Paris-based organisation says development assistance to impoverished countries plunged 16% last year, despite pledges from ministers to provide more aidThe west’s leading thinktank has urged wealthier countries to step up and help the world’s poorest, after revealing that aid to the most impoverished nations fell by a sixth in 2014.An annual assessment of overseas development assistance from the Organisation for Economic Cooperation and Development in Paris found that aid to the least developed nations stood at $25bn (£16.7bn) last year – a 16% drop from 2013. Continue reading...

If governments had taken a hands-on approach to industrial development the UK wouldn’t have suffered the huge loss of secure jobs we’ve seen in recent years‘There is no alternative.” It is the slogan, battle cry and sneer of our era. It is ever present in this general election, like a police sentinel guarding a sacred political consensus, batoning anyone who deviates from received wisdom. The fortunes of Britain’s richest 1,000 can double in a period of economic trauma while hundreds of thousands depend on charities to meet that most basic human need, food. A proposed mansion tax levied on a tiny fraction of the population is met with accusations of cruelty while predominantly poor disabled Britons are compelled to shell out money they don’t have because they are deemed to have a spare bedroom, all in order to balance the nation’s books. More than 400 people can be paid over £1m at one business alone, Barclays Bank, when the whole country of Japan has fewer than 300 executives paid that amount. Why? Because there is no alternative: either policies are pursued that guarantee the concentration of wealth and power in the bank accounts of a tiny elite, or the rich will flee and the economy will collapse.Britain’s booming elite is soaked with triumphalism. It believes its traditional enemies – principally a trade union movement and political left with a coherent ideology and mass following – have been seen off. This elite is flattered, comforted and protected by an ideology that equates the perpetual enrichment of the wealthy with the wellbeing of the nation, promoted by a media owned by its own kind, an academy largely emptied of intellectual dissidents, and a network of thinktanks kept afloat by corporate and well-to-do private individuals. Any puncture, however small, to this suffocating triumphalism is welcome: to those of us who reject the status quo, it is like coming up for air.Any puncture to this triumphalism is welcome: to those of us who reject the status quo, it's like coming up for airRelated: Interrogating the entrepreneurial stateA maximum pay ratio would stop CEOs paying limitless salaries and bonuses while their cleaners languish in poverty Continue reading...

As Greek and Russian leaders prepare for talks today, The Moscow Times weighs up their relationship – and the prospects of a meaningful dealThe Greek prime minister, Alexis Tsipras, will meet Vladimir Putin in Moscow today while the west is left guessing as to whether the pair will hammer out an economic deal.Financial aid from the Kremlin would give Athens breathing space in its debt repayments, but analysts say that the countries may be more interested in grandstanding than a dramatic diplomatic realignment.Related: Alexis Tsipras flies to Moscow amid speculation of bailout from Putin Continue reading...

BRC-Neilsen index finds shop prices 2.1% lower in March than a year ago, and predicts that shoppers will buy more due to incomes growing in real termsBritish shoppers have enjoyed the biggest falls in the price of food, clothing and electrical goods for almost nine years, as supermarkets fight for customers and the global slump in oil prices continues to feed through to the high street.

Rarely has a UK election been of greater interest to Ireland: a Tory win could be catastrophic for the Irish economy if it triggered Britain’s exit from the EUA general election in Britain is always watched closely on the other side of the Irish Sea, not least because of the tumultuous political history linking the two islands. But never has an UK election been of greater interest to Ireland’s business community, amid fears that if the Conservatives win, it could spell catastrophe for the country’s economy.A win for David Cameron would trigger a referendum on membership of the European Union, which if it results in a British exit would send shockwaves through Ireland’s economy. Each week there is €1bn (£730m) in trade between the two countries, supporting about 400,000 jobs. Continue reading...

Jim Yong Kim endorses rival development bank AIIB, saying new initiative could help end extreme poverty if it ensures high standards for projectsThe World Bank plans to work together with the Chinese-led Asian Infrastructure Investment Bank to fight poverty and fund infrastructure projects, the World Bank president, Jim Yong Kim, has said.Worried about China’s growing diplomatic clout, the United States has been urging countries to think twice about joining the AIIB, arguing that its projects may not adequately safeguard the environment and people. Continue reading...

Sigmar Gabriel throws out Greece’s demand for €278.7bn, but opposition parties argue for return of forced wartime loan from Athens amounting to €10.3bnGermany’s economy minister has branded Greece’s demand for €278.7bn (£203bn) in second world war reparations as “stupid”, but the German opposition said Berlin should repay a forced loan dating from the Nazi occupation.The Greek deputy finance minister, Dimitris Mardas, made the demand on Monday, seizing on an emotional issue in a country where many blame Germany, their biggest creditor, for the tough austerity measures and record high unemployment that accompanied two international bailouts totalling €240bn.

Washington-based organisation said policy reforms and investment are the only means of raising growth to pre-crisis levelsThe International Monetary Fund has warned that the world’s major economies risk a long period of low growth unless governments do more to overcome the after-effects of the financial crisis and the longer-term problem of ageing populations.The Washington-based organisation, best known for acting as lender of last resort to Greece, Ireland and Portugal, said without a switch to policies that spur growth, governments would struggle to shift excessive debts and cut long-term unemployment. Continue reading...

FPC fears financial markets may turn against UK economy in time of stress as gap between money paid out and money brought in was 50% higher than expectedThe UK’s large current account deficit could cause financial markets to turn against the British economy in a time of stress, the Bank of England has said.The Bank’s financial policy committee (FPC) discussed the current account deficit at its most recent meeting in March and decided to keep it under close review, the meeting minutes showed.

Success will come if the new Asian Infrastructure Investment Bank acts more as a knowledge bank rather than a funding vehicle

Survey of services, construction and manufacturing indicate UK plc grew by 0.7% in first quarterBritain’s services sector moved up a gear in March, boosting George Osborne’s hopes of strong economic growth ahead of next month’s general election.Rising order books and increased foreign investment pushed the Markit/Cips purchasing managers’ index (PMI) for the service industries, which account for about 77% of the economy, to a seven-month high. Continue reading...

Employer group says UK too reliant on services for growth and rise in sterling, especially against euro, has hit export ordersThe soaring value of the pound has battered Britain’s manufacturing exports, leaving the economy reliant on the consumer-driven services sector for growth, the CBI has warned.The business lobby group said the UK economy looked likely to gather momentum over the coming months after a steady performance so far this year, but said the strong pound had triggered a slide in export orders. Continue reading...

Greek finance minister meets with senior officials in hope of shoring up support from the US to protect country from expulsion from eurozoneYanis Varoufakis, the Greek finance minister, has continued efforts to drum up support in the US for his debt-stricken country as speculation mounted over the ability of the Athens government to survive in its current form.Extending his charm offensive to Washington DC, the flamboyant finance minister held talks with senior administration officials after meeting IMF managing director Christine Lagarde and attempting to allay fears of an imminent Greek default.Related: Greek government takes desperate measures in battle to stay afloatRelated: Alexis Tsipras looks to Moscow but risks becoming Putin’s useful idiot | Natalie Nougayrède Continue reading...

Conservative and Labour pledges on education disguise the effects of upcoming cuts and contribution increases at the heart of the union’s proposal to strikeThe National Union of Teachers’ approval for a strike ballot brings to the fore a dirty secret shared by the Conservatives and Labour: that funding for schools in England will see steep cuts based on the promises both parties have made.It is an issue that has largely flown under the election campaign radar so far, but schools and local authorities across England are now having to deal with the scope of the cuts as they set their budgets for next year, with many saying they are being forced to dip into their reserves to maintain staffing.Related: Teachers' union backs ballot on strike tied to schools funding Continue reading...

The Swedish term ‘lagom’ is the perfect term to describe an economic system where just enough is produced and consumed. But is this an achievable goal?The current capitalist economic system is in continual crisis. As Thomas Friedman, said in a New York Times op-ed: “What if the crisis of 2008 represents something much more fundamental than a deep recession? What if it’s telling us that the whole growth model we created over the last 50 years is simply unsustainable economically and ecologically and that 2008 was when we hit the wall, when mother nature and the market both said, ‘no more’.”

Yanis Varoufakis assures IMF’s Christine Lagarde that Athens will repay €450m loan on Thursday as pressure mounts over slow-moving negotiations

While economists are divided over when the Bank of England will end this current spell of steady interest rates, no one expects rates to match their 1940-1951 runThe Bank of England is expected to leave interest rates on hold at 0.5% this week, marking the first time in more than half a century that a government has enjoyed unchanged borrowing costs for its entire term.Interest rates were slashed to a record low of 0.5% in 2009 in a bid to stem the fallout from the global financial crisis. They have remained there ever since, with ultra-loose monetary policy the backdrop throughout the coalition’s time in office beginning in 2010. Continue reading...

Warning from Corn Flakes maker comes amid international pressure to close tax loopholesKellogg’s has warned that its profits could be hurt by the international drive against tax avoidance, which is targeting structures that benefit multinationals.The US-based maker of Corn Flakes, Rice Krispies and Coco Pops is worried that attempts to close tax loopholes would lead to a “material” increase in its income tax bill.

With a rise in VAT, national insurance and income tax off limits, the Treasury has picked up on the idea that the financial sector is under-taxedSolemn commitments have been made. David Cameron and Ed Miliband have wrung promises out of each other. The tax arms race has escalated to the point where the options available to Labour and the Conservatives for raising extra revenue are narrowing.Yet, taxes are still likely to go up once the election is over. Traditionally, political parties that say “they have no plans” to raise taxes before polling day find a compelling reason to do so as soon as voters have made their choice. As the Institute for Fiscal Studies has noted, if a government is going to raise taxes, it does so in the first budget after a general election. Continue reading...

Labour highlights figures showing cost to families with children from rise in VAT and cuts to tax credits under ConservativesHouseholds are worse off to the tune of £1,100 a year as a result of the rise in VAT and cuts to tax credits, according to Ed Balls.Balls has released a new poster with the figure of £1,100 superimposed over the black door of the chancellor’s official Downing Street residence. The poster says: “£1,100. The cost of a Tory chancellor.” Continue reading...

Athens moves to quell fears of a default after a series of contradictory statements by saying it is ready to make the repayment on time on 9 AprilSenior Greek officials are racing to calm fears that the debt-laden country will fail to make a crucial repayment next week – a move that could push the nation into default and create mayhem in the financial markets.Ahead of a 9 April deadline to pay €460m (£340m) to the International Monetary Fund, there are concerns that Greece does not have the cash and risks a rare default on a loan. Continue reading...

Price of oil drops over belief that country will soon be able to resume position as one of world’s biggest crude exporters, flooding already oversupplied market

Economy adds only half what analysts had predicted as Obama says ‘we’ve got to stay humming’The US economy added 126,000 jobs in March – but the unemployment rate was unchanged at 5.5%.The March jobs report failed to meet expectations; although economists had expected the unemployment rate to hold steady at 5.5%, which it did, they had predicted that the non-farm payroll would grow by 245,000 jobs. Continue reading...

Could it be possible to trace social history of a city and its hardships via the stories and sympathies of its shop workers?It was 25 years ago when the first Aldi opened in Stechford, Birmingham. I met, quite by chance, the grandson of Stechford’s original grocer. The family was put out of the shopkeeping business not by the German discount superstore but by their own upward mobility.Ian Blakeman, 49, was a well-known prison governor; he’s now at the National Offender Management Service. “My mother would never drink Coke because they stored vinegar in the bottles and she once took a mouthful by accident,” he told me, as we waited on a train platform. Continue reading...

Author of an exposé of the murky world of high-frequency trading on how his explosive book brought Wall Street to a standstillIn his V-neck sweater, dad jeans and white New Balance sneakers, Michael Lewis doesn’t look like a troublemaker. Sitting in a tapas bar in Berkeley, California, he bears a passing resemblance to a stretched-out Michael J Fox and shares the actor’s boyish enthusiasm and easy charm.This time last year, the bestselling author brought Wall Street to a standstill, and the book that caused the trouble continues to send shockwaves through the financial system.I have been amazed at how resistant people are to actually fixing an obvious problemIt does seem to me that the system is broken Continue reading...

Rolling economic and financial news, as financial markets hunker down for the Easter break without a Greek breakthrough in sight

NGOs launch collective call for revamp of World Bank’s private sector arm amid accusations it has ‘lost control of the way money is spent’The World Bank must “completely overhaul” a funding model built on heavy investment in financial companies that leaves the organisation with little control over where its money ends up, a group of NGOs has warned.The bank’s private sector arm, the International Finance Corporation (IFC), invested $36bn (£24.5bn) in financial companies including hedge funds, private equity firms and commercial banks between 2009 and 2013, according to a report released on Thursday. The study, prepared by NGOs including Oxfam, Global Witness and the Bretton Woods Project, said these funds would be better used to pursue development targets in areas such as education and public health. Continue reading...

Berlin should adopt policies that boost Germany’s domestic spending and reduce its large surplus, otherwise upturn in single currency bloc may not be able to weather the wealth of threats it faces both inside and outside EuropeThe latest economic data from the eurozone suggest that recovery may be at hand. What is driving the upturn? What obstacles does it face? And what can be done to sustain it?The immediate causes of recovery are not difficult to discern. Last year, the eurozone was on the verge of a double-dip recession. When it recently fell into technical deflation, the European Central Bank finally pulled the trigger on aggressive easing and launched a combination of quantitative easing (including sovereign-bond purchases) and negative policy rates. Continue reading...

Confidence for year ahead at nine-year high but PMI survey suggests builders are delaying spending decisions until after 7 May pollGrowth in the UK’s construction sector slowed in March as customers delayed making spending decisions because of uncertainty over the general election.Housebuilders, commercial builders, and civil engineers all reported slowing output growth last month, with the rise in new orders also easing compared with February. Continue reading...

Trade unionist and IFS chief also among the 14-strong board charged with winning back public trust in scandal-hit banking industryThe body tasked with improving behaviour in the UK’s scandal-hit banking industry has appointed a panel including a bishop, a trade unionist and a human rights campaigner to see the job through.The Banking Standards Board, created last year, said a diverse group of people had been selected to start the long road to winning back the public’s trust, lost in the wake of the financial crisis.Related: HSBC must do more to clean up operations, says report Continue reading...

Athens has warned its creditors that the viability of the EU is at stake, as it submits a new economic programme in an attempt to get financial aid before it runs out of cash

As fresh polling shows Clegg is heading for defeat in Sheffield, follow the latest from the campaign trail with Andrew Sparrow and the Guardian politics team

As data shows 0.2% drop in output, two-thirds of leading UK economists say coalition austerity has been bad for the economyDavid Cameron has presided over an economy with the weakest productivity record of any government since the second world war, the Office for National Statistics said as it revealed output per worker fell again in the final three months of 2014.The ONS said productivity decreased by 0.2% in the third quarter of the financial year, leaving output per hour worked little changed on the previous year and slightly lower than in 2007, before the UK’s longest and deepest modern recession.

Executives praising Tory economic stewardship in the Telegraph ignore falling productivity, flatlining living standards, stalled investment and a record current account deficitConservative party managers take their pre-election letters to the Daily Telegraph from business leaders terribly seriously. The exercise has become a ritual. The rounding-up of supporters starts months in advance and each letter must carry more signatories than the last.On that narrow measure, Wednesday’s letter succeeds. There are 103 names versus 68 in 2010. The letter is also more of a full-throated call to vote Tory, rather than last time’s specific applause for George Osborne’s plan to halt a rise in national insurance. Continue reading...

George Osborne can correctly say that the economy grew faster than any other advanced economy – but that comes with a few caveatsThe Telegraph has published a letter from 100 business leaders saying a Labour government would be a risk to the economy. An excerpt from it reads:Britain grew faster than any other major economy last year and businesses like ours have created over 1.85m new jobs.

Analysis: while the interests of chief executives and the country may no longer be seen as synonymous, Labour knows it must tread carefullyIf anyone thinks Labour does not privately care about the opinions of business, it is worth recalling what Douglas Alexander, the head of the Labour election campaign committee, said he had learned in the wake of the Scottish independence referendum.After the no team had scored a clear but close victory, he told the Guardian: “Don’t discount the capacity of business still to have influence in the business square. It’s naive to think it does not matter at all. Continue reading...

Council tax, water charges and mobile phone bills all among living costs to have undergone price hikes this week despite inflation dropping to 50-year lowFor the first time since 1960, the UK is currently experiencing zero inflation. But that does not mean all price rises are on hold. In fact there have been a number of price hikes this week – many taking effect on Wednesday – with households seeing increases to costs as wide-ranging as stamps, air travel and spectacles. Continue reading...

Workers employed to make products for Nike, Adidas and others have staged a fifth day of strikes over social insurance cover. Vietnam is seeking to sign a free trade deal with the European Union and push ahead with the Trans-Pacific Partnership but the continuing strike presents a hurdle for the one-party state Continue reading...

Almost half of workers unhappy with employer’s pay decisions and even more feel left in the dark over how to secure a rise this yearThe typical pay rise for UK workers has been 2% for two years running, with almost half unsatisfied with their employer’s decision, according to a new report.CIPD, the professional body for HR workers, warns employers that they must invest more in training and communicate better with workers about pay if they want to see gains in productivity. Its survey with YouGov of 2,255 workers found more than half, or 53%, received a pay rise in 2014, compared with 51% in 2013 while almost two-thirds are optimistic about getting another rise this year. Continue reading...

Lives are being trashed by klepto-remuneration: theft through excess rewards to rapacious bossesThere is an inverse relationship between utility and reward. The most lucrative, prestigious jobs tend to cause the greatest harm. The most useful workers tend to be paid least and treated worst.I was reminded of this while listening last week to a care worker describing her job. Carole’s company gives her a rota of, er, three half-hour visits an hour. It takes no account of the time required to travel between jobs, and doesn’t pay her for it either, which means she makes less than the minimum wage. During the few minutes she spends with a client, she may have to get them out of bed, help them on the toilet, wash them, dress them, make breakfast and give them their medicines. If she ever gets a break, she told the BBC radio programme You and Yours, she spends it with her clients. For some, she is the only person they see all day.Related: We’re treating soil like dirt. It’s a fatal mistake, because all human life depends on it | George MonbiotAs the pay gap widens the uselessness ratio is going through the roofRelated: What’s the link between this great rail disaster and 2014’s floods? Killing trees | George Monbiot Continue reading...