The German Federal Ministry for Economic Cooperation and Development expressed concern over recent budget reductions, highlighting the challenges posed to international development efforts amidst a world facing numerous crises and conflicts. Minister Reem Alabali Radovan (SPD) stated that the mandated cuts outlined in the current coalition agreement are “extremely painful” and leave the ministry with a budget significantly below what is needed to address pressing global issues.
Minister Radovan indicated a willingness to renegotiate funding in the event of acute crises, emphasizing a commitment to ensuring basic needs are met, particularly regarding food security and preventing deaths due to malnutrition.
Acknowledging the reduced resources, the ministry is undertaking a restructuring of German development policy to ensure the country remains a reliable partner internationally. This involves consolidating efforts and exploring alternative financing options, including debt conversion initiatives, increasing self-generated income within developing countries and establishing funds that combine public and private investment.
The budget for the Ministry for Economic Cooperation and Development has faced continuous cuts in recent years. Funding decreased from approximately €12.4 billion in 2022 to a projected €9.9 billion by 2026, further dwindling to around €9.3 billion by 2029. This trajectory threatens Germany’s ability to meet the internationally agreed-upon development assistance target, often referred to as the “ODA quota” which calls for developed nations to allocate 0.7% of their Gross National Income to development aid – a commitment initially made by the UN General Assembly in 1970 and later integrated into the UN Sustainable Development Goals in 2015.
The international development sector faces additional hurdles, especially following the recent cessation of operations by the United States Agency for International Development (USAID). A recent study published in “The Lancet” projects that, without intervention to fill the resulting funding gap, over 14 million additional people, including 4.5 million children, could die by 2030.