Policy Updates

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 20, 2024, UK Deputy Foreign Secretary Andrew Mitchell announced that the UK will provide GBP45 million (US$54 million) to support higher education for women and girls at the Education World Forum.

The program is slated to benefit 1 million young people. Funding will be channeled with partners across Sub-Saharan Africa, South Asia, Southeast Asia, the Middle East, and North Africa. The program will focus on removing the barriers preventing them from accessing higher education, including tackling GBV.

The initiative builds on the Strategic Partnerships for Higher Education Innovation and Reform program that began in 2016.

On May 16, 2024, international NGO Christian Aid released a new report, titled Between Life and Debt, that outlined the devastating debt crisis engulfing Africa and calling on the UK government to address the crisis through legal intervention.

The report, which draws on testimonies from Christian Aid partners in Ethiopia, Kenya, Malawi, Nigeria and Zambia, revealed that:

• Total external debt service by all African countries was US$85 billion in 2023 and US$104 billion in 2024;
• In 2023, African countries spent over 50 times more on external debt than they received in aid from the UK (and 50% more than total assistance to the region);
• 25 African countries spend more on debt than education; and
• 32 African countries spend more on debt than healthcare.

The report asserted that the debt problem is largely due to Western private lenders, who have lent to Africa at extremely high interest rates, far higher than other sovereign lenders like China. Total external debt service by all African countries to private creditors was US$39 billion in 2023 and US$47 billion in 2024, and that private creditors charge the highest interest rates of 6.2%.

Christian Aid argued that the UK government has the unique power to help remedy the crisis, given that most private creditors, due to colonial history, are governed by British law. The organization called on the UK to step up and take action to change UK law to compel private creditors to cancel debts and stop the crisis.

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 May 2, 2024, the UK government responded to the ICAI, the UK’s aid watchdog, recommendations for tackling fraud in UK ODA funding.

The FCDO thanked ICAI for reviewing the UK's approach to combating fraud in ODA funding released earlier in 2024. The FCDO partially accepted ICAI’s first recommendation to take a more robust and proactive approach to anticipating fraud. The FCDO noted that it was actively exploring the cost-effectiveness of creating an FCDO Fraud Intelligence Unit and was expanding its Fraud Liaison Officers’ Network to strengthen oversight.

The FCDO also partially accepted the second recommendation to strengthen its fraud in its top 20 ODA recipient countries, noting that it will reinforce the mandatory annual assurance assessment across control and risk areas and expand its Fraud Liaison Officer's network.

The FCDO fully accepted the final two recommendations, which called for new fraud management guidance to be written for capital investments and to increase the Head of Mission’s oversight and accountability for fraud risks relating to centrally managed and other government programs.

On March 24, 2024, BOND published a new manifesto setting out the steps the next UK government should take to help deliver on the SDGs and work in solidarity with its partners.

The manifesto is based around seven key asks:

• Act as a responsible and ambitious development partner. This includes returning ODA to 0.7% of GNI and providing new and additional resources for meeting global climate finance and ensuring the ODA program is headed by a cabinet-level minister with dedicated and well-resourced staff;
• Create an equitable and sustainable international financial system that works for people, nature, and the climate. This includes supporting a UN sovereign debt workout mechanism to deal with unsustainable debt in lower-income countries, pursuing an ambitious MDB reform agenda that increases their provision of resources and makes their governance more representative, and supporting a universal UN Framework Convention on tax;
• Recommit to the SDGs and ‘leaving no one behind. This includes ensuring UK development programs focus on those most in need, promoting gender transformative approaches to sustainable development, acknowledging care as an economic issue and a right and build the care economy in line with the 5Rs framework{title"recognition, reduction, redistribution, representation and reward"} for care work, and scaling up efforts to deliver universal access to basic services;
• Do our fair share to tackle the global climate and biodiversity crises. This includes ensuring all ODA is aligned with the Paris Agreement, providing genuinely new and additional grant finance for the Loss and Damage Fund;
• Develop a new approach to UK trade and private sector investment. This includes introducing new legislation that mandates companies, the financial sector, and the public sector operating in the UK to carry out human rights and environmental due diligence. It also holds them to account for failures, reduce the volume of UK funding being used to capitalize BII until it reforms to ensure it does more to contribute to poverty reduction;
• Promoting stability, security and effective crisis responses. This includes providing the UK’s fair share to support humanitarian crises, championing locally led approaches to anticipatory crisis prevention, action and resilience, establishing a prevention-focused national security outlook which focuses on preventing crises as well as responding to them; and
• Protect and promote rights, freedoms and civic space. This includes prioritizing meaningful partnerships with human rights defenders, including indigenous communities, women, LGBTQI+ advocates, migrant rights advocates and environmental defenders, removing restrictions on civil society campaigning domestically, and working with other governments to reverse restrictions on civic space in public debate and policymaking.

On January 27, 2024, it was announced that the UK has joined the US and other nations in freezing its funding for the UNRWA for Palestinians in the Near East in light of allegations that 12 UNRWA staff took part in the October 7, 2023 attack by Hamas on Israel.

The UK government noted that while it remains committed to getting vital humanitarian aid to people in Gaza, it was temporarily pausing future funding while the allegations are reviewed. The UK was the third-largest donor to UNRWA in 2020, but its funding fell sharply in 2021 and 2022. No recorded funding was delivered in 2023.

Assistance workers and Palestinian advocates have stated that freezing funding could have dire impact on humanitarian relief to Gaza.

On November 20, 2023, UK Prime Minister Rishi Sunak launched a new White Paper on International Development, the first since 2009, which set out a progressive, whole-of-government approach to accelerate the delivery of the SDGs over the next seven years.

The White Paper provided a return to focusing UK development on the goal of eradicating poverty, which experts noted was largely neglected by previous strategies. It presented two further key goals: tackling climate change and biodiversity loss. The paper called for a new approach to partnerships based on country ownership, accountability, and transparency.

Though experts noted that the paper seemed to signal that the UK has recommitted to international development, it did not make new major financial commitments. The focus of the paper was on mobilizing resources beyond ODA for development, including the City of London’s private finance and expertise, stretching multilateral finance, and tackling trade, tax and illicit flows, as well as outlining policy priorities.

A return to delivering 0.7% ODA/GNI when fiscally feasible was mentioned briefly in the paper. Neither the Foreign Secretary nor the Minister for Development mentioned 0.7% ODA/GNI as a goal in their respective prefaces.

Six key themes from the paper included:

• Mobilizing international finance (public and private) for climate and development with a focus that includes the City of London, pension funds, and investors;
• Reforming the international system, with a strong focus on debt relief, trade, tax, and illicit flows, areas where the UK has in the past had strong expertise;
• Tackling climate change and biodiversity loss and enabling sustainable economic growth;
• Ensuring opportunities for all, including gender and broader equality and rights, global health, education, water, and social protection;
• Tackling conflict, disasters, and food insecurity through preparedness and resilience. The only new financial commitment in the document reserved GBP1 billion (US$1.2 billion) in the budget for humanitarian spending each year, in line with current spending, and established a GBP150 million (US$179 million) disaster fund; and
• Harnessing innovation and technology. R&D remains core to the UK offer on development, with a resurgence in interest in digital transformation and a strong interest in harnessing AI for development.

One of the most significant commitments was the aim to spend 50% of UK bilateral ODA in LDCs, prioritizing ODA resources to LICs. In 2021, the UK only provided 19.1% of resources to LDCs and has never exceeded 33% since 2013. A commitment to 50% is seen by experts as a monumental change in bilateral allocations. The White Paper also committed the BII to invest half of its resources in so-called poor and fragile states by 2030.

The 2024 UK election sets a narrow timeframe for the current Conservative government to implement the goals laid out by the paper. The progressive and broad framing, however, indicated to experts that the paper may not necessarily be jettisoned by a potential Labor government.

Development NGOs in the UK have been broadly welcoming of the document, but have criticized the government for ODA cuts and called for a return to 0.7% ODA/GNI.

On November 2, 2023, Canada’s International Development Research Centre announced at the UK AI Safety Summit in London that it is partnering with the UK FCDO to launch a new phase of the AI for Development program, with an initial focus on Africa.

The new CAD70 million (US$51 million) partnership is intended to leverage the capacity of AI to reduce inequalities, strengthen health, education, and food systems, as well as adapt to climate change.

On November 1, 2023, the UK government announced that it will provide GBP38 million (US$46 million) to a new GBP80 million (US$96 million) global initiative to speed up the use of AI to support international development.

The announcement was made at the inaugural AI Safety Summit at Bletchley Park, UK. The initiative, which is also being supported by Canada, the Bill and Melinda Gates Foundation, the US, and partners in Africa, aims to utilize AI to combat inequality and boost prosperity, primarily in Africa. It will focus on building the capacity of and supporting African AI expertise to address long-standing development challenges.

The UK’s funding will come from a new phase of the UK AI for Development Programme. The following goals were listed as priorities until 2028:

• Funding post-graduate training and fellowships in AI in African universities;
• Investing in innovators building models with data that accurately represent the African continent;
• Fostering responsible AI governance to help African countries mitigate the risks of AI; and
• Enhancing the Sub-Saharan African voice on how to use AI to further the UN SDGs.