Policy Updates

On April 17-19, 2024, the G7's Ministers of Foreign Affairs met in Capri, Italy, and released a communiqué summarizing the intents and goals of Italy's G7 presidency.

A new meeting is planned in Fiuggi in autumn 2024. The G7 Minister of Development's meeting in Pescara is scheduled for the end of October. The Italian Minister of Foreign Affairs is committed to continually working on some of the most urgent international crises.

The G7 Ministers expressed concern about rising food insecurity and malnutrition stemming from the combined impact of climate change, loss, and degradation of ecosystems, the growing number of conflicts, inflationary pressures, and the reduced fiscal space in many developing economies.

The ministers also emphasized the importance of strengthening PPR and global health, as well as supporting LGBTQI+ rights and SRHR. The communiqué also reaffirmed the need for strengthened international financial institutions and underscore the role of MDBs in achieving the SDGs, including in crisis-affected contexts.

On April 19, 2024, the Netherlands pledged EUR68 million (US$74 million) towards World Bank hybrid capital, which is expected to expand the bank’s lending capacity by over US$550 million over the next ten years for global public goods investment.

Dutch Ministers of Finance and Foreign Trade and Development Cooperation Liesje Schreinemacher and Steven van Weyenberg announced the contribution to support low- and middle-income countries in financing the energy transition, biodiversity protection, and strengthening health systems to prevent future pandemics.

This commitment joins those of 10 other countries to boost the World Bank’s lending capacity, totaling US$11 billion and potentially providing up to US$70 billion in essential funds.

On April 19, 2024, the Japanese Finance Minister Shun’ichi Suzuki announced at the World Bank Spring Meeting that the government of Japan plans to establish a training center to enhance healthcare systems in developing countries, aiming to achieve UHC and ensure that everyone can access appropriate healthcare services at affordable costs.

This initiative follows the commitment made at the G7 Hiroshima Summit to achieve UHC by 2030. By collaborating with international organizations like the WHO and the World Bank, Japan intends to share its expertise and experiences in healthcare management and financing with officials from African and Southeast Asian countries.

The training center will provide programs focusing on Japan’s successful universal health insurance system and caregiving services, aiming to improve healthcare infrastructure and capacity in participating nations.

On April 18, 2024, two main agencies involved in delivering the bulk of US emergency food assistance, USAID and the USDA, announced that they will begin to tap into US$1 billion in the Commodity Credit Corporation to distributed agricultural commodities around the world.

USAID identified 18 countries where the US will begin to purchase, ship, and then distribute needed commodities bought from US farmers, including the DRC, Ethiopia, Haiti, South Sudan, and Yemen. The planned collaboration between the two agencies was announced in October 2023 and will allow USAID to receive purchased commodities from USDA and then distribute them through USAID's channels.

On April 18, 2024, during the World Bank Spring Meetings, Norway announced a NOK250 million (US$22 million) hybrid capital contribution to boost the World Bank’s IBRD.

Through the World Bank's model for mobilizing private capital on favorable terms, the Norwegian contribution will enable up to NOK2 billion (US$181 million) to tackle issues such as climate change, food insecurity, pandemics, and poverty. Hybrid capital is a financial innovation that allows World Bank shareholders, including Norway, to significantly expand the IBRD’s lending capacity through unilateral voluntary contributions of new funds at any time.

Norwegian Minister of International Development Anne Beathe Tvinnereim noted that at a time with significant and increased needs for development assistance and climate financing, there is a need to mobilize larger investments. For every Norwegian krone provided to the IBRD, the World Bank will be able to unlock eight times the amount in financing.

On April 17, 2024, the European Commission's Directorate-General for International Partnerships published the 6^th EU Aid for Trade Progress Report, finding that the bloc continues to be the largest provider of aid for trade at 42% of global 'aid for trade' in 2021.

At EUR18.6 billion (US$19.8 billion) EU 'aid for trade' decreased 26%, or EUR4.9 billion (US$5.2 billion), between 2020-2021, following downward trends among other donor organizations for the same year.

55% of spending in 2021 prioritized production capacity in partner countries, while trade-related infrastructure remained stable around 42% of funding. By region, 46% of spending supported partner countries in Africa, continuing an upward trend from 2014.

34% of EU 'aid for trade' in 2021 supported gender equality and WEE as a significant objective, but only 1% as a principal objective. 2021 volumes returned to just below pre-COVID-19 pandemic levels, at EUR6.6 billion (US$7 billion).

Agricultural 'aid for trade' has fluctuated since 2017. In 2021, support for agriculture decreased 37% from a high of EUR4.5 billion (US$4.8 billion) in 2020 and 23% from pre-pandemic levels.

The EU's climate-related 'aid for trade' decreased 15% in 2021 to EUR9.7 billion (US$10.3 billion), driven by decreases in funding for projects related to adaptation alone and both mitigation and adaptation. Funding for mitigation-related projects remained stable from 2019-2021.

On April 15 and 16, 2024, South Korea announced its plan to provide humanitarian assistance of US$12 million to Sudan and US$7 million to Ethiopia with in-kind rice at the International Humanitarian Conference for Sudan and Neighboring Countries and High-Level Pledging Event for the Humanitarian Situation in Ethiopia, respectively.

South Korea aims to help Sudan and neighboring countries to overcome the humanitarian crisis spurred by the armed conflict in the region.

The humanitarian assistance to Ethiopia, combined with 13,852 tons of rice in-kind, is aimed to help alleviate food shortages. In particular, South Korea’s Ministry of Agriculture, Food and Rural Affairs has been providing rice to countries in food crises every year through the WFP since its entry into the Food Assistance Convention in 2018.

On April 17, 2024, UK Shadow Foreign Minister. David Lammy outlined the Labour Party’s vision for UK foreign policy if it were to win the next national election in the autumn of 2024.

Lammy grounded the party's vision in progressive realism. He lamented how the Conservative governments since 2010 have turned the UK inwards, threatening its standards of upholdingupholding international law and damaging the UK’s reputation as a global development leadership. In particular, Lammy highlighted the Conservative Party's mismanagement of DFID and the FCO merger, ODA budget cuts, and the exodus of development expertise.

To deliver progressive realism, Lammy argued that the UK needs to be realistic about the state of the modern world. This would begin by recognizing that the previous common consensus that economic globalization would lead to more liberal democratic values was wrong. Democracies have become more dependent on authoritarian states, with the share of world trade between democracies declining from 74% in 1998 to 47% in 2022.

Lammy also pushed to recognize the rise of China's economic and military power, the decline of US hegemony, and the rise of key regional powers non-aligned with specific blocs, able to strike deals with all the great powers as and when they like. This group includes Brazil, India, Saudi Arabia, and the UAE, which are capable of ignoring the US, EU, and UK as they conduct business. He noted rising insecurity at the global level, with a strong focus on Russia and the ever-growing climate emergency as significant challenges.

Looking ahead, Lammy asserted that security will remain the central task of British foreign policy, and the two most important allies for ensuring security will be the US and Europe. He acknowledged that the UK must show willingness to share in the collective global security burden, but also noted the need to strengthen its foreign and security ties with Europe. Lammy called for a new geopolitical partnership with the EU driven by closer coordination in military, economic, climate, health, cyber, and energy security issues.

Beyond Europe, Lammy called for a focus on building relationships in the Indo-Pacific region, noting the need to maintain and strengthen ties with Australia, Japan, South Korea and India as pivotal partners. With regard to China, Lammy noted the UK must simultaneously challenge, compete against, and cooperate with China on the world stage.

On development, Lammy called for the UK to partner with the 'global south', particularly fostering engagement on tackling climate change, without which the global climate agenda will fail. He called for the Commonwealth to be revitalized as part of this engagement. As progressive realists, Lammy asserted that the UK needs to also look ahead at the future and how its relationship with other continents will change. He cited that by 2050, one in four people on the planet will live in Africa, yet the continent remains troubled by poverty, necessitating a new 'Africa strategy' beyond ODA to develop win-win partnerships based on mutual self-interest.

Beyond security, the Foreign Office will play its role in revitalizing the UK economy and trade through economic diplomacy. Lammy noted that if he becomes the next Foreign Minister, he will convene a new business advisory council to ensure that the needs of companies inform British diplomatic thinking.

Lammy finally called for putting climate diplomacy is at the center of UK foreign policy, noting that a Labour government would make advancing the fight against greenhouse gases central to its agenda. He advocated for the creation of a new clean power alliance, what he described as a reverse OPEC, of states committed to leading the way on decarbonizing power systems. A Labour government would also help reform international financial institutions to provide far greater support for climate adaptation.

On April 16, 2024, the Spanish cabinet approved a new voluntary contribution of EUR2 million (US$2 million) to the Organization of American States, aimed at strengthening human rights and democratic institutions in the Latin America and the Caribbean region.

Director of AECID Antón Leis made the announcement during a visit to the organization's headquarters in Washington DC. Leis underlined the importance of the partnership between Spain and the Organization of American States, particularly with regards to the AECID’s Programa Democracia, which is focused on improving political representation, protecting human rights, and fostering political and social dialogue in partner countries.

AECID's contribution was EUR 2 million (US$2 million) in 2023.

On April 17, 2024, UK Deputy Foreign Minister Andrew Mitchell announced at the World Bank and IMF Spring Meetings in Washington DC that the UK would provide GBP100 million (US$119 million) to the Bank’s IBRD lending arm as a hybrid capital contribution.

The funding will unlock GBP1 billion (US$1.2 billion) of additional World Bank support over the next 10 years to help countries tackle pressing development challenges.

The funding will take the form of debt. Equity is part of the UK’s commitment in its White Paper on International Development to help t:abbrMDBs stretch existing capital and implement reforms to make it easier for low-income countries to access the finance they need.