E-Paper
Global aid in peril: Devastating cuts and paths forward
This article is authored by Sriparna Pathak, professor, OP Jindal Global University, Sonipat.
While crises across the world rage on, the capacity to stabilise them and seek solutions, get further reduced as countries across the globe become more inward-looking. The United Nations (UN), among a long list of other international organisations has a key role in seeking solutions to conflicts and in attempting the creation of a fairer world order. However, the UN’s 2025 Global Humanitarian View projects a significant drop in aid funding, which equates up to $ 60 billion annually, amidst rising crises like conflicts in Ukraine and in Sudan to name just two, along with climate change induced disasters. Roughly 300 million from across the globe rely on aid.
The inward-looking policies of countries in the current epoch of history are exemplified by the Trump administration’s 2025 rescission package, which will eliminate more than $ 8 billion in investments, that are critical to global health, stability and democracy, while the administration increases spending in arenas that seek to bring benefits to the American citizens. The roughly $ 8 billion supported US responses to conflict, hunger, disease and democratic decline--all of which so far have been core tools for the advancement of American interests and in maintaining global stability. In 13 crisis hot countries, like Syria and Yemen, aid reductions have worsened hunger and disease, with US cuts alone clawing back significant amounts in development aid. The US is not alone in the reduction in aid spending. In the case of the UK, aid spending dropped to 0.5% of gross national income in 2024-25, and 2025-26, from 0.58% in 2023, with no additional funding for refugee costs in 2025. In the case of France, overseas direct assistance decreased by 13% to $ 15 billion in 2023, and further cuts of €742 million in 2024 and nearly €2 billion in 2025 were announced. The European Union (EU) reallocated €2 billion from the “Global Europe” development fund in 2024, to migration and refugee crisis initiatives, and multiple member states like the Netherlands and Sweden for examples have also announced domestic spending cuts, impacting overseas direct assistance. If current projections hold, 2025 could mark the steepest decline in assistance in decades.
The oddity here is that while western countries, which have been important and founding members of the Bretton Woods systems and the established-rules based international order, are now withdrawing from their roles. A closer analysis of Trump’s overall policies reveals that in his attempt to Make America Great Again, he believes that the focus first should be on domestic politics, leading the U.S. to withdraw from its role as the stabilising role that the hegemon of the system has. The current Trump administration’s policies actually reveal a narrow focus on US interests alone, and neo-realistic presumptions. However, a retreat from the stabilising role that the hegemon has, only creates space for the contending power for the role of the hegemon, which in this case is China. Trump through his myriad pronouncements and social media posturing of US foreign policy has shown a desire to counter increasing Chinese influence. However, what is seen through his actions on aid provision, actually creates a bigger space for China to increase its influence.
In 2020, China pledged $ 100 million to the UN humanitarian system, which is a network of the UN agencies, funds and programs that coordinate and deliver humanitarian assistance globally, for addressing crises such as natural disasters, and food insecurity. What China pledged in 2020 was a record at that time. However, most of its aid remains bilateral, and China ranks high in the in-kind aid like the ones seen in provision of supplies to the World Food Programme. But these are low in cash, and it is not among the top donors for UNICEF or UNDP core funds. China’s humanitarian spending is roughly about $ 1.5 billion annually, in grants only, but much of it is bilateral and not UN-routed.
The US still remains the largest overall contributor to the UN system, providing about 22% of the regular budget and 25% of peacekeeping, along with large voluntary donations to humanitarian arms. China’s share has grown, nevertheless, and recent US aid cuts create more gaps which China could seek to fill. Another emerging donor is India. While nowhere close to the US’s spending, India provides significant aid contributions to the UN system as well as broader foreign development assistance to other countries and multilateral organisations, as it transitioned from being an aid recipient in 1945 to a prominent donor, emphasising South-South cooperation and sustainable development.
While the US and western countries reassess their roles, recipient countries and regions relying on aid will face severe headwinds. Till a re-stabilisation of the world order does not take place, reliant countries could seek to approach other countries and individual donors. While deficiencies are to be expected, even short term and stop-gap fills of aid requirement need to be attempted by reaching out to alternatives irrespective of how small the contributions could be. What could also be envisaged is approaching private capital through public-private partnerships (PPPs) for renewable energy, infrastructure or agriculture, and one example in this context is of Kenya’s which has leverages PPPs for geothermal energy projects, reducing reliance on aid. Domestic resource mobilisation, natural resources management, prioritising high impact investments and improvement of governance could also help in the long run. Desperate times call for desperate measures, and the reconfiguration of the world order, and the reduction in aid are such desperate times, in which countries and actors need to prepare strategies and all hands need to be on deck.
This article is authored by Sriparna Pathak, professor, China Studies and International Relations, Jindal School of International Affairs, OP Jindal Global University, Sonipat.
