Global gap will widen between aid needed and funded

Outlook

Leading NGOs will struggle to maintain previous revenue levels and may scale back operations. The draft US 2018 budget cuts humanitarian aid by more than 30%. In June, the UN cut its peacekeeping budget by nearly 10%.

Nigeria, Somalia, South Sudan and Yemen are suffering from conflict-related displacement and famine risks. At the July G20 summit, the United States released delayed humanitarian aid for the four countries, but their needs remain underfunded. Syria’s needs are vast.

Former UN Secretary-General Ban Ki-moon estimates that 30% of aid is lost to corruption. In many countries, army units and pro- and anti-government militias are predatory towards aid.

Impacts

• Using development aid for short-term foreign policy and reducing conditional aid will weaken international cooperation on development.
• Reduced US assistance to low-income countries that Washington deems ‘non-strategic’ might reverse development gains.
• US humanitarian aid reductions, including to conflict zones, could push Europe to make up the shortfall to avert a new refugee influx.