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 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 15, 2024, USAID announced a new US government-wide strategy on international basic education, bringing together ten US government entities to reaffirm its commitment to an inclusive and quality education worldwide.

The strategy spans from 2024-2029 and is intended to expand the reach of the previous strategy, particularly for those most marginalized. It stated the intent to learn from the lessons of COVID-19 and make educational systems more resilient and inclusive. The strategy will implement four approaches, including local ownership, capacity strengthening, equity and inclusion, and data based decision-making.

On April 11, 2024, the US announced that it will provide an additional US$25 million in assistance to refugees in the Uganda. The resources from both the Department of State and USAID will go to the UN High Commission on Refugees and the WFP.

The resources will be used to support food, health care, and education, as well as other emergency support to refugees whom have fled South Sudan, the DRC, Somalia, and Sudan. The US noted that Uganda has the highest number of refugees in Africa, having received more than 130,000 refugees in 2023.

The US separately called out a 2024 ruling of the Ugandan court, which had upheld a controversial anti-homosexual law, stating that the US was committed to ensuring that all assistance would be delivered without discrimination.

In advance of the Paris International Humanitarian Conference for Sudan and it Neighbors, Power also announced an additional US$100 million in emergency assistance for the 25 million people who have been affected by the civil war in Sudan. Five million people are close to famine and eight million have been displaced. USAID also called out the violence being perpetrated on the people of Sudan by both sides of the armed conflict. The emergency assistance will include food, nutrition, and other services. This brings total US humanitarian assistance for Sudan to over US$1 billion.

On March 22, 2024, the US foreign assistance budget for FY2024, which should have been passed before October 1, 2023, finally cleared the Congress and was signed by US President Joe Biden as part of a six-part appropriations package that required strong Democratic support in the US House to pass.

Foreign assistance funding saw an overall 6% cut to funding across various funding lines.

Humanitarian funding through USAID increased by US$800 million. PEPFAR's funding remained level and also received one-year authorization, which global health advocates had strongly pushed for. Other global health programs saw level funding, and Gavi received a US$10 million increase.

Other development accounts, such as programs for WASH, democracy, and education were cut. Global heath security saw a decrease of US$200 million. The World Bank's IDA allocation was cut by US$50 million. UNRWA, the Palestinian refugee agency, was reduced to zero.

The boost to humanitarian and refugee support seen in the US in 2023 came at the cost of developmental programs. Advocates criticized that with this, the US is funding the shorter term at the cost of solving longer-term problems. Given acute global needs and crises, development experts expressed concern about the trade-offs that will be necessary with the new development budget cuts.

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 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 January 23, 2024, the MCC, an independent foreign assistance agency established in 2004 by former US President George W. Bush, reached a 20-year milestone.

The MCC, which focuses on reducing poverty through economic growth, has led a different approach from other US foreign assistance agencies. It establishes five-year grant agreements, known as compacts, that address constraints to growth through sectoral approaches, including infrastructure, agriculture, education, and governance.

In order to qualify for MCC grants, LICs and LMICs must pass the MCC scorecard, which measures partners against 20 indicators ranging from governance, corruption, human rights, investments in health care and education, and fostering trade. Once partner countries reach eligibility, implementation of the compact is turned over to partner governments to ensure a country-owned approach to the grant.

Since its inception, the MCC has signed 46 compacts with 31 countries for a program total of US$17 billion. It has also signed dozens of 'threshold programs', which can function as MCC precursor programs to help partner countries reach eligibility. The MCC was recently granted authority to pursue regional programs and has pushed for legislation that would expand the number of potential partner countries.

The program's West African investments, which were approved in 2018, have faced setbacks since their inception following intense regional turmoil. US Senate approval of private board members has also been delayed in 2023 and 2024 by a difficult political climate in the US.

On January 17, 2024, at the World Economic Forum, USAID Administrator Samantha Power called for the elimination of lead poisoning in consumer goods, which she described as a much neglected, very traceable poison that kills at least 1.6 million people a year.

Most lead poisoning deaths occur in low- and middle- income countries. Even when nonfatal, lead poisoning can cause severe brain damage, educational impairments, and reduced productivity. Global funding to mitigate lead poisoning stands at only US$15 million per year.

Power called upon donors to create and enforce regulations to curb lead poisoning in products including paint, spices, and cosmetics. She emphasized that this could not only save many lives, but also prevent severe impairments and improve educational outcomes. Power also noted that available solutions are highly cost-effective.

USAID's 80 missions are slated to work to introduce new regulations and advocate for lead mitigation by partner governments. As part of the commitment, the US has now joined the Global Alliance to Eliminate Lead Paint. USAID also announced US$4 million to support local governments' efforts to address lead poisoning, including through special efforts targeted to protect children.