Policy Updates

On June 27, 2024, USAID announced US$66 million to Zambia, which is designated by the US as a Feed the Future accelerator county, to mitigate worsening drought conditions, strengthen food security efforts, and build local resilience.

Zambia's crop loss has reached between 60-95% due to drought conditions, increasing food prices by 83%. USAID is providing emergency assistance to address the urgent nutritional crisis, as well as help farmers in Zambia strengthen longer-term resilience.

The US and Zambia are working together to help implement the Feed the Future program, including through implementation of the Feed the Future Accelerator effort.

On May 23-25, 2024, the G7 Ministers of Finance met at a summit in Stresa, Italy, where the ministers voiced support for contributions to the IDA, WHO, Gavi, and the Global Fund in the resulting communiqué.

The G7 ministers supported efforts towards a successful 21^st replenishment of the IDA by the end of 2024 through an ambitious policy and financing package. Notably, they did not give a concrete signal that the critical US$100 billion threshold requested by the World Bank will be crossed, nor any indication of the US$120 billion expected by African leaders.

The ministers reaffirmed their dedication to strengthening the governance and finance of the global health architecture and voiced support for refinancing processes of several GHIs, such as Gavi, the Vaccine Alliance, the WHO, and the Global Fund, and expressed support for the Pandemic Fund. The communiqué called on the donor community to coordinate efforts and increase investments in global health in line with their capacities to ensure sustainable funding and maximize the impact of available resources.

Following the summit, the C7 pointed out the G7's lack of ambition and financial commitment to international development, including climate adaptation. International civil society organizations criticized the lack of any reference to allocating SDRs to global solidarity.

On May 23, 2024, as part of the state visit of Kenyan President William Ruto's visit to the US, the US and Kenya announced a number of new programs, commitments, and partnerships covering a wide range of topics including governance, democracy, criminal justice reform, free elections, civil society protections, corruption, and human rights.

DFC announced a new US$250 million financing agreement with Kenya to support the private sector in building renewable energy, digital connectivity, and affordable student housing. In addition, DFC will be opening a DFC regional office in Nairobi, which will serve as a base for increasing private sector development in Kenya and across Africa.

USAID and Kenya announced new partnerships in education and STEM-related fields between US and Kenyan universities to promote high education and post-high school education. Microsoft and Mastercard are also part of the effort to increase science, technology, and math education in Kenya as a way to improve economic growth.

On May 14-15, 2024, the C7 summit was held at the UN FAO headquarters in Rome, Italy, organized by the Italian Civil Society Coalition that led, coordinated, and moderated the C7 2024 process.

Approximately 400 global representatives took part in the event, as well as international decision-makers, including FAO Director-General Qu Dongyu, Italian G7 sherpa Ambassador Elisabetta Belloni, Cardinal, President of the Italian Episcopal Conference, Pope’s envoy for the Russian-Ukrainian conflict Matteo Maria Zuppi, and Director of the UN SDG Action Campaign Marina Ponti.

The official C7 communiqué that listed the international civil society recommendation to the G7’s Leaders around seven key issues was released at the event, which included:

• Economic justice and transformation;
• Climate, energy transformation, and environmental justice;
• Global health;
• Principled humanitarian assistance;
• Peace, common security, and nuclear disarmament;
• Human mobility and migration; and
• Food justice and food systems transformation.

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 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.

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.

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.

On February 26, 2024, during the Conference of Government of the CARICOM, the US announced US$16 million for climate and biodiversity threats to the region.

The announcement brought the total of USAID funding to the CARICOM region to US$43 million.

The support is part of US President Joe Biden's PREPARE program, in partnership with the US - Caribbean PACC 2030.

The funding will be directed to addressing threats to marine biodiversity on the coasts of the Caribbean, building climate resilience and increasing climate investments, and addressing water security threats in Haiti.

On February 20, 2024, KOICA’s resident officer in India and USAID's India office signed a memorandum of understanding to strengthen development cooperation partnerships in India, a key country in the South Korean government’s Indo-Pacific Strategy.

The cooperation is intended to support the sustainable development of countries in the Indo-Pacific region through trilateral cooperation between India, the US, and South Korea. KOICA and USAIDare slated to cooperate in four sectors in India:

• Women’s economic empowerment;
• Disaster and climate resilience;
• Digital literacy; and
• Trilateral cooperation.

KOICA and USAID expressed the intention to explore new development projects in India and bolster joint projects between South Korea and the US. The two countries plan to develop a concrete cooperation plan for the empowerment of female social entrepreneurs in India to support the economic empowerment of women in India.