Global development’s new era begins : Raj Kumar / DEVEX

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Summary

The global development sector is undergoing a major shift as the traditional "Old Aid" model—a bureaucratic, risk-averse system led by government donors—faces existential challenges. Rising populism, shrinking aid budgets, and increasing humanitarian needs are making old approaches unsustainable. Development Finance Institutions (DFIs) and Multilateral Development Banks (MDBs) are expected to take on more prominent roles, while UN agencies may suffer funding cuts. Philanthropy will play a critical role in filling gaps left by declining government aid. The future of development lies in large-scale, cross-sector collaborations driven by private capital, philanthropy, and local ownership.

To succeed, aid advocates must embrace bold reforms and shift from small projects to transformational initiatives, like electrifying Africa or building the Great Green Wall, that can inspire global support.

Key Quotes:
"What do you do when you find yourself on a melting iceberg? Build a boat.
“Old Aid is a melting iceberg, and the ocean just got a lot hotter.”
“Development professionals and aid workers often operate in a risk-averse culture, punished more for mistakes than praised for achievements.”







“An era of aid cuts might reasonably lead to thinking small. But one way off the iceberg is thinking big.”
– Encouraging bold, large-scale projects rather than retreating in the face of shrinking budgets.