© Tom Zeimet
As global development assistance drops to six-year lows, former UN chief Ban Ki-moon joined Luxembourg officials in defending multilateral approaches, insisting "no single nation – however powerful – can solve the world's problems alone."
Development cooperation faces significant challenges as global state aid declined in 2024 for the first time in six years, with projections suggesting a potential historic low in 2025, according to Carsten Staur of the OECD.
The downturn, noted during Wednesday's development conference at Luxexpo in Kirchberg, stems from shifting US policies under President Donald Trump, widespread national budget deficits, and rising defence expenditures worldwide.
The event drew approximately 300 attendees, including NGO representatives, ambassadors, Minister for Foreign Affairs and Development Cooperation Xavier Bettel, and former UN Secretary-General Ban Ki-moon. Despite concerning trends, Ban expressed cautious optimism, emphasising that multilateral cooperation remains essential.
Ban stated that during his decade at the UN, he learned that no single nation, regardless of its power, can solve global challenges alone, reaffirming his belief in multilateralism and urging development professionals to uphold this principle.
Minister Bettel echoed this sentiment, voicing strong support for NGO workers. He confirmed Luxembourg's commitment to maintaining its development aid at 1% of GDP throughout the current legislative term. Addressing concerns about potential cuts to NGO awareness programmes, Bettel announced plans to establish a "House of Cooperation" to bolster support for the sector.
Rebuilding trust through oversight
In light of recent scandals like Caritas, restoring confidence in development cooperation has become paramount – a challenge Ban Ki-moon and OECD's Carsten Staur emphasised extends globally and requires robust accountability measures.
Foreign Minister Xavier Bettel detailed Luxembourg's comprehensive oversight system, which combines rigorous pre-funding vetting of projects with ongoing on-site monitoring during implementation, followed by financial reclaims when violations occur. "This has happened regularly and will unfortunately continue happening," Bettel stated, acknowledging imperfections while asserting Luxembourg's domestic and international partner mechanisms function effectively.
Facing global aid reductions, Staur proposed a five-point resilience plan prioritising poverty eradication as the primary focus. His roadmap includes developing alternative financing, boosting local resource mobilisation in recipient nations, streamlining governance to reduce bureaucratic waste, and enforcing enhanced transparency at all operational levels.
