Foreign aid coverage and information.

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New Commitments: G7 Foreign Aid Investment Programs

G7 Commits to New Foreign Aid Investment ProgramsAmid a global context of geopolitical conflict and economic uncertainty, G7 leaders announced the establishment of two new projects to finance overseas development and a commitment to advancing a third, launched under Canada’s G7 Presidency in 2018. These initiatives cover contributions to multilateral development banks and mobilizing the private sector. The G7 foreign aid goal is to advance and achieve the Sustainable Development Goals (SDGs) in developing countries.

What is the G7?

In 1975, the United States (U.S.), the United Kingdom (U.K.), France, Italy and West Germany established the Group of Six as a forum for noncommunist global powers to discuss international economic tensions. Since then, there have been additions and removals of member states, and its economic purposes continue to adapt in response to the geopolitical conflicts of the day.

In the 1980s, for example, leaders made efforts to increase engagement with human rights and global stability. Then, the beginning of the 21st century saw the prioritization of human rights and increased attention toward issues including climate change and gender equality. The group has also played a crucial role in uniting multilateral donors for project funding. In 2025, members are the U.S., the U.K., France, Japan, Germany, Italy and Canada, making it the G7.

ODA in the 2025 G7 Summit

Hosted in Kananaskis, Canada, the 2025 G7 summit prioritized Official Development Assistance (ODA) for peace and security, private investment and long-term prosperity through partnerships outside of the group. For 2025, the G7 foreign aid agenda included advancing the International Assistance Innovation Program (IAIP), which launched as a five-year pilot project under the Canadian G7 presidency in 2018. New announcements included the Private Capital Mobilization Initiative (PCMI) and a project to expand innovative financing to multilateral development banks.

The IAIP follows eight principles endorsed by G7 ministers responsible for humanitarian action and development assistance. These include promoting inclusive innovation, investing in locally-driven solutions, taking intelligent risks, using evidence to drive decision-making, seizing learning opportunities, ensuring the impact of innovations, facilitating multilateral collaboration, identifying scalable solutions and integrating proven innovations into larger programming. The 2025 summit announced a commitment of $290 million over a five-year period to promote the mobilization of private investment toward developing countries.

In addition, the PCMI project received an allocation of $101.3 million over five years to address the obstacles to private sector investment. This involves working with organizations such as the Global Infrastructure Facility and Scaling Capital for Sustainable Development (SCALE). Among other goals, the partnership aims to accelerate infrastructure projects and provide targeted support for project planning and de-risking instruments.

Finally, the Innovative Financing at Multilateral Development Banks Project has pledged up to $400 million to multilateral development banks through portfolio guarantees. The initiative focuses on developing countries in the Caribbean and Latin America, licensing the Inter-American Development Bank and the Caribbean Development Bank (CDB) to provide $1.6 billion in new financing to support development. The CDB itself received $200 million to be spent providing essential support for borrowing countries.

Looking Ahead

Though the G7 is an economy-focused coalition of democratic countries, its goals have included strengthening the economies of underdeveloped countries and collaboration with multilateral agencies. Under the Canadian Presidency, the 2025 G7 foreign aid achievements reflected this by mobilizing projects facilitating private sector investment, including guarantees protecting private investors from financial losses when investing in multilateral development banks. With governments slashing ODA budgets, encouraging the involvement of the private sector has the potential to stimulate a new era of investment in the developing world.

– Emily Galán

Emily is based in Edmonton, Alberta, Canada and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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The Freeze on US Foreign Aid to Mexico

Foreign Aid to MexicoThe U.S. freeze on humanitarian aid has left many of Mexico’s private humanitarian organizations defunded. In Tijuana, Baja California, centers for migrants, low-income and houseless folk are experiencing trouble. A Mexican city so close to the U.S. is experiencing such a different reality than the U.S. city of San Diego. These organizations provided help with job search, medical care, psychological care, food, childcare and shelter. According to a report from inewsource, the freeze severely cut funding to dozens of programs that aided Mexico’s vulnerable population.

The Bigger Picture

Though the U.S. may only spend 1% of its federal budget on foreign aid, the impact is still strong. By withdrawing foreign aid to Mexico, the U.S. has hurt a lot of Mexico’s humanitarian organizations, ultimately hurting the people that are most in need. Some more examples of Mexican organizations affected by the freeze in foreign aid are Casa Frida, Comunidad AVES, Peace Oasis of the Holy Spirit Amparito shelter, Asylum Access Mexico and the Federal Mission Commission for Refugee Assistance. All of these organizations help asylum seekers and refugees with ranges of services.

Conversely, remittances from the U.S. to Mexico continue and are a strong source of foreign aid to Mexico. Remittances often work by Mexican immigrants working in the U.S. and sending the money they earn to their families back at home for a better means of life. Normal workers are leading this cash flow into Mexico, not the government, and they are not suitable for institutional humanitarian programs.

The Importance of Foreign Aid

Inequality threatens national security. According to the American Foreign Service Association, strategic foreign assistance can prevent instability, reduce the need for costly military interventions and strengthen global partnerships. It is never good to have one nation struggling so much, as it can lead to a potential uprising. Foreign aid has been a proven form of violence prevention.

One-third of Mexico’s population (or 36.3%) lived in poverty in 2022 and an additional 7.1% of Mexico’s population lived in extreme poverty. This is more than 40% of the population.

Given Mexico’s large population in poverty, foreign aid to Mexico is incredibly useful for the country. Mexico has used foreign aid in sectors like security and justice, economic development, humanitarian assistance and border security. An example of how foreign aid was used is in the Merida Initiative. This initiative fell under the security and justice sector and now La Merida is one of the safest places in Mexico. Foreign aid is important to Mexico.

Mexico’s Foreign Aid Outlook

Political analysts suggest that under their new president, Claudia Sheinbaum, Mexico may start investing more in regional humanitarian efforts, further positioning itself as a regional leader in Central America. Oxford Analytica reports that this shift could lead to increased support for international aid programs. Though the U.S. may not be sending foreign aid to Mexico for the time being, other countries are still offering their support like France, Japan, Uruguay, Chile and Spain.

The freeze on U.S. foreign aid to Mexico has led to widespread funding cuts for humanitarian organizations that support vulnerable populations. While remittances and other nations continue to provide support, the absence of the structured assistance that U.S. aid once offered is felt. With poverty affecting over 40% of Mexico’s population, the lack of foreign aid to Mexico hurts people in need. As Mexico navigates this change, the long-term effects of reduced U.S. support remain to be seen.

– Andrea Roji

Andrea is based in Chula Vista, CA, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Unsplash

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Decolonial Aid: A Different Approach to Humanitarian Work

Decolonial AidThe concept of decolonial aid has gained increasing attention in recent years. Traditionally, global humanitarian systems have prioritized Western-led frameworks, which often overlook or sideline the expertise and leadership of local communities. As of 2020, there were fewer women from low- and middle-income countries in global health leadership roles than Harvard alumni, underscoring the imbalance in representation and influence. To address these disparities, many advocates have called for a shift toward decolonial approaches in international development and humanitarian work.

What is Decolonial Aid?

Decolonial aid refers to the rethinking of humanitarian and development practices by dismantling long-standing colonial structures and assumptions. It challenges the perceived superiority of Western knowledge systems and emphasizes the importance of local expertise, leadership and ownership in shaping aid efforts. According to Peace Direct, decolonial aid involves rejecting colonial ideologies regarding the superiority and privilege of Western thought and approaches.

Efforts to promote locally led aid are not new. At the 2016 Grand Bargain World Humanitarian Summit, donors and humanitarian organizations pledged to direct at least 25% of aid funding to local organizations. However, loopholes have allowed international NGOs (INGOs) with offices in low-income countries to register as local organizations and claim these funds. This limits the intended impact and highlights the need for stronger accountability in aid reform.

Refugee-Led Organizations in Uganda

Uganda hosts the largest refugee population in Africa, with more than 1.6 million people seeking safety from conflicts in South Sudan and the Democratic Republic of the Congo (UNHCR, 2024). During the COVID-19 pandemic, many international aid workers left Uganda and Refugee-Led Organizations (RLOs) stepped in to meet urgent needs.

These organizations provided essential services such as education, personal protective equipment and mental health support. An example is the African Youth Action Network (AYAN), which promotes economic self-reliance and supports refugee-led political advocacy (AYAN). Another group, the Youth Social Advocacy Team (YSAT), works on peacebuilding and trauma healing among young refugees. These examples reveal that local communities often design the most effective responses to their challenges.

Financial Autonomy for Women in India

Decolonial aid also includes improving financial independence and representation. In India, the Self-Employed Women’s Association (SEWA) supports female workers in the informal economy, who make up 93% of the national labor force. Despite its contribution, many face systemic barriers and undervaluation. SEWA operates in 18 of India’s 28 states and focuses on self-reliance and full-time employment for women. The union, led by elected representatives, provides services such as health care, legal aid, childcare and financial support. The World Bank reports that in India, families with lower incomes rely more heavily on women’s earnings, making their economic empowerment essential to household well-being

The Challenges of Decolonial Aid

Despite its success, many grassroots organizations face structural challenges. SEWA initially struggled to register as a union due to legal barriers for self-employed women. In Uganda, many RLOs face registration issues because refugee-led groups often lack legal recognition under national law. In addition, many donors remain hesitant to fund smaller organizations, preferring to support INGOs with greater visibility. RLOs and local groups also report being excluded from key decision-making processes, often due to visa restrictions or lack of access to policy information. These ongoing challenges limit the ability of local organizations to fully participate in shaping the systems that affect their communities.

Looking Ahead

To advance decolonial aid, international donors, governments and development agencies can potentially improve transparency, reduce legal and financial barriers and build long-term partnerships with local organizations. Increased investment in grassroots leadership and shared decision-making could enhance the sustainability and relevance of humanitarian responses. By amplifying local voices and prioritizing equity in global aid systems, decolonial aid offers a path toward more just, effective and community-driven development.

– Clodagh Dowson

Clodagh is based in Wiltshire, UK and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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Uneven Growth: Guatemala’s Poverty

Guatemala’s Uneven Growth Amid Persistent PovertyGuatemala, a land where ancient Mayan temples pierce through lush rainforest canopies, stands at a critical crossroads. Since 2000, Central America’s most populous nation has achieved noteworthy economic growth, boasting the region’s largest economy. According to the World Bank, Guatemala’s GDP was an estimated $108.9 billion. Yet beneath these statistics lies a paradox: for millions of Guatemalans, extreme poverty continues to define daily life. A 2023 national survey reported that 56% of the population lives in poverty, with about 10% surviving on $2.15 or less per person. Despite recent growth, the poverty rate has only dropped by about 3.3%.

The Human Face of Economic Disparity

Guatemala’s poverty shows up in the highest rate of childhood malnutrition in Latin America, limited access to clean water and unequal access to education. Conditions are especially severe for Indigenous communities, particularly descendants of the Maya. According to data from the United Nations (U.N.), approximately 80% of Guatemala’s indigenous people live in some form of poverty; in other words, four out of five people.

In rural villages, residents often lack sanitation, infrastructure and health care. In 44% of rural municipalities, at least three-quarters of residents live below the poverty line. These areas have historically received fewer services than cities like Guatemala City. Structural barriers—such as limited access to skilled jobs or land ownership—have made upward mobility difficult.

Very few of those in extreme poverty have access to sewage systems. Around half of Guatemala’s children are malnourished. In rural areas, the poverty rate stands at 66.3%, compared to about one-third in urban areas. These numbers point to a generational crisis where children grow up without the nutrition or resources to escape poverty.

Disasters and the Cost of Inaction

During the COVID-19 pandemic, Hurricanes Eta and Iota destroyed more than 130,000 hectares of crops, pushing 1.8 million more people into food insecurity. Guatemala sits in the Dry Corridor, where erratic rainfall causes frequent crop failures. The U.N. reported in 2020 that more than 80% of families in this region struggled to meet basic food needs, which has led to a reliance on international food relief and an exodus into Mexico. In 2018, Volcán de Fuego, an active stratovolcano 18 km west of the city of Antigua, erupted, killing more than 200 people and destroying villages. About 43% of farmers in the region lost use of their land.

Corruption and Lack of Investment

Government responses often fall short. Corruption diverts resources away from those in need. Guatemala spends less of its GDP on social services than nearly every other country in the region. Public investment is low and the country has one of the weakest capacities to collect and use revenue for development. A 2014 World Bank report concluded that the country is at the bottom in public spending and ability to mobilize investment.

Faith-Based and International Aid

In many rural areas, churches and nonprofits fill gaps left by the state. Since 2014, Catholic Relief Services (CRS), funded in part by USAID, has distributed more than 40 million school meals through its Aprendizaje para la Vida program. During COVID-19, CRS and Caritas provided meals to 47,000 children in Totonicapán and offered classes to parents on how to prepare nutritious meals. Faith-based organizations also run mobile clinics, build homes and distribute drought-resistant seeds. Programs like Corredor Seco help improve access to clean water and food. NGOs such as Action Against Hunger and Fundación Genesis Empresarial work with the U.N. Food Programme to support local communities.

Looking Ahead

Nearly half the population continues to live in poverty without reliable access to essential services. Guatemala’s path forward depends on systemic reform, stronger governance and continued support from international partners. With collaboration, targeted investment and inclusive policies, there could be a way to break Guatemala’s poverty cycle.

– Max Marcello

Max is based in Pittsburgh, PA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Foreign Aid To Iraqi Kurdistan

Foreign Aid To Iraqi KurdistanWith a population of more than 6 million, Iraqi Kurdistan (KRI) has long been an important partner for the international community. Since the Iraqi government formally recognized the KRI in 2005, it has remained a semi-autonomous region and acted as a home for refugees fleeing conflict in neighboring Syria. The region also played a vital role in the fight against the Islamic State between 2013 and 2017, but since the recent cuts in U.S. aid to Iraqi Kurdistan, worries about maintaining peace in the region have emerged. In spite of this, intergovernmental organizations such as the U.N. are implementing efforts to ensure the growth and well-being of the KRI and its people.

The Challenges Facing Iraqi Kurdistan

Of the 10 million people estimated to be living in poverty in Iraq, the KRI has a significantly lower proportion of that figure given the region’s semi-autonomous status and thus immunity from certain sanctions in previous years. But, waves of displacement and unemployment have contributed to the level of poverty in Iraqi Kurdistan.

As a result of the war on ISIS and the political instability in Syria since 2011, Iraqi Kurdistan has welcomed 1.8 million Syrian refugees and Iraqi Internally Displaced Persons (IDPs), which led to a 28% increase in the region’s population. Consequently, many individuals are enduring extreme poverty in these refugee camps in the north of the region.

Additionally, current estimates of unemployment in Iraqi Kurdistan are 13.6% for men and 29.6% for women, which is one of the leading reasons for poverty in the region.

In addition to the issue of unemployment, Iraqi Kurdistan is also experiencing the misappropriation of government funds. In 2023, a review of public spending in the KRI found that 42% of funds go towards employee salaries, which explains the severe underdevelopment of private sector industries. For example, Iraqi Kurdistan’s primary source of income is the oil industry, accounting for 99% of exports, which leaves the economy exposed to drastic shifts in global oil prices. Much of the work by NGOs and foreign governments operating in the region thus focuses on enhancing the growth of private sector industries and investing heavily in infrastructure projects.

International Contributions

In spite of the reduction in foreign aid to Iraqi Kurdistan, governments from around the world are coming up with innovative and diverse ways to boost employment in the region and advocate for those affected by conflict. For example, The United Nations Development Programme (UNDP) has teamed up with the KRI’s Ministry of Municipality and Tourism in Erbil, to provide training programs for women and youth to create handicraft objects to boost tourism and cultural awareness in the region. So far, the program has taken place in nine locations across the region and delivered essential training to 170 participants, improving their job prospects.

In addition, the U.K. maintains its optimism towards strengthening British-Iraqi Kurdistan relations and has proudly delivered health care services to more than 6 million people across Iraq. The British government will also be sending £100,000 per year, for the next 3 years, to support the implementation of the Yazidi Survivors Law, in the hopes of spreading awareness about the poverty and suffering of marginalized Kurds. 

Among plans to boost the tourism industry in the region, foreign aid to Iraqi Kurdistan is shifting towards the agricultural sector in order to diversify the KRI’s economy. In particular, delegations from the United Arab Emirates have conducted 10 research projects into rehabilitating the agriculture and livestock industry.

CABI’s Work in Iraqi Kurdistan

The nonprofit organization, CABI, has taken a more active role in boosting agricultural employment to alleviate the effects of poverty in the region. Through training programs, enhanced information, post-harvest services and processing plants, CABI is supporting potato production in the Duhok province. The project not only seeks to bolster food supply in this part of Iraqi Kurdistan, but also to offer jobs to IDPs, refugees and other vulnerable groups. Since its inception in 2021, CABI’s work in the KRI has already established a potato processing and storage plant, with hopes of offering 10,000 workers with job opportunities in harvesting.

The Future 

Currently, like many regions of the world, foreign aid to Iraqi Kurdistan has fallen short of previous years. The main challenges that the KRI faces are high levels of unemployment, over-dependence on the oil industry and managing the refugee crisis; all of which directly or indirectly contribute to poverty in the region. However, by expanding the economy into new sectors such as handicraft training and potatoes to boost tourism and agriculture sectors, the future is bright for Iraqi Kurdistan.

– Alfie Williams-Hughes

Alfie is based in Nottingham, UK and focuses on Business and Politics for The Borgen Project.

Photo: Pixabay

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The $6.5 Billion Pledge: Syria’s Recovery Package

Syria's Recovery PackageOn March 17, international donors convened in Brussels and pledged nearly €6 billion (approximately $6.5 billion) in aid to revitalize Syria’s reconstruction efforts following the political transition after President Bashar al-Assad’s departure in December 2024. This financial commitment supports the country’s new leadership as it begins stabilizing and rebuilding after the civil war. The conference also aimed to reaffirm the global community’s commitment to a peaceful and inclusive future for Syria.

Discussions focused not only on physical reconstruction but also on strengthening civil society, expanding access to education and addressing widespread displacement. The event marked a renewed commitment to multilateral collaboration, bringing together more than 60 countries and international organizations to discuss not only funding but also sustainable strategies for Syria’s recovery.

Pledges for Syria’s Recovery Package

The European Commission reported that €4.2 billion (about $4.6 billion) of the pledged amount would be provided as grants, while €1.6 billion (about $1.7 billion) would come as low-interest loans. European Commission President Ursula von der Leyen announced that the EU is increasing its pledge to Syrians in the country and the region to almost €2.5 billion (about $2.7 billion) for 2025 and 2026.

Among major donor countries, Germany committed approximately €300 million (about $326 million), with more than half designated for aid within Syria and the remainder for displaced Syrians abroad. The United Kingdom (U.K.), despite reducing its foreign aid budget to 0.3% of GDP, pledged up to $208 million. The United States (U.S.), represented by Deputy Assistant Secretary for the Levant and Syria Natasha Franceschi, did not announce a new pledge, noting its status as the largest contributor to Syrian aid over the past 14 years and indicating that foreign aid commitments are under review.

Context and Challenges

The pledging conference comes at a pivotal time for Syria. The new leadership is tasked with unifying a country fragmented by war. Rebuilding efforts face obstacles, including a shattered economy and infrastructure, with United Nations (U.N.) estimates putting reconstruction costs between $250 billion and $400 billion. Security threats persist. Recent clashes, including an ambush on a Syrian security patrol and retaliatory attacks from supporters of the new government, have resulted in civilian casualties. These ongoing incidents have led some donors to delay investment until more stable conditions are confirmed.

International Community’s Role in Syria

The international community’s pledges demonstrate support for Syria’s transition toward peace and development. President Von der Leyen emphasized the urgency of assistance, stating, “At this critical time, the people of Syria need us more than ever.” However, this year’s total commitment falls short of the €7.5 billion (about $8.1 billion) pledged last year, reflecting financial constraints and competing global priorities.

Syria’s Path Forward

Syria’s recovery potentially depends on efforts to restore essential services, rebuild infrastructure and foster reconciliation among diverse communities. Syria’s recovery package represents an important step in addressing urgent humanitarian needs and laying the groundwork for long-term recovery. Coordination between the Syrian government, international donors and humanitarian organizations could be essential to ensure the transparent, inclusive and effective use of aid.

– Leighton Webber

Leighton is based in London, UK and focuses on Politics for The Borgen Project.

Photo: Flickr

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US Foreign Aid to Taiwan

Foreign Aid to TaiwanTaiwan experienced a period of extreme poverty after World War II and the Chinese Civil War. Farming was the most common way to earn a living during the early 1950s, contributing to a low Gross National Product (GNP) per capita of $200 USD (at 1950s price levels) and extreme income inequality. Taiwan’s economic conditions shifted after the land reform began in 1949 and again in the late 1950s when the government prioritized export-oriented growth. Although the export-oriented growth model had a significant impact on Taiwan’s success, aid from the United States also made a lasting impact. Here is information about the history of U.S. foreign aid to Taiwan.

History

From 1950 to 1965, Taiwan received a significant portion of U.S. economic aid. Over this period, Taiwan received around $100 million USD in monetary assistance each year, which accounted for almost 9% of Taiwan’s gross domestic product (GDP).

The focus of foreign aid to Taiwan evolved throughout the years as living conditions improved and U.S. foreign policy objectives shifted. After the Chinese Civil War, people had minimal access to necessities like food and clothing. Starting in the early 1950s, U.S. foreign aid to Taiwan prioritized economic aid and provided military materials due to the widespread poverty and economic and political instability. With this aid, Taiwan was able to stabilize the political situation, which prevented the government from directing all funds toward defense and raising taxes on a population that already struggled financially.

In the mid-1950s, the U.S, directed aid toward infrastructure projects and industrial development. About 37.3% of aid funds went toward infrastructure, 21.5% to agriculture, 25.9% to workforce development and 15.3% to industry. The final stage of U.S. aid programs emphasized shifting from import-based industries to export-oriented growth. However, after 1960, the United States concluded that Taiwan had “graduated” from the aid programs and moved to cut concessional assistance. 

Current US Aid to Taiwan

The United States no longer provides the island with development assistance but continues to offer military financing loans and contribute to disaster preparedness. Before the suspension of the U.S. Agency for International Development (USAID), the organization initiated emergency response and joint training programs that have increased Taiwan’s ability to withstand natural disasters and military pressure from the People’s Republic of China (PRC).

Although disaster preparedness is an objective of aid to Taiwan, military support has been the primary focus of U.S. assistance in recent years. The National Defense Authorization Act of Fiscal Year 2023 and the Consolidated Appropriations Act, 2023 allow for the U.S. to provide up to $10 billion in grant assistance over five years and up to $2 billion in loans.

The goal of current U.S. aid is to maintain peace and stability in the Indo-Pacific region, while 20th century aid was intended to promote economic and social development. The demand for poverty-reducing aid programs diminished as previous initiatives proved successful, which explains this shift in U.S. aid objectives.

The Outcome of Foreign Aid

Taiwan recognizes that it owes much of its progress to the foreign aid it received over the decades. Today, the World Bank considers Taiwan a high-income economy. It is one of the world’s largest producers of semiconductors and electronics and is a driving force behind innovations in artificial intelligence. 

Foreign aid to Taiwan spurred economic development and substantially improved the well-being of Taiwan’s population. Taiwan’s GNP per capita was $1,132 USD by 1976 and $12,396 USD in 1995. With a higher GNP per capita, Taiwan’s population had more job opportunities, a more equitable income distribution and access to basic necessities like food, health care and education.

From 1953 to 1995, the mortality rates in children under 5 decreased from 21.1 per 1,000 to 1.9 per 1,000, while life expectancy increased by 3.2 years for men and 5.9 years for women as a result of lower income inequality. “By using this aid, we were able to build up our infrastructure… And we were also able to set up our import substitution industries…” remarked Ma Ying-jeou (馬英九), President of the Republic of China (Taiwan) from 2008-2016, in a speech. With U.S. assistance on infrastructure, industry and defense, Taiwan increased GNP per capita and established more income equality, improving life expectancy and the overall quality of life for its citizens. 

These improvements in health and economic outcomes demonstrate that foreign aid to Taiwan has made a noteworthy impact. At a time when the United States is reassessing its foreign aid commitments, it must recognize the positive influence of foreign aid on Taiwan’s success and rapid reduction of poverty.

– Haley Parilla

Haley is based in Cape Coral, FL, USA and focuses on Business and Politics for The Borgen Project.

Photo: Pixabay

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Foreign Aid to South Africa

Foreign Aid to South AfricaForeign aid to South Africa has been crucial in sustaining its people for over two decades. South Africa is a country that faces a multitude of issues that hinder its way of life. Disease, government corruption and lack of infrastructure are but some problems that the people of South Africa face. The country has an unemployment rate of 32.1%, one of the highest nations with AIDS at 13.9% of the population, and more than 20 million facing food poverty or hunger daily. The requirement for foreign aid is vital in ensuring the people receive the aid that they desperately need whether it be medical aid or food aid. 

Countries like the United States, the United Kingdom and European Union are core donors in helping South Africa tackle their problems. Below are some examples of foreign aid programs.

Foreign Aid From the US

Out of all the countries involved in foreign aid, the U.S. has been the largest donor of foreign aid to South Africa, giving more than $527 million in ODA. The United States has been a large donor for combating diseases in South Africa through its USAID programs, such as PEPFAR. PEPFAR has actively tackled the HIV/AIDS epidemic in the country, saving an estimated 7.7 million lives in South Africa and giving 5.9 million access to antiretroviral treatment. The U.S. has further approved more than $450 million into PEPFAR for South Africa and has seen more than $8 billion invested over two decades. 

Additionally, ANOVA APACE, a USAID funding program that addresses health epidemics in South Africa, has received more than $36.5 million. While it works to address HIV/AIDS, it also works to combat tuberculosis outbreaks in South Africa as South Africa is one of the top eight countries still affected by the disease. In ANOVA’s first year, it treated 62% of people living with HIV and 54% were virally suppressed. As more than 13% of the population live with HIV/AIDS, this has been the cornerstone to tackling the epidemic.

Foreign Aid From the UK

The United Kingdom has been one of the largest donors of foreign aid to South Africa. It has provided £19 million ODA to South Africa, which goes towards vital infrastructure projects and job creation. Most notable is the Energy Transition Support program that is moving South Africa from fossil fuel energy to more renewable sources, with the aim of stimulating the economy and energy facilities. The U.K. has pledged £2.4 million to finance the sectors involved.

Additionally, the U.K. massively funds democratic initiatives. In the 2023 election period, the U.K. gave funding to ensure that South Africa held a democratic and fair election. The programs ensured that South Africa’s pre- and post-election voting and results were fair, as well as improved the political research going into the candidates and government statistics.

Foreign Aid From the EU

The European Union has established multiple programs in South Africa across a plethora of areas. The IIPSA has been crucial in building & creating new infrastructure to harbor economic growth. From building roads, schools or other institutions, the organization has grown both the job market and the livelihoods of everyday people. EU initiatives have created more than 1 million jobs since 2020 and a massive 62% are women employees.

Erasmus+ has helped improve the education system for South African universities. It allows foreign students from Europe to go and learn in South Africa, and vice versa, improving not only the flexibility of student exchange programs, but builds on improving higher education.

Moreover, the EU has helped South Africa in SME fundings. These investments reported more than 2,000 jobs created for South Africans, in much needed departments such as ICT, green economy and agriculture. More than 160,000 SMEs have benefitted from these foreign aid improvements.

Outcomes

The goals of these initiatives was to help improve the lives of South Africans and it has been a resounding success. Foreign aid to South Africa from these key donors has helped stimulate its economy, healthcare system and governmental programs and institutions. 

Foreign aid has helped with job creation, improved job markets, better wages, less death from disease and economic improvement. These are the areas most affected by foreign aid to South Africa, and the continuing support from the U.K. and E.U. will only benefit the country further. 

However, with the cutting of current USAID funding packages, South Africa will have to look elsewhere for massive chunks of its funding. As the U.S. propped up the majority of the health industry in South Africa, foreign aid must come from more international organizations to fulfil its needs, but there currently are no solutions to confront the current situation.

Furthermore, the foreign aid sent to South Africa does not always target poverty, and more funding and new strategies will be needed to more directly impact those facing poverty in South Africa. While there has been noticeable improvements to societal struggle, foreign aid to South Africa has not impacted the 40% that still live below the poverty line.

– Joel Raymer

Joel is based in Derby, UK and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Impact of Foreign Aid on Brazil

Impact of Foreign Aid on BrazilIn 2022, Brazil received an estimated $577 million in foreign aid from countries such as the United States (U.S.) and international organizations like the United Nations (U.N.). Given that Brazil is home to two-thirds of the world’s largest rainforest, much of this aid is focused on environmental conservation, particularly in the Amazon rainforest. The SOS Amazônia Association has worked extensively on deforestation prevention through the Fundo Amazônia (Amazon Fund), a state fund supporting indigenous communities and conservation efforts.

Several countries, including Norway, Germany, the United Kingdom (U.K.), the U.S. and Switzerland, contribute to the fund. According to gov.br, these combined efforts led to a 30.6% decrease in deforestation. However, future funding remains uncertain. Since August 2024, the U.S. has donated $50 million and, in November, pledged another $50 million to further support foreign aid efforts in Brazil.

Infrastructure Development in Brazil

Brazil has attracted significant foreign investment to strengthen its infrastructure and boost economic growth. In November of 2024, Brazilian development bank BNDES negotiated a deal with the Asian Infrastructure Investment Bank (AIIB) for a 16.7 billion reais ($2.89 billion) investment to develop the country’s infrastructure. With this, Brazil looks to improve its economy while creating transport infrastructure to encourage trade between Asia and South America. Additionally, in September 2024, the World Bank Board of Directors approved a $150 million loan to improve road infrastructure in the state of Bahia. The project prioritizes road safety improvements, climate adaptation and reduced transport costs. If successful, this initiative will increase mobility, lower carbon emissions and stimulate economic growth in one of Brazil’s key regions.

Welcoming Migrants Through Foreign Aid

Brazil’s “Operação Acolhida” (Operation Welcome) is a humanitarian program providing housing, employment and resources to Venezuelan migrants resettling in the state of Roraima. The program has received substantial U.S. foreign aid, allowing thousands of migrants to integrate into Brazilian society. However, the uncertainty surrounding future U.S. funding has put the program at risk, prompting officials to seek alternative sources of financial support.

The United Nations High Commissioner for Refugees (UNHCR) has expressed a willingness to provide additional support to keep Operation Welcome running. The program is recognized as a model for managing migration crises in Latin America, highlighting the importance of continued international aid in maintaining humanitarian assistance.

From Recipient to Donor

Brazil, South America’s largest economy, has historically been a major recipient of foreign aid. However, recent economic growth has allowed Brazil to transition into a donor nation, assisting developing countries. The country now contributes aid to Haiti, Guatemala, Paraguay and Portuguese-speaking African nations such as Mozambique, Timor-Leste and Guinea-Bissau. The country’s annual foreign aid contributions total approximately $1 billion, positioning it alongside India and China as an emerging donor. While foreign aid to Brazil is expected to decrease in the coming years, the country remains one of the largest aid providers among developing nations, focusing on regional stability and economic cooperation.

Looking Ahead

Foreign aid has significantly contributed to Brazil’s environmental conservation, infrastructure development and humanitarian initiatives. Programs like Fundo Amazônia, Operation Welcome and infrastructure partnerships with international banks have demonstrated tangible benefits. However, the potential decline in funding poses challenges to maintaining progress. Strengthening domestic investments, leveraging private-sector partnerships and fostering regional collaborations could help bridge funding gaps. While foreign aid has been instrumental in Brazil’s economic and social advancements, the country aims to increase self-sufficiency, playing a greater role in global development efforts.

– Naseem Rahman

Naseem is based in Staten Island, NY, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr

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Renewable Energy Efforts Promote Poverty Eradication in Serbia

Poverty Eradication in SerbiaLocated in the Southeast of Europe, Serbia is a beautiful country, West of the Balkan Peninsula. Known for its rich heritage, cultural traditions and the beauty of its natural landscapes, it is unsurprising that it draws in an average of 1.85 million tourists every year. However, despite the positive impact tourism has on the Serbian economy there is, nevertheless, a severe and widespread case of poverty that plagues Serbia. However, fortunately, efforts are in place for poverty eradication in Serbia.

Poverty in Serbia

Just over a quarter of Serbia’s population is considered to be living in poverty. Rural regions, primarily located in the south east of Serbia are much more severe, where poverty rates are four times higher than those in Belgrade, the country’s capital. Given how heavily the Serbian economy depends on its rural and small-scale farming communities, it is noteworthy that poverty is most prevalent in these areas.

These poorer communities also suffer challenges such as natural disasters (primarily floods), inadequate infrastructure and public services, contributing to the continued poverty and economic instability.

It is also key to note that during the 1990s, the area faced extreme conflict due to the  Yugoslav war, resulting in a significant economic downturn in many eastern European countries. Although global and national assessments reveal that infrastructure coverage has improved, there are still disparities in accessing housing, proper sanitation and education between rural and urban communities due to the long lasting devastation from this conflict.

The Innovative and Just Green Transition Project

Despite poverty proving to be a persistent challenge for Serbia, numerous innovations are underway by both the Serbian government and international aid organizations to combat and reduce poverty in the country. In recent years, Serbia has implemented many innovative approaches to combat poverty, focusing on sustainable development. A notable initiative is the Innovative and Just Green Transition project, launched in March 2023. The project focuses on energy poverty, particularly in the most vulnerable and rural parts of Serbia.

Since 2022, Serbia has been on a mission to build a greener, more sustainable future—thanks to financial backing of the Japanese government. This support has sparked the implementation of twenty innovative business solutions designed to drive the country’s Just Green Transition. One such initiative tackles landfill waste through large-scale recycling efforts, breathing new life into discarded materials.

Meris Ugljanin, a Serbian entrepreneur, is among those leading the charge. He is determined to cut energy costs and reduce his company’s environmental impact by installing solar panels and air-purifying filters. “Our goal was to switch to renewable energy,” he explains, hoping to inspire other businesses to follow suit. 

How the Just Green Movement Works

While the Just Green movement is committed to phasing out fossil fuels, it also recognizes the harsh reality that doing so will disrupt countless jobs tied to the industry. A sudden shift could leave many workers without a livelihood, creating economic uncertainty. To prevent this, the initiative is taking a proactive approach—offering support, retraining programs, and pathways into sustainable “green occupations.” By equipping those most affected with new skills and opportunities, Just Green aims to ensure that the transition to clean energy is not only environmentally responsible but also fair and inclusive. As Serbia moves forward, these changes mark not just progress, but a shift in mindset—one where sustainability and economic growth go hand in hand.  The Just Green Transition develops policies that will ensure access to affordable and clean energy, and aids in poverty eradication in Serbia.

The development of renewable energy is paramount for eradicating poverty and boosting Serbia’s economy as these projects not only reduce energy poverty but also stimulate economic growth by creating jobs and careers for Serbian’s. Encouraging new and innovative ways to produce green energy and lower energy consumption, resulting in both economic resilience and environmental sustainability.

Foreign Aid Efforts in Serbia

Foreign aid also plays a significant role in innovating new ways to eradicate poverty in Serbia. An example of this is a collaborative scheme between the Serbian Red Cross and UNICEF. This innovation provides aid for 500 families as part of the 1,000 Families from the Edge campaign. Deyana Kostadinova, a UNICEF Representative in Serbia, states that “UNICEF mobilized its own resources and engaged with the business sector and individuals to help raise funds to provide the poorest families with children the necessary financial aid to survive the winter.” The 1,000 Families from the Edge campaign was first implemented in 2022 and continues to provide humanitarian and financial aid for Serbia’s most vulnerable families.  

Looking To the Future

Although poverty is still a serious concern for Serbia, the country’s innovative approach to poverty eradication through renewable energy and foreign aid offers hope for a stronger economic future for the country. Renewable energy projects, such as those focusing on sustainable energy solutions in rural areas. Encouraging both economic resilience and environmental sustainability. These clean energy initiatives paired with the support of foreign aid has been vital in providing the necessary resources for Serbia’s vulnerable communities that have long been underserved. Serbia is paving the way for a resilient and inclusive economy. 

– Abbey G Malin

Abbey is based in Oxford, UK and focuses on Technology and Solutions for The Borgen Project.

Photo: Wikipedia Commons