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Norwegian aid level nosedives in wake of spiking war-time economy

New estimates of Gross National Income (GNI) show that the Norwegian economy has received a huge boost due to spiking oil prices and war, this time in Iran. Development Today has calculated that the current aid budget is on a path to 0.92 per cent of GNI, far below the level presented in the revised budget Tuesday, which uses old economic forecasts.

Capital nation: the Norwegian oil fund’s discreet role in international aid

The Norwegian oil fund has invested NOK 88 billion in fixed-income securities issued by international organisations. Many of these bonds finance development programmes initiated by institutions like the World Bank, the African Development Bank, and the vaccine alliance GAVI. The fund has not incurred losses on these bonds, and its largest investments are in EU institutions, where further exposure is expected in the years ahead.

Sida commits lion’s share of humanitarian funds to 25 crises around the world

In a first tranche, Sweden’s aid agency Sida commits SEK 2.74 billion in humanitarian assistance to 25 acute humanitarian crises, directed through UN agencies, the Red Cross and three European relief organisations. Humanitarian aid is among few areas spared in a shrinking Swedish aid budget, according to Development Minister Benjamin Dousa.

World Bank recruits Danish lawyer to become its new chief anti-corruption officer

The World Bank has appointed the Danish lawyer Maria Thestrup as its new Vice President of Integrity. Thestrup joins from Gavi, the Vaccine Alliance, where she has served as Chief Ethics, Risk and Compliance Officer. The Danish lawyer has more than two decades of international experience from humanitarian organisations, global health institutions, and the private pharmaceutical sector.

Sweden’s aid surge rests on future promises, sharp drop looms

Sweden’s overseas development aid (ODA) apparently surged last year due to an accounting quirk under which Stockholm crammed more than USD 1 billion in multi-year pledges to the World Bank and Green Climate Fund into the ledger for 2025. The reported 9.6 per cent rise in aid in the OECD’s preliminary tally for 2025 masks a three-year budget freeze and will herald a likely nosedive in aid reported to the OECD this year from 2025’s total.

Best regards

Bjørn H Amland, Editor-in-Chief

Development Today

Here are the latest stories from Development Today!

Sida commits lion’s share of humanitarian funds to 25 crises around the world

In a first tranche, Sweden’s aid agency Sida commits SEK 2.74 billion in humanitarian assistance to 25 acute humanitarian crises, directed through UN agencies, the Red Cross and three European relief organisations. Humanitarian aid is among few areas spared in a shrinking Swedish aid budget, according to Development Minister Benjamin Dousa.

World Bank recruits Danish lawyer to become its new chief anti-corruption officer

The World Bank has appointed the Danish lawyer Maria Thestrup as its new Vice President of Integrity. Thestrup joins from Gavi, the Vaccine Alliance, where she has served as Chief Ethics, Risk and Compliance Officer. The Danish lawyer has more than two decades of international experience from humanitarian organisations, global health institutions, and the private pharmaceutical sector.

Sweden’s aid surge rests on future promises, sharp drop looms

Sweden’s overseas development aid (ODA) apparently surged last year due to an accounting quirk under which Stockholm crammed more than USD 1 billion in multi-year pledges to the World Bank and Green Climate Fund into the ledger for 2025. The reported 9.6 per cent rise in aid in the OECD’s preliminary tally for 2025 masks a three-year budget freeze and will herald a likely nosedive in aid reported to the OECD this year from 2025’s total.

OPINION: A response to Norway’s position in pandemic agreement negotiations

In sum, it would not be an exaggeration to say that Norway’s position in the on-going negotiations in Geneva on Pathogen Access and Benefit Sharing System (PABS) are contrary to the established principles of international law on access and benefit sharing and with the norms of open science and equitable pandemic prevention and preparedness, write Nithin Ramakrishnan a lawyer and Senior Researcher at Third World Network and Lauren Paremoer, Associate Professor of Political Studies at the University of Cape Town.

By supporting the decoupling of access to pathogens and data from enforceable benefit-sharing obligations, Norway risks legitimising biopiracy and undermining global health preparedness. In this context, Norway appears to be drifting from its traditional role as a developed country voice aligned with the right to health, fairness, and justice, they argue.

Interview with Carsten Staur: Rethinking aid for a new era

Carsten Staur is Chair of the OECD Development Assistance Committee.

Carsten Staur, who oversees OECD aid, reflects on the massive rollback, the challenges ahead and how development assistance can be reset in a new global political landscape. In an in-depth interview with Development Today, he says a new paradigm is emerging. He argues that aid should be integrated more closely with foreign and security policy.

Best regards

Bjørn H Amland, Editor-in-Chief

Development Today

Here are the latest stories from Development Today!

Sweden’s aid surge rests on future promises, sharp drop looms

Sweden’s overseas development aid (ODA) apparently surged last year due to an accounting quirk under which Stockholm crammed more than USD 1 billion in multi-year pledges to the World Bank and Green Climate Fund into the ledger for 2025. The reported 9.6 per cent rise in aid in the OECD’s preliminary tally for 2025 masks a three-year budget freeze and will herald a likely nosedive in aid reported to the OECD this year from 2025’s total.

OPINION: A response to Norway’s position in pandemic agreement negotiations

In sum, it would not be an exaggeration to say that Norway’s position in the on-going negotiations in Geneva on Pathogen Access and Benefit Sharing System (PABS) are contrary to the established principles of international law on access and benefit sharing and with the norms of open science and equitable pandemic prevention and preparedness, write Nithin Ramakrishnan a lawyer and Senior Researcher at Third World Network and Lauren Paremoer, Associate Professor of Political Studies at the University of Cape Town.

By supporting the decoupling of access to pathogens and data from enforceable benefit-sharing obligations, Norway risks legitimising biopiracy and undermining global health preparedness. In this context, Norway appears to be drifting from its traditional role as a developed country voice aligned with the right to health, fairness, and justice, they argue.

Interview with Carsten Staur: Rethinking aid for a new era

Carsten Staur is Chair of the OECD Development Assistance Committee.

Carsten Staur, who oversees OECD aid, reflects on the massive rollback, the challenges ahead and how development assistance can be reset in a new global political landscape. In an in-depth interview with Development Today, he says a new paradigm is emerging. He argues that aid should be integrated more closely with foreign and security policy.

Sweden: Hard-won gender and sexual reproductive health mandates could be wiped out by merging UNFPA and UN Women

UN80: UN Deputy Secretary General Amina Mohammed leads the work to assess merging UNFPA and UN Women.

As discussion about a proposed merger of the two UN entities drags on, Sweden has emerged as an outspoken critic of the process, calling for an evidence-based review that weighs risks and benefits rather than a fait accompli. “We should have a proper assessment before we take a decision,” Ambassador Andreas von Uexkull says to Development Today.

OECD reports largest aid cuts on record last year, yet most Nordics increased their ODA spending

The OECD’s aid figures for 2025 show a historic contraction of Western aid..

US aid cuts drove the largest reductions in development assistance on record, with France, the United Kingdom, Japan and Germany also rolling back aid last year, according to the OECD. Germany is now the largest OECD donor. While Finland continued to reduce, the other Nordics largely held their ground. The Nordic share of OECD aid increased sharply, and Norway is the only donor to surpass the 1 per cent of GNI bar.

Best regards

Bjørn H Amland, Editor-in-Chief

Development Today

Here are the latest stories from Development Today!

Interview with Carsten Staur: Rethinking aid for a new era

Carsten Staur, who oversees OECD aid, reflects on the massive rollback, the challenges ahead and how development assistance can be reset in a new global political landscape. In an in-depth interview with Development Today, he says a new paradigm is emerging. He argues that aid should be integrated more closely with foreign and security policy.

Sweden: Hard-won gender and sexual reproductive health mandates could be wiped out by merging UNFPA and UN Women

As discussion about a proposed merger of the two UN entities drags on, Sweden has emerged as an outspoken critic of the process, calling for an evidence-based review that weighs risks and benefits rather than a fait accompli. “We should have a proper assessment before we take a decision,” Ambassador Andreas von Uexkull says to Development Today.

OECD reports largest aid cuts on record last year, yet most Nordics increased their ODA spending

US aid cuts drove the largest reductions in development assistance on record, with France, the United Kingdom, Japan and Germany also rolling back aid last year, according to the OECD. Germany is now the largest OECD donor. While Finland continued to reduce, the other Nordics largely held their ground. The Nordic share of OECD aid increased sharply, and Norway is the only donor to surpass the 1 per cent of GNI bar.

Best regards

Bjørn H Amland, Editor-in-Chief

Development Today

Here are the latest stories from Development Today!

Brazilian prosecutor: carbon credit project in Pará backed by Norwegian funding is ‘illegal’

The Brazilian Federal Prosecution Service has called for the cancellation of a forest carbon credit deal in the state of Pará, involving two US-based institutions funded by Norway, arguing that it contravenes Brazilian law and violates indigenous rights. The prosecutor’s office says to Development Today that it remains confident the courts will suspend this “illegal” project. Among the potential buyers are Amazon, H&M and Walmart.

Interview: At the frontier of development finance

The Dane Kirstine Damkjær has taken up the position as Chief Investment Officer at Amsterdam-based ILX, which aims to mobilise pension funds to co-invest with development banks like the World Bank and development finance institutions (DFIs). In an interview with Development Today Damkjær and her colleague Sophie Gioanni, explore this frontier of development finance and ILX’s involvement in establishing a new asset class.

Other recent stories:

Interview: IFAD’s Alvaro Lario: dual oil and fertilizer shock will hit small-scale farmers hard

IFAD, the only UN agency with a AA+ credit rating, has weathered crises before. As war in the Persian Gulf upends the global economy, the Spanish economist Alvaro Lario who heads IFAD reflects on prospects for the next replenishment. He warns that the double shock of oil and fertilizer shortages will hit smallholder farmers hard.

Déjà vu in Geneva: Rich and poor countries in tense conflict over final rulebook for next pandemic

There is a deep North-South split in the 11th hour of negotiations in Geneva to finalise the global pandemic treaty. At stake are rules that will govern access to pathogens used to produce vaccines and medicines against the next pandemic. A draft text that largely reflects the EU and Norway’s concerns faces massive critique. Developing countries say they will not accept being last in line for vaccines again, as they were during covid. Diplomats tell Development Today that Norway is no longer acting as a bridgebuilder to the Global South.

Soul searching at Nordic Development Fund as it looks for new partners

Amid a massive rollback in global aid, the Helsinki-based Nordic Development Fund (NDF) has launched a new strategy aiming to strengthen its identity and Nordic engagement as it seeks new partners in the region.

Best regards

Bjørn H Amland, Editor-in-Chief

Development Today

Dear Reader,

Here is an overview of Development Today stories on Substack this week:

Interview: IFAD’s Alvaro Lario: dual oil and fertilizer shock will hit small-scale farmers hard

IFAD, the only UN agency with a AA+ credit rating, has weathered crises before. As war in the Persian Gulf upends the global economy, the Spanish economist Alvaro Lario who heads IFAD reflects on prospects for the next replenishment. He warns that the double shock of oil and fertilizer shortages will hit smallholder farmers hard.

Déjà vu in Geneva: Rich and poor countries in tense conflict over final rulebook for next pandemic

There is a deep North-South split in the 11th hour of negotiations in Geneva to finalise the global pandemic treaty. At stake are rules that will govern access to pathogens used to produce vaccines and medicines against the next pandemic. A draft text that largely reflects the EU and Norway’s concerns faces massive critique. Developing countries say they will not accept being last in line for vaccines again, as they were during covid. Diplomats tell Development Today that Norway is no longer acting as a bridgebuilder to the Global South.

Soul searching at Nordic Development Fund as it looks for new partners

Amid a massive rollback in global aid, the Helsinki-based Nordic Development Fund (NDF) has launched a new strategy aiming to strengthen its identity and Nordic engagement as it seeks new partners in the region.

Best regards

Bjørn H Amland, Editor-in-Chief

Development Today

Here is an overview of recent Development Today stories published on Substack.

· Nordics hold their ground following Trump II cuts to UNFPA

· Sudden exit by Jakob Granit, head of Sweden’s aid agency. Disagreement with the board and discontent among staff had weakened his position

· Crossroads: Norfund, with profits that have nearly kept pace with Norway’s oil fund, now has a total value that roughly equals an entire Norwegian aid budget.

If you have colleges or friends that could take interest in Development Today, please feel free to share this Newsletter.

Have a god read!

Best regards

Bjørn H Amland,

Development Today

Nordics hold their ground following Trump II cuts to UNFPA

In the first year of Trump II aid cuts, a few donors in Europe have held up their support for the UN Population Fund (UNFPA), with the Nordics maintaining their long-held position as principal providers of core support in 2025. During a recent visit to the five Nordic capitals, Executive Director Diene Keita described the region as “a global stronghold for women and girls.

Jakob Granit’s sudden exit from Sida fuels political storm over Swedish aid, unions call for calm

In a surprise move, Jakob Granit, head of Sweden’s aid agency Sida, has stepped down. Disagreement with the board and discontent among staff had weakened Granit’s position, but his resignation still came as a shocker as Sida struggles to implement massive changes in Swedish aid. Read about:
*The claims of ‘politicisation’ of Sida
*The Acting Director-General’s pledges
*Tensions between Granit and the board
*Unspent funds
*Staff discontent
*Unions calling for calm

Crossroads: Norfund’s value now equals an entire aid budget

Norfund, with profits that have nearly kept pace with the oil fund, now has a total value that roughly equals an entire Norwegian aid budget. Last year, 8 per cent of Norwegian ODA was earmarked as capital for Norfund. Should the fund be considered as aid or is it merely an alternative vehicle for investing the country’s oil fortune?

DT 1/2026

Brazilian Ministry of Finance pushes back against critics of Tropical Forest Forever Facility

Critics have questioned the viability of the giant tropical forest fund launched by Brazil at last year’s COP in Belém. In this in-depth interview with Development Today, João Paulo de Resende, Undersecretary at Brazil’s Finance Ministry, dismisses the naysayers and explains how the concept has been modified. “The basic idea is to set up a bank to make a profit, but we will give the profit to the forest,” he says.

Whittling down a decades-long signature of Swedish aid

The halving of Sida’s budget for development research three years ago sent shock waves through the Swedish research community and around the world, but the aid agency managed to keep the portfolio intact. A new round of cuts this year has forced Sida to rethink the scope of a programme that has been a hallmark of Swedish aid for decades.

Parliamentary watchdog throws a wide net, Epstein files hit Norwegian aid like a tsunami

The oversight committee of Norway’s parliament has called for an independent investigation into the extensive contacts between the sex offender Jeffrey Epstein and high-level Norwegian former politicians and diplomats. The committee has sent the Foreign Ministry 28 questions which also target Norwegian aid financing of organisations, think tanks, and institutes that facilitate network building.

Global South NGO leaders call on international relief agencies to stop competing for UN country funds

Leaders of humanitarian organisations in the Global South urge international actors to stop competing for financing from the UN country-based pooled funds in the wake of Save the Children’s decision to refrain from applying to the funds for support. Local organisations continue to be treated as subcontractors with no overhead, they say. Some international NGOs are mulling over whether to withdraw.

Localisation: International humanitarians hesitate to follow Save the Children’s lead in pulling out of UN country funds

Save the Children has stopped taking grants from the UN country-based pooled funds, wiping out USD 40 million in funding and shaking up the humanitarian scene. The purpose was to make room for local actors, and Save the Children has called on other big NGOs to do the same. Development Today asked eight of them, including Danish Refugee Council, CARE, Norwegian Refugee Council and Oxfam, whether they will follow suit. Here is what they said.

OPINION: ‘Members only’ reconstruction: How the Board of Peace is undermining international law

The short-lived Gaza Humanitarian Foundation bypassed multilateral coordination, recasting aid as a market-driven service rather than a rights-based obligation. Now the “Board of Peace” extends this logic from humanitarian aid to peace itself and threatens to undermine and reshape international public law. Maria del Mar Logroño Narbona writes.

UNRWA cuts local salary costs by one-fifth to avoid agency collapse

In response to a desperate funding situation, Philippe Lazzarini, head of the UN agency for Palestinian refugees UNRWA, has delivered a grim message to his staff: a 20 per cent reduction in working hours per week in all fields of operation. A UN official close to the process tells Development Today that as significant and austere as this cost-cutting measure is, it makes up only a small part of the agency’s financial deficit.

Norway pilots direct funding of local humanitarian actors in Syria, Sudan and Myanmar

Three humanitarian funds that channel most of their support directly to local and national actors - in Syria, Sudan and Myanmar - will receive Norwegian funding over the next three years. The donor’s new approach emerges after years of calls from Global South groups for a shift in the power balance within the humanitarian system.

Opinion: Don’t despair about aid cuts: a sustainable development model is emerging

Current donor cuts “may serve to nudge us towards a more sustainable model,” based on locally led development and global peer-to-peer cooperation, writes Alfred Hannig, CEO of the Alliance for Financial Inclusion. Such changes are already underway as developing countries become less dependent on aid, but there is still a role for Western donors in the poorest nations.

Heading into the fourth year of cuts, disruption and new priorities for Swedish aid

A few days after the Swedish parliament approved the aid budget in mid-December, the government sent its instructions to the aid agency Sida specifying its priorities for 2026. While the budget proposition is short on details, the letter to Sida spells out the nitty-gritty of the fourth year of the rollback and cuts in Sweden’s engagement with countries in Africa, Asia and Latin America.

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