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Significance

The move reflects the conventional wisdom that aid can influence the behaviour of recipient countries, promoting democratic values. However, such goals are undermined by multiple factors, including the domestic politics of the recipients and the donors.

Impacts

Post-pandemic aid cuts risk reducing public services in aid-dependent countries over the coming years.

Aid withdrawal, without wider coordination, will prove ineffective in altering the behaviour of incumbent leaders.

Aid coordination will become harder, especially on democratic issues, as non-traditional donors with different priorities increase funding.

Donors such as China will link aid for COVID-19 vaccines to geostrategic goals in aid-dependent countries such as Cambodia.

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