Foreign aid leadership is becoming increasingly vital as traditional donors slash their development budgets. The United States, once a key player through USAID, has dramatically reduced its contributions, despite previous efforts that saved over a million lives annually. The U.S. is not alone. The U.K., France, Germany, and other major players have followed suit. According to the OECD, global official development assistance (ODA) fell by 7.1% in 2024, with the European Union cutting its aid budget by 8.6%. And the worst may be yet to come: 2025 could see the largest aid cut in modern history. The OECD estimates a $35 billion drop in 2025, on top of a $21 billion shortfall in 2024, leaving a $56 billion vacuum where funding for vaccine research, mosquito nets, and food programs once existed.

Amid this widespread retreat, a few countries have emerged as unexpected leaders. While Spain has gained attention for going against the grain, it is not alone. In 2024 and 2025, South Korea’s and Ireland’s foreign aid budgets have been expanded, standing out as outliers of solidarity in an increasingly fragmented global aid landscape

Ireland: A Rising Leader in Foreign Aid

Ireland’s foreign aid commitments have steadily increased in recent years. In 2023, the country’s ODA reached a historic €2.6 billion, amounting to 0.67% of Gross National Income (GNI). However, when excluding in-country refugee costs, the ODA-to-GNI ratio stands at 0.38%

For 2025, Irish Aid received a €35 million boost, bringing its total to €810 million—a 4.5% increase and a record allocation. Across all government departments, total ODA remains above €2 billion, reinforcing Ireland’s commitment to humanitarian response and long-term development. This funding prioritizes emergency responses in conflict zones like Gaza, Sudan and Ukraine.

Notably, Ireland is also investing in multilateral development. In 2025, it will contribute €141 million—a 33.5% increase—to the World Bank’s International Development Association (IDA) fund, which supports the world’s poorest countries. The IDA helps low-income nations cope with debt burdens, climate shocks, rising inflation and conflict.

By blending immediate humanitarian aid with long-term financing, Ireland is strengthening its global footprint and pursuing a values-driven foreign policy aligned with the U.N. Sustainable Development Goals.

South Korea: Scaling Aid and Shaping Donor Identity

In 2024, South Korea’s ODA surged by 24.8%, reaching $3.94 billion, or 0.21% of its GNI—the highest ratio since the country joined the OECD Development Assistance Committee (DAC). For 2025, the government approved an even larger ODA budget of 6.5 trillion won (≈US$4.5 billion), marking a 3.8% increase and achieving its mid-term aid target well ahead of schedule. South Korea’s aid strategy now prioritizes mutually beneficial cooperation, shifting toward fewer but larger projects that enhance impact and reduce fragmentation.

The OECD DAC’s 2024 peer review commended Korea’s ODA efforts, highlighting its rapid scale-up and growing leadership in the international development arena.

South Korea’s rising influence is especially visible in Africa. At the Korea–Africa Summit, it pledged an additional $10 billion in development aid over six years and signed nearly 50 bilateral agreements across sectors like mining, manufacturing, energy, and trade. Korean companies also expanded their footprint—Hyosung Corp secured a $30 million transformer supply contract with Mozambique, while strategic partnerships were signed with Madagascar and Tanzania to secure critical minerals. Korea also committed $14 billion in export financing to boost trade and investment in African markets.

With a growing focus on South–South cooperation, Korea is positioning itself not just as a financial donor, but as a development partner offering shared solutions—a model increasingly relevant in today’s evolving aid landscape.

Strategic Shifts and Emerging Models

Ireland and South Korea stand out not only for increasing their aid budgets, but for how they are deploying those resources. Ireland has prioritized a balanced mix of humanitarian aid and peace-building, while reinforcing its long-standing commitment to multilateralism. This integrated approach strengthens long-term resilience and global partnerships.

South Korea, meanwhile, is focusing on quality and strategic alignment. Rather than expanding broadly, it is sharpening its engagement, enhancing regional diplomacy and consolidating efforts into fewer, more impactful programs. This reflects a maturing donor model that values effectiveness over volume.

Looking Ahead: Complexities and Opportunities

This progress is not without challenges. In Ireland, growing refugee-related costs and climate obligations must be balanced without diluting its long-term development agenda. Sustaining momentum will require political will and public backing.

For South Korea, the key test is turning reforms into lasting impact. As it moves toward larger-scale projects, transparency and effective delivery will be crucial.

South Korea’s and Ireland’s foreign aid may not match top donors in scale, but their strategies offer something equally vital: a blueprint for high-impact, principled engagement. Through targeted investments, diplomacy, and values-driven action, both countries are showing that smaller donors can lead with purpose.

– Jacobo L. Esteban

Jacobo is based in Cali, Colombia and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr