The Prosperity Fund started in 2011-12 and succeeded the Low Carbon High Growth Strategic Programme Fund. The FCO’s Prosperity objective is to “Build Britain’s prosperity by increasing exports and investment, opening markets, ensuring access to resources, and promoting sustainable global growth”. Of these elements, the Prosperity Fund focuses on opening markets, promoting sustainable global growth and ensuring access to energy resources. In 2013/14 it will operate in 13 priority countries and regions and most of the fund will be consistent with the UK’s international development agenda.
An open global economy is the most effective way to support development and increased prosperity. We want to encourage openness to trade and investment, and to strengthen the multilateral trading system. We want transparent and stable regulatory regimes and economic policies that underpin sustainable global growth. We want to discourage protectionism, bribery and corruption.
If we are to avoid dangerous climate change, which will undermine the conditions necessary for sustainable global economic growth, we need urgently to transform the global economy to a low carbon one. This will depend to a large extent on an ambitious, comprehensive and equitable global framework agreement in the UN Framework Convention on Climate Change. The fund aims to create the conditions necessary to deliver this political commitment and the shift in investment to low carbon.
Low carbon policies will enhance energy security globally. But hydrocarbons will play a role in the energy mix for the foreseeable future and the oil price will continue to be a key driver in the global economy. We want to deepen engagement with energy producers and encourage conditions that enable the necessary investment in transitional oil and gas, promote transparency, reduce price volatility and improve the reliability of energy supplies. We want open and effective international energy markets, reduced fossil fuel subsidies, alternative energy sources and more efficient consumption of energy.