Policy Updates

On December 2, 2023, during the opening days of COP28, outgoing Dutch Prime Minister Rutte announced a commitment of EUR15 million (US$16 million) to help establish the Loss and Damage Fund.

The EUI pledged US$125 million, Germany and the UAE each pledged US$100 million, the UK pledged GBP60 million (US$78 million), the US pledged US$18 million, and Japan pledged US$10 million. The total funds surpass the US$400 million needed to initiate the establishment and operation of the Loss and Damage Fund.

Dutch NGO ActionAid Netherlands responded by commenting that while the pledge is a fair initial contribution to the fund, it is far from a "fair share" for the Netherlands when based on the country’s emissions levels.

On November 28, 2023, USAID announced an additional US$450 million in development funding for El Salvador, Guatemala, and Honduras as an additional investment in the US strategy to address regional root causes of migration.

The announcement brought total FY2022 US investment in Central America to over US$1 billion.

The strategy is aimed at providing local economic opportunities, promoting good governance, and reducing crime and violence for citizens of these three countries.

USAID has worked closely with US Vice President Kamala Harris on her Central America Forward initiative to improve economic opportunities through private sector engagement.

On November 16, 2023, US Vice President Kamala Harris launched the Women in the Sustainable Economy Initiative during an APEC leaders meeting, announcing more than US$163 million in funding as part of the program.

The program focused on women in industries with historically low women's participation. These industries include energy, waste recycling, conservation, and waste management. Harris announced an aim to increase women's economic security in these industries, support their land rights, and create the enabling conditions allowing women to thrive.

The initiative is a multi-stakeholder effort that includes support from governments, the private sector, philanthropies, civil society, and multilateral organizations.

On November 14, 2023, USAID, which had earlier stopped food assistance to Ethiopia following evidence of widespread assistance fraud and diversion, resumed the delivery of food assistance to the people of Ethiopia on a trial basis.

Restarting the flow of food assistance followed negotiations between the Ethiopian government and US partners to implement structural reforms strengthening oversight and monitoring of US nutritional assistance. USAID has committed to a one-year trial period in the resumption of assistance. The agency will undertake continuous evaluations of assistance flows to ensure it reaches intended beneficiaries.

On November 9, 2023, a new investigation by Devex and the Bureau of Investigative Journalism into USAID's global health supply contracts, which are some of the largest contracts the agency awards, heavily scrutinized USAID's new global supply chain initiative.

One of USAID's healthcare initiatives has been directed at solving and improving the global health supply chain. In 2013, USAID released a US$9.5 billion plan addressing all aspects of the health supply chain to ensure that lifesaving commodities reached those most in need. The stated goal was to ensure improvements in supply chains in LICs and eliminate the need for future supply chain funding. This initiative, however, has been plagued by serious issues, including delivery failures, personnel incompetence, misrepresentations, moving targets, corruption, and arrests. It was generally considered by experts and the international community to be a failure.

USAID is now set to award a new batch of global supply chain contracts, totaling US$17 billion, as a comprehensive reworking of the previous approach in a new initiative known as NextGen.

One contractor, Chemonics International, asserted that longstanding problems have been addressed, and that country supply chains have now been strengthened. However, a number of investigations, including that of Devex and the Bureau of Investigative Journalism, challenged those claims.

While NextGen will include different contracted partners, experts have criticized the fact that Chemonics International will likely receive additional contracts through USAID.

On November 9, 2023, USAID announced a contribution of US$5 million to the Complex Risk Analysis Fund, run by the UN and UNDP, to help deliver assistance in response to disasters and war.

The fund provides data and funding to organizations to enable better decision-making in the midst of crises. The contribution is part of a broader effort among a wide group of governments and communities to develop key data streams improving humanitarian responses.

The US is the largest contributor to this fund.

On November 6, 2023, US President Joe Biden announced that the US will provide an additional US$485 in humanitarian assistance to the Western Hemisphere, primarily to those affected by a regional crisis in Venezuela.

The pledge was made as part of the first Americas Partnership for Economic Prosperity Summit.

The assistance, provided through both USAID and the State Department, will include health services, nutrition, and WASH services, as well as protective services.

From October 29-30, 2023, South Korea, the US, and Japan hosted their first trilateral development and humanitarian assistance policy dialogue in Honolulu, Hawaii as a follow-up to the summit of the three countries‘ leaders in August 2023.

Director-General for Development Cooperation of the South Korean MOFA Do-yeon Won, assistant to USAID Administrator of the Bureau for Planning, Learning, and Resource Management Michele Sumilas, and Director-General of the Japanese MOFA Endo Kazuya attended the talk.

The three discussed methods to bolster coordination in development policy, including cooperation among implementation agencies and humanitarian assistance. They also reaffirmed the agreement reached at the Camp David Summit in August 2023. Also discussed was the possibility of expanding aid cooperation into new areas such as cybersecurity and artificial intelligence, as well as response to climate change. The dialogue was noted as an opportunity to continue building momentum for cooperation, especially in the Indo-Pacific region.

On October 31, 2023, the US White House released an updated US Strategy and National Action Plan on Women Peace, and Security as a response to what it cited as a swiftly changing geopolitical landscape, as well as recent climate and technology changes.

The strategy detailed five main pillars:

• Increasing women and girls' participation in civic leadership and political processes related to peace and security;
• Protecting women and girls from violence, including gender-based violence;
• Providing both policies and programs to support women and girls in conflicts and disasters;
• Better integrate women, peace, and security policies across US policies and programs; and
• Encourage partnerships that improve gender equality in peace and security decision-making.

On October 30, 2023, Australian Prime Minister Anthony Albanese and US President Joe Biden issued a joint statement on development cooperation following a state meeting in Washington DC, US.

The statement detailed a plan to cooperate on clean energy supply chains and seek advice on clean energy cooperation and industry development from both the public and private sector. It also included plans for the development of an Indo-Pacific Zero Transition Bond, to generate funding for SMEs focused on clean energy transition.

Albanese and Biden noted the assurance that the GCF, as well as other multilateral funding agencies' resources, will remain accessible to the vulnerable states most affected by climate change, particularly small island states.

The statement noted that the US and Australia would additionally assist in the financing of submarine cable connections for Pacific Island countries.

Both countries announced plans to assist ASEAN initiatives to develop sustainable and resilient agri-food systems, including through the strengthening of regional agricultural R&D.