Policy Updates

On July 2, 2025, the FfD4 in Seville, Spanish Foreign Minister José Manuel Albares urged all countries to meet the international target of allocating 0.7% of GDP to ODA, reaffirming Spain’s legal commitment to this benchmark.

Albares emphasized the need to mobilize both public and private finance, strengthen tax systems, and tackle illicit financial flows. He also underscored the importance of effective assistance delivery, localizing development finance, and reforming international tax cooperation.

Spain endorsed the Sevilla Commitment, which calls for improved debt sustainability, governance reforms in international financial institutions, and harnessing trade and technology to achieve the SDGs.

During side events, Albares highlighted Spain’s support for coordinated health financing, referencing its Global Health Action Initiative with WHO, Gavi, and the Global Fund. He concluded that fulfilling the Sevilla Commitment is essential to promoting inclusive and sustainable global development.

On June 30, 2025, Canadian Secretary of State Randeep Sarai announced Canada’s support for new blended finance initiatives totaling US$17 million at the Fourth International Conference on Financing for Development.

The pledge included:

• CAD10 million (US$7 million) for a blended finance accelerator to support gender-responsive investment in emerging markets;
• CAD5 million (US$4 million) to help developing countries improve domestic resource mobilization in the digital economy; and
• CAD2 million (US$1 million) to support SDG-aligned national financing strategies with the UNDP.

Canada also endorsed the Sevilla Platform for Action on private capital mobilization.

On June 27, 2025, the Swedish government adopted a new development cooperation strategy for gender equality and the freedom and empowerment of women and girls, with a total budget of SEK800 million (US$84 million) covering the period 2025–2028.

The strategy will be implemented by Sida and targets global, regional, and national levels, with a strong focus on local ownership and rights-based approaches.

The strategy outlines four primary objectives:

• Combat sexual and gender-based violence and challenge harmful norms;
• Promote women’s and girls’ economic empowerment and access to equal rights;
• Strengthen political participation and societal influence of women and girls; and
• Improve access to disaggregated data for gender-sensitive policy and programming.

Aligned with Sweden’s broader ODA priorities and global frameworks like the EU Gender Action Plan, the strategy emphasizes intersectional analysis, transparency, and collaboration with civil society and the private sector. It is designed to respond to growing global pushback against gender equality.

On May 26, 2025, Germany’s new CDU foreign minister Johann Wadephul has requested a comprehensive evaluation of the FFP, originally introduced in 2023, to shift focus towards traditional foreign policy priorities.

The article notes that the initial implementation of FFP was perceived as inconsistent by both supporters and critics. There has been no full evaluation of its impact, unlike in Sweden, where a formal review was conducted before the policy was ended. Key questions identified include which outcomes were achieved, what challenges arose, and which elements could be relevant for future policy, regardless of political leadership.

The AA continues to see underrepresentation of certain groups, including women, people of colour, and people with disabilities. Applications for diplomatic posts have also decreased, which is partly attributed to perceptions of outdated organizational structures.

Some countries, such as Mongolia, Colombia, and Panama, developed closer relations with Germany during this period. However, increased tensions with conservative groups were also observed, which mirrors findings from Sweden’s experience. Several departments within the AA have commissioned external reviews of FFP in their areas, but a comprehensive assessment at the ministry level is still pending.

On May 21, 2025, Spanish Foreign Minister José Manuel Albares met with Dominican Foreign Minister Roberto Álvarez in Madrid to discuss their strong bilateral relations and regional issues in Latin America, highlighting Spain’s 35-year cooperation with the Dominican Republic and over EUR125million (US$135 million) committed to development assistance focused on institutional strengthening, gender equality, and reducing inequalities.

Albares emphasized Spain’s commitment to strengthening economic and investment ties in the Dominican Republic. Discussions also included Spain’s support for Haiti’s stability through a EUR4 million (US$4 million) contribution to the Multinational Security Support Mission, advocating for its conversion into a UN peacekeeping operation.

The ministers reviewed upcoming international events in Spain, including the 4^th International Conference on Financing for Development in Seville and the 2026 Ibero-American Summit in Madrid.

On April 25, 2025, the German Development Minister Svenja Schulze stressed the need to strengthen multilateral cooperation to address climate change, conflict, and inequality at the World Bank Spring Meetings, reaffirming Germany's commitment to the World Bank's reform agenda, including increased focus on climate resilience, poverty reduction, and gender equality.

Schulze pledged continued German support for the IDA , and backed the ongoing reform to enhance its financial capacity through innovative tools such as hybrid capital and portfolio guarantees, emphasizing that global challenges require joint, reliable funding efforts.

She called for expanded partnerships between the World Bank, other multilateral development banks, and private sector actors to mobilize more resources for global development goals. Schulze also highlighted the need to integrate climate action and social protection into its core mission without losing focus on poverty reduction.

On March 28, 2025, the US administration announced plans to merge USAID into the State Department, dissolving it as an independent agency and reducing staffing to a statutory minimum of 15 positions, and additionally detailed specific cuts to USAID grants and multilateral funding.

Congress must pass new legislation to officially eliminate the agency. The State Department will create an Office of Global Food Security to manage food security and humanitarian programs previously handled by USAID. The remaining global health programs will be supervised by the Bureau of Global Health Security and Diplomacy. Other programs will be managed by regional bureaus within the State Department.

Deputy administrator of policy and programs at USAID Jeremy Lewin informed staff that employment contracts would be severed by July 1 or September 2, 2025. By July 1, 2025, the State Department will fully take over USAID’s remaining programming. By September 2, 2025, USAID’s operations will transfer to State or shut down completely.

The administration also provided Congress with documents listing 5,341 terminated USAID programs and 898 active ones, detailing that 86% of programs have been terminated, slightly more than the 83% cut reported on March 10, 2025. The total value of terminated programs is US$75.9 billion, with US$48.2 billion already obligated and US$27.7 billion yet to be assigned.

UN institutions and other multilaterals saw steep cuts, with terminated awards totaling US$4.1 billion to 14 UN agencies, the IBRD, and Gavi.

On December 17, 2024, the German political parties published their election programs ahead of the February 2025 elections, showing clear differences in their proposals for development cooperation and humanitarian assistance.

The two remaining parties of the governing coalition, the left-leaning SPD and the Greens, both embraced independent development cooperation, led by a strong, independent BMZ.

The center-right opposition party CDU/CSU, by contrast, proposed bringing development cooperation, led by the BMZ, and humanitarian assistance, led by the AA, together. The liberal FPD originally put forth the proposal to merge the BMZ and the AA.

The SPD and Greens emphasized Agenda 2030 and multilateralism as guiding principles and highlighted their continued commitment to 0.7% ODA/GNI. The Greens also proposed leveraging additional funding for climate goals. The CDU/CSU and FPD made no such commitments.

All parties, but the CDU/CSU in particular, stressed a shift to align development with German interests. The CDU/CSU noted its ambition to gear development towards migration management, with criteria intended to stem irregular migration flows. The party also sought to link development to geopolitical and security goals, as well as economic aims and the promotion of international trade.

The SPD and Greens noted their desire to maintain Germany's feminist foreign and development policy, and listed their commitments for global health, climate, and agriculture. The CDU/CSU and FPD did not specifically mention policy aims for health, climate and agriculture, but stated that they will focus on women's rights as part of development policy.

On December 17, 2024, Norway announced a new substantial humanitarian assistance package for Ukraine, allocating nearly NOK1 billion (US$91 million) to seven Norwegian humanitarian organizations.

This funding, distributed through the Nansen Program, will support the efforts of the Norwegian Red Cross, Norwegian Church Aid, Norwegian People's Aid, Caritas Norge, Save the Children, SOS Children's Villages, the refugee and civilian response force, and NORCAP.

These organizations, working closely with Ukrainian authorities and civil society, are providing critical assistance to vulnerable groups, including children, refugees, and internally displaced people. The funding will ensure access to essential services such as food, shelter, electricity, heating, clean water, sanitation, education, healthcare, psychosocial support, and protection against GBV.

On December 11, 2024, German Development Minister Svenja Schulze presented the 17 ^th Development Policy Report, which highlighted key priorities of German development policy under Schulze, including feminist development policy, global partnership and multilateral cooperation.

Schulze emphasized progress in integrating gender equality across development projects, stating that German development policy is more female-focused, multilateral and based on partnership than before. Accordingly, the report noted that the share of projects addressing gender equality increased from 66% in 2022 to over 91% in 2024.

The report also highlighted Germany's leadership in reforming the World Bank, including increasing its lending capacity, and aligning it with climate, and poverty reduction goals. Also outlined was the enhanced partnership approach with African countries through the German-Africa strategy and activities to establish vaccine and pharmaceutical production in Africa.