Protecting Development Gains
By the DaRe2 Advisory Council
At a time when Official Development Assistance (ODA) was reduced by 23.1% in 2025 — with a further estimated 5.8% cut expected in 2026 — the development community must work harder than ever to protect past gains and continue tackling poverty across the globe. This will require multi-front advocacy and action, including the following:
1. Mobilization and allocation of domestic resources for social development.
Ethiopia sets a strong example in this regard. Apart from regular budget allocations for social development, Ethiopia introduced a 3% Social Welfare Levy on most imported goods in August 2022 to fund social programs (Source: EY Global Tax News — globaltaxnews.ey.com/news/2022-6148-ethiopia-introduces-social-welfare-levy-on-imported-goods). Starting February 2026, Ethiopia is also implementing new and significant taxes and levies across multiple sectors to fund its National Disaster Risk and Response programs — including a 1% levy on new loan disbursements and a 5% levy on digital banking service fees, as part of a broader 17-levy framework spanning banks, telecoms, transport, and other sectors (Source: Addis Insight — addisinsight.net/2026/01/21/17-new-levies-ethiopia-broadens-disaster-fund-financing-across-banks-telecoms-and-transport). It is worth noting, however, that such domestic resource mobilization measures may carry inflationary risks and should be carefully monitored.
2. Effective delivery of ODA to ensure lasting and meaningful impact.
In this period of severe budget constraints, identifying new development models is critical — though this takes time. In the meantime, greater use of the following existing modalities should be encouraged, as they strongly support country ownership and localization agendas: (a) World Bank Multi-Donor Trust Funds, (b) Country-led Multi-Donor Pooled Funds, and (c) rolling out the Country-led GAVI Civil Society model into other sectors.
3. Tackling the downward trend of ODA.
While developing countries must take increasing responsibility for financing their own development from domestic sources, they must also voice their concerns about the abrupt and consequential 2025 ODA cuts at the upcoming April 2026 UN Conference on Financing for Development. The United States was the originator, leader, and advocate for foreign aid — and has called on other developed nations to do more. This has changed significantly, as the US alone accounts for 75% of the ODA cuts in 2025. While trade and investment remain key drivers of bilateral and multilateral relationships today, human development cannot be ignored — not only on humanitarian grounds, but because it is an enabler of trade, investment, and economic growth. The fundamental reasons for foreign aid have not changed.
4. Development professionals giving back to their communities.
Development professionals who were laid off as a result of organizational closures or reductions in force should find ways to give back — through consultancy services, short-term training, volunteering, and advocacy. Their incredible talents and experience must not be lost at the very moment when development gains need to be protected most. DaRe2 was founded in part to serve as a home for this kind of expertise and commitment.