On March 27th, Heba Aly engaged the International Geneva community with an eye-opening talk about why current models of international development and multilateralism need to evolve, drawing on the work of the new UN Charter Reform Coalition, which she leads, and a series of dialogues she has facilitated with donor governments amid recent aid budget cuts to imagine a "post-aid world". She explained why and how we should use this moment of disruption to advance reforms that have long been needed.

This video is just a teaser, much more information on Heba's work and thinking below.

Video by Warebo Production

Heba's Talk revolved around two themes: the future of ODA (Overseas Development Assistance) and the future of the UN. We borrow the great summary written by Kelsi Kriitmaa on Linkedin after the Talk, regarding the UN theme:

↳ Article 109 of the UN Charter includes a built-in review mechanism. It was meant to be triggered within 10 years of the UN’s founding. It’s been nearly 80. Nothing has happened. The Charter was designed to evolve, we weren’t meant to freeze the system in 1945.

↳ Reform proposals are real and researched. 

↳ Veto power, granted to five countries after WWII, no longer makes sense, and in many cases, it’s being actively abused.

↳ There’s a real tension between structural reform and power reform. But the truth is, we need both. As Heba said: “The UN needs a software upgrade.”

↳ Change often only comes in moments of crisis. Yes, this wave of upheaval in the humanitarian sector has been devastating. But maybe—just maybe—it was needed. And maybe it wouldn't have happened otherwise.

Read more about the UN Charter Reform Cohalition HERE

Read more about Heba's thoughts on the UN reform HERE

Main takeaways on the “Aid” theme: 

↳ Aid donations peaked in 2023, when net ODA (Overseas Development Assistance) disbursements increased by 4% vs 2022 to a record high of USD 251 billion. Since that peak was reached, many donors have been announcing cuts : Since December 2024 at least 9 bilaterals + EU Countries have announced or are aiming to cut their bilateral aid budgets, the lower bound on this estimate is 17.2 billion over 2025-2029.   

↳ Many feel the development cooperation system is collapsing. There is no public/political support for aid in many countries. It's not just the US. The broad sense that ODA is expendable; we may be seeing a contagion effect, as falling aid further discredits legitimacy of aid spending.

↳ On top of cuts to aid – there is increased pressure to spend on other areas, notably defence. Almost all DAC donors have expanded defence budgets in 2024. Note that major donors are already exceeding their defence spending target of 2% of GDP while far off of the 0.7% target for ODA.

↳ Aid is facing a crisis of legitimacy because the North-South rationale for aid-giving does not make sense when there is no longer a clear divide between "rich" and "poor"; aid is used increasingly as a tool of geopolitics; there is a rise of inequalities in developed countries, as well as calls for reparations and a loss of trust.

↳ Interesting stats: In 2023 – Ukraine received as much as 59% of all aid to Africa; NATO Secretary General Rutte is pushing for a new defence spending target of at least 3% (from the current 2%) - Trump pushing for 5%.

↳ Emerging policy priorities: refocusing ODA on the most vulnerable; focus on policy changes that address the structural drivers of economic inequality; shift towards Global Public Goods framing; advance local ownership and people-to-people solidarity.

Read more: ODI's Donors in a Post-Aid World project: https://odi.org/en/about/our-work/donors-in-a-post-aid-world/

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