Global development in crisis: Responding to America’s retreat

FIIA Briefing Paper, FIIA Publications
10/2025
Portrait of Sarah Stroup smiling in front of a dark grey background. Dark, short hair and a black blazer.
Sarah S. Stroup
Visiting Senior Fellow

A definitive shift in both resources and rhetoric has upended the global development sector. Nowhere is this more apparent than in the policies of the new US administration, although many European states had already started reducing foreign aid budgets earlier.

Beyond its vicious rhetoric and wrecking-ball approach, the Trump administration’s arguments echo three long-standing critiques that development professionals have made themselves.

Development experts in the US and Europe argue that development goals have become too broad, aid has failed to reach local actors, and the sector is too technocratic and removed from the concerns of Northern publics.

A renewed focus on poverty reduction, combined with power-sharing abroad and public engagement at home, may provide answers to these critiques. Achieving development outcomes may require focusing less on providing direct assistance and more on reducing the harms created by Western states in other arenas, including trade and finance.

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