Foreign aid coverage and information.

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Foreign Aid to Kashmir

Foreign Aid to Kashmir
Kashmir is the United Nations’ longest ongoing, unresolved area of conflict, dating back to 1948. Today, three nuclear powers share occupation of the land. India controls 48% of the territory, Pakistan runs 35% and China covers 17%. About 40% of the population lives below the poverty line, according to the Kashmir Welfare Foundation.

On both ends of the highly-militarized area, Kashmiri people are subject to several human rights violations, including restrictions on political freedom and the systemic discrimination of religious minorities. Around 70,000 people have been killed in the midst of the conflict over the last 29 years alone.

Aside from the political turmoil, Kashmir is also prone to fatal natural disasters, such as earthquakes and floods. The lack of infrastructure, industries, access to education and proper health care in Kashmir prolong the territory’s recovery from these catastrophes and keep its people in poverty. Foreign aid to Kashmir is a significant component in rebuilding its infrastructure and supporting its civilians, caught in the crossfire between governments.

US Humanitarian Aid

In 2014, monsoon floods devastated Kashmir, killing more than 460 people, displacing 1 million and shoving several more into poverty. This flood was the worst Kashmir has seen in 100 years, as it severely damaged the agriculture, trade, infrastructure and tourism industries in the area. The Indian government provided relief, but it failed to reach 300,000 people and aid-workers called the efforts inadequate. In response, the U.S. provided $250,000 in foreign aid to Kashmir. This included sending humanitarian relief to NGOs in India through the U.S. Agency for International Development (USAID). The NGOs then used the aid to provide general supplies and temporary shelters for those who lost their homes.

After an earthquake erupted across Kashmir in 2005, the aftermath took the lives of 47,000 people, left more than 2 million without shelter and displaced another 2 million. The U.S. sent $510 million towards reconstruction and humanitarian relief efforts, with more than 1,000 American personnel on the ground.

Helicopters and U.S. military flights delivered more than 13,500 tons of resources, including medical supplies, food, materials for shelter and rescue equipment. The U.S. also evacuated 18,600 earthquake survivors and provided medical treatment to around 35,000 civilians.

Today, the U.S. is still Kashmir’s largest foreign government donor for relief. The other largest foreign aid donations to Kashmir come from non-government humanitarian organizations.

European Union Humanitarian Aid

In 2019, an earthquake ripped through Pakistan-run Azad Jammu and Kashmir. The disaster killed 37 people, destroyed 9,000 homes and further pushed 10,500 families into poverty. The European Union provided €300,000 in emergency humanitarian aid for those most affected through the European Civil Protection and Humanitarian Aid Operations. The funding helped at least 3,000 people in some of the most vulnerable areas and supplied access to clean water.

In response to the 2014 monsoon floods, the European Union provided €250,000 in humanitarian assistance, which helped more than 12,000 people in need. The aid included sending hygiene kits, food and livelihood support to 40 villages where the floods had the worst impact.

After the catastrophic earthquake in 2005, the European Union donated €50 million in foreign aid to Kashmir. The funding provided civilians with blankets, tents, water, fuel, health care and sanitation supplies.

The Impact of Foreign Aid in Kashmir

Overall, the U.S. and the European Union helped combat poverty in Kashmir with foreign aid, which provided humanitarian relief and significant support the government could not match. A study by the World Bank revealed that 70% of people in Kashmir living near the fault line, where there was a higher presence of foreign aid workers, said they trusted foreigners or those in the West, such as Europeans and Americans.

Every 10 kilometers away from the fault line, civilians’ trust in foreigners decreased by six percentage points. Consequently, the study suggests that people living in developing countries’ trust of foreigners is a direct response to international humanitarian actions in those regions.

The Future of Kashmir

Shafat Ahmed is a part of Conciliation Resources’ Kashmir Initiative Group, which focuses on peacebuilding. Ahmed led work on conflict-sensitive disaster management in Kashmir and developed a plan that he introduced to policymakers.

“When the focus of governments is on political tensions, the issue of disaster preparedness takes a back seat,” he said in a news release.

The plan outlines effective ways to prepare for and respond to natural disasters in Kashmir. The proposed solutions involve the governments communicating, collaborating and coordinating with each other during humanitarian crises. The solutions also include raising awareness and strengthening the means for civilians to confront natural disasters when they occur.

– Umaymah Suhail

Umaymah is based in Karachi, Pakistan and focuses on Good News and Global Health for The Borgen Project.

Photo: Unsplash

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The Success of Foreign Aid to Cuba

Foreign Aid to CubaBack in the 1950s, Cuba had the third highest per capita income in the Americas. Now, Cuba represents the longest embargoed nation on the planet, with a dwindling economy and a myriad of humanitarian issues. An aggressive U.S. policy of prohibiting trade stifles the country’s attempts at domestic development.

Why Did Foreign Aid to Cuba Cease?

For 63 years, since 1963, the United States has enforced a commercial and economic embargo against Cuba. Far more than simply an attack on Cuban trade, the U.S. policy attempts to globally isolate the island. At its core, the embargo legally bans American investment in Cuba while utilizing extraterritorial sanctions and resulting fines to deter investments from U.S. allies. 

Beyond this, the embargo prevents Cuba from selling its products in U.S. markets or to its allies. In return, it denies Cubans the ability to trade with their natural economic partner just 90 miles away, forcing them to source essential food and medicine from costly suppliers.

While the Obama and Biden administrations passed limited exemptions for travel, the foundational statutes of the embargo remain unaltered, leaving its restrictive core legally and politically intact. While the Obama and (although less) Biden administrations passed limited exemptions for travel, this was not a repeal of the statutes that brought the embargo into U.S. law and because of this the Trump administration had the ability to re-instate the full enforcement. Despite widespread criticism against the U.S., the nation is able to enforce the Embargo through its global-leading status and UN Veto.

Its Consequences

The consequences of the embargo permeate every facet of Cuban life. Though Cuba holds a strong domestic health care industry, the U.S. embargo has blocked access to new health-equipment and forced the country to rely on ‘intermediaries or substitutes, at exorbitant prices for inferior quality.’ As a result of the embargo, during the COVID-19 pandemic, the Cuban health industry lost $80 million – a loss that, should it persist, could lead to a breakdown of services. The U.S. Embargo also blocks Cuban farmers from accessing modern equipment and parts, leading to low-yield harvests and rationing. The nutritional deficiencies that the U.S. embargo caused have led to a rise in low birth weights and have triggered neuropathy epidemics in 50,000 Cuban adults.

Financially, U.S. law is prohibiting Cuban banks from processing dollar transactions, and foreign institutions can face billions in U.S. penalties for facilitating trade, rendering Cuba entirely isolated – such as the French bank BNP Paribas which faced an $8.9 billion fine in 2014 after engaging in Cuban transactions. This U.S. policy strangles Cuban entrepreneurs, who cannot affordably import supplies, access international credit or standard payment platforms like PayPal. The embargo also caused energy insecurities, which have led to frequent blackouts across Cuba, completely halting all activity. Consequently, the embargo forces many Cuban businesses into informality, reliant on black market cash-based deals, something that could only be ended if foreign aid to Cuba was re-initiated.

Paradoxically, although the United States created the embargo to pressure the Cuban government, it has only strengthened the regime by allowing its leaders to characterize themselves and their hardship as victims of aggressive U.S. foreign policy. Thus, the embargo continues a cycle of hardship without advancing its stated political goals, condemning the future of Cuban generations.

Solutions

Beyond the actions of the Cuban government or the remittances from the diaspora, the international community undertakes significant efforts to mitigate the humanitarian harm that the embargo caused. Multilateral organizations like the World Food Programme (WFP) lead these efforts, which in 2024, fed 1,320,867 people in Cuba, in addition to providing specialist malnutrition prevention schemes for 268,497 Cubans. The global community also navigates U.S. sanctions to support Cuba, such as the EU, which has allocated $125 million in cooperation funds since 2020, or China, which has regularly tried to develop Cuban industries, including an $1.8 billion credit line so that Cuban public transportation and the logistics involved could be improved. While effective, naturally, the support of these global actors wanes with the geopolitics that the U.S. pursues.

Complementing these governmental efforts, a network of international NGOs are working at the grassroots level to support the people of Cuba. One example is Oxfam, which works in rural and urban provinces to provide supplies and helps address the damage of natural disasters. Another critical NGO is Cuba Vive, which works yearly to raise more than £200,000, all of which goes back to Cuba as medical supplies/personnel.

What Needs to Be Done?

As The Washington Office on Latin America said, the embargo “no longer benefits any players in the game— not the United States and certainly not the Cuban people.” The United States-Cuba Trade Act bill would repeal the core embargo statutes (the Helms-Burton and Torricelli Acts) and restart the flow of foreign aid to Cuba, opening humanitarian channels, reuniting families and reintegrating the Island into the world.

As a 2023 UN General Assembly report concluded, the embargo continues “the adverse… on the Cuban people and on Cuban nationals living in other countries.” Cuba’s recovery hinges on the Embargo’s erasure and replacement by the UN and U.S. courts with a new paradigm of foreign engagement. One that replaces hostility with genuine economic partnership and brings foreign aid to Cuba again.

– Eli Thomson

Eli is based in Preston, UK and focuses on Politics for The Borgen Project.

Photo: Unsplash

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How Foreign Aid Cuts Hurt Global Poverty Reduction

Global Poverty at Risk as Foreign Aid Cuts Accelerate WorldwideGlobal poverty eradication faces a growing threat as wealthy nations reduce foreign aid and international relief programs. After years of modest growth, official development assistance has dropped sharply, with reductions of 15–22% as governments redirect spending from humanitarian programs toward defense budgets. These cuts coincide with a worsening debt crisis across the developing world, raising fears that millions of people could be pushed back into extreme poverty. This trend illustrates how foreign aid cuts hurt global poverty reduction and threaten to undo decades of hard-won progress.

The Reversal of Aid Growth and Its Immediate Effects

Between 2018 and 2023, foreign aid from high-income countries grew by approximately 6% annually, signaling a fragile commitment to global poverty reduction. However, this momentum has now reversed. Across the United States and Europe, governments are rescinding foreign aid commitments and scaling back international relief programs in favor of increased defense spending. According to the Council on Foreign Relations, official development assistance has fallen by as much as 22% as countries reallocate resources from social investment to military priorities.

In the United States, this shift has been particularly stark. Cuts to traditional foreign assistance programs, proposals to eliminate long-standing aid mechanisms and the use of pocket vetoes on appropriated funds have weakened development institutions. These reductions have occurred alongside an estimated $1 trillion surge in U.S. defense spending, highlighting a broader policy realignment away from poverty-focused engagement abroad. While defense budgets have expanded, funding for health care, food security and humanitarian relief in low-income countries has contracted, placing vulnerable populations at heightened risk. This reallocation demonstrates how foreign aid cuts hurt global poverty reduction as essential resources for health and food security are withdrawn.

The Debt Crisis and Vulnerabilities in Developing Countries

The timing of these foreign aid cuts has raised concerns. A 2025 briefing paper by the Finnish Institute of International Affairs warned that more than 50 low-income countries faced a high risk of sovereign default due to post-pandemic borrowing, rising global interest rates and declining access to concessional financing. As debt servicing costs rise, governments often divert funds away from education, health care and social protection, investments essential for reducing poverty. This dynamic threatens to reverse decades of progress against extreme poverty and widen global inequality.

The U.S. retreat from foreign assistance has amplified these pressures. The FIIA briefing describes recent aid retrenchment as part of a broader global development crisis, noting that cuts to humanitarian and democracy assistance have destabilized international relief systems on which millions depend. European governments have mirrored this trend by redirecting aid budgets toward domestic priorities and defense, further shrinking the global pool of resources available to fight poverty. When combined with the debt crisis, the evidence shows that foreign aid cuts hurt global poverty reduction by leaving fragile economies without a vital safety net.

Foreign aid has become increasingly politicized. In the United States, development assistance is often portrayed as wasteful and disconnected from taxpayers’ needs. CFR argues that aid advocates have struggled to maintain public support by emphasizing moral obligation rather than strategic value (CFR, 2025). As a result, foreign aid is vulnerable to cuts during periods of political polarization, making sustained investment in poverty reduction more difficult to defend.

A Shift From Aid to Investment

Not all forms of international engagement have declined. Funding for the U.S. International Development Finance Corporation increased by approximately 280%, reflecting a shift toward investment-driven development approaches.

While such tools can stimulate economic growth, experts caution that they cannot replace poverty-focused aid and humanitarian relief programs designed to directly reach the world’s poorest populations. Financial and capital investments should be supported by targeted efforts that have historically been delivered via NGOs, nonprofits and collaborative philanthropic work. This distinction is important because many investment tools are return-driven, while humanitarian and nonprofit programs prioritize poverty reduction outcomes.

The Center for Global Development warns that reductions in U.S. funding threaten multilateral development banks and sector-specific programs that play a critical role in combating poverty. Concessional finance windows and institutions such as the World Food Programme and global health funds provide lifeline services that stabilize fragile economies and protect vulnerable communities. When these programs are disrupted, food insecurity, disease and economic instability rise, conditions that deepen poverty and increase long-term development costs.

Political Pressures and the Path to Recovery

Foreign aid also serves broader strategic goals. The CFR identifies three core objectives for effective assistance: preventing crises abroad that threaten the U.S. homeland, competing with geopolitical rivals through soft power and strengthening supply chains that support economic stability. Cuts to foreign aid weaken U.S. influence, create openings for rival powers and increase the likelihood of economic shocks that can affect American consumers.

Perhaps the most concerning issue is the long-term impact of sustained aid retrenchment. The CFR cautions that the deeper and longer foreign assistance budgets are cut, the harder it becomes for future administrations, regardless of political affiliation, to justify restoring them. As institutions lose capacity and partnerships erode, rebuilding effective poverty reduction programs becomes increasingly difficult and costly. This institutional decay shows how sustained foreign aid cuts hurt global poverty reduction by dismantling the architecture needed to fight it.

Looking Ahead

The debate over foreign aid reflects broader questions about global responsibility and international engagement. Without renewed commitment and clearer accountability, continued reductions risk entrenching deeper global poverty and increasing the long-term costs of inaction.

– Christopher Pellant

Christopher is based in Evansville, IN, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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NGOs Partnerships Following Foreign Aid Cuts in Uganda

Foreign Aid Cuts in UgandaThe decision to dismantle USAID was devastating for millions of people around the world. Several countries suffered immediate effects from the cuts in foreign aid, which provided necessities such as food, education and health care. Uganda is one of the hardest-hit areas for two reasons:

  1. It hosts the largest refugee population in Africa, nearly 2 million people, 81% of whom are women and children; and
  2. It faces a severe, chronic HIV epidemic and relies heavily on U.S. support for HIV treatment and prevention.

Uganda lost 66% of the funding received from USAID, which is approximately $307 million. As a result, many areas have been affected, including food aid, which has been cut due to a funding shortage, leading to increased hunger and malnutrition. However, nongovernmental organizations (NGOs) are hard-pressed to continue providing services on the same scale with less funding.

The Impact of Foreign Aid Cuts on Uganda

1. Education:

USAID funding supported school construction and the procurement of learning materials in Uganda. The funding also supported teacher training programs. Digital learning tools provided schools in remote areas, improving access to education. The lack of funding results in under-resourced schools and a reduced ability to meet growing demands.

This affects girls explicitly as it decreases their access to education regarding reproductive and menstrual health. Girls, seeking security, will marry early and lose hard-fought gains in gender equity. In refugee communities, funding shortages have led to staffing shortages. In one refugee settlement, there were 36 teachers with more than 3,400 students. Following funding cuts, nine teachers are left to manage classes of up to 500 students each.

2. Health:

USAID administers close to 60% of the President’s Emergency Plan for AIDS Relief (PEPFAR) bilateral funding, which provided more than half of the medication and staff needed to respond to the HIV epidemic in Uganda. PEPFAR also accounted for nearly 90% of pre-exposure prophylaxis (PrEP) initiatives on a global scale. Millions now are at risk of contracting HIV due to foreign aid cuts.

PrEP is restricted to pregnant and lactating mothers. Funding cuts cause immediate disruptions in care for thousands who depend on consistent medication (i.e., Anti-Retroviral Therapy). This increases the risk of babies being born with HIV. Vaccine shortages caused by foreign aid cuts increase the risk of contracting other diseases like TB, Ebola and Malaria.

Foreign aid cuts also lead to staffing shortages, making it challenging for those who remain to deliver the same level of health care with fewer resources and a reduced number of qualified staff.

One NGO in particular, St. Francis Health Care Services, provided HIV testing, medication and prevention products to sex workers in Uganda, but this was stopped due to cuts in foreign aid. Mwesigye, a country representative with the U.K.-based NGO All We Can, stated, “You know, there was almost an alarm… people were being told to run as fast as they could to the next health unit to get their dose for a few months… but that is also going to run out.”

The Response

When formal protection systems collapsed, local citizens and/or refugees stepped up to fill the gap. The NGO St. Francis Health Care Services received funding from PEPFAR several years earlier. However, its funding was cut after Uganda passed its anti-homosexuality act. The nonprofit was able to secure the funding again; however, its leadership began to realize how dangerous it could be for them and their ability to continue providing the vital services needed in the community.

After the organization’s funding was cut the first time, it began seeking private donors. It increased its revenue by offering paid services, such as surgery, maternal care, radiology and dental exams. As a result, it was less vulnerable to the effects of the foreign aid cuts. However, health leaders still had to make decisions in response to the cuts to foreign aid.

Other strategies implemented include moving away from standalone HIV/TB clinics and referring patients to government outpatient clinics; utilizing a large network of private clinics, seeking non-U.S. international collaborations, increasing donor outreach and implementing technological solutions (e.g., AI). Health officials propose using AI to identify high-risk patients, allowing them to be seen sooner.

Another NGO, Soft Power Health, continues to care for approximately 50,000 patients. This organization operates on a $699,000 budget, which is funded by private organizations and individual donors. It was also more insulated against the foreign aid cuts and continued its work. Services provided include transportation, free HIV medication and gardening and health education. Another clinic lost its funding and donated medical equipment to Soft Power Health, allowing it to continue testing for TB.

Grassroots Groups in Uganda

In response to the aid cuts, grassroots groups in Uganda have turned to farming, petty trade and vocational activities, selling milk and produce, while youth join skills programs to learn trades like tailoring. Women have formed support groups for survivors of gender-based violence and girls at risk, which have become lifelines through regular meetings and check-ins.

These community efforts are complemented by Volunteer Village Health Teams, who refer survivors to clinics that remain open, provide mental health services and conduct awareness sessions on gender rights and protection. Boda Boda riders, a network of volunteer motorcycle riders, transport survivors from remote villages to clinics, legal aid offices, or safer areas and have organized informal night patrols to discourage exploitation and monitor hotspots known for abuse.

Forging a Path Forward

Joy Kawanguzi, team leader of FABIO-Uganda, discusses the abruptness of the foreign aid cuts in Uganda: “It did not give us time to prepare. So the abruptness alone is an inconvenience.” She adds that the foreign aid cuts “put local organizations in a place where they start feeling like they are more implementers of donor ideologies. Because if a local organization were a key player, this decision would not have been drastic. There would have been consultations.”

Mwesigye agrees and advocates for organizations to be able to use funding for core costs instead of just fulfilling projects: “…if core costs are paid for; if you build the institution rather than fulfill project goals, then the institution will be bold enough to be able to work and do what it needs to do.”

These statements are indicative of a desire to move away from dependence on outside donors. Their sentiment is fueled by the question no one can answer: “What if this happens again?” The path forward for the people of Uganda is one where they have free rein with the resources they are given and the opportunity to achieve independence.

– Danielle Milano

Danielle is based in Pineville, LA, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Pexels

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China’s Aid in Africa

China’s Aid in AfricaForeign Aid has historically underpinned American soft power on the global stage and has been instrumental in promoting democratic governance, human rights, and development. With the shuttering of most aid projects, China has begun expanding its aid programs. Since the shuttering of USAID, many developing states in Africa and beyond now look to China as a predictable partner in the vacuum left by the United States’ sudden retreat from its central role in global aid. The United States’ retreat from development aid in Africa has hurt the multilateral aid space in particular. Multilateral aid systems, while slow and cumbersome, bring together a constellation of actors delivering assistance on a more purely humanitarian basis.

Chinese Aid in Africa

In 2024, China committed an additional $50 billion to projects on the African continent, according to NPR. China’s investment has focused on critical infrastructure. China has invested heavily in transit infrastructure and energy projects involving nuclear energy. Such investment lays the groundwork for greater industrialization and economic growth, made ever more critical by Africa’s rapid urbanization.

China has been involved in building and renovating government buildings and offices for the African foreign affairs staff—bases for different parts of the security apparatus. Importantly, China has been responsible for fourteen key intergovernmental telecom networks on the African continent. This building surge in Africa has given considerable sway over states seeking partners for future projects.

Debt Trap

Credible accusations state that Chinese aid in Africa is part of a strategy of debt trap diplomacy. Indeed, some of its development and aid projects have put countries at risk of debt. Ethiopia borrowed billions from China, which helped build critical transit infrastructure. Now the Ethiopian debt outstrips GDP, according to LSE.  Such behavior is not unique to China. Western aid has been criticized for the same colonial behavior. Aid from the West frequently comes with conditionalities that hinder self-sustaining growth, producing a cycle of dependency. Parallels in exploitative behavior does not absolve China of scrutiny.

The results of China’s aid efforts have been heterogeneous. China has leveraged unfair loans to gain access to critical infrastructure. In other cases, China has been more forgiving than other lenders when providing relief to African countries.

The Future of Aid in Africa

While the United States stands to lose by not participating in development and aid in Africa, its withdrawal has implications far more pressing than the dominant realpolitik. Some have foreseen China filling the void left by the United States, but even with funding surges, there are huge gaps in health and infrastructure development, according to Bloomberg. This funding surge has yet to meet the needs of some of the poorest states in Africa. China’s projects have an uneven record, with some programs being extractive and others facilitating real economic growth.

China’s aid in Africa has adopted a bilateral approach. China’s loans are aimed at building critical infrastructure assets that can generate sustained growth and capacity. The United States’ most successful projects have been multilateral and partnered with a diverse range of actors from intergovernmental organizations, NGO’s, and businesses. The focused scope of Chinese aid in Africa means its effects tend to be localized. China’s assistance makes a difference, but it still lacks the scope and, most critically, the integration of the United States’ previous aid efforts in Africa. By conservative estimates, the closure of USAID has already caused more than half a million deaths globally. Africa and the world as a whole benefit from a diversity of foreign aid sources. When developing states can choose between aid sources, they can leverage more equitable and sustainable aid projects.

– Atticus Flanagan

Atticus is based in Cambridge, MA, USA and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

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Italy’s Fight Against Global Poverty

Italy's Fight Against Global PovertyItaly is often overlooked as a key country in efforts to reduce global poverty. However, its approach to poverty reduction is quietly strategic, focusing on development funding, grassroots food programs and humanitarian relief. This allows Italy to be projected as a key contributor in the fight against poverty.

Food Security

As home to the U.N. agencies dedicated to global food security, Rome serves as a strategic hub for Italy’s fight against poverty and hunger. The city hosts three key institutions: the Food and Agriculture Organization (FAO), the World Food Programme (WFP) and the International Fund for Agricultural Development (IFAD).

Italy’s long-standing partnership with these agencies has enabled it to remain a consistent donor. Italy has contributed significantly to the FAO trust fund and an additional $703 million to IFAD. These contributions have supported more than 220 initiatives worldwide, including agricultural development programs, crisis-response efforts and projects that promote gender equality in rural communities.

Humanitarian Relief

Italy’s fight against poverty has begun to expand, with the nation supporting agencies like the WFP’s emergency operations overseas. This has been particularly evident in places like Sudan, where the Italian Agency for Development Cooperation (AICS) has contributed more than $7 million. This donation can impact nearly 200,000 lives, significantly reducing malnutrition among young children and pregnant women.

However, Italy does not stop there; its determination to aid Niger’s increasing instability is irrefutable. Italian aid has focused on stabilizing communities affected by political unrest. For instance, the Initiatives for Enterprise Development (IDEE) Project takes pride in promoting youth entrepreneurship, providing support to vulnerable groups and offering economic alternatives to migration.

Additionally, Italy plays a key role in supporting refugees. It funds integration programs, provides legal aid and offers shelter for asylum seekers. Italy has contributed more than $50 million to the U.N. Refugee Agency, supporting labor mobility schemes that help migrants escape poverty.

Italy’s Fight Against Global Poverty

Leveraging agencies such as AICS, Italy’s anti-poverty efforts support projects across Africa, Latin America and the Middle East, with a focus on education, gender equality and employment opportunities. Italy’s roughly $4.9 billion commitment to the Italian Climate Fund has already financed eight projects worldwide, with an additional 22 under review. These initiatives aim to advance sustainable development and strengthen Italy’s global partnerships.

With Africa as a central focus, Italy’s government has begun to launch initiatives to strengthen economic partnerships, aiming to address structural drivers of poverty. For instance, in 2023, Italy pledged more than $3 billion to support development programs in Africa, with a particular emphasis on education and training, health and energy.

Italy’s strategy for global poverty reduction relies on sustained, multi-layered engagement. By consistently investing in international aid, tackling food insecurity and placing humanitarian response at the core of its efforts, Italy demonstrates that impact is not defined by a nation’s size but by its commitment and compassion.

– Megan Burrows

Megan is based in Birmingham, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Pexels

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Importance of Development Aid: PCPM

PCPMAkkar Governorate in northern Lebanon is one of the most impoverished in the country. For more than 10 years, the region has been a humanitarian zone for the Polish Center for International Aid (PCPM). Poland and Lebanon have maintained diplomatic and economic relations since 1944. Lebanon is a designated priority country for Polish foreign aid. PCPM is the largest aid organization present in the state.

Initiating a Sustainable Change

With the employment rate at only 8.2%, most of the locals in the Akkar region rely on the agriculture and food production sector as a primary source of sustenance and income. The highly diverse landscape provides fertile soil and abundant water sources. At the same time, underdeveloped infrastructure, lack of electricity and unreliable water supply framework pose a significant danger to farmers.

The PCPM aims to address these challenges to ensure self-sufficient solutions. The organization provides not only humanitarian relief but also focuses on development. One of the most important PCPM projects in Akkar is the development of irrigation systems. The benefits of it are threefold: a safe and controlled water source for fields and orchards, the reuse of sewage treatment by-products and the prevention of cholera outbreaks.

Irrigation channels direct the water from the mountains, making it “free” by using gravity and a metal gate to regulate flow, preventing flooding. The channel system in the region is now 10 kilometers long. Less still water on the fields protects not only crops but also the health of the residents. It minimizes cholera outbreaks, especially with a safe drinking water source. The team also modernized local water treatment plants with solar panels to ensure uninterrupted operation during power outages.

The Polish zone in Lebanon provided solar panels for the most important public institutions. It renovated key roads through the region with solar-powered lighting and safety signals. The use of natural resources makes the changes sustainable and self-sufficient.

Why Development Aid Is a Key to Stability

The help within the Polish humanitarian zone in Lebanon starts with analyzing the areas of focus and the scope of the projects. The key to the provided aid is development. It ensures stable progress and self-sufficiency by influencing three crucial aspects: economic and employment growth, better overall quality of life and crisis response.

Development aid means investment in infrastructure, support for locally-owned businesses, investment opportunities and a boost for regional opportunities for growth. Akkar, with its nature and agriculture, has a great potential for expansion in the tourism and food industry.

Clean water, improved sanitation and easier access to healthcare and public institutions improve the quality of life. Societal development follows suit. Lebanon’s location makes it more vulnerable to various crises: health emergencies, natural disasters or regional conflict. The importance of development aid in this area lies in self-sufficiency in rebuilding and stabilizing efforts.

Polish Zone in Lebanon Continues

In 2025, the development aid will focus on “key sectors: education, support for persons with disabilities and environmental protection.” Lebanon remains a priority country for Polish foreign support. PCPM sustains additional programs for families in need, ensuring the supply of food and hygiene products.

– Patrycja Pietrzak

Patrycja is based in Limassol, Cyprus and focuses on Business and Good News for The Borgen Project.

Photo: Unsplash

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China’s Foreign Aid Strategy in Rwanda

China’s Foreign Aid strategyRwanda, a small, landlocked country in central-eastern Africa, has made notable progress in reducing poverty over the past two decades. However, recent years have seen a troubling reversal. According to the World Bank, 63.84% of Rwanda’s population lived below the international poverty line in 2016.

As Rwanda struggles to maintain its developmental gains, China has emerged as a major partner. China’s foreign aid strategy in Rwanda ranges from health, education, agriculture and infrastructure support. But are these efforts purely humanitarian or part of a broader geopolitical strategy?

China’s Anti-Poverty Measures in Rwanda

China’s foreign aid strategy in Rwanda spans multiple sectors, with significant investments to reduce poverty and support national development. In March 2025, China partnered with UNICEF to launch “Enhancing Early Childhood Development in Rwanda through South-South Cooperation.” This 18-month project targets 11 districts and aims to improve early childhood development (ECD) services, a crucial area for long-term health, education and economic outcomes.

The initiative is expected to support 2,100 children and indirectly reach 1.5 million. It also sets national goals to increase ECD service coverage from 24% to 45% and reduce child stunting from 33% to 15% by 2029. A key element of the initiative is adopting China’s “Barefoot Social Worker” model, which trains community-based workers to deliver child welfare services directly to families.

Technical workshops and knowledge exchanges between Rwandan and Chinese experts further strengthen the project, aligning it with Rwanda’s National Strategy for Transformation (NST2).

China’s Agricultural Investments in Rwanda

China’s agricultural investments are another important piece of its poverty reduction efforts. One example is the introduction of Juncao, a sustainable agricultural technology developed by Fujian Agriculture and Forestry University. Juncao uses chopped grass to grow nutrient-rich mushrooms for human and livestock consumption. It is an environmentally friendly alternative to traditional wood-based methods and offers a cost-effective solution to food insecurity.

Known in Rwanda as “the happiness herb,” Juncao has already reached more than 4,000 farmers and created thousands of jobs across the agricultural value chain. It has also been introduced into schools to improve children’s diets, providing an affordable protein source comparable to meat. By enhancing nutrition and income generation, this technology is critical in reducing poverty and improving health outcomes.

Another example of China’s foreign aid Strategy in Rwanda is the $40 million Giseke Dam and Irrigation Project, launched in January 2025. This initiative will irrigate 2,640 hectares of farmland in the Gisagara District and provide year-round water access to more than 900 farming households. The project is designed to stabilize food supply, increase crop diversity and improve nutrition. It also supports Rwanda’s NST2 goals for climate resilience and sustainable agriculture.

Funded through a concessional loan, the dam project reflects China’s commitment to building long-term partnerships through infrastructure. However, such projects also raise important questions about cost, impact and sustainability.

Why Is China Investing in Rwanda?

China’s engagement in Rwanda is closely tied to its broader Belt and Road Initiative (BRI), a global development strategy focused on building infrastructure and boosting trade. The BRI often targets developing nations across Eurasia, Latin America and Africa with investments in roads, ports and energy systems.

To better understand China’s foreign aid strategy in Rwanda, The Borgen Project spoke with Michael Beckley, Director of the Asia Program at the Foreign Policy Research Institute. Beckley is also an Associate Professor at Tufts University.

Beckley explains, “[D]eveloped economies already have infrastructure and are wary of China’s political aims. In [underserved) states, China can buy influence more cheaply—building a road or dam there yields outsized diplomatic returns compared to, say, Europe or Japan.” Rwanda, one of the world’s least developed countries, offers China the opportunity to gain influence at a relatively low cost.

He adds, “The region sits on vital shipping lanes, offers access to raw materials and is seen as an entry point for China’s broader engagement with Africa and the Middle East.” In this context, China’s foreign aid strategy in Rwanda is clearly not just about aid but also about advancing national interests through strategic partnerships.

The Risks of China’s Model

While China’s investments offer tangible benefits, they also come with risks. Beckley cautions that “[P]rojects can displace communities, saddle countries with debt or leave behind poorly maintained infrastructure.” He also notes that “local costs—environmental damage, limited local hiring—can be steep.”

These concerns are especially relevant in countries like Rwanda, where technical capacity is limited. According to the National Institute of Statistics of Rwanda, only 2.8% of the population holds a bachelor’s degree or equivalent. Running complex infrastructure projects like dams may require skills not widely available locally. This can lead to dependence on foreign experts and limit long-term sustainability.

An Opportunity for the United States

Given the strategic motivations behind China’s foreign aid strategy in Rwanda, should the U.S. adopt a similar approach? Beckley argues otherwise, suggesting that “[T]he U.S. might instead focus on partnerships that emphasize transparency, local benefits and sustainable projects, rather than competing on raw loan volume.”

China’s efforts to reduce poverty in Rwanda are impactful but often designed to serve its geopolitical objectives. This leaves room for the U.S. and other partners to offer an alternative model: one centered on community-led development, transparency and long-term sustainability.

Looking Forward

China’s foreign aid strategy in Rwanda has produced significant gains in infrastructure, health and agriculture. Initiatives like early childhood education, Juncao technology and the Giseke Dam show how foreign investment can address poverty and improve lives. However, these efforts also highlight the importance of strategic interests and the potential downsides of debt and dependency.

As Rwanda continues its development journey, international actors, especially the U.S., have an opportunity to contribute meaningfully. The U.S. can offer a complementary and potentially more equitable path forward by emphasizing local ownership, skill-building and sustainability.

– William Brentani

William is based in San Francisco, CA, USA and focuses on Politics for The Borgen Project.

Photo: Flickr

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The African Union’s SSE Strategy

SSE StrategyIn recent years, foreign aid has become increasingly political and divisive among Western nations. During his presidency, Donald Trump significantly reduced funding to the United States Agency for International Development (USAID), arguing for a more “America First” approach to spending. Similarly, countries such as the United Kingdom, France and the Netherlands have also scaled back their foreign aid commitments, citing shifting domestic priorities, according to The Financial Times.

The reduction in foreign aid spending by many Western countries has put significant pressure on global health organizations and the United Nations (U.N.), influencing them to adapt to a world where foreign aid budgets are no longer top priorities for high-income countries. A senior U.N. official, quoted in The Financial Times, acknowledged the severity of this shift, stating, “Around a fifth of the total aid budget is gone and we have to accept that.” In response, international agencies like the Global Fund to Fight Aids and the Vaccine Alliance are forced to scale back programs and sometimes discontinue aid projects altogether.

The Impact of Foreign Aid Cuts on Africa

Reductions in foreign aid spending, specifically budget cuts to USAID, have disproportionately impacted Africa, where millions rely on foreign aid assistance for health care services. In 2024, under the Biden administration, USAID allocated 31% of its total budget—totaling $12.7 billion—to aid programs across the continent.

These funds supported critical health initiatives targeting HIV/AIDS, malaria, tuberculosis, maternal and child health and nutrition. According to African Practice, the African Center for Disease Control and Prevention estimates that aid reductions could push an additional 5.7 million Africans into extreme poverty.

In the wake of aid cuts, the African Union has implemented a plan to navigate away from aid reliance and toward continent-wide development. The plan is a 10-year Social and Solidarity Economy (SSE) strategy, which focuses on strengthening locally rooted businesses and providing community-led public services and health care. By reinvesting the profits from these programs, the goal is to stimulate growth and create new jobs, ultimately stabilizing the continent and reducing the need for foreign aid.

Impacts from the African Union’s SSE strategy are already being seen across the continent. Below are a few highlights.

Babban Gona

Babban Gona is a farmer-owned cooperative based in Nigeria that supports the development of smallholder farms. Since its founding in 2010, the organization has created more than 80,000 jobs, impacted above 35,000 individuals in local communities and invested tens of millions of dollars into rural economies. These efforts have significantly reduced poverty and regional violence. The African Union’s SSE strategy aims to build on successful models like Babban Gona to promote broader community-driven growth across the continent.

Broad Reach

South Africa’s BroadReach program utilizes AI-driven data platforms to improve HIV and tuberculosis treatment nationwide. With support from government partners, BroadReach has enhanced the efficiency and reach of public health care systems, positively impacting millions of people and raising the overall quality of care. The program serves as a blueprint for how other African countries can scale health care services locally, minimizing foreign aid reliance for health care initiatives.

Esoko

Esoko is a Ghana-based project that uses mobile technology to provide communities with the necessary information to support positive change in agricultural markets. With more than one million farmers already impacted, Esoko delivers real-time updates on market prices and climate data to smallholders, improving both sustainability and productivity, according to Esoko.

Esoko has already improved farmers’ livelihoods across Ghana by creating a more interconnected agricultural market chain. This success can be scaled to surrounding regions under the African Union’s SSE strategy, making agriculture more dependable and profitable for many of Africa’s most vulnerable communities.

Final Remarks

While foreign aid cuts from Western nations have created challenges across Africa, they’ve also forced a necessary shift toward self-reliance and continent-wide development. Indeed, the African Union’s SSE strategy offers a new path forward. Programs like Babban Gona, BroadReach and Esoko show that locally based solutions already positively impact Africa. With continued support from the African Union, Africa has the tools to stimulate growth without depending on foreign aid.

– Jordan Venell

Jordan is based in Edina, MN, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

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Smaller INGOs in Honduras and Beyond

Smaller INGOS in Honduras and BeyondWith the recent federal cuts to world aid funding in the United States (U.S.), smaller international nongovernmental organizations (INGOs) have both felt the strain and shown a particular resiliency. Melanie Gibbons, who has worked with the Lutheran World Relief and merger company Corus for more than 20 years, has witnessed the benefits of smaller INGOs. She highlights how working locally, collaborating with other INGOs, operating on a smaller scale and maintaining the “nimble” qualities of a small organization can be an asset in the nonprofit sector.

Honduras’ Smaller INGOs and Tuition-Free School

In Honduras, just 38% of high school students graduate. At El Hogar, a tuition-free school supported by international aid, that number jumps to 92%. After years of work, helping with the world’s poorest countries, INGOs of all sizes have realized the importance of working locally in order to accomplish sustainable progress in a region, avoid unnecessary power struggles, honor the people that they are serving and get to root causes. And working locally often means working smaller. “And this is where the benefit of the larger organizations, working with the smaller organizations, is so good,” Gibbons says. “Because these smaller organizations who are right there in and their communities will know more quickly where needs are shifting, or what is most culturally appropriate or needed.” 

The Goal of Any Good Aid Organization

The goal of any good aid organization, Gibbons says, is to put themselves out of business. She lifts up the example of Splash International, an organization that provides water, sanitation and hygiene (WASH) in high need cities throughout the world. It plans to accomplish its implementation goals and close its doors in 30 years and it is on track to see that happen.  

“Those relationships are what will create the ability to scale later, to pivot quickly and to meet the right needs at the right time. So the relationships are crucial.” Fundraising is a matter of relationships, which are a matter of trust and working locally. Often, working more intimately creates relationships that can last for a long time and create generational change in different regions. Gibbons emphasized that fundraising ultimately comes down to relationships, with trust as the foundation.

In her view, smaller organizations that work locally and closely with communities are especially positioned to develop long-term bonds. Those connections, she noted, can create ripple effects that last for generations. At the same time, she acknowledged that smaller INGOs face challenges—such as limited visibility and resources—which makes collaboration with larger organizations essential for sustaining impact.

Building Trust Quicker

Smaller INGOs in Honduras and beyond are flexible in relational terms, as well. Able to form relationships and build trust more rapidly than larger organizations. An example of this is Splash International’s work in Addis Ababa. The organization started with government schools in implementing WASH solutions like water fountains, child-friendly toilets, and hand-washing stations. After implementing them in all of the government schools, with the help of the local government, it is scaling up and reaching out to the housing and business sectors in the region. “And this I would say that that gets back to the question of scale,” Gibbons said, “and how sometimes we underestimate the smaller organizations’ role in sector solutions. They have the ability to try new things and learn quickly at a smaller scale and then translate those learnings into larger investments that can be multiplied.”

Another benefit of smaller INGOs in Honduras and beyond is the collaboration that takes place among the organizations. “I think for the most part it’s a very supportive environment,” Gibbons said about the collaboration between small organizations. “Executive directors of small organizations know that they need each other. We’re always learning from each other and being supported.” Though sometimes they are vying for the same money from funders, “There’s more collaboration than competition,” Gibbons said. 

Having an Abundance Mindset is Crucial

Overall, one of the biggest assets of running, or working for, smaller INGOs is the ability to revamp the system in creative ways. Gibbons believes there’s enough out there to provide for the needs of the poorest and neediest in the world. “I really do, in my heart, believe that there’s enough for everyone, not only to survive but to thrive. The sector has some opportunities to be creative and think differently, and that’s exciting to be part of. I’m grateful to have the chance to be part of the solutions.” While she hurts for all who are hurting because of the budget cuts, she also sees a window for positive growth and change within the INGOs sector. 

Looking Ahead

Because of their ability to work locally, work collaboratively and work creatively, smaller INGOs in Honduras and beyond are making a big difference in providing important humanitarian aid to the world. The landscape of world aid is going through a shift, and smaller INGOs are providing relief where it is needed and working at a smaller scale and in a nimbler way to provide scalable solutions.

– Gregory Walker

Gregory is based in York, PA, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr