Policy Updates

On September 27, 2024, The UK government released its final ODA statistics. The statistics show that the UK ODA budget rose by 20% between 2022 and 2023 to reach GBP15. 3 billion (US$ 18.3 billion), 0.58% of GNI.

A large share of UK ODA was spent on housing refugees inside the UK, with GBP4.3 billion (US$5.2 billion) or 28% of the UK ODA budget in 2023. The statistics also show that there was a significant increase in the share of UK ODA spent via multilateral organizations which rose from GBP3.1 billion (US$3.7 billion) in 2022 to GBP5.4 billion (US$6.5 billion) in 2024, predominately due to a large payment to the World Bank’s IDA.

UK bilateral ODA spend was GBP10 billion (US$12 billion), 65% of total UK ODA, and UK core funding to multilateral organizations was GBP5.3 billion (US$6.4 billion), 35% of total UK ODA.

In terms of top bilateral sectors, the largest amount of funding was spent on ‘Refugees in Donor Countries’ in 2023, followed by the humanitarian sector’ and ‘Multisector/ Cross-cutting’ sector.

In terms of geographic disbursements, Africa increased its share of region-specific bilateral ODA moving to 46% (up from 42%) but the volume of funding fell marginally. The top three recipients of UK country specific bilateral ODA were Ukraine (GBP 250 million/US$299 million), Ethiopia (GBP164 million/US$196 million), and Afghanistan (GBP115 million/US$137 million).

The overall increase in ODA, however, masked some significant decreases. The share of bilateral ODA received by LDCs has fallen to 47.2% in 2023 compared to 53% in 2018. Bilateral ODA to health, humanitarian, education, and water and sanitation also saw steep declines.

• Humanitarian ODA stood at GBP878 million (US$1 billion) in 2023, a fall of 21% compared to 2022, 43% since 2020 and its lowest level since 2014;
• Health ODA stood at GBP764 million (US$843 million) in 2023, a fall of 21% compared to 2022, 52% since 2020 and its lowest level since 2014;
• Education ODA stood at GBP346 million (US$414 million) in 2023, a marginal decrease compared to 2022, but a decrease of 64% since 2016 and its lowest level since 2009; and
• WASH fell to just GBP38 million (US$45 million), a decrease of 17% compared to 2020, 82% since 2018 and its lowest level since 2009.

On September 18, 2024, Canada and Qatar signed an MoU committing the two countries to a collaboration on development programming, focusing on the promotion of good governance, support for women-led solutions, diversity and pluralism, and the protection of human rights.

The MoU also includes a new framework arrangement between GAC and Qatar’s Education Above All Foundation, allowing both parties to collaborate on education projects. This partnership highlights Canada and Qatar’s co-leadership of GenU, a public-private youth partnership hosted by UNICEF.

Among the partnership’s initiatives is Green Rising, which equips young people in over 60 low- and middle-income countries with skills to thrive in the green economy, contributing to the prosperity of their communities.

On September 17, 2024, after months of negotiations, EC President Ursula von der Leyen unveiled her proposed team of Commissioners.

Pending a confirmation hearing by the European Parliament in November, where experts believe some Commissioner-designates are likely to be rejected, and a plenary vote, the new college will be able to begin the new mandate at the earliest in December 2024.

Six Commissioners will have an external component to their portfolio, five will have an ecological focus, and five relate to security in their title.

Among the most relevant for external relations are:

• Jozef Síkela (Czechia, independent): Commissioner for International Partnerships. Síkela is a former investment banker and industry and trade minister. Síkela has been mandated with continuing to focus on Global Gateway. His mission letter tasks him with taking Global Gateway from start-up to scale-up and working in synergy with other programs, namely to secure supply of raw materials and clean tech. Gender equality is singled out as a priority, but no mention of other human development sectors is made.
• Kaja Kallas (Estonia, liberal): High Representative for Foreign and Security Policy. Former Estonian Prime Minister Kallas has been one of the EU's most vocal critics of Russia and a key proponent of both military assistance to Ukraine and a stronger EU defense capability. Her duties include giving a new impetus to the EU’s partnership with Africa and shaping a new foreign economic policy, including via "mutually beneficial partnerships". Kallas has also been tasked to ensure a better link between the EU’s internal and external policies, from climate and energy to digital and food security.
• Hadja Lahbib (Belgium, liberal): Commissioner for Preparedness and Crisis Management, Equality. Labhib is the outgoing Belgian Foreign Affairs Minister and was previously a journalist. The role replaces the current portfolio of humanitarian assistance, covering internal crises as well, and includes a second hat for equality. Her health deliverables include developing a new strategy to support medical countermeasures against health threats. Lahbib will work to develop a Roadmap for Women’s Rights and a new Gender Equality Strategy.

The agreement of the next EU long-term budget will be front and center of the next mandate. Von der Leyen’s priorities are modernization, prioritization, and simplification.

The appointment for the budget is:

• Piotr Serafin (Poland, center-right): Commissioner for Budget, Anti-Fraud, and Administration. Serafin, currently the Polish ambassador to the EU and former chief of staff of Donald Tusk when he was European Council president, also served in the cabinet of former Polish EU Budget Commissioner Janusz Lewandowski. Serafin will report directly to President von der Leyen. His mission letter calls for revamped external action financing that is more targeted and aligned with Europe’s strategic interests.

Among the most relevant for climate, food, and agriculture are:

• Teresa Ribera Rodríguez (Spain, center-left): Executive Vice-President for Clean, Just and Competitive Transition. As the Spanish Vice President and Minister for Ecological Transition, her position combines the roles of competition chief, net-zero architect, and economic transformer. Former Italian Prime Minister Mario Draghi’s report on competitiveness is expected to serve as her blueprint as she leads the development of a Clean Industrial Deal and ensures the European Green Deal stays on track.
• Wopke Hoekstra (the Netherlands, center-right): Commissioner for Climate, Net Zero and Clean Growth. Hoekstra has been confirmed in the role with a revamped portfolio that now includes climate and taxation. He will focus on a clean industrial strategy, decarbonization and emissions reduction, while ensuring a fair transition. The international dimension will center on clean trade and investment partnerships.
• Christophe Hansen (Luxembourg, center-right): Commissioner for Agriculture and Food. As an MEP, Hansen worked on environmental and trade issues. His new role will involve strengthening the competitiveness, resilience, and sustainability of agriculture, and he will prepare a 100-day Vision for Agriculture and Food.

The appointments for health and preparedness are:

• Roxana Mînzatu (Romania, center-left): Executive Vice-President for People, Skills, and Preparedness. Minzatu is a cohesion funds expert who served as an MEP and Minister for European Funds. Her mission statement includes advancing a Union of Equality, a Union of Skills, and fostering a new culture of preparedness to help people adapt to changes and risks, particularly in the face of health and security crises.
• Olivér Várhelyi (Hungary, far right): Commissioner for Health and Animal Welfare. Várhelyi, who is currently responsible for the Neighborhood and Enlargement portfolio, was handed the health and animal welfare role. He is a controversial figure due to breaking ranks with the EC to follow Hungarian Prime Minister Viktor Orbán. His mission statement includes completing the European Health Union, but food safety has been stripped of his portfolio. He will head DG SANTE and HERA. On health preparedness, he will report to the Executive Vice-President for People, Skills, and Preparedness.

In her mission statement, von der Leyen states that R&I, science, and technology must be put at the heart of the EU’s economy, which entails more investments and cooperation.

The appointment for R&I and R&D is:

• Ekaterina Zaharieva (Bulgaria, center-right): Commissioner for Startups, Research, and Innovation. Zaharieva is a lawyer and previously served as Bulgaria's foreign affairs minister after serving several other ministerial posts. Her deliverables include reinforcing international research and innovation cooperation and seeking synergies through Global Gateway. Zaharieva's revamped portfolio does not include education, which will be the responsibility of the Executive Vice President for people, skills, and preparedness, but extends to start-ups, a first for any commissioner.

On September 17, 2024, Sweden announced a reduction in its ODA budget as part of the autumn budget proposition, marking a shift in the country's long-standing commitment to international development assistance.

Newly appointed Minister for International Development Cooperation Benjamin Dousa revealed that the annual ODA allocation will drop from SEK56 billion (US$5.4 billion) to SEK53 billion (US$5.1 billion) between 2026-2028. This represents a cut of SEK3 billion (US$291 million) per year compared to the 2023-2025 budget.

Dousa stated that Sweden is undergoing a restructuring process that focuses on efficiency to areas most in need. However, he declined to specify which areas of foreign assistance would face the most significant cuts.

The early announcement aims to give Sida time to adjust their priorities and operations.

Justifying the decision, Dousa pointed to pressing domestic challenges citing needs in policing, defense, and welfare services that could benefit from the redirected funds.

This reduction aligns with the government's earlier decision, made in partnership with the Sweden Democrats, to abandon Sweden's long-held goal of allocating 1% of its GNI to ODA.

Dousa acknowledged the difficulties in reaching a consensus among the four coalition parties but stressed their united front in making tough decisions. He assured that Ukraine would continue to be the largest recipient of Swedish assistance, underscoring the country's commitment to supporting nations in crisis.

On September 11, 224, US Secretary of State Anthony Blinken announced that the US will provide US$290 million to conflict-affected populations in Ukraine. US$100 million will come from USAID and US$190 million will come from the US State Department.

The US pledges to provide vulnerable groups with food, shelter, and winter preparedness. Additionally, health services, including disease prevention, psychosocial assistance, and vital assistance to women and girls who are survivors of GBV.

The US State Department will also provide emergency assistance, including safe drinking water, education, and legal support while working to reunify families where possible.

The US has provided a total of US$3.5 billion to Ukraine since February 2022, the largest provider of humanitarian assistance.

On September 5, 2024, the Australian Strategic Policy Institute reported that a World Bank study concluded that the Papua New Guinean government, Australia's largest ODA recipient, failed to provide basic services to a large proportion of its population despite revenue from resource developments and increasing ODA.

The World Bank undertook a survey of 16,000 households. This indicated 39.3% of the population was living under the Bank’s international poverty line. Approximately 61% of the population did not have access to good drinking water, and over 80% had poor access to sanitation and electricity.

On the basis of multidimensional measures, the World Bank concluded that 74.5% of the Papua New Guinean population was living in poverty. Papua New Guinea ranked as 120 out of 122 in terms of poverty, roughly equivalent to the levels of Chad, Nigeria, and Malawi.

Papua New Guinea received approximately AUD637 million (US$429 million) in ODA from Australia during FY2024/25. Total Australian assistance included grants and loans for infrastructure development, while AUD500 million (US$337 million)was direct bilateral assistance. Non - ODA budget support loans have been provided since 2019 to assist economic reform and repair.

On September 6, 2024, UK Foreign Secretary David Lammy hosted a reception marking 75 years of the modern Commonwealth and called for the organization to focus on driving economic growth as well as tackling the climate crisis and education at its October Summit in Samoa.

Lammy noted that the UK considers a revived Commonwealth as vital to ensuring the government’s vision of reconnecting Britain with the world, calling on the family of nations to work together, draw on its diversity, and tackle the challenges of our time.

Lammy outlined that the Commonwealth should focus its attention on three key areas:

• Supporting economic growth: the combined GDP growth of the Commonwealth’s nations is expected to double from 2017 levels by 2027, and increasing investment flows are needed to take advantage of this. At the summit in Samoa, Lammy and other members will launch a comprehensive plan to boost investment and harness technology for all to enable shared and sustainable growth;
• Tackling the climate emergency: Lammy highlighted the need for coordinated action with partner countries to ensure a sustainable future for all. He emphasized the need to raise ambitions on the Climate Finance Access Hub and to do more to protect Small Island Developing States; and
• Boosting education: Lammy noted the importance of focusing on education. He emphasized the need to support more scholarships and learning amongst the Commonwealth nations, highlighting that 60% of the Commonwealth’s population are under 30 years old.

On August 26, 2024, the Development Policy Centre at the Australian National University announced its 2024 Australasian Aid Conference, to be held from December 3 to 5, 2024, at the Crawford School of Public Policy in Canberra, focusing on a range of sectors and aims to support development within the research community and promoting collaboration.

The conference is Australia’s largest annual meeting on international development and normally attracts some 600 participants, including researchers from the Pacific, Asia, and Australia.

The Development Policy Centre also planned to host a 2024 Pacific Migration Workshop on September 3, 2024. The workshop will focus on climate resilience and mobility, as well as the economic dimensions and social implications of migration.

Submissions are open until August 30, 2024, to propose possible panel events and papers.

On August 20, 2024, Japan announced it will host the TICAD Ministerial Meeting on August 24-25 as a precursor to TICAD9, which is due to be held in August 2025.

The meeting will involve discussions with African ministers and international organizations to strengthen Japan-Africa relations. Sessions will focus on relevant themes such as education, innovation, universal health coverage, and health financing.

On August 19, 2024, the Norwegian government launched its new strategy for engagement on the African continent.

Norwegian Minister of Foreign Affairs Espen Barth Eide noted that Norway's relationship with many African countries covers a wide range of interests, such as security policy, multilateral issues, cooperation on solving global challenges, and economic cooperation. The aim is to strengthen political and economic cooperation through partnerships based on equality, mutual interests, knowledge, and understanding.

The government outlined five specific areas of focus in the strategy:

• Multilateral and regional cooperation: Strengthen cooperation in multilateral forums, enhance African representation, and continue close collaboration with the AU;
• Security and peace efforts: Support African-led peace initiatives, integrate gender perspectives in decision-making, and bolster cooperation with the AU and UN on security;
• Democracy, human rights, and gender equality: Promote democracy, human rights, and gender equality through civil society engagement, justice reform, and educational access;
• Business, clean energy, and knowledge: Boost economic cooperation, promote Norwegian solutions, and support renewable energy development in African markets; and
• Climate, environment, food security, and health: Collaborate on climate action, sustainable food systems, and resilient health systems to address environmental and health challenges.