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Each week, Donor Tracker's team of country-based experts bring you the most important policy and funding news across issue areas in the form of Policy Updates.
April 2, 2024 | Germany | Share this update
On April 2, 2024, proposed cuts to the German BMZ's budget by Finance Minister Christian Lindner prompted debate and resistance from Development Minister Svenja Schulze, highlighting differing perspectives on global development assistance commitments.
The outcome of these negotiations holds significant implications for Germany's stance on international development amid fiscal challenges and coalition tensions. Lindner outlined stringent austerity measures for the upcoming year, particularly targeting the BMZ. Recent leaked directives from Lindner's office to the BMZ revealed a budget ceiling of EUR9.9 billion (US$10.7 billion), significantly lower than the previously anticipated allocation of EUR10.3 billion (US$11.2 billion) for 2025. The drastic reduction follows a trend of diminishing budgets for German development assistance, with allocations dropping from EUR12.16 billion (US$11.6 billion) in 2023 to EUR11.2 billion (US$12.1 billion) in the current year.
The proposed cuts sparked outrage within BMZ and among humanitarian organizations, raising concerns about Germany's commitment to global development. The austerity measures also risk violating the coalition agreement, which stipulates at least 0.7% ODA/GNI. Lindner's directives cast doubt on the German government's ability to meet this target.
Schulze vehemently opposed the proposed cuts, emphasizing Germany's moral obligation to address global challenges. She asserted that neglecting ODA could have severe repercussions, not only ethically but also economically, especially for a nation reliant on international trade. Schulze is expected to challenge the imposed budget ceiling, setting the stage for potential conflict within the coalition government.
As the deadline for budget submissions approaches on April 19, 2024, tensions are mounting within the governing coalition ( SPD, FDP, and the Greens). The Finance Ministry's rigid stance on budget constraints threatens to exacerbate existing discord, with potential repercussions for the government's fiscal policies. The outcome of these negotiations will be critical, as the cabinet aims to finalize the budget proposal by July 3, 2024.
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September 30, 2024 | Japan | Share this update
On September 30, 2024, JICA submitted its budget request for the 2025 fiscal year, aligned with its vision of Leading the World with Trust and focusing on human security and quality growth.
The budget proposal, based on Japan’s 2024 economic and fiscal policies, includes key priorities such as upholding a free and open international order, advancing international cooperation, promoting economic diplomacy, and enhancing efforts in the information age.
A total of JPY152.1 billion (US$1.1 billion) was requested for JICA operating and facility costs, an increase of JPY4 billion (US$28 million) from the previous year. This includes JPY150.5 billion (US$1 billion) for operating expenses and JPY1.7 billion (US$12 million) for facility maintenance.
JICA also requested JPY2.31 trillion (US$16.1 billion) for loan assistance projects, up by JPY300 billion (US$2.1 billion), to focus on supporting quality growth in low- and middle-income countries and addressing global challenges related to the 2030 Agenda and UN SDGs.
September 23, 2024 | US, Italy | Share this update
On September 23, 2024, on the margins of the UNGA, it was announced that Italian Prime Minister Giorgia Meloni will receive the Atlantic Council Global Citizen Award.
The Atlantic Council Global Citizen Awards is the premier forum for world leaders, diplomats, the C-Suite, and the philanthropic, social, and entertainment communities to celebrate the highest expression of global citizenship. Former Italian Prime Minister Mario Draghi, who received the award in 2015, is the only Italian prime minister to have recently received the award.
Meloni will be introduced by Chief Engineer at SpaceX and CEO of Tesla Elon Musk.
September 10, 2024 | EUI | Share this update
On September 10, 2024, the EU Commissioner for Crisis Management Janez Lenarčič announced that the EC is mobilizing additional EUR40 million (US$44 million) in support to Ukraine to prepare for the cold winter months.
The support will go to repair damaged infrastructure, ensure electricity and heating and provide shelter to those in need.
Out of this, EUR35 million (US$39 million) will be spent on humanitarian projects in Ukraine and EUR5 million (US$6 million) on supporting Ukrainian refugees and their host communities in Moldova.
September 10, 2024 | EUI, Global Health R&D | Share this update
On September 10, 2024, former Italian Prime Minister Mario Draghi released a report commissioned by EC President Ursula von der Leyen in 2023, which highlighted that the EU is losing economic ground, lagging in the green and digital transition, and facing vulnerabilities in defense and raw materials.
To address these challenges, nearly 200 recommendations were made to shape the priorities of the next EC. While the report placed a high value on partnerships, it emphasized aligning international cooperation with the EU’s strategic interests, particularly in securing resources like raw materials and advancing the EU’s industrial and trade objectives.
The report also called for Europe to mobilize EUR750-EUR800 billion (US$831-US$886 billion) annually to stay competitive with the US and China. Draghi suggested focusing EU funding on high-impact projects, reducing programs, and increasing flexibility.
Experts noted that the report is likely to influence the upcoming long-term budget and external action. Avenues for change include a more transactional approach to development assistance, as well as an expansion of Global Gateway to support the diversification of supply chains, advance the EU’s and European industry’s strategic interests, and support infrastructure investment worldwide.
Draghi highlighted R&D and innovation as central to advancing the EU’s competitiveness. The report called for a doubling of the research budget, which might benefit GHRD, although through the lens of improving competitiveness and addressing domestic societal challenges.
September 10, 2024 | EUI, Canada, Global Health | Share this update
On September 10, 2024, the EC and Canada launched the EU-Canada Health Policy Dialogue, reinforcing their commitment under their Strategic Partnership Agreement to collaborate on AMR, health security, and NCDs.
The dialogue aims to share knowledge, scientific evidence, and best practices to advance people’s health.
Key priorities included:
September 10, 2024 | EUI, France, Spain, Austria, Germany, Luxembourg, Global Health | Share this update
On September 10, 2024, the European Commission’s HERA facilitated the delivery of nearly 100,000 mpox vaccine doses to the DRC, marking the first shipment of its kind to the country.
An additional 100,000 doses are expected soon, contributing to the total of 215,000 vaccines pledged to combat the mpox outbreak in Africa. Team Europe will donate a total of 566,500 mpox vaccine doses to affected African countries, with contributions from France, Germany, Spain, Malta, Portugal, Luxembourg, Croatia, Austria, and Poland.
The EC also released EUR1 million (US$1 million) in humanitarian assistance to support care, prevention, epidemiological surveillance, risk communication and distribution of kits in the DRC.
September 6, 2024 | UK, Agriculture, Agricultural R&D, Climate, Nutritious Food Systems | Share this update
On September 5, 2024, UK Minister for Africa Lord Ray Collins announced that the UK would be making a GBP25 million (US$30 million) investment in the African agri-sector to boost production and strengthen food security in the face of climate threats.
The minister announced the funding during his keynote speech at the AFSF in Rwanda. The funding will be allocated to AgDevCo, a UK-based African agribusiness investor. The funds will go towards its new US$50 million facility called AgDevCo Ventures. The new facility will focus on supporting small African agricultural enterprises, emphasizing African-owned and managed businesses.
The funding is expected to result in an increase in income of GBP128 million (US$153 million) for recipients by 2036.
September 5, 2024 | UK, Climate, Education | Share this update
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:
September 5, 2024 | South Korea, Global Health R&D, Global Health | Share this update
On September 5, 2024, South Korean Deputy Minister for Multilateral and Global Affairs Ki-hwan Kwon met CEO of Gavi Dr. Sania Nishta to discuss ways to strengthen cooperation between the South Korean government and the organization.
Kwon recognized the active participation of South Korean companies in the international health procurement market through Gavi, accounting for 11% of Gavi’s total vaccine procurement last year. Dr. Nishtar expressed her hope to expand collaboration with the South Korean government and companies in the implementation of the next Gavi 6.0 Strategy, which will run from 2026-2030.
The BMGF and the Open Philanthropy Foundation hosted a luncheon seminar on South Korea’s contributions to global multilateral health cooperation with Dr. Nishtar. Dr. Nishtar introduced Gavi’s work to officials from the government, industry, and international organizations working in the country and called for a social consensus on funding.
September 5, 2024 | US | Share this update
On September 5, 2024, USAID Administrator Samantha Power introduced a long-awaited policy on locally led humanitarian assistance which speaks to the challenges of trying to work directly with local partners in providing humanitarian assistance.
The policy outlined five objectives:
Although the US, as with other Grand Bargain signatories, had pledged to provide 25% of its funding directly to local actors, Power stated that the challenges of humanitarian assistance has meant that the US has only provided 1% and 2% in 2022 and 2023, respectively. The goal remains to reach 25% of direct funding by 2025 and to have 50% of local activities be led by local actors by 2030.
US$ amounts are cited directly from sources; in the absence of an official conversion, they are calculated using the previous week's average of the US Federal Reserve's daily exchange rates.
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