The Future Summit Approaches: Where Is International Development Cooperation Heading?

By Javier Surasky-


We're at a pivotal moment for multilateralism. As the UN negotiates the final versions of the Future Pact, the Declaration on Future Generations, and the Global Digital Compact for member states to consider, an increasing number of civil society organizations and private sector actors are claiming that the UN is no longer a priority partner. They cite its inability to produce necessary changes or foster dialogues that lead to concrete and ambitious actions.

This context also reflects multiple crises that the United Nations neither created nor had the tools to address, largely because member states didn't allow it. Given this situation, it's worth examining what the figures and agendas of international cooperation tell us about its evolution. After all, while international cooperation alone won't change the world when the conditions for that change finally exist, it can't be achieved without strong and committed international cooperation.

Preliminary data from the OECD on Official Development Assistance (ODA) contributed by Development Assistance Committee (DAC) member countries in 2023 shows growth in real terms for the fifth consecutive year, equivalent to 0.37% of DAC countries' combined GDP. The ODA-to-GDP ratio has returned to levels not seen since 1969.

 

Graph 1: Evolution of the ODA/GDP ratio for all DAC member countries (1961-2023)

Source: Author's analysis based on OECD data

 

However, a closer look at these flows reveals that this "peak" is largely due to a contextual factor: support provided to Ukraine following the Russian invasion. Moreover, other notable elements within DAC members' ODA include humanitarian aid, only partially linked to sustainable development, and the costs countries incur supporting refugees in their territories. The value of the latter as development aid is highly questionable and barely fits the DAC's definition of ODA, which the OECD states is "to promote the economic development and welfare of developing countries."

Looking at the major ODA sectors, the portion allocated to debt relief is concerning. This increasingly relevant issue will be central to the Fourth Summit on Financing for Development in Seville in 2025. Support for debt reduction and relief amounted to USD 41 billion. Meanwhile, "the average debt service burden of least developed countries increased from 3.1% of government revenue in 2010 to 12% in 2023, the highest level since 2000. For other low-income countries, it rose from 4.5% to 11.3% during the same period (...) 25 developing countries now dedicate more than one-fifth of their total revenue to external public debt service, the highest figure since 2000" (Financing for Sustainable Development Report, 2024:149). The year 2000 is significant as it marked the beginning of the Heavily Indebted Poor Countries Initiative, the last large-scale debt relief initiative.

 

Graph 2: ODA by main areas (2000-provisional data for 2023, in USD billions at constant 2022 value)

Source: OECD

 

Another risk emerges from the concentration of donors. Of the 31 DAC countries, the two main net donors (the United States and Germany) account for nearly 50% of the total ODA amount provided in 2023, while the top five donors (including Japan, the United Kingdom, and France) contribute almost 70%. Any policy changes in these countries could significantly impact the entire system.

Non-DAC countries that report their development aid using DAC standards also play important roles. This group includes both "small" donors like Cyprus (which contributed USD 18 million in 2023) and Monaco (25.8 million), and large donors that surpass some DAC members, such as the United Arab Emirates (USD 1.9 billion in 2023) and Turkey (USD 6.7 billion).

Of course, contributions are just one segment of development financing resources. In the private sector, philanthropic organizations are making significant impacts. The latest official figures show that the Bill and Melinda Gates Foundation contributed USD 5 billion, and the Mastercard Foundation USD 1.2 billion. Eight other foundations each made contributions exceeding USD 250 million in 2023, including the Children's Investment Fund Foundation, The Wellcome Trust, Bloomberg Family Foundation, The Postcode Lottery Group, The Ford Foundation, The IKEA Foundation, LEGO Foundation, and The Oak Foundation.

Based on this data, we can construct the following overview of the main donors of development resources, according to the latest official data available (2023 or 2022).


Graph 3: Main donors of resources for development

Source: Author's data compilation

 

In the realm of South-South Cooperation (SSC), the countries comprising the Ibero-American Program for the Strengthening of South-South Cooperation (PIFCSS) launched a program in 2023 specifically dedicated to promoting triangular cooperation, called "More than Three." Its first activity took place in early 2024, and the program shows promise in advancing and better understanding this form of international cooperation.

Also in 2023, PIFCSS developed its new Strategy, a document valid until 2030 to align with the SDGs. It's based on "a management approach oriented towards Development Results" (PIFCSS, 2024:18) and includes objectives such as promoting triangular cooperation, encouraging subnational government participation in SSC and triangular cooperation, and advancing differential approaches in the project cycle. It also incorporates four cross-cutting themes: gender, environmental sustainability, diversity, and innovation.

This new strategy emphasizes multi-actor and multidisciplinary work, an area where SSC has previously lacked ambition but which is crucial for fulfilling promises to leave no one behind and work within comprehensive frameworks for managing challenges.

The only notable omission in the document is the lack of attention to SSC for external debt management. This topic, whose relevance we've already noted, was central to the work of the High-level Committee on South-South Cooperation. Its 21st session, held from May 30 to June 2 at UN headquarters in New York, highlighted issues that, in line with PIFCSS's new strategy, are reshaping the traditional SSC agenda: digital transformation and, indeed, debt management.

The emerging new thematic focuses for SSC, along with increased attention to triangular cooperation, represent concrete steps whose evolution bears watching as they point to a potential adaptation of SSC to a more current context.

Lastly, the "Midterm review of the Strategic Framework of the United Nations Office for South-South Cooperation" was presented in early 2024, compiling data for 2022 and 2023. It notes that "The percentage of United Nations entities that integrate South-South and triangular cooperation into their global-level plans increased from 67.86 percent (19 of 28) in 2022 to 78.57 percent (22 of 28) in 2023."

Consequently, while ODA is growing numerically, the areas receiving the most attention shift with urgencies and circumstances. SSC finds itself in the chrysalis, undergoing a transformation that needs nurturing and support. This is no longer about becoming more relevant to achieving the SDGs—an opportunity missed at the Second United Nations Conference on South-South and Triangular Cooperation in 2019—but about repositioning for the future.

In times of crisis, fostering greater synergies throughout the entire system is crucial. The renewed interest in triangular cooperation seems to point in that direction, but much work remains to ensure its design is truly democratic, transparent, inclusive, and results-oriented.