Policy Updates

On April 25, 2025, the German Development Minister Svenja Schulze stressed the need to strengthen multilateral cooperation to address climate change, conflict, and inequality at the World Bank Spring Meetings, reaffirming Germany's commitment to the World Bank's reform agenda, including increased focus on climate resilience, poverty reduction, and gender equality.

Schulze pledged continued German support for the IDA , and backed the ongoing reform to enhance its financial capacity through innovative tools such as hybrid capital and portfolio guarantees, emphasizing that global challenges require joint, reliable funding efforts.

She called for expanded partnerships between the World Bank, other multilateral development banks, and private sector actors to mobilize more resources for global development goals. Schulze also highlighted the need to integrate climate action and social protection into its core mission without losing focus on poverty reduction.

On March 28, 2025, the US administration announced plans to merge USAID into the State Department, dissolving it as an independent agency and reducing staffing to a statutory minimum of 15 positions, and additionally detailed specific cuts to USAID grants and multilateral funding.

Congress must pass new legislation to officially eliminate the agency. The State Department will create an Office of Global Food Security to manage food security and humanitarian programs previously handled by USAID. The remaining global health programs will be supervised by the Bureau of Global Health Security and Diplomacy. Other programs will be managed by regional bureaus within the State Department.

Deputy administrator of policy and programs at USAID Jeremy Lewin informed staff that employment contracts would be severed by July 1 or September 2, 2025. By July 1, 2025, the State Department will fully take over USAID’s remaining programming. By September 2, 2025, USAID’s operations will transfer to State or shut down completely.

The administration also provided Congress with documents listing 5,341 terminated USAID programs and 898 active ones, detailing that 86% of programs have been terminated, slightly more than the 83% cut reported on March 10, 2025. The total value of terminated programs is US$75.9 billion, with US$48.2 billion already obligated and US$27.7 billion yet to be assigned.

UN institutions and other multilaterals saw steep cuts, with terminated awards totaling US$4.1 billion to 14 UN agencies, the IBRD, and Gavi.

On December 17, 2024, the German political parties published their election programs ahead of the February 2025 elections, showing clear differences in their proposals for development cooperation and humanitarian assistance.

The two remaining parties of the governing coalition, the left-leaning SPD and the Greens, both embraced independent development cooperation, led by a strong, independent BMZ.

The center-right opposition party CDU/CSU, by contrast, proposed bringing development cooperation, led by the BMZ, and humanitarian assistance, led by the AA, together. The liberal FPD originally put forth the proposal to merge the BMZ and the AA.

The SPD and Greens emphasized Agenda 2030 and multilateralism as guiding principles and highlighted their continued commitment to 0.7% ODA/GNI. The Greens also proposed leveraging additional funding for climate goals. The CDU/CSU and FPD made no such commitments.

All parties, but the CDU/CSU in particular, stressed a shift to align development with German interests. The CDU/CSU noted its ambition to gear development towards migration management, with criteria intended to stem irregular migration flows. The party also sought to link development to geopolitical and security goals, as well as economic aims and the promotion of international trade.

The SPD and Greens noted their desire to maintain Germany's feminist foreign and development policy, and listed their commitments for global health, climate, and agriculture. The CDU/CSU and FPD did not specifically mention policy aims for health, climate and agriculture, but stated that they will focus on women's rights as part of development policy.

On December 17, 2024, Norway announced a new substantial humanitarian assistance package for Ukraine, allocating nearly NOK1 billion (US$91 million) to seven Norwegian humanitarian organizations.

This funding, distributed through the Nansen Program, will support the efforts of the Norwegian Red Cross, Norwegian Church Aid, Norwegian People's Aid, Caritas Norge, Save the Children, SOS Children's Villages, the refugee and civilian response force, and NORCAP.

These organizations, working closely with Ukrainian authorities and civil society, are providing critical assistance to vulnerable groups, including children, refugees, and internally displaced people. The funding will ensure access to essential services such as food, shelter, electricity, heating, clean water, sanitation, education, healthcare, psychosocial support, and protection against GBV.

On December 11, 2024, German Development Minister Svenja Schulze presented the 17 ^th Development Policy Report, which highlighted key priorities of German development policy under Schulze, including feminist development policy, global partnership and multilateral cooperation.

Schulze emphasized progress in integrating gender equality across development projects, stating that German development policy is more female-focused, multilateral and based on partnership than before. Accordingly, the report noted that the share of projects addressing gender equality increased from 66% in 2022 to over 91% in 2024.

The report also highlighted Germany's leadership in reforming the World Bank, including increasing its lending capacity, and aligning it with climate, and poverty reduction goals. Also outlined was the enhanced partnership approach with African countries through the German-Africa strategy and activities to establish vaccine and pharmaceutical production in Africa.

On December 11, 2024, the UK announced a new GBP5 million (US$6 million) program with the RBM Partnership to End Malaria to boost global efforts to end malaria epidemic, stimulate growth, protect women and girls, and renew the push to eliminate malaria by 2030.

The announcement followed the launch of the WHO’s World Malaria Report 2024, which outlined that malaria remains a serious global health challenge and saw an increase of cases in 2023.

The UK’s pledge will support the RBM Partnership to End Malaria as it works to galvanize global leaders in the fight against malaria. UK is slated to include tackling resistance to malaria treatments and supporting efforts to control malaria in Cameroon, Nigeria, Tanzania, and Uganda.

On December 9, 2024, the Norwegian Ministry of Foreign Affairs presented its new strategy for Norway’s engagement in the Sahel region.

Norway has been actively involved in the Sahel for decades, providing significant humanitarian and development assistance. Recent years have been marked by growing instability, violent extremism, and human suffering due to conflict, climate change, and weak structural governance.

The Sahel region, as defined by the strategy, includes Burkina Faso, Mali, Mauritania, Niger, Senegal and Chad. This new approach will guide Norway’s efforts in the region through 2030.

With substantial ODA already allocated to these nations, the strategy outlines how Norway aims to help reverse negative trends and establish a foundation for long-term sustainable development.

A key element of the strategy is the establishment of a Norwegian embassy in Dakar, Senegal. This step will provide a broader regional perspective for Norway’s Sahel engagement and allow for preventive efforts in neighboring coastal states.

The strategy prioritizes three main areas of focus:

• Humanitarian response and sustainable development: Addressing urgent humanitarian needs, supporting local resilience, preventing irregular migration and promoting inclusive sustainable development;
• Peacebuilding and stabilization: Preventing and combating violent extremism, supporting peacebuilding and stabilization efforts and encouraging the participation of women and youth in peace and security initiatives; and
• Democracy and gender equality: Promoting good governance, mobilizing national resources, fostering democratic development, and upholding human rights and gender equality.

On December 9, 2024, the UK and other European countries accounced they would suspend the process of asylum applications from Syrians after the fall of the Assad regime in Damascus.

A spokesperson from the UK Home Office issued a statement temporarily pausing decisions on Syrian asylum claims whilst he government undergoes an assessment of the current situation.

The decision was made only one day after rebel forces seized the capital and the president fled to Russia. The impact on IDRCs in the UK and other parts of Europe remain to be seen.

On December 3, 2024, South Africa announced that Norway will continue as a guest country during South Africa’s presidency of the G20.

Norway has served as a G20 guest country this year as well, following an invitation from Brazil. Norwegian Prime Minister Jonas Gahr Støre expressed gratitude, noting that South Africa’s invitation reflects significant trust in Norway’s contributions to the G20 process. This recognition underscores Norway’s global engagement and highlights the strong partnership between Norway and South Africa.

The two nations co-led the global ACT-A initiative during the COVID-19 pandemic, working to accelerate the development, production, and equitable distribution of vaccines. They have also partnered on issues such as gender equality, UN reforms for peace and reconciliation efforts.

On December 3, 2024, UK Permanent Representative to the UN Ambassador Barbara Woodward made a speech at the FfD4 Second Preparatory event, highlighting the need to focus on international financial architecture reforms, and foster a bigger, better, and fairer financial system.

The FfD4 outcome hopes to build upon the Addis Ababa Action Agenda’s focus on an enabling environment, particularly towards women’s economic empowerment.

It will focus on vulnerability and the countries at risk of being left behind in order to improve shock responsiveness and progress State Contingent Debt Clauses and Disaster Risk Financing.

BII also announced a US$30 million investment in InfraCredit, to promote local currency financing to support the clean energy transition.