Policy Updates

Each week, Donor Tracker's team of country-based experts bring you the most important policy and funding news across issue areas in the form of Policy Updates.

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Sweden reinforces development cooperation ties with US

March 18, 2024 | Sweden, US, Education, Agriculture, Climate, International development, Global Health, Nutritious Food Systems | Share this update

On 13 March 2024, Sweden announced a new agreement between Sida and the USAID, which is set to advance sustainable development initiatives, prioritizing local initiatives and engaging the private sector closely.

The agreement was officially sealed in Washington DC on 4 March by Sida's Director-General Jakob Granit and USAID Deputy Administrator Isobel Coleman.

The agreement, slated to span the next four years, introduces new focus areas including digitalization, cybersecurity, the enhancement of global public goods like food security, climate action, and the improvement of transparency and oversight in development.

Press release - Press Release - Government of Sweden

German Minister of Finance outlines strict cost saving plan for 2025

March 18, 2024 | International development | Share this update

On March 18, 2024, German Minister of Finance Christian Lindner addressed a financial shortfall of $27 billion, compared to the 2024 budget.

Lindner informed all ministers that they will have to expect considerable cuts to their ministries' budgets. The overall budget is currently expected to be sat at US$489 billion, US$27 billion less than the 2024 budget, or a 5.3% decrease.

  • The Ministry for Digital and Transport faces the largest absolute cut at US$6 billion, dropping from US$47.8 billion to US$42.2 billion (-11.8%);
  • The Ministry of Foreign Affairs is expected to reduce its budget by US$1.5 billion, coming from US$7.3 billion to US$5.8 billion (-20.3%);
  • The BMZ is slated to come down from US$12.2 billion to US$11.1 billion, reducing its budget by $1 billion (-8.4%); and
  • The Ministry of Labor and Social Affairs is one of the few ministries that are expected to receive more money than in 2023. The ministry is currently expected to receive $3.1 billion more, growing from US$190.4 billion in 2024 to US$193.4 billion (+0.6%).

Lindner urged his cabinet colleagues to adhere strictly to the designated budget allocations in their financial planning, advising against any additional requests for funds. Ministers are expected to submit their expenditure proposals to the Ministry of Finance by April 19.

News article - Merkur.de (in German)

USAID combines policy and budget offices

March 15, 2024 | US | Share this update

On March 15, 2024, following years of advocacy by the development community and many within the agency, USAID once again combined its policymaking and budget offices into a new office: the PLR, now headed by Michele Sumilas.

The purpose of the merger is to more closely align USAID's budget work with its policy. Previously, with the offices as separate units, budget decisions were made separately from policy ones, at times leading to poor or weak implementation. With the merger, when funding decisions, particularly those necessitating trade-offs, policies can be matched with resources and USAID can take into account program monitoring and effectiveness evaluations.

Former USAID senior staff applauded the move, pointing out that integration of these functions will lead to better outcomes.

News article - Devex

USAID provides Haiti with US$58 million to address democratic, humanitarian crisis

March 15, 2024 | US, WASH & Sanitation, Global Health, Nutrition | Share this update

On March 15, 2024, USAID Administrator Samatha Power announced that the US will provide an additional US$25 million in humanitarian assistance to Haiti.

The funds are in addition to the US$33 million announced by US Secretary of State Anthony Blinken on March 11, 2024.

Noting the recent violence and the deepening humanitarian crisis, which has now displaced 362,000 people, Power stated that 5.5 million people need immediate help with food, water, healthcare, and hygiene. The US, through its embassy and mission, is slated to provide essential services and supplies as well as services to protect the most vulnerable populations.

These additional resources build upon the US$146 million that the US has provided to Haiti since October 2022, making the US the largest humanitarian donor to Haiti. The US urged all humanitarian donors to scale up assistance, which the UN estimates is funded at less than 7% of the need.

Press release - USAIDPress release - USAIDNews article - Reuters

South Korea highlights multilateralism to accelerate SDGs

March 14, 2024 | South Korea, International development | Share this update

On March 14, 2024, South Korean Foreign Affairs Minister Cho Tae-yul delivered a keynote speech at the 6th Global Engagement and Empowerment Forum under the theme of Reboot the SDGs, Reset the Our Future to discuss how the international community can work together to accelerate the implementation of the SDGs amidst the deepening global crisis.

In his keynote speech, Cho called for strengthening multilateralism centering around the UN to boost the achievement of the SDGs. South Korea will build on the momentum from the Summit of the Future in September 2023 and revitalize international discussions on the implementation of the SDGs in special situation countries, including SIDS and landlocked countries.

He also highlighted the HDP Nexus, the digital transformation of low- and middle-income countries, and empowering future generations. His participation in the forum demonstrated South Korea’s commitment to achieving the SDGs to the international community.

Press release - Ministry of Foreign Affairs (in Korean)News article - Financialnews (in Korean)

Advisory council recommends stabilizing Dutch ODA

March 13, 2024 | Netherlands | Share this update

On March 13, 2024, the Advisory Council on International Affairs published a letter recommending that the Netherlands ensures stable and predictable ODA.

The council noted that, historically, the Netherlands has consistently met the 0.7% GNI/ODA goal, alongside Denmark, Norway, and Sweden. However, since 2013, Dutch ODA has declined, expected to hover around 0.66% of GNI in the mid- and late-2020s. Key reasons for the decline are recent ODA budget cuts and increased spending on asylum reception and support for Ukraine.

The decrease in core ODA poses challenges to development actors, reducing resources available for addressing poverty, climate change, terror, and irregular migration. Development advocates assert that stable Dutch ODA budget is key for meeting international agreements and upholding the Netherlands’ reputation as a reliable development partner.

The council posed three recommendations to ensure a sufficient, stable, and predictable ODA budget:

  • Maintain the link between ODA budget and GNI, adhering to the 0.7% goal;
  • Stop adjusting the ODA budget based on new GNI forecasts, resolving any discrepancies between actual and forecasted GNI in subsequent budgets; and
  • Limit expenses for first-year asylum seeker care costs according to the Swedish model to a maximum of 11% of total ODA expenditure. Any remaining ODA funds could then be reallocated to cover deficits in other years, if necessary.

Partos welcomed the council's recommendation. The Dutch Minister of Foreign Trade and Development Cooperation has yet to respond to this advice.

Letter - Advisory Council on International Affairs (AIV) (in Dutch)Partos (in Dutch)

US' 2025 budget proposes a decrease in foreign assistance

March 12, 2024 | US, Climate, Global Health, Gender Equality | Share this update

On March 12, 2024, US President Joe Biden's FY2025 budget was sent to Capitol Hill, asking for US$64.4 billion for foreign assistance programs, a decrease compared to his FY2024 request of US$70.5 billion.

FY2024 appropriations have not yet been approved, as Congress has been deadlocked on funding decisions. The FY2024 appropriations, which should have been set by October 1, 2023, have instead been postponed with a series of continuing resolutions to extend budget negotiations. Foreign assistance levels have been the subject of intense debates, including assistance to Ukraine, and proposals by Republicans for serious ODA cuts.

Of Biden's total foreign assistance budget, the bulk of it, approximately US$58.8 billion, will go to the State Department and USAID.

The budget proposal is constrained by the spending deal that Biden reached with Republicans in fall 2023, which capped spending. In the proposal, global health faced the largest cuts with the US' contribution to the Global Fund cut down from US$2 billion to US$1.2 billion, largely due to the fact that US law limits US contributions to no more than one-third of all funding from other donors.

Other funding in the budget includes US$10.3 billion for humanitarian and refugee assistance and US$3 billion for democracy, human rights, and governance. Gender programs are slated to receive US$3 billion. The President's Energy Plan for Adaptation and Resilience is also proposed at US$3 billion, with another US$500 million for the GCF, although the GCF has not received any funds from Congress in recent years.

The budget request also includes US$1 billion for IDA replenishment, of which US$750 million is in guarantees. These guarantees are to unlock US$36 billion in new lending by removing risk from the World Bank's balance sheet.

News article - Devex

USAID announces Global Summit on extreme heat

March 11, 2024 | US, Climate | Share this update

On March 11, 2024, USAID and the IFRC announced a Global Summit on Extreme Heat, which will be held on March 28, 2024.

The summit was previewed by USAID Administrator Samantha Power during a speech on climate shocks and resilience in January 2024. The meeting would be the first of its kind. Power and IFRC Secretary General Jagan Chapagain will be joined by government and private sector leaders who are working on innovative solutions both to reduce the impacts of extreme heat and to increase climate preparedness.

The summit will be virtual; registration is open to the public.

Press release - USAIDWeb Page - USAID

New initiative launches to strengthen CSO development assistance programs

March 11, 2024 | Norway | Share this update

On March 11, 2024, a new Norwegian initiative launched to offer free development assistance design support to CSOs.

The initiative was developed by DLL, a research and learning center established in 2021 through a collaboration between the University of Bergen, the Chr Michelsen Institute and the Norwegian School of Economics. The initiative aims to increase CSOs' access to research-based knowledge to strengthen the effectiveness of their development assistance programs.

DLL described the new initiative as a helpdesk service offered to CSOs working to renew their agreements with Norad, Norway's main funder of CSOs. Recently, Norad increased its expectations for these organizations to document the actions and plans proposed with research-based knowledge.

Ottar Mæstad, the director of DLL, stated that the service could provide valuable input to organizations preparing applications to Norad. The helpdesk service is free of use, but was initially only offered to organizations with more than NOK100 million (US$10 million) in revenue.

Håvard Mokleiv Nygård, director of Norad's department for knowledge, welcomed the initiative, stating that Norwegian development cooperation should be knowledge-based and effective.

News article - Panorama (in Norwegian)

Canada, UK launch new climate resilience projects Africa, Asia-Pacific regions

March 11, 2024 | Canada, UK, Agriculture, Climate, Global Health, Gender Equality | Share this update

On March 11, 2024, the CLARE partnership between the UK and Canada’s IDRC launched 17 research projects designed to build climate resilience and reduce vulnerability in LICs and LMICs, valued at CAD180 million (US$133 million).

The research projects aim to support socially inclusive and sustainable action to build resilience to climate change and natural hazards in African partners and the Asia-Pacific region. Researchers in recipient countries are leading or co-leading the research, which will embed gender equality and inclusion principles and will address a wide range of climate change issues in the fields of agriculture, health, urban adaptation, water security, among others.

Press release - International Development Research Centre

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