Policy Updates

On April 29, 2025, The Straights Times reported that the UK is reconsidering its GBP2 billion (US$2.5billion) commitment to the World Bank’s IDA, this move follows a shift in government priorities, with funds redirected from foreign assistance to bolster defense spending amidst heightened security concerns in Europe.

The pledged amount, which marked a 40% increase from the previous commitment, was announced in November 2024. However, the Labour government is now reviewing their ODA budget under Development Minister Jenny Chapman, with potential reductions to the IDA contribution being considered.

Critics argue this would represent a significant departure from the UK’s historical leadership in global development under previous governments.

On April 28, 2025, SIDA contributed EUR2million (US$2 million) to Afghanistan through the WFP and to support critical nutrition programs, which will enable the WFP to distribute over 550 metric tons of specialized nutritious food to 125,000 Afghan mothers and children over three months to combat malnutrition.

Between 2021 and 2024, SIDA contributed over EUR32million (US$35million) to WFP, establishing itself as a top donor. WFP remains a critical lifeline for Afghan women and children, who make up over half of the 12 million people reached by WFP in Afghanistan in 2024.

This partnership underscores Sweden's commitment to addressing Afghanistan's nutrition crisis and ensuring vulnerable populations receive the support they need.

On April 25, 2025, the German Development Minister Svenja Schulze stressed the need to strengthen multilateral cooperation to address climate change, conflict, and inequality at the World Bank Spring Meetings, reaffirming Germany's commitment to the World Bank's reform agenda, including increased focus on climate resilience, poverty reduction, and gender equality.

Schulze pledged continued German support for the IDA , and backed the ongoing reform to enhance its financial capacity through innovative tools such as hybrid capital and portfolio guarantees, emphasizing that global challenges require joint, reliable funding efforts.

She called for expanded partnerships between the World Bank, other multilateral development banks, and private sector actors to mobilize more resources for global development goals. Schulze also highlighted the need to integrate climate action and social protection into its core mission without losing focus on poverty reduction.

On April 24, 2025, Italy and the World Bank signed an agreement to increase their financial support to the IDA by around 25%.

This agreement accelerates the Mattei Plan for Africa, which seeks to increase growth through energy investments, infrastructure, and human capital. The agreement also increases its forthcoming subscription of hybrid capital issued by the IBRD.

The new agreement highlights Italy’s intention to work closely with international programs led by institutions like the World Bank and the AfDB. One of the major goals is to help support Mission300 by bringing electricity to 300 million Africans by 2030.

On April 23, 2025, Belgium and Sweden, through Enabel and the SIDA, have assumed the Co-Presidency of the PN for 2025–2026.\
The PN, a collaboration of 25 European international cooperation organizations, fosters knowledge exchange, strategic dialogue, and joint initiatives with EU institutions. Under the leadership of Enabel and SIDA, the network will prioritize contributions to the EU’s Global Gateway Strategy, focusing on energy, critical raw materials, migration, and digitalization. It will also strengthen partnerships with the private sector and align technical assistance with financial instruments.

Other key initiatives include advancing the Team Europe approach, addressing post-war reconstruction in Ukraine, Gaza, and Syria, and engaging in EU-level events such as the Global Gateway Forum. This Co-Presidency aims to enhance the EU’s collective response to global challenges through strategic and visible international cooperation.

On April 18, 2025, the Spanish Ministry of Foreign Affairs announced a 12% increase in Spain’s ODA for 2024, surpassing EUR4 billion (US$4.3 billion), reflecting Spain’s commitment to strengthening international cooperation and sustainable development.

This milestone aligns with Spain’s broader strategy to become a global leader in development aid, reaffirming its dedication to achieving the UN SDGs. The increase in ODA funding highlights Spain’s focus on addressing global challenges such as poverty, inequality, and climate change through enhanced multilateral and bilateral efforts.

The Ministry celebrated this achievement as a step towards meeting its long-term goal of allocating 0.7% of gross national income to ODA by 2030, as outlined in Spain’s Master Plan for Development Cooperation.

On April 9, 2025, the CDU/ CSU and SPD parties in Germany finalized their coalition treaty, where Chancellor-designate Friedrich Merz, Bavarian Minister-President Markus Söder, and SPD Co-Chairs Lars Klingbeil and Saskia Esken presented an agreement that focuses on Germany’s global leadership, economic modernization, and migration control.

Key highlights include:

• BMZ remaining independent: The BMZ will retain its independent status, with Minister Svenja Schulze expected to continue her leadership. This decision reflects advocacy efforts from various stakeholders and ensures BMZ’s role in Germany’s development policy;
• ODA target revised: For the first time in 30 years, the 0.7% ODA/ GNI target has been excluded from the coalition treaty. Instead, the treaty calls for reducing the ODA quota to consolidate the federal budget. Germany’s ODA contribution was 0.82% of GNI in 2023 but saw a EUR940 million (US$1 billion) cut to BMZ ’s budget in 2024. Voluntary contributions to international organizations are also set to decrease;
• A new development policy approach: The treaty outlines a shift toward aligning development policy with Germany’s geopolitical and economic interests. It calls for consolidating development-related responsibilities under BMZ leadership, potentially including initiatives like the International Climate Initiative, currently housed in the BMWK;
• Strengthened inter-ministerial cooperation: The treaty emphasises better coordination across BMZ, the AA, and the BMVg to improve policy coherence and align development efforts with strategic objectives;
• Commitment to sovereign debt and tax systems: The treaty reaffirms support for resolving sovereign debt crises and strengthening tax systems in developing countries, aligning technical and financial cooperation with European development policy; and
• The climate sections remaining unchanged: The climate sections remain consistent with earlier drafts, with a focus on domestic action over international initiatives.

This coalition treaty signals a strategic pivot in Germany’s development policy, prioritizing geopolitical alignment and fiscal consolidation.

On April 7, 2025, JICA signed a grant agreement to provide equipment aimed at promoting emergency recovery and sustainable economic reconstruction,

The agreement focuses on supporting Ukraine’s recovery from ongoing challenges by enhancing infrastructure and providing critical resources to stabilize its economy. This initiative aligns with Japan’s commitment to fostering resilience and supporting reconstruction efforts in conflict-affected regions.

On April 7, 2025, Germany adopted the Amman-Berlin Declaration which aims to ensure that at least 15% of development projects globally promote inclusion at the Global Development Summit.

The summit convened 4,500 participants from 100 countries, including persons with disabilities, government representatives, and international organizations. Over two days, attendees engaged in more than 60 sessions focused on advancing the UN Convention on the Rights of Persons with Disabilities.

In addition, over 800 pledges were made by participating governments and organizations to enhance accessibility and inclusion. The declaration marks a historic step toward measurable goals for integrating disability rights into international development.

On April 6, 2025, South Korea pledged US$100 million in assistance to Ukraine, citing regional security threats linked to North Korea and Russia.

The funding will be allocated toward reconstruction projects, humanitarian relief, and infrastructure repair in conflict-affected regions. South Korea’s support underscores its commitment to international stability and countering aggression in Eastern Europe.