The sudden and brutal dismantling of USAID signals twin realities of public development funding within a rapidly changing landscape — and an opportunity for reform.
First, it highlights the undeniable value of official development assistance, or ODA. Essential for global solidarity, cooperation, and shared responsibility, ODA has helped eradicate diseases, lift millions out of poverty, and respond to humanitarian crises. In 2023, it reached $223.7 billion — though still below the United Nations’ target of 0.7% of gross national income, which was met by only five countries.
Second, it shows how development funding must evolve. Overlapping crises — climate shocks, economic inequalities, financial gaps — hit the fastest-growing but most underfunded economies hardest. Climate finance needs in lower-income countries are fivefold higher than current levels, with adaptation alone requiring $387 billion annually until 2030. Meanwhile, a significant portion of ODA funding goes to short-term humanitarian and geopolitical crises, leaving long-term development underresourced.