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Trump 2.0 and the unmaking of Western aid hegemony

Haug, Sebastian / Anna Novoselova / Stephan Klingebiel
Staff - Other (2025)

in: Stephan Klingebiel / Andy Sumner (eds.), Development and development policy in the Trump era, Bonn: German Institute of Development and Sustainability (IDOS), 16-20

DOI: https://doi.org/10.23661/idp23.2025

The second Trump administration has ushered in a radically altered foreign aid environment, with implications that extend far beyond the United States of America. The latter’s retreat from multilateralism and development cooperation – underpinned by hard-power motivations and populist rhetoric – has not only undermined the international standing of the United States but also disrupts the existing global development architecture. In response, other donors, particularly from the OECD Development assistance Committee (DAC), face the dual challenge of maintaining international partnerships while navigating their own domestic pressures. This paper takes stock of recent events and outlines four interconnected suggestions that focus on (1) refining DAC development cooperation approaches, (2) strengthening multilateral development institutions, (3) promoting Southern self-reliance and (4) forging alliances beyond the United States. We argue that although the decline of Western aid hegemony appears inevitable, it also presents an opportunity to reshape development cooperation along more inclusive, strategic and resilient lines.

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