Policy Updates

The Donor Tracker team regularly brings you the most important policy and funding news across issue areas in the form of Policy Updates.

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Swedish government evaluation committee proposes methods for optimizing ODA

October 1, 2020 | Sweden | Share this update

In a recent op-ed, two representatives of Expert Group for Aid Studies (EBA), a Swedish government committee tasked with independently evaluating Sweden's official development assistance (ODA), argued for making Swedish ODA more effective by implementing financial reforms in three separate areas.

Jan Pettersson and Númi Östlund from EBA argue that Swedish ODA is currently exposed to various financial risks that reduce its effectiveness. As per the instructions from the Swedish Central Bank, it is important to ensure that every ODA penny makes the maximum contribution to poverty reduction and "create the conditions for better living conditions for people living in poverty and oppression". Moreover, in order to strengthen public support for ODA, Sweden must be able to demonstrate the impact of ODA in its partner countries.

The two authors warned, "ODA is an activity with high risks. It is challenging to finance operations in environments where corruption is commonplace and there is a lack of basic infrastructure and functioning institutions. ODA is largely about contributing money and knowledge where other actors cannot operate. It is crucial that ODA do not fund things that can be financed in any other way, that ODA is."

Pettersson and Östlund argue that it is important to distinguish between risks: those associated with difficult working environments and those related to decision-making or donor systems. Financial risks fall in the latter category, and could, according to the authors, be addressed through three separate measures:

  • Abolishing the 1% of GNI target for ODA: This would reduce the volatility of Swedish ODA related to the uncertainty and volatility of GNI forecasts. It would also reduce the impact on ODA volatility related to other components of ODA such as costs related to asylum seekers. This effect was also noted by the National Audit Office in a recent review of Swedish ODA. In the 2020 Fall Amending Budget, presented in September, SEK 750 million (US$86 million) was reallocated to the traditional ODA budget from cost reductions related to asylum seekers, to be spent before the end of 2020. To increase the predictability of the ODA budget, the authors argue that “the government should agree on and communicate clear principles for how to deal with major changes in the budget. This applies in particular to changes within the financial year.”
  • Reducing currency risks for Swedish ODA: Swedish ODA is denominated in the Swedish Krona and the exchange rate against major currencies is often susceptible to large fluctuations, the effects of which currently have to be borne by implementing partners. Utilizing available financial instruments to hedge against the currency risks would reduce this burden on them. Again, this issue has been pointed out by the National Audit Office, but very few concrete actions have been taken yet by the Swedish government to address the problem. Pettersson and Östlund argue that the Swedish government should utilize both the expertise of the Swedish National Debt Office as well as public financial guarantees developed by the Swedish International Development Cooperation Agency (Sida) to effectively reduce the currency risks associated with Swedish ODA.
  • Reducing the role of the Swedish banking system: Following recent scandals of money laundering, Swedish banks have become increasingly restrictive when it comes to international financial transactions. These measures have also affected ODA transfers authorized by the Swedish government, both in terms of delivery as well as increasing costs related to bank charges and foreign exchange transactions. The authors argue that Sida should support Swedish banks with the relevant information required for the banks to enable these transactions in high-risk countries at lower costs.

Jan Pettersson is the Managing Director of the EBA Secretariat and Númi Östlund is a Program Manager at the EBA Secretariat.

Op-ed – Svenska Dagbladet (in Swedish)

Svenska Dagbladet (in Swedish) (in Swedish)

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IDB considers dropping its climate target

October 20, 2026 | US, Climate | Share this update

On October 20, 2026, it was reported that IDB was considering removing its target to spend at least 45% of its portfolio on climate finance, a move that would affect both IDB and its private sector arm, IDB Invest.


The IDB committed to invest 45% of total approvals in green and climate finance, rising to 50% by 2030. In 2024, the bank met the 45% target by approving US$5.6 billion. The IDB Group confirmed that it is considering the issue, stating that discussions with other multilateral development banks focus on how best to measure success and do not change its climate commitment.


Sources expected the announcement after COP31 in mid-November 2026, although some board countries wanted to delay the decision. If finalized, the move would make IDB the second multilateral development bank to drop a climate finance target in 2026, after the World Bank did so in June 2026, allegedly under pressure form the US. Reports state that the ADB is expected to follow suit.

News article - Devex

GiveWell weighs malaria partnership with GFATM

October 19, 2026 | Global Health | Share this update

On October 19, 2026, GiveWell confirmed it was considering a malaria partnership with the GFATM, which could become its latest malaria investment after more than US$1 billion since 2007.


Since its founding in 2007, GiveWell invested more than US$1 billion in malaria prevention and response programs that it deems the most cost-effective. The proposed Malaria Impact Accelerator would expand coverage and deployment of malaria interventions across the world through the GFATM.


A document reviewed by journalists showed the accelerator would prioritize countries with the highest malaria burden and lowest economic capacity. The document did not specify interventions. The GFATM board was expected to consider the accelerator at its October 2026 meeting.


Some board members welcomed the initiative, while others questioned whether it could discourage countries from increasing their own domestic resources for malaria response.

News article - Devex

UK's Foreign Secretary calls for debt reset for poorest countries

October 14, 2026 | UK | Share this update

On October 14, 2026, UK Foreign Secretary Ed Miliband called for a fundamental reset of the global financial system at a Rockefeller Foundation event during the IMF and World Bank annual meetings in Bangkok, Thailand, and made debt restructuring a priority for the UK's G20 chair in 2027.


Miliband said the current financial system was failing developing economies and holding back shared global prosperity. He wanted debt restructuring and other measures to support the world's poorest countries to be a key priority when the UK chairs the G20 in 2027. He called for a new deal on debt that gives countries longer repayment periods and refinancing at better interest rates, which would give developing countries more room in their budgets.


Miliband, a former adviser to then-Chancellor of the Exchequer Gordon Brown, sought to revive the ambition behind the major debt relief plan of 1999 launched under Brown. He acknowledged that budget constraints led the UK to sharply scale back its development spending.

Press release - UK Foreign, Commonwealth & Development OfficePress release - Reuters

UN adopts pandemic declaration despite US objections

October 12, 2026 | US, Global Health | Share this update

On October 12, 2026, the UN General Assembly adopted a political declaration on pandemic prevention, preparedness, and response without consensus, after objections from the US and a few other states blocked approval at a high-level meeting on September 25, 2026.


The non-binding declaration calls for stronger national, regional, and international cooperation guided by science, equity, and respect for human rights. It welcomes the WHO Pandemic Agreement, adopted in 2025.


Chile's representative said no country can address a cross-border threat alone. WHO Director-General, Tedros Adhanom Ghebreyesus, urged countries to finalize the PABS annex so the Pandemic Agreement can open for signature, begin ratification, and enter into force.


The US said it could not support text that overlooks national policy boundaries. The US objected to language implying commitments to agreements or negotiations it had not joined. It also objected to references to WHO-led processes, including the amended IHR, the Pandemic Agreement, and the PABS annex negotiations, as well as the excessive and repetitive use of 'equity' and its variants.

Press release - UN NewsNews article - Devex

Gates Foundation and Wellcome Leap commit US$100 million to halve stillbirth rates

October 12, 2026 | Gender Equality, Global Health | Share this update

On October 12, 2026, the Gates Foundation and Wellcome Leap announced a US$100 million joint investment to launch Uzima: A Stillbirth Prevention Program, which set a goal of halving stillbirth rates in select countries over the next decade.


The program planned to identify, validate, and scale innovations that could help families and health workers recognize risks earlier and respond to complications during pregnancy and childbirth. The commitment planned to begin with partners in sub-Saharan Africa, which would advance promising new tools and create a blueprint for reducing stillbirths globally.


The program is set to explore five categories of innovation:

  • diagnostic tools, such as biomarker-based and imaging-based tests, for earlier detection of preeclampsia and gestational diabetes;
  • AI-enabled ultrasound and other screening tools for settings with limited resources;
  • labor sensors that help health workers detect complications sooner;
  • AI-enabled decision-support tools; and
  • integrated patient navigation systems for mothers, families, and community health workers.
Press release - Gates FoundationPress release - WHS

Germany commits USD 11 million to GFF

October 12, 2026 | Germany, Gender Equality | Share this update

On October 12, 2026, Germany pledged EUR10 million (US$11 million) during the World Health Summit in Berlin to improve access to family planning and maternal, newborn, and child health products through the GFF's Sustainable Commodities Access Program.

Press release - WHS

Bangladesh and EIB announce US$286 million women's health program

October 10, 2026 | EUI, Gender Equality, Global Health | Share this update

On October 10, 2026, the government of Bangladesh and the EIB set out plans for a EUR250 million (US$286 million) program to improve women's health and strengthen district hospitals for approximately 47 million women and girls.


The program, known as the Women's Health Initiative, proposed using funds approved in 2021 to support Bangladesh's COVID-19 immunization program, mid-term pandemic preparedness, and general health system resilience. This new program aims to expand access to essential health services during 2027-2031.


The initiative proposed expanding maternal and newborn care, cervical and breast cancer services, and access to emergency obstetric and newborn care. It also planned to strengthen primary healthcare, referral services, district hospitals, and critical care to deliver reliable, high-quality care and respond more effectively to future emergencies.


The UNFPA supported the government of Bangladesh in developing the program and is expected to provide technical expertise during implementation.

Press release - UNFPANews article - DevexPress release - WHS

US announces US$357 million for emergency food assistance

October 8, 2026 | US, Nutritious Food Systems | Share this update

On October 8, 2026, the USDA signed agreements in principle to deliver US$357 million across eight Food for Peace projects, which will purchase approximately 129,000 metric tons of US-grown commodities for emergency food assistance in Ethiopia, Kenya, the Democratic Republic of the Congo, and Haiti, with Action Against Hunger, CRS, UNICEF, and the WFP slated to receive the funding.


This funding is in addition to US$687 million announced earlier in the year in emergency funding, including US$452 million for the WFP on February, and an agreement in principle worth US$235 million with CRS on July.

Press release - USDANews article - Devex

Norway to increase Norfund's budget by US$254 million

October 7, 2026 | Norway | Share this update

On October 7, 2026, the Norwegian government proposed a NOK2.4-billion (US$254 million) increase in 2027, a 75% rise that brings Norfund's funding to NOK5.6 billion (US$592 million) for investments in companies that create jobs in developing countries, according to Minister for Development Cooperation, Åsmund Aukrust.


Aukrust said employment is the first priority of the Labour Party government in development policy. The proposal focuses on strengthening Norfund's development mandate in the 2027 state budget, with the goal of creating more jobs while generating more long-term development from public funds.


The government also proposed a NOK30 million (US$3 million) increase to support business development and job creation in developing countries. Aukrust argued that work is the most reliable route out of poverty for individuals, creates value in local communities, and enables countries to finance their own development.

Press release - Norfund (in Norwegian)

EIB commits USD34 billion to climate adaptation by 2030

October 5, 2026 | EUI, Climate | Share this update

On October 5, 2026, Ambroise Fayolle, vice president of the EIB, announced that the EIB planned to double its climate adaptation finance to EUR30 billion (US$34.3 billion) through 2030.


The EIB will face a complex year ahead, however. Discussions remain heated around the size of the next MFF, while seven EIB shareholder countries, including France, Spain, Poland, Italy, Finland, Estonia, and Greece, prepare to hold national elections amid rising support for far-right parties. Though these elections have the potential to shape the direction of the EIB board, Fayolle said he was not overly concerned about them and preferred to wait until they occurred before assessing their impact.


News article - Devex

Disclaimer

US$ amounts are cited directly from sources; in the absence of an official conversion, they are calculated using the previous week's average of the US Federal Reserve's daily exchange rates.

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