The world is facing a “sustainable development crisis”, marked by heavy debt burdens, a widening development financing gap and geopolitical tensions that hinder our ability to confront pressing global challenges. As a global civil society network, we call for a system that holds countries mutually accountable and ensures that development finance genuinely reaches those who need it the most.

Fifty years after DAC countries pledged to dedicate 0.7% of their Gross National Income (GNI) to Official Development Assistance (ODA), persistent underfunding and weak accountability mechanisms raise serious concerns about the global community's commitment to meeting the needs of the world's most vulnerable populations, particularly in fragile and crisis-ridden contexts.

This reality stands in stark contrast to the United Nations' urgent appeals for a significant increase in ODA and the repeated, yet often hollow, statements made by several Heads of State, including recently by French President Emmanuel Macron. In certain regions, both the quantity and quality of such development finance are declining. The 2024 AidWatch report shows a 7.5% drop in the total combined ODA from EU Member States. In 2023, twenty countries reduced ODA as a percentage of GNI, exacerbating the challenges in fragile states and conflict-affected areas where support is most needed. Major donors, such as France and Germany, have announced significant cuts to their aid budgets, prompting civil society movements like #StopàlabaisseAPD – Stop ODA Cuts in France, which calls for an end to these reductions.

Moreover, a significant portion of ODA remains within donor countries, and only a tiny fraction is benefiting Least Developed Countries (LDCs) and fragile States. The implications of withdrawing from development finance commitments, particularly in politically sensitive contexts, must be carefully examined. It undermines not only development progress but also global peace, stability and cooperation.

A substantial portion of ODA is also currently misallocated, serving the commercial and political interests of donor countries rather than the economic and social needs of recipient nations. Increasingly, there are also concerns about the use of instruments that redirect ODA towards businesses instead of focusing on addressing poverty and reducing inequalities. A growing share of ODA never leaves donor countries, and a troubling trend has emerged where ODA is increasingly being used to finance private sector instruments (PSIs) that serve the commercial and geopolitical interests of donor countries rather than the development of recipient countries, and thus offering only very limited benefits to local communities in the Global South.

The 2024 AidWatch report from Concord also highlights inflated ODA, where over €18.9 billion reported by EU Member States did not meet the basic OECD-DAC eligibility criteria, further inflating ODA figures while failing to provide genuine support to vulnerable populations. These patterns suggest that development financing is being manipulated to serve donor interests, reducing its effectiveness in addressing the core issues of poverty, inequality, and fragility.

In the context of the growing use of private sector instruments, we must question whether the increasing reliance on PSIs is truly aligned with the principles of development effectiveness. By prioritizing commercial interests, these instruments risk privatizing essential public services, as seen in sectors like energy and healthcare, which could further marginalize those already facing economic and social challenges.

In light of these challenges, Forus - a global civil society network representing over 24,000 NGOs – calls for the following actions:

• Reinvestment in ODA: Meeting and exceeding the 0.7% GNI target must become an urgent priority, particularly in the context of global crises such as conflicts, climate change, and humanitarian emergencies as underlined in recent UN reports.

• Shifting the Power for transparent and inclusive ODA: Decision-making processes must include local communities, with a shift towards more direct support for local civil society. Addressing these challenges requires not only mobilising resources and reforming the international financial system but also strengthening feminist, ecological and decolonial approaches.

• Accountability reforms: Establish mutual accountability frameworks that uphold development effectiveness principles for both donors and recipient countries, ensuring that ODA benefits those it is intended to serve.

• Sustained engagement in fragile states: Rather than pulling out of countries due to political tensions, donors must commit to maintaining support in conflict-affected regions, where it is most urgently needed.

• Adaptation to a changing aid landscape: As traditional aid models evolve, including through initiatives like the EU Global Gateway, it is essential to align these projects with the genuine needs of local civil society and those directly impacted in the partner countries, and resist trends that prioritize geopolitical agendas.

• Bold commitments: Leaders need to walk the talk by championing bold action and ambitious commitments when it comes to translating their promises into reality.

The upcoming international summits on development financing, such as the 4^th Conference on Financing for Development and 5^th Finance in Common Summit, present a critical opportunity to rethink development finance and advance new narratives centered on inclusive and sustainable development.