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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US announces more than US$200 million for the ICRC and IFRC

July 23, 2026 | US | Share this update

On July 23, 2026, the US announced more than US$200 million in humanitarian assistance to the ICRC and the IFRC, including a US$133 million contribution to ICRC's 2026 Global Appeal and US$70 million to IFRC.


The funding was designed to provide flexible, rapid, and globally applicable humanitarian assistance, enabling implementing organizations to address ongoing crises and respond to new disasters using pre-positioned funding. The awards complemented similarly structured contributions from the US to Catholic Relief Services, UNICEF, and WFP.

Press release - Department of State

Germany announces US$148 million for food security in the Sahel

July 21, 2026 | Germany, Agriculture | Share this update

On July 21, 2026, German State Secretary Niels Annen launched the "Berlin Process for Food Security in the Sahel," including EUR130 million (US$148 million) for the Sahel Resilience Partnership in 2026, of which EUR120 million (US$137 million) will go to WFP and UNICEF.


The Berlin Process for Food Security in the Sahel is a framework involving regional partners and international organizations, including WFP, FAO, IFAD, and UNICEF. The initiative strengthens coordination and effectiveness of food security measures in Mauritania, Mali, Burkina Faso, Niger, and Chad, in line with ongoing UN reforms toward more integrated and results-oriented working methods.


Secretary Annen announced EUR130 million (US$148 million) has been earmarked for the Sahel Resilience Partnership in 2026, of which EUR120 million (US$137 million) will go to the WFP and UNICEF. The funds support integrated approaches to strengthening resilience, transforming agriculture, and creating economic and social opportunities for young people across the five Sahel countries. The Sahel Resilience Partnership brings together the WFP, UNICEF, and GIZ to support vulnerable communities, complementing Germany's bilateral contributions in the region for agriculture, food security, and drinking water.

Press release - Federal Ministry for Economic Cooperation and Development (in German)

Australia commits nearly US$18 million for Palestine

July 21, 2026 | Australia | Share this update

On July 21, 2026, the Australian government announced nearly AUD25 million (US$18 million) in funding for Gaza recovery and Palestinian Authority institutional strengthening, combining humanitarian assistance with governance and economic development support.


The package includes AUD15 million (US$10 million) to the UN Horizon Fund and AUD10 million (US$7 million) to the World Bank's PFRD.


The Horizon Fund channels UN agency resources toward rehabilitation of essential infrastructure, including water and sanitation, health, education, and housing, as well as debris clearance and explosive ordnance risk reduction. Australia's contribution complements more than AUD80 million (US$56 million) pledged to the Horizon Fund by France, Germany, Italy, the Netherlands, Norway, Sweden, Switzerland, and the UK. The PFRD supports the Palestinian Authority's public financial management and is backed by Japan, the UK, Canada, France, Sweden, Switzerland, and Iceland.


The announcement built on Australia's recognition of the State of Palestine in September 2025 and formed part of coordinated international efforts to advance a two-state solution.

Press release - Ministry of Foreign Affairs

Andy Burnham becomes British Prime Minister, appoints Ed Miliband as Foreign Secretary and Kirsty McNeill as FCDO Minister of State

July 20, 2026 | UK | Share this update

On July 20, 2026, Andy Burnham became Prime Minister of the United Kingdom after the resignation of Keir Starmer. Following the announcement, Burnham appointed Ed Miliband as Secretary of State for Foreign, Commonwealth and Development Affairs, replacing Yvette Cooper, and Kirsty McNeill as FCDO Minister of State.


Burnham, the UK's fifth prime minister in four years, previously served as a Member of Parliament for 16 years, and also served as Health Secretary, before becoming Mayor of Greater Manchester in 2017. Meanwhile, Ed Miliband previously held the role of Energy Secretary in Starmer's cabinet, and has represented Doncaster North in Parliament since 2005. In addition to Miliband's appointment, Kirsty McNeill was chosen as Minister of State within FCDO. Previously, McNeill served as Parliamentary Under Secretary of State for Scotland and was an Executive Director at Save the Children.


In a speech following his appointment, Miliband outlined priorities including deepening the UK's strategic alliance with the EU, maintaining the alliance with the US, and upholding commitments to multilateral institutions such as NATO and the UN. He emphasized continued support for Ukraine, efforts to end the conflict in Iran and reopen the Strait of Hormuz, and pursuit of a sustainable peace in Palestine and Israel. Miliband also highlighted tackling the climate crisis, strengthening international development partnerships, and reforming international institutions as key priorities for FCDO.

Speech - UK GovernmentWeb Page - UK GovernmentNews article - BBC

Canada matches US$5 million in donations for Venezuela earthquake relief

July 17, 2026 | Canada | Share this update

On July 17, 2026, Secretary of State for International Development Randeep Sarai announced that , the Canadian government has matched CAD7 million (US$5 million) in donations for earthquake relief in Venezuela, bringing total Canadian humanitarian assistance in response to the earthquakes to CAD12 million (US$9 million).


The funds have been provided to the Canadian Red Cross and the Humanitarian Coalition in support of relief efforts following the June 24, 2026, earthquakes in Venezuela. The increase followed Canada's June 30, 2026, announcement of an initial CAD4 million (US$3 million) matching contribution, which was quickly reached.

Press release - Government of Canada

Sweden announces US$140 million for World Bank Ukraine facility

July 16, 2026 | Sweden | Share this update

The Swedish government announced SEK1.4 billion (US$140 million) in contributions to a new World Bank crisis facility for Ukraine on July 16, 2026, enabling new loans of approximately SEK4.2 billion (US$420 million) for the country's reconstruction and recovery.


The SEK1.4 billion (US$140 million) will go to the World Bank's Special Program for Ukraine Recovery 2.0 under the new IDA Crisis Facility 2.0. By leveraging the World Bank's balance sheet and capital market borrowing, Sweden's contribution enabled new loans of approximately SEK4.2 billion (US$420 million) to Ukraine. The contribution came in addition to a guarantee the government announced on May 29, 2026, which had already enabled new loans to Ukraine of approximately SEK2.5 billion (US$250 million).


The funding aims to support Ukraine's economic resilience during Russia's ongoing aggression, including maintaining public sector salaries, keeping the electricity grid intact, and sustaining essential services such as health care and education.

Press release - Government of Sweden

Canada announces investments and renewed commitments for cooperation in Brazil

July 14, 2026 | Canada | Share this update

Canadian Minister of Foreign Affairs Anita Anand concluded a trip to Brazil on July 14, 2026, announcing CAD125 million (US$88 million) in FinDev Canada investments in sustainable infrastructure and renewed bilateral commitments on wildfires, customs, and health.


Minister Anand met with Brazil's Minister of Foreign Affairs Mauro Vieira for the fifth Strategic Partnership Dialogue, covering global and regional issues, defense and security cooperation, and trade and investment. Anand announced CAD125 million (US$88 million) in FinDev Canada investments across two sustainable infrastructure projects.


FinDev Canada committed a US$30 million loan to Equatorial Maranhão Distribuidora de Energia, an electricity distribution company serving nearly three million customers in Maranhão, as part of a US$50 million co-financing package with Sumitomo Mitsui Banking Corporation. The loan will expand and enhance Equatorial Maranhão's grid distribution network, including in rural and low-income areas. FinDev Canada also committed a US$58 million loan to Acelen Renewable in Bahia to support construction and operation of a biorefinery producing sustainable aviation fuel and renewable diesel, with a feedstock processing capacity of 20,000 barrels per day. The investment formed part of a US$854 million construction facility that included the International Finance Corporation, IDB Invest, and KfW Development Bank, among others.


Anand and Vieira also signed a Customs Mutual Assistance Agreement to facilitate the sharing of customs information between the Canada Border Services Agency and Brazil's Special Secretariat of the Federal Revenue, strengthening trade security and efforts to combat customs offences. In addition, the ministers announced the recent signing of a Memorandum of Understanding on Health Sector Cooperation to deepen technical and scientific cooperation on health surveillance, immunization, and environmental health. Finally, the first operating plan was signed under their Memorandum of Understanding on Mutual Assistance and Integrated Fire Management, facilitating the entry of Brazilian firefighters into Canada for the upcoming fire season and enabling the exchange of technical assistance.

Press release - Government of CanadaPress release - Government of Canada

US Department of State announces US$100 million for Operation End Starvation

July 14, 2026 | US | Share this update

The US Department of State announced a two-year, US$100 million partnership with Operation End Starvation (OES) to deliver life-saving nutrition assistance to children suffering from SAM globally.


OES, an American NGO and public-private partnership focused on combating global child mortality, will deliver nutrition interventions for children under five at risk of or suffering from SAM, leveraging philanthropic contributions to maximize impact.


The announcement builds on the US's US$173 million in nutrition assistance in 2025. The partnership also complements prior US commitments, including to UNICEF and WFP


OES founding funders include the Eleanor Crook Foundation and the CRI{title=formerly "Child Relief International"} Foundation. OES CEO William Moore leads both OES and the Eleanor Crook Foundation. Over six years, OES aims to treat 22.5 million children with RUTFs and 82 million pregnant people with prenatal vitamins, and to save 1.8 million children's lives.

Press release - Department of StateNews article - Inside Philanthropy

Spain-Guatemala Partnership Framework for Sustainable Development 2026-2030 signed

July 10, 2026 | Spain | Share this update

On July 10, 2026, Spain signed a new Partnership Framework for Sustainable Development with Guatemala, committing EUR267 million (US$304 million) in ODA for 2026–2030.


Spain's State Secretary for International Cooperation, Eva Granados Galiano, signed the Spain-Guatemala Partnership Framework for Sustainable Development 2026–2030 in Madrid alongside Guatemala's Deputy Minister for Foreign Affairs, María Luisa Ramírez Coronado, and the Secretary for Planning and Programming of the Presidency, Carlos Mendoza Alvarado. The signing took place within the framework of the 10th Spanish-Guatemalan Joint Commission on Cooperation.


The new framework is the main bilateral cooperation planning instrument between the two countries for the 2026–2030 period. Compared with the previous framework, it broadens the strategic focus from combating chronic child malnutrition toward sustainable territorial development, recognizing that malnutrition stems from multidimensional causes requiring comprehensive responses linked to local economic development, decent employment, and access to basic services. The framework also reinforces commitments to women's rights, including through the prevention of violence, access to care systems, decent work, sexual and reproductive rights, and social protection.


Spain plans to channel EUR267 million (US$304 million) in ODA to Guatemala over the 2026–2030 period through instruments including technical, bilateral, triangular, multilateral, and decentralized cooperation, as well as financing mechanisms supporting infrastructure and access to credit for SMEs. The framework was developed through a consultation process with public institutions and civil society organizations in both countries, with particular attention to the participation of Indigenous Peoples.

Press release - Ministry of Foreign Affairs, European Union and Cooperation

Switzerland’s Thomas Gass appointed new OECD DAC Chair

July 8, 2026 | Switzerland | Share this update

On July 8, 2026, Switzerland's Thomas Gass was appointed Chair of the OECD's DAC, succeeding Denmark's Carsten Staur, with Gass set to take up the position in early 2027.


Gass, currently Ambassador of Switzerland and Head of Mission in Hanoi, Viet Nam, will take up the position in early 2027. He succeeds Carsten Staur of Denmark, who served as Chair since March 2023.


Gass previously served as Assistant Director-General and Head of the South Cooperation Department of the Swiss Agency for Development and Cooperation (2018-2022), Ambassador and Head of Mission in Kathmandu, Nepal (2009-2013), Co-Chair of the Global Partnership for Effective Development Co-operation (2019-2022), and Assistant Secretary-General for Policy Coordination and Inter-Agency Affairs in the United Nations Department of Economic and Social Affairs (2013-2017). Gass holds a PhD in Natural Sciences and a Master of Science in Agricultural Engineering from ETH-Zurich.

Press release - OECD

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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