Policy Updates

On December 17, 2024, the global campaign for assistance and development transparency, Publish What You Fund, released the report Commitments Without Accountability, which compares leading donors' commitments to locally led development, enabling effictive tracking and reporting on implementation.

The study focused on the extent to which donors had increased direct funding to local organizations. Of the five donors, including the Australian Department of Foreign Affairs and Trade, USAID, GAC, the Netherlands' Ministry of Foreign Affairs, and the UK’s FCDO, only USAID had the strategies, policies, comprehensive targets, and measurable public data to track its direct funding target.

The analysis created a Local Funding Matrix which looked at definitions, measurement, strategy, and policy to compare these 5 OECD DAC donors. Only USAID fulfilled all of the criteria; Australia has progressed in developing strategies, policies, and establishing a definition of local.

This work builds on Publish What You Fund's Metrics Matter series which tracked USAID 's progress towards its own 25% target by 2025, of which USAID is currently off track to meet. A third Metrics Matter report will be released in the spring of 2025, which will include all 5 donors.

On December 12, 2024, USAID announced an additional US$29 million in support for Somalia to support resilience and food security in Somalia, where 7 million people require assistance due to natural disasters, disease, insecurity, and poverty.

The funding is part of two 5-year programs aiming to assist 880,000 vulnerable households in South Central Somalia. USAID is partnering with World Vision and Save the Children to provide services including health, WASH, and nutrition, while also strengthening households' ability to cope with future challenges."

On December 10, 2024, the US signed a guarantee for a US$20 billion loan for support to Ukraine through the World Bank's F.O.R.T.I.S. Ukraine FIF.

The loan aims to address Ukraine's financing needs caused by the Russian invasion, with repayment sourced from revenues generated by frozen Russian sovereign assets held by the EU.

The World Bank serves as the fund's trustee and administrator, with contributions from Canada, Japan, and the US.

On December 3, 2024, USAID and NASA announced the expansion of its SERVIR program to include a new hub in Central America.

The hub works at the local, national, and regional level to allow evidenced-based decision making to address issues such as deforestation, soil erosion, and degradation of coastal ecosystems. The hub works with a range of institutions, governments, and communities providing opportunities to young people and others to use tools in STEM. The hub will expand satellite data and geospacial technologies to better equip the region in addressing environmental challenges with an initial investment of US$7 million.

SERVIR hubs are already operating in Africa, Asia, and Latin America.

On December 3, 2023, US President Joe Biden pledged US$1 billion in assistance to address food insecurity and other needs of internally displaced persons and refugees across 31 countries in sub-Saharan Africa during his trip to Angola.

This announcement is part of Biden's 2022 commitment at the US-African Leaders Summit to help communities tackle food insecurity in sub-Saharan Africa.

The assistance, along with previous commitments by the US, offers a range of services, including emergency assistance, health, WASH, education, and shelter. This additional assistance brings the total humanitarian assistance in FY2024 to nearly US$6.6 billion.

During the same visit, Biden announced that USAID is elevating its presence in Angola to a USAID mission.

On November 22, 2024, USAID announced a number of new commitments and a progress report on its climate work at COP29.

USAID announced a pledge of US$54 million for blended finance partnerships to provide catalytic investments for climate finance vehicles and investment funds in coastal and marine natural capital. The blended finance package also included US$28 million for Columbia Invest for Climate and US$6 million for a green partnership in Southeast Asia. Further investments supported climate-resilience and reduced emissions in agriculture and food systems in Africa.

USAID added to the investments in the US president’s Emergency Plan for Adaptation and Resilience, investing a total of US$83 million for early warning systems in 30 countries..

Other investments included:

• US$12 million for the Climate Smart and Disaster Ready program in regions across the globe;
• More support for green energy transitions in Asia;
• A joint USAID and NASA investment in Central America to help manage and prepare for climate risks;
• A contribution from Power Africa of US$410 million to the GVCA funding window; and
• An US$11 million commitment from USAID to champion women decision-makers in responding to climate crises.

On November 21, 2024, the Lowy Institute published the annual Pacific Aid Map which confirmed Australia remains the largest donor to the Pacific region.

The 2024 Pacific Aid Map provided complete data from 2008-2022, the second major donor in the Pacific region is China, which overtook the US. Other Western donors reduced their ODA to the Pacific region largely due to overarching budget constraints and redirected funding to Ukraine.

In 2022, Australia provided AUD2.2 billion (US$1.5 billion) whilst China provided US$256 million. The publication indicated that China has continued to revise its approach, including shifting towards grants and away from lending programs.

In general, loans to the Pacific region have increased from 12% in 2009 to 40% in 2022, driven largely by an increased focus on infrastructure in the region.

On November 18, 2024, US President Joe Biden made a pledge of US$4 billion to the World Bank's IDA 21^st replenishment.

The World Bank is seeking a total of US$120 billion, an amount that would require significantly higher contributions by many countries.

The pledge was made during a G20 closed-door session in Brazil, and is a significant jump from the US' previous pledge of US$3.5 billion. However, a vote on the appropriation for the pledge will likely not happen until President-elect Donald Trump takes office. He has promised to cut federal spending, including US ODA.

On November 14, 2024,development experts speculated on the direction that US global development policy will take under his President-elect Donald Trump's administration.

Trump has selected US Senator Marco Rubio to be his next Secretary of State. Rubio has traditionally supported global engagement but draws a sharp connecting line to protecting US national interests. However, development experts pointed to Rubio's general support of ODA and his interest in transparency.

Trump announced his intent to nominate Elise Stefanik, a member of the US House of Representives, as the next UN ambassdor. Stefanik, a loyal Trump supporter and a sharp critic of the UN, is now declining to address her previous support for Ukraine and its bid to join NATO. During her tenure in the House, she has called for funding cuts to the UN. Overall, she has little diplomatic experience but is expected to follow Trump's policies closely.

Other significant nominations to be confirmed are the Administrator to USAID and the CEO of DFC.

On November 14, 2024, USAID announced a series of investments totaling US$54 million with the private sector to mobilize climate finance at COP29.

Building on previous successes which mobilized US$30 billion for climate finance to address development since 2021, USAID announced US$9 million for USAID's EDGE Fund, all for different investments in climate funds.

USAID will also invest US$28 million for the Columbia Invest for Climate activity and an additional US$6 million to the Partnership for Green Investments in Southeast Asia.