Site icon

Wealthy Nations Slashed Development Aid in 2025 for Second Year in Row, Debt Group Says

JOHANNESBURG, April 8 (Retuers) – Wealthy nations slashed ⁠their ⁠development aid in 2025, probably ⁠by record-breaking amounts, a debt group said, ahead of data set ​to be released on Thursday by the Paris-based Organisation for Economic Cooperation and Development.

The deep cuts, for ‌a second consecutive year, are ‌expected to reduce the total amount of official development aid globally to around $170-$190 billion – levels ⁠last seen ⁠during the COVID pandemic in 2020-21, the European Network on Debt ​and Development (Eurodad) said at a briefing on Wednesday.

Those estimates compare with total official development aid of $223.7 billion in 2023 and $212.1 billion in 2024.

The decline contrasts sharply with defence spending, which stood at $1.4 trillion in ​2025 across the 32 member states of the NATO military alliance, which comprises the ⁠United ⁠States, most European nations and ⁠Canada.

The closure ​of the U.S. Agency for International Development last year and a drop in allocations from ​other developed countries have ⁠already hit developing economies, especially in Africa.

“The least developed countries and sub-Saharan Africa are expected to face disproportionate impacts, with official development assistance cuts ranging from 13% to 28%,” said Matthew Simons, senior policy and advocacy officer at Eurodad.

Maria Jose Romero, Eurodad’s policy and advocacy ⁠manager, said the reductions in aid were undermining decades of development progress.

“Rich countries are ⁠writing a blank check for war while abandoning their long-standing commitment to deliver 0.7% of gross national income as development assistance,” she said.

The North Atlantic Treaty Organisation says all its 32 members are projected to have met the alliance’s spending target of 2% of national output in 2025.

However, only three of the 34 members and associates of the OECD’s Development Assistance Committee – a grouping of main bilateral aid donors – are expected to meet the 0.7% benchmark for development aid. Eurodad ⁠did not identify the three nations.

The committee’s ongoing self-review has raised concerns over legitimacy, with critics noting that decision-making remains concentrated among wealthy donor nations.

Meetings of the World Bank and International Monetary Fund next week are expected to focus on how ​multilateral institutions can fill the gap left by declining bilateral aid, Eurodad ​said.

(Reporting by Colleen GokoEditing by Gareth Jones)

Copyright 2026 Thomson Reuters.

Photos You Should See – April 2026

Exit mobile version