Policy Updates

On April 19, 2024, the Netherlands pledged EUR68 million (US$74 million) towards World Bank hybrid capital, which is expected to expand the bank’s lending capacity by over US$550 million over the next ten years for global public goods investment.

Dutch Ministers of Finance and Foreign Trade and Development Cooperation Liesje Schreinemacher and Steven van Weyenberg announced the contribution to support low- and middle-income countries in financing the energy transition, biodiversity protection, and strengthening health systems to prevent future pandemics.

This commitment joins those of 10 other countries to boost the World Bank’s lending capacity, totaling US$11 billion and potentially providing up to US$70 billion in essential funds.

On April 18, 2024, during the World Bank Spring Meetings, Norway announced a NOK250 million (US$22 million) hybrid capital contribution to boost the World Bank’s IBRD.

Through the World Bank's model for mobilizing private capital on favorable terms, the Norwegian contribution will enable up to NOK2 billion (US$181 million) to tackle issues such as climate change, food insecurity, pandemics, and poverty. Hybrid capital is a financial innovation that allows World Bank shareholders, including Norway, to significantly expand the IBRD’s lending capacity through unilateral voluntary contributions of new funds at any time.

Norwegian Minister of International Development Anne Beathe Tvinnereim noted that at a time with significant and increased needs for development assistance and climate financing, there is a need to mobilize larger investments. For every Norwegian krone provided to the IBRD, the World Bank will be able to unlock eight times the amount in financing.

On April 17, 2024, the European Commission's Directorate-General for International Partnerships published the 6^th EU Aid for Trade Progress Report, finding that the bloc continues to be the largest provider of aid for trade at 42% of global 'aid for trade' in 2021.

At EUR18.6 billion (US$19.8 billion) EU 'aid for trade' decreased 26%, or EUR4.9 billion (US$5.2 billion), between 2020-2021, following downward trends among other donor organizations for the same year.

55% of spending in 2021 prioritized production capacity in partner countries, while trade-related infrastructure remained stable around 42% of funding. By region, 46% of spending supported partner countries in Africa, continuing an upward trend from 2014.

34% of EU 'aid for trade' in 2021 supported gender equality and WEE as a significant objective, but only 1% as a principal objective. 2021 volumes returned to just below pre-COVID-19 pandemic levels, at EUR6.6 billion (US$7 billion).

Agricultural 'aid for trade' has fluctuated since 2017. In 2021, support for agriculture decreased 37% from a high of EUR4.5 billion (US$4.8 billion) in 2020 and 23% from pre-pandemic levels.

The EU's climate-related 'aid for trade' decreased 15% in 2021 to EUR9.7 billion (US$10.3 billion), driven by decreases in funding for projects related to adaptation alone and both mitigation and adaptation. Funding for mitigation-related projects remained stable from 2019-2021.

On April 17, 2024, UK Shadow Foreign Minister. David Lammy outlined the Labour Party’s vision for UK foreign policy if it were to win the next national election in the autumn of 2024.

Lammy grounded the party's vision in progressive realism. He lamented how the Conservative governments since 2010 have turned the UK inwards, threatening its standards of upholdingupholding international law and damaging the UK’s reputation as a global development leadership. In particular, Lammy highlighted the Conservative Party's mismanagement of DFID and the FCO merger, ODA budget cuts, and the exodus of development expertise.

To deliver progressive realism, Lammy argued that the UK needs to be realistic about the state of the modern world. This would begin by recognizing that the previous common consensus that economic globalization would lead to more liberal democratic values was wrong. Democracies have become more dependent on authoritarian states, with the share of world trade between democracies declining from 74% in 1998 to 47% in 2022.

Lammy also pushed to recognize the rise of China's economic and military power, the decline of US hegemony, and the rise of key regional powers non-aligned with specific blocs, able to strike deals with all the great powers as and when they like. This group includes Brazil, India, Saudi Arabia, and the UAE, which are capable of ignoring the US, EU, and UK as they conduct business. He noted rising insecurity at the global level, with a strong focus on Russia and the ever-growing climate emergency as significant challenges.

Looking ahead, Lammy asserted that security will remain the central task of British foreign policy, and the two most important allies for ensuring security will be the US and Europe. He acknowledged that the UK must show willingness to share in the collective global security burden, but also noted the need to strengthen its foreign and security ties with Europe. Lammy called for a new geopolitical partnership with the EU driven by closer coordination in military, economic, climate, health, cyber, and energy security issues.

Beyond Europe, Lammy called for a focus on building relationships in the Indo-Pacific region, noting the need to maintain and strengthen ties with Australia, Japan, South Korea and India as pivotal partners. With regard to China, Lammy noted the UK must simultaneously challenge, compete against, and cooperate with China on the world stage.

On development, Lammy called for the UK to partner with the 'global south', particularly fostering engagement on tackling climate change, without which the global climate agenda will fail. He called for the Commonwealth to be revitalized as part of this engagement. As progressive realists, Lammy asserted that the UK needs to also look ahead at the future and how its relationship with other continents will change. He cited that by 2050, one in four people on the planet will live in Africa, yet the continent remains troubled by poverty, necessitating a new 'Africa strategy' beyond ODA to develop win-win partnerships based on mutual self-interest.

Beyond security, the Foreign Office will play its role in revitalizing the UK economy and trade through economic diplomacy. Lammy noted that if he becomes the next Foreign Minister, he will convene a new business advisory council to ensure that the needs of companies inform British diplomatic thinking.

Lammy finally called for putting climate diplomacy is at the center of UK foreign policy, noting that a Labour government would make advancing the fight against greenhouse gases central to its agenda. He advocated for the creation of a new clean power alliance, what he described as a reverse OPEC, of states committed to leading the way on decarbonizing power systems. A Labour government would also help reform international financial institutions to provide far greater support for climate adaptation.

On April 16, 2024, UK Deputy Foreign Minister Andrew Mitchell announced an additional GBP100 million (US$119 million) in humanitarian assistance to Ethiopia.

The funding is slated to be used to support Ethiopia’s access to primary healthcare services, support communities in becoming more climate resilient, and provide help for people displaced due to drought and extreme weather.

The pledge was made at the UK co-hosted Ethiopia pledging conference with OCHA. Ethiopia is facing one of the world’s largest humanitarian crises, with over 21 million requiring assistance, 15 million people facing food insecurity, and 4 million people internally displaced.

On April 13, 2024, Australia has announced it will invest a further AUD17 million(US$11 million) to extend the BPP through 2028.

Through the BPP, Australia funded a partnership with organization Gold Standard and the International Rice Research Institute to assist sustainable rice project developers. The hub assisted scaling carbon market access within Vietnam and in global markets. It aims to significantly reduce methane emissions and also to provide possibilities for more income for smallholder farmers.

The BPP promotes development by partnering with academia, not-for-profit organizations and businesses to create jobs and increase incomes. It also aims to empower women.

The four countries covered by the program are Vietnam, Samoa, Sri Lanka, and Fiji.

On April 11, 2024, Canada’s Minister of International Development Ahmed Hussen announced CAD142 million (US$103 million) in funding for projects in the DRC and Benin to advance gender equality and women’s rights.

Six projects valued at a total of nearly CAD75 million (US$55 million) were announced for the DRC. The projects will improve access to health resources for women and girls, promote inclusive governance practices, improve women’s inclusion in public and democratic life, and help prevent and respond to SGBV. Funding also included humanitarian programming that will address critical needs arising from the conflict in eastern DRC.

Five projects valued at a total of CAD68 million (US$49 million) were announced for Benin. The initiatives are slated to increase women’s economic resilience, promote a greener economy and agricultural sector, address SGBV, and strengthen inclusive health systems.

On April 10, 2024, during Japanese Prime Minister Kishida’s Official Visit with State Dinner to the US, Japan emphasized its commitment to international cooperation in addressing pressing global challenges, particularly in low- and middle-income countries.

Collaboration with the US spanned various areas, including climate change, infrastructure investment, and global health initiatives. Both nations expressed their intention to work together to ensure a successful outcome at the 29^th UNCCC and to certify quality infrastructure projects through the establishment of a Blue Dot Network Secretariat.

In the realm of global health, Japan welcomed the opening of the US CDC Regional Office for East Asia and the Pacific in Tokyo, aimed at strengthening core global health security capacities across the region. Additionally, discussions between the USAID and Japan’s Ministry of Foreign Affairs centered on advancing shared global health priorities, reflecting a commitment to enhancing health outcomes in vulnerable populations worldwide.

Japan and the US also reaffirmed their dedication to diplomacy, development, and humanitarian assistance, particularly in the Indo-Pacific region. This commitment is demonstrated through initiatives such as the Japan - US - Mekong Power Partnership and contributions to strengthen critical infrastructure and climate resilience in partner countries. The two nations pledged to collaborate on strengthening the international financial architecture to support low- and middle-income countries in addressing global challenges, including climate change and sustainable development.

On April 4, 2024, the Dutch House of Representatives debated the Dutch Global Health Strategy, 18 months post-publication. Despite recent development budget cuts, Minister for Foreign Trade and Development Cooperation Geoffrey van Leeuwen and Minister for Medical Care Pia Dijkstra affirmed broad support for the strategy.

The strategy aims to strengthen global health systems, tackle health impacts of climate change, and prepare against future pandemics. CSOs and members of Parliament expressed concerns in relation to the previously announced development budget cuts of EUR3.5 billion (US$3.8 billion) over 2023-2026, as detrimental to effective implementation of the strategy.

van Leeuwen and Dijkstra reiterated their commitment to the strategy, emphasizing the strategy’s broader goals, including safeguarding the Netherlands’ own health and economic stability.

Emphasis during the debate centered on sexual health and SRHR and access to basic health care to uphold human rights and gender equality, urging sustained strategic partnerships. Focusing on access to medicines, Dijkstra agreed to re-examine the Socially Responsible Licensing toolkit to include how private companies can enhance accessibility and affordability of medicines for people in low-income countries.

Members of Parliament inquired about strategy implementation and monitoring. van Leeuwen committed to providing progress reports to the House of Representatives by year-end, along with policy coherence updates on the Dutch Global Health Strategy and ecological footprint reduction commitments by May 15, 2024.

On April 4, 2024, Japan and Pakistan formalized additional grant agreements totaling approximately US$10 million for climate and hleath related projects.

Installation of Meteorological Radar in Sukkur City saw funding increase from JPY2 billion (US$13 million) to JPY2.8 billion (US$18 million). The grant Expansion of Maternal and Child Health Facilities in Sindh Province increased from JPY3.4 billion (US$22 million) to JPY4.1 billion (US$27 million). These adjustments reflected the necessity to address rising equipment costs and enhance the impact of these initiatives.

The meteorological radar project is slated to respond to Pakistan’s vulnerability to frequent natural disasters, including floods and landslides. With its geographical features making it prone to such calamities, Pakistan faces significant challenges in disaster management. The project aims to bolster the country’s disaster preparedness by installing a modern meteorological radar system in Sukkur City, located in Sindh Province. This upgrade will enhance Pakistan’s ability to monitor weather patterns accurately, issue timely warnings, and implement effective disaster risk reduction strategies.

The MNCH project is slated to address critical gaps in healthcare infrastructure, particularly in maternal and child health services. Pakistan’s healthcare system, especially in Sindh Province, faces challenges in providing adequate maternal and child care, leading to high maternal and infant mortality rates. The project focuses on establishing a new maternal and child health center and upgrading medical equipment at Liaquat University Hospital in Hyderabad, Sindh Province. By strengthening diagnostic and treatment capabilities, this initiative aims to improve healthcare access and outcomes for mothers and children in Pakistan, contributing to the country’s overall health system resilience and development.