Policy Brief

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Global development policy and the New World Disorder: the Trump Administration’s delivery of a high-voltage shockwave to multilateral norms, institutional commitments and long-standing principles

Bonn: German Institute of Development and Sustainability (IDOS)

DOI: https://doi.org/10.23661/ipb2.2026

Global development policy is a particularly revealing field in which the Trump administration combines crude transactionalism with a high level of ideological commitment, namely an authoritarian libertarianism oriented toward elite interests. This is coupled with, at times, a chaotic absence of tactical or strategic coherence. With Trump’s return to the White House in January 2025, a significant phase in international affairs, including global development policy, began. 
This policy brief traces the evolution of the US approach to development cooperation and exposes how Trump’s approach represents an overtly aggressive assault, delivering a high voltage shockwave to global sustainable development policy, undermining multilateral norms, institutional commitments and long-standing principles of international solidarity. The United States (US) has played a decisive role in the conception and evolution of global development policy since the mid-20th century. From the establishment of the post-Second World War order onward, the US shaped the normative, political and organisational foundations of development cooperation, often setting agendas, defining standards, and providing leadership and personnel for key multilateral institutions. Early reconstruction efforts such as the Marshall Plan and the establishment of the World Bank embedded development within a broader framework of power politics, positioning aid as both a tool of reconstruction and geopolitical influence. Since January 2025, US development cooperation has undergone a dramatic rupture. The administration rapidly withdrew from multilateral institutions, cut budgets, and de facto dissolved USAID, transferring residual functions to the State Department. This shift was accompanied by conspiracy narratives and an explicit rejection of multilateral norms, marking a sharp departure from previous Republican and Democratic approaches alike. The brief conceptualises this shift as the emergence of a “New Washington Dissensus”: a model of transactional, nationalist development cooperation that treats aid as an instrument of power rather than a global public good. Under this paradigm, development engagement is ideologically conditional, hostile to climate and equity agendas, oriented toward migration control, and explicitly transactional. The Trump administration’s National Security Strategy (December 2025) is consistent with this in the sense that it frames an “America First” approach that narrows US priorities to “core, vital national interests” and places strong emphasis on Western Hemisphere pre-eminence via a stated “Trump Corollary” to the Monroe Doctrine. For global development, foreign assistance and development finance are thus instruments of strategic competition and commercial diplomacy. US agencies are mobilised to back US commercial positioning. The consequences are dramatic and systemic. The US retreat has destabilised the global development architecture and intensified geopolitical fragmentation. For many countries in the Global South, this represents a watershed moment, creating both new room for manoeuvre and new dependencies as states pursue multi-alignment strategies amid intensifying great-power rivalry. At the same time, humanitarian impacts are severe. Overall, the brief concludes that development policy has entered a new phase, which is narrower, more instrumental and overtly geopolitical, and is reshaping not only US engagement but the future of global development policy itself.