A recent analysis reveals that the United States, the United Kingdom, Germany, Canada, and France are planning significant reductions to their foreign aid budgets in 2023. The cuts are likely to add fuel to the fire of the challenges some of the world’s most threatened populations already endure. The U.S. is going to come out on top with a whopping 56% reduction compared to two years ago. During all this, other countries are reducing their aid budgets.
The United Kingdom is on course to reduce its aid spending to 0.3% of its gross national income by 2027. If made permanent, this move would lower the budget to its least since 1999. This decision marks an essential 39% cut from the spending of 2023. Germany intends to reduce its international development budget by about a third (27%). Canada will be seeing a decrease of around 25%. France quickly follows with a 19% cut in its contributions to international aid.
These cuts are particularly harmful given that global needs are soaring. Unfortunately, the Trump administration took a giant axe to U.S. foreign aid through the U.S. Agency for International Development (USAID). As a result, a chasm has opened up in global aid budgets. Experts warn that this trend bodes ill for countries that are already suffering under the harshest burdens.
It’s Ethiopia that stands to lose the most aid in raw numbers. Jordan, as well as Afghanistan and the Democratic Republic of Congo are among other countries facing steep proposed cuts. The biggest winners by region are smaller countries such as Lesotho, Micronesia, and Eswatini, which will have their aid cut by about half. In particular, Yemen is facing an alarming 19% cut to its bilateral funding as compared to 2023. In stark contrast, Somalia is expected to experience an even greater cut, facing a staggering 39% decrease in aid.
In response to these alarming trends, Lee Crawfurd, an expert on foreign aid, stated, “A big, big chunk of overall cuts in the next couple of years are going to be from the US pulling out, rather than other countries. These other countries are making things worse.” From the United States’ perspective, he further noted that the reductions undercut global leadership on poverty alleviation and assistance towards developing nations.
Crawfurd further warned, “It’s setting fire to the bold ambitions to solve poverty and transform developing countries,” adding that “it’s some of the poorest, most fragile places in the world that are going to be hardest hit.” He even suggested a far better solution to absorb these impacts: raise more money for big multilateral funds. One prominent example would be the World Bank.
As United Nations Director Anja Nitzsche reminded participants, humanitarian aid is often the first line of defense across the globe. “Every year, the UN has been helping more than 100 million people in the world as they go through the worst time of their lives in wars and disasters,” she said. But she warned that with funding at barely half the level allotted in recent years, it’s not sustainable. “Let’s be clear: we won’t reach the level of funding in 2025 that we’ve seen in previous years.”
The cuts are having dire fiscal impacts right now. Vulnerable families across the impacted areas are being cut off from vital resources. Nitzsche pointed out that “vulnerable families are being left without food, clean water, healthcare, shelter or protection in places such as Sudan, Yemen, Ukraine, Myanmar and Afghanistan.”
Halima Begum, Chief Executive of the “cutting aid is the global norm.” “Cutting the already lean aid budget is a false economy and will only increase division and amounts to a betrayal of the world’s most vulnerable people,” she stated. This sentiment certainly resonates with many advocates who view these cuts as harmfully regressive, undermining all efforts at alleviating global inequality.
Even as of April 2023, under a quarter—just 11.9%—of the funds required for UN response plans have been funded. The absence of financing is an even bigger red flag. It subverts the will of the international community to respond effectively to crises and support those who require help the most.
