The significant cuts to international aid programs and the UN budget led by the US have prompted the UK Foreign Secretary, David Lammy, to suggest a global conference on what he termed as “a long overdue conversation about the future architecture of aid”. According to the UK Foreign Office, the conference is likely to take place in early autumn, reflecting a necessity to discuss priorities given that aid cuts are irreversible in the near future.
Lammy emphasized the need for a discussion about aid and how it is spent, stating that the current moment calls for leadership and smarter allocation of financial resources. Despite the UK’s own reduction of its aid budget, which is part of a plan to increase defense spending, Lammy insisted these cuts do not signify an ideological shift away from aid.
The US aid cuts, which are much more drastic, have a significant impact because the US provides a quarter of Western aid. The scale of these cuts is slowly becoming apparent, with 83% of USAID programs facing cancellation.
The potential consequences of these aid cuts include deepening poverty, as much aid focuses on addressing global challenges rather than directly targeting extreme poverty. Conflict is increasingly recognized as a common cause of extreme poverty, with more than half of the extremely poor now living in conflict areas.
There are also concerns that the current aid architecture, which depends on government structures, is often ineffective in conflict and fragile states. Furthermore, the cuts may present an opportunity for countries like China to increase their influence through aid offerings, though concerns about transparency and debt entrapment remain.
Overall, the proposed conference offers a moment to reassess aid priorities, emphasizing the need for aid to directly benefit the most vulnerable and for broader inclusion of non-Western donors in financing and delivering aid.
Source: https://www.theguardian.com/global-development/2025/may/07/conversation-on-future-of-aid-long-overdue-uk-looks-to-lead-response-to-swingeing-us-cuts
