Global Development Review

The Global Freeze in Development Funding: USAID and Beyond


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Welcome to Global Development Review, the podcast where we explore the biggest challenges and opportunities shaping international development today. I’m your host, Jaffer Latief Najar, and today, we’re tackling an urgent and deeply concerning issue—The Global Freeze in Development Funding: USAID and Beyond.

Over the past few years, we’ve seen a disturbing trend—major donors like USAID, the Netherlands, and the UK are scaling back their development aid commitments. This shift has sent shockwaves through the global development community, leaving NGOs, humanitarian organizations, and vulnerable populations in a precarious position. What’s driving these cuts? Which sectors—whether health, education, climate resilience, or conflict response—are being hit the hardest? And most importantly, what can be done to fill this funding gap before it’s too late?


To break it all down, I’m honored to be joined by Professor Peter Taylor, one of the foremost experts in global development and an influential voice in research, policy, and strategy. Professor Peter Taylor is the Director at the Institute of Development Studies (IDS), where he previously served as Director of Research. With nearly 40 years of experience in international development, he has played a pivotal role in shaping research and policy at some of the world’s most respected institutions.

From 2009 to 2019, he was Director of Strategic Development at the International Development Research Centre (IDRC) in Canada, where he led global initiatives to strengthen development research and knowledge-sharing networks. He has also held senior roles at IDS, including Research Fellow, Head of Graduate Studies, and Leader of the Participation, Power, and Social Change Team.

Beyond academia, Professor Taylor has been deeply engaged in development practice—working as an Education Technical Advisor for the Swiss NGO Helvetas in Vietnam, a Lecturer in Agricultural Education at the University of Reading, and Head of the Agriculture Department at a rural secondary school in Botswana.


In today’s episode, we’ll explore the root causes of the funding freeze, its far-reaching consequences, and the alternative solutions that could help sustain global


In this podcast, we explore the following key questions:


 

1. The USAID funding freeze has been making headlines since the start of Trump’s second term, and now, similar development aid cuts in the Netherlands and the United Kingdom are amplifying concerns. This shift is sending shockwaves through the development sector, sparking widespread discussions. What are the key drivers behind the current freeze and decline in development funding from USAID and other major donors?


2. How is this funding crisis affecting NGOs, humanitarian organizations, and developing countries that rely on these resources? Are there specific sectors—such as health, education, war affected areas, conflict zones, gender justice, or climate resilience—that are feeling the impact more than others?


3. What types of development funding are most urgently needed today, and how does this compare to what is actually available?


4. What alternative funding mechanisms could help fill the void? What steps should donor governments, multilateral institutions, and NGOs take to mitigate the effects of the funding freeze and ensure sustainable support for global development?


5. How do you see the future of the development sector? Some experts warn that the recent wave of development aid cuts signals a shift toward the sector’s decline. Given these alarming trends, what are your insights on the future of global development?




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Global Development ReviewBy Jaffer Latief Najar