance, hampering the essential role of civil society, in responding to humanitarian crises and holding government and business to account. But the UK and Europe have a leadership role to play in fostering respect for human rights, sustainable development, and responsible business and trade.  ETI is here to help both our members and governments on how to play that role most effectively.

“It’s easy to understand the imperative for greater defence spending in the short-term at a time of increasing global insecurity. Yet cutting aid to do it increases longer-term insecurity and leaves the most vulnerable paying the price both now and in the future. 

Governments must protect against impacts on those most vulnerable and ensure they are strengthening all other measures to ensure human rights and sustainable development, including strong standards and clear guidance for businesses. 

ETI stands ready to engage with policymakers to ensure that human rights and sustainable development remain central to the UK's foreign policy and aid strategy.” 

Giles Bolton, Executive Director, ETI