We’ve entered a new era of austerity. The global pullback on international aid is still unfolding, and the sector is only beginning to process the full implications. International development foundations will need to choose between the immediate need of providing emergency supplies and providing long-term investment in economic inclusion-based poverty alleviation. This trade-off is daunting, and points to a future where choices are not about priorities, but about survival.

Yet within this sobering reality, there is also a sense of possibility. The shift in resources is pushing the sector to confront long-overdue questions and explore new models. Impact investors, philanthropic venture funds, and blended finance models are stepping in where traditional funding is pulling back.

These changes mean international development groups must step up now, more than ever, to ensure that vital humanitarian and development efforts continue to reach those who need them. As global development faces growing uncertainty and shrinking aid budgets, one thing is clear: we must invest in what works, and we must embrace the knowledge and lived experience of local leaders.

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