Time for a Reset: Development Cooperation at the Crossroads

Official Development Assistance (ODA) has for decades played a vital role in addressing poverty and financing global development goals. But even before the current upheavals precipitated by the US administration’s dramatic overhaul of USAID in January 2025, the international aid system faced mounting pressure from shrinking donor budgets, emergent geopolitical rivalries, and the tendency to use ODA to meet a widening range of needs it was not designed to address, including climate finance, refugee costs, and global health security.

Development cooperation is at a crossroads. While ODA has historically been a pillar of global development, its current structure is ill-suited to address today’s challenges. From the developmental and geopolitical standpoint of 2025, incremental changes to the way in which ODA works risk perpetuating inefficiencies and a collapse of the system at large. By contrast, there may not be a better moment for bold systemic reforms to explore the opportunities for redefining the role of ODA within a reformed development cooperation architecture. By embracing a more inclusive, adaptive framework, ODA can remain a vital tool for advancing sustainability, equity, and resilience in an increasingly interconnected world.