Policy Updates

The Donor Tracker team regularly brings you the most important policy and funding news across issue areas in the form of Policy Updates.

UK's new strategic framework for ODA will only focus on countries where UK development, security and economic interests "align"

November 25, 2020 | UK, Agriculture, Climate, Gender Equality, Education, Global Health, Global Health R&D | Share this update

The UK’s Foreign Minister, Dominic Raab, announced that the UK will be putting in place a new strategic framework for guiding its official development assistance (ODA). The announcement came in a letter Raab wrote to the Chair of the UK parliamentary International Development Select Committee, Sarah Champion, on November 25, 2020. No date was given for the actual publication of the full strategy.

The UK’s new ODA strategy will focus "only on countries where the UK's development, security and economic interests align", such as those in sub-Saharan Africa and the Indo-Pacific region, according to Raab's letter. No specific priority countries were identified. Raab also highlighted seven key global challenges that the new strategy will focus on:

  1. Climate change and biodiversity: The new strategy will focus on research and development and supporting low-income countries' adaptation and mitigation plans. Raab confirmed that the new strategy will also maintain the government’s commitment to providing at least £11.6 billion (US$15.1 billion) of the ODA budget between 2021- 2025 for climate change via the International Climate Fund.
  2. COVID-19 and global health security: This includes continued support to multilateral initiatives and organizations (such as the World Health Organization and Gavi, the Vaccine Alliance) as well as support to fragile health systems in low-income countries.
  3. Girls' education: The strategy will work towards ensuring that the UK contributes to the global commitment to get 40 million girls into education and 20 million more girls reading by age of ten.
  4. Science, research, and technology: The new strategy will continue to ensure that ODA for research and development remains a priority with focus areas including health, education, resilience, low-carbon technologies, agriculture and economic development, and conflict and poverty.
  5. Open societies and conflict resolution: The new strategy will focus on using UK ODA to strengthen democratic institutions, human rights, free media, and effective governance. While governance has been a long-standing priority for UK ODA, the focus on free media and human rights has gained greater traction recently, given Raab’s stated interest due to being a former human rights lawyer.
  6. Trade and economic development: UK ODA will focus on forging trade and investment partners for the future via its ODA in a far more explicit link of UK trade priorities with development efforts. The focus will be on supporting an improved trade and investment environment in low-income countries, infrastructure, and widening access to finance with support from the UK Export Finance (a UK government export credit agency and ministerial department) and the CDC Group (the UK’s development finance institute).
  7. Humanitarian preparedness and response: The strategy will focus on leading a stronger collective response to crises and famine and continuing the UK’s efforts at multilateral reform in this area. The strategy will also maintain the Foreign, Commonwealth and Development Office's (FCDO) crisis reserve.

Raab confirmed in the letter that the UK will continue to provide core investments to the multilateral development banks in the future, but these will be based on new strategic objectives. He noted that the UK will retain its place as the largest donor to the World Bank and a major donor to the World Health Organization.

Finally, Raab outlined three ways he is keen to improve the quality and impact of UK ODA spending:

  • Putting in place a new management approach for assessing assistance projects: Bilateral programs will also be the default option due to their advantages of effectiveness, local ownership, and strategic impact (exceptions for global research, core multilateral activity, and policy-influencing work), with most of the centrally-managed programs to be instead managed at regional or country level. Failing or underperforming projects will be closed.
  • Strengthening FCDO oversight of the assistance budget: The FCDO will be responsible for oversight of the majority of ODA, including that delivered by other governments. This is a change from the former Department for International Development (DFID), which did not have oversight powers over ODA delivered by other departments.
  • Reforming rules of contractors: Spending limits that forced the DFID to outsource to expensive consultants will be removed, and instead, the FCDO will work to build greater in-house project management expertise.

Letter - FCDO

Press release - FCDO

News article - Devex

Letter - FCDOPress release - FCDONews article - Devex

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Canada commits US$1.4 billion to Ukraine at G7 Summit

June 17, 2025 | Canada | Share this update

On June 17, 2025, Canadian Prime Minister Mark Carney announced a CAD2 billion (US$1.4 billion) assistance package to support Ukraine’s defense and reconstruction during the closing of the 2025 G7 Summit in Quebec.

The funding was positioned as a signal of Canada’s continued leadership and commitment to Ukraine amidst ongoing Russian aggression. While broader G7 unity appeared strained—with key figures like US President Donald Trump and Ukrainian President Volodymyr Zelenskyy leaving early—Canada used the platform to reinforce its role as a reliable ally.

News article - CBC News

Sweden adopts new humanitarian assistance strategy for 2025–2029

June 13, 2025 | Sweden | Share this update

On June 13, 2025, the Swedish Government adopted a new humanitarian assistance strategy for 2025–2029, implemented by Sida.

The key priorities include:

  • Delivering life-saving assistance and alleviating suffering;
  • Ensuring cost-effectiveness, transformative approaches, and innovation;
  • Encouraging partnerships with civil society and local actors for fast, targeted response; and
  • Strengthening respect for humanitarian principles, international humanitarian law, and access.

Swedish Development Minister Benjamin Dousa stated that Sweden aims to protect the most vulnerable with life-saving initiatives amid growing global crises. The strategy reflects a commitment to principled, impactful, and locally anchored humanitarian assistance.

Press release - Swedish Government

Japan grants US$20 million to boost Sierra Leone’s power distribution

June 13, 2025 | Japan | Share this update

On June 13, 2025, Japan signed a grant agreement with Sierra Leone providing US$20 million to expand electricity distribution infrastructure funding new substations, power lines, and transformers across the Western Area, aiming to improve access and reliability in underserved coastal communities.

The support, delivered through Japan’s Grant Aid program, builds on earlier energy collaboration and aligns with Sierra Leone’s goal of universal energy access.

News article - Premier Group Media

Experts urge Japan to lead Asia-Pacific HIV response amid US funding cuts

June 13, 2025 | | Share this update

On June 13, 2025, advocates and health experts called on Japan to take a leadership role in the Asia-Pacific at a Tokyo press conference amid declining US contributions to the global HIV response, emphasizing the urgency of sustained funding to prevent setbacks in HIV prevention and treatment.

Advocates urged Japan to increase financial support and political commitment, particularly ahead of the Global Fund’s 8th replenishment. With regional HIV risks rising, Japan’s engagement is seen as critical to maintaining progress and ensuring equitable access to services.

News article - UCA News

Germany commits US$10.4 billion to Ukraine in 2025

June 12, 2025 | Germany | Share this update

On June 12, 2025, German Defense Minister Boris Pistorius announced a EUR9 billion (US$10.4 billion) support package for Ukraine, making Germany the second-largest donor after the US.

The package includes EUR1.9 billion (US$1.4 billion) for joint defense production, with plans to manufacture long-range weapons in Ukraine.

This pledge builds on Germany’s total EUR48 billion (US$52 billion) in Ukraine assistance since 2022, of which EUR15.6 billion (US$18 billion) was military assistance. The pledge reflects Germany’s strategic shift toward long-term industrial partnerships and enhanced defense capabilities. The announcement signals Germany’s intent to lead European security efforts and bolster Ukraine’s resilience amid ongoing Russian aggression.

News article - Defense News

Italy provides US$15 million to strengthen Moldova’s energy and social support

June 12, 2025 | Italy | Share this update

On June 12, 2025, Italy pledged EUR14 million (US$15 million) through UNDP to enhance Moldova’s social protection systems and energy resilience.

The funds will support energy compensation for vulnerable households, modernize social service delivery infrastructure, and advance energy efficiency and digital transformation. This assistance builds on Italy’s ongoing support for Moldova’s European integration and aligns with national priorities for inclusive development.

News article - UNDP

Canada advances global–domestic health integration in new policy framework

June 11, 2025 | Canada, Global Health, Global Health R&D | Share this update

On June 11, 2025, Canada announced a renewed commitment to aligning global health policy with domestic priorities, with the updated framework emphasizing the implementation of Indigenous health equity through the Truth and Reconciliation Commission’s Calls to Action, enhancing long-term global health funding, and supporting coordinated intergovernmental collaboration.

Key measures include strengthening ethical, interdisciplinary health education, aligning trade and recruitment policies with global health goals, and investing in multilateral institutions. The government will issue annual progress reports to ensure transparency and accountability.

Report - National Library of Medicine

US plans terminations of all USAID overseas positions

June 10, 2025 | US | Share this update

On June 10, 2025, US Secretary of State Marco Rubio ordered all USAID overseas positions to be abolished by September 30, 2025, with control of foreign assistance programs being transferred directly to the US State Department.

The directive impacts hundreds of USAID staff globally, including foreign service officers, contractors, and local employees in over 100 countries. The State Department will take over foreign assistance programming from USAID starting June 15, 2025.

News article - The Guardian

World Bank publishes updated economics report, projects slowdown in 2025

June 10, 2025 | US | Share this update

On June 10, 2025, the World Bank released an Economic Prospects Report that projected that the global economy will slow significantly in 2025, largely due to US trade policies that disrupted international commerce and heightened global uncertainty.

The report projected that global growth will fall to 2.3% in 2025, down from 2.8% in 2024 and below the 2.7% initially forecast in January 2025. While a recession is not expected, ongoing trade tensions are contributing to what may be the weakest decade of growth since the 1960s, with economic development stagnating in many of the world’s poorest regions.

Growth in emerging markets is set to outpace that of HICs, but many low-and middle-income countries are still struggling to recover from pandemic-related losses. Slower growth will hinder countries’ ability to create jobs, reduce extreme poverty, and narrow income gaps with HICs. The World Bank suggested that halving global tariffs and mitigating trade tensions could boost growth by 0.2% by 2027 and encouraged low-and middle-income countries to lower trade barriers to stimulate their economies.

Chief Economist of the World Bank Indermit Gill cautioned in the report that without swift course correction, living standards around the world could face severe blows. The report highlighted that global cooperation is essential to support the most vulnerable developing economies through multilateral action, concessional finance, and emergency assistance for conflict-affected countries.

Press release - World Bank

Minderoo Foundation pledges US$7 million for marine protection

June 9, 2025 | Australia, Climate | Share this update

On June 9, 2025, Minderoo Foundation announced a pledge of AUD10 million (US$7 million) to support the development of MPAs in high-seas regions of Australia and the Pacific, starting with the Lord Howe Rise–South Tasman Sea area, which features deep-sea ecosystems including coral, seamounts, whales, and sharks.

The funding will support scientific assessments, stakeholder engagement, and MPA design in alignment with international frameworks such as the UN High Seas Treaty and the global 30x30 biodiversity target. The initiative aims to address pressures from industrial activities and to contribute to marine conservation planning in areas beyond national jurisdiction.

Incorporating a gender equity and human rights approach, the program emphasizes transparent governance, inclusive decision-making, and collaboration with governments and other partners. Minderoo’s contribution complements existing philanthropic and public funding and seeks to encourage broader support for high-seas conservation efforts.

This initiative is part of a broader strategy to inform policy and contribute to long-term ocean sustainability in the region.

Press release - Minderoo Foundation

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