Policy Updates

On June 27, 2024, the Strategic Agenda 2024-2029, which emphasized the EU's commitment to peace, cooperation, and economic prosperity amid a reshaping of the global political landscape marked by strategic competition and instability, was adopted by the European Council.

The EU outlined the following priorities:

• Bolster Europe’s economic competitiveness, including deepening the Single Market in strategic sectors like energy, finance, and telecommunications;
• Strengthen security and defense capabilities within the EU;
• Reinforce EU sovereignty and unity to address strategic competition, climate change, technological advancements, and global instability;
• Strengthen external influence by supporting Ukraine in defending its sovereignty, promoting stability in its neighborhood and beyond, fostering strategic partnerships, and coordinating internal and external policies to address global challenges effectively;
• Uphold human dignity, freedom, democracy, equality, and human rights, while safeguarding the rule of law and enhancing democratic resilience;
• Invest in defense readiness, supporting Ukraine, combating crime, and addressing cyber threats, while enhancing cooperation with NATO and other partners;
• Ensure the proper functioning of the Schengen area, addressing irregular migration, and promoting legal pathways;
• Support the international legal order, promoting peace, democracy, and sustainable development, and reforming the multilateral system;
• Boost economic growth, supporting social welfare systems, investing in skills and education, and reducing disparities across the EU; and
• Pursue a merit-based approach to EU enlargement, supporting aspiring members, and undertaking necessary internal reforms.

On June 24, 2024, it was announced that EU Commissioner for International Partnerships Jutta Urpilainen was appointed Chair of the GEM Report Advisory Board, succeeding David Moinina Sengeh.

Urpilainen's appointment underscored her commitment to education, a priority during her tenure as EU Commissioner. Under her leadership, the International Partnerships budget allocation for education showed a significant increase of approximately 13% during 2021-2023.

Urpilainen noted her plans to leverage her experience to support the GEM Report’s strategy, emphasizing impactful global education investments. Her role will include leading the annual Advisory Board meetings in Paris and advocating for the GEM Report's initiatives as well as UN SDG #4 by prioritizing outputs to support international efforts in enhancing educational policies.

The Advisory Board, comprising 35 members from diverse sectors, is slated to finalize a new five-year strategy at an upcoming meeting chaired by Urpilainen.

On June 20, 2024, the EIB approved EUR12.8 billion (US$13.7 billion) in financing to improve sustainable transport, increase the use of renewable energy, build new student housing, improve earthquake and flood protection, and help business expansion.

EUR2.9 billion (US$3.1 billion) will be allocated for urban development, education, health, and water projects. EUR2.1 billion (US$2.2 billion) is slated to support corporate innovation, with a focus on female entrepreneurs in Africa and the Caribbean, as well as business financing in Ukraine.

EIB President Nadia Calviño highlighted that support will go to global and regional flagship projects and that the investments will improve quality of life and reflect the EIB's commitment to strengthen European resilience, productivity growth, and innovation.

On June 13, 2024, the Netherlands announced the distribution of its cabinet posts, including the creation of three new ministries: Asylum and Migration, Housing and Spatial Planning, and Climate and Green Growth.

The Dutch government also renamed the Ministry of Agriculture, Nature, and Food Quality to the Ministry of Agriculture, Fisheries, Food Security, and Nature. The Minister for Foreign Trade and Development Cooperation will become the Minister for Foreign Trade and Development Assistance. These changes are meant to mirror the new government’s priorities.

The PVV was allocated five ministers, the VVD and NSC four, and the BBB two. Designated Prime Minister Dick Schoof does not represent any party.

Ministerial appointments with relevance to development included:

• Minister of Climate and Green Growth: Sophie Hermans ( VVD);
• Minister of Finance: Eelco Heinen ( VVD);
• Minister of Economic Affairs: Dirk Beljaarts ( PVV);
• Minister of Agriculture: Femke Wiersma ( BBB);
• Minister of Education: Eppo Bruins ( NSC, CU);
• Minister of Asylum and Migration: Marjolein Faber ( PVV);
• Minister of Health: Fleur Agema ( PVV);
• Minister of Foreign Affairs: Caspar Veldkamp ( NSC); and
• Minister for Foreign Trade and Development Assistance: Reinette Klever ( PVV).

The PVV’s Ministers for Foreign Trade and Development Assistance Reinette Klever and Asylum and Migration Marjolein Faber sparked controversy due to past statements regarding omvolking, or the ‘replacement theory’. Faber and Klever distanced themselves from past use of the term but reiterated concerns about demographic change.

Candidate ministers and secretaries will present themselves in public hearings to the House of Representatives. The new cabinet is expected to be sworn in on July 2, 2024.

On June 13, 2024, Canadian Prime Minister Justin Trudeau participated in a G7 working session on Africa, climate change, and development as well as a side event on the G7 Partnership for Global Infrastructure and Investment, where he announced over CAD1.6 billion (US$1.2 billion) to promote sustainable development and inclusive global clean energy transition.

The announced funding included:

• CAD720 million (US$524 million) over five years for a new concessional finance facility at FinDev Canada to mobilize capital for sustainable development, including from the private sector;
• CAD510 million (US$371 million) in repayable contributions and technical assistance grants to the Inter-American Development Bank Group to establish the Canadian Net Zero and Climate Resilience Accelerator Fund. The funding is intended incentivize private-sector investments that will help economies in Latin America and the Caribbean become less carbon-intensive, more climate-resilient, and more inclusive;
• CAD274 million (US$200 million) to purchase hybrid capital from the World Bank’s International Bank for Reconstruction and Development. This is slated to enable up to CAD1.8 billion (US$1.3 billion) in additional lending to low- and middle-income countries to improve education and health to reduce food insecurity and carbon footprints;
• CAD120 million (US$87 million) in sovereign loans and a CAD7 million (US$5 million) technical assistance grant to South Africa in support of its Just Energy Transition Partnership to transition to secure and affordable clean energy while addressing economic inclusion gaps; and
• CAD45 million (US$33 million) in repayable loans to the Private Infrastructure Development Group to expand financing options for sustainable and gender-inclusive infrastructure in Africa and Asia.

On June 11, 2024, the EIB announced that it will provide Ukraine with a EUR100 million (US$107 million) loan to rebuild municipal infrastructure damaged by the war against Russia.

These funds, agreed at the Ukraine Recovery Conference in Berlin, will be used to rebuild schools, kindergartens, hospitals, social housing and local transport, in addition to ensuring essential services such as clean water and sanitation.

Calls for project proposals are set to be issued, inviting communities to submit applications for the reconstruction of health facilities, housing, education, water sector and shelters. The projects will prioritize liberated territories, areas close to conflict zones, and regions with large numbers of internally displaced persons.

On June 4, 2024, South Korean President Suk Yeol Yoon announced to increase South Korea’s ODA to US$10 billion by 2030 as a catalyst for projects for cooperation with Africa at the 2024 Korea-Africa Summit.

The increase is double the level of South Korea's 2024 ODA budget. At the Korea-Africa Summit, a joint declaration was adopted to support e-government in Africa and proactively promote the KSP for Africa’s economic development and digital-based trade.

The joint declaration presented three priority areas:

• Shared growth: expand ODA up to US$10 billion by 2030, provide US$14 billion in export financing to Korean companies, and share the lessons learned from the experience of concluding free trade agreements;
• Sustainability: strengthen international cooperation to create a climate finance architecture responsive to Africa’s needs, advance cooperation for food security and sustainable agriculture, and establish primary healthcare infrastructure and leadership for critical mineral reserves; and
• Solidarity: support counterterrorism efforts and continue efforts in providing humanitarian assistance, achieve irreversible denuclearization of the Korean Peninsula, and cultivate talented human resources through education and training.

On May 31, 2024, the European Commission approved a second allocation of EUR25 million (US$27 million) to the Palestinian Authority, and granted EUR16 million (US$17 million) to UNRWA to provide basic services, such as health and education, to Palestinian refugees.

The funds allocated to the Palestinian Authority, as part of the PEGASE program, is intended to help the Palestinian Authority meet its commitments to pay salaries and pensions to civil servants in the West Bank. The payment is the second tranche of the EUR118 million (US$126 million) development assistance package approved in December 2023.

The European Commission authorized the EUR16 million (US$17 million) to UNRWA after assessing progress towards reform recommendations. The disbursement brings the total EU ODA to UNRWA in 2024 to EUR66 million (US$70 million), out of a total projected EUR82 million (US$88 million) for the year.

On May 28, 2024, German State Secretary Jochen Flasbarth became the first high-ranking German official to meet the new Senegalese government following President Bassirou Diomaye Faye’s election, where he discussed energy transition, local vaccine production, and creating jobs for the local youth population.

Flasbarth emphasized the long-standing partnership between Germany and Senegal, particularly in renewable energy, highlighting Senegal's peaceful governmental transition as a sign of its robust democracy.

Senegal's government expressed commitment to continuing its strong partnership with Germany, especially within the framework of the Just Energy Transition Partnership established in 2023. The partnership involves multiple international stakeholders and aims to enhance energy supply, reduce poverty, and create job opportunities, especially for young people. Flasbarth’s visit also addressed vocational training and support for small enterprises to generate new income opportunities.

The cooperation includes establishing a vaccine production facility in Diamniadio and creating an independent regulatory body for vaccine approval. The initiative aims to position Senegal as a key player in the West African public health sector by enhancing local medicine and vaccine supply capabilities.

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.