In this episode of DevelopmentAid Dialogues, host Hisham Allam examines the growing trend of global government cuts to development aid budgets and their profound implications for humanitarian organizations and vulnerable communities. Joining the discussion is Isam Khatib, an expert in foreign policy strategies, international development, and human rights advocacy, with a special focus on the Middle East and North Africa (MENA) region.
Download the transcript of this episode.
Khatib brought a lot of expertise to the table having earned a master’s degree in sustainable development from the University of Sussex and years of experience working with esteemed organizations, including USAID, GIZ, AFD, and SIDA. His work bridged development aid with policy frameworks to tackle regional challenges and foster sustainable solutions.
The discussion began with the Netherlands’ recent decision to reduce its aid budget by $2.4 billion over three years, which Khatib described as “a seismic shift in global development priorities.” He stressed the magnitude of the loss, indicating that partnerships with NGOs were going to shrink dramatically—from $1.4 billion to $400 million—resulting in a historic financial shortage.
“This was not just a budgetary adjustment,” Khatib said. “It was a statement about how nations were rethinking their global responsibilities, often at the expense of the most vulnerable.”
Khatib placed this decision within a larger trend that began in 2022 when countries such as the United Kingdom, Germany, Switzerland, and France implemented similar changes. He emphasized the cumulative impact of these cuts, which threatened to undermine global development goals, particularly in the Global South.
See also: How will major aid cuts by the U.K. and Germany impact development? | Experts’ Opinions
The rationale for these aid cuts emerged as a constant subject in the conversation. Khatib noted parallels with former US President Donald Trump’s ideologically driven foreign aid policy. Similarly, European politicians such as Liesje Schreinemacher, the Netherlands’ Minister of Foreign Trade and Development Cooperation, have suggested that NGOs should lessen their reliance on government support.
But Khatib resisted this narrative.
“Governments were essentially outsourcing their responsibilities to NGOs,” he said. “But the truth was, if governments were doing their job properly—investing in sustainable systems and addressing root causes—we wouldn’t need such heavy reliance on humanitarian interventions.”
Khatib underlined the terrible consequences of these cuts, especially in areas like Syria that are impacted by violence.
“When you slashed funding for healthcare, education, and rebuilding infrastructure, you were not just delaying recovery—you were prolonging suffering and creating fertile ground for instability,” he stated.
See also: Billions worth of the cuts announced to aid budgets predicted to lead to “catastrophic outcomes”
He also underscored how reduced aid could exacerbate migration crises.
“People didn’t leave their homes unless they had no choice,” Khatib explained. “If international support dried up, refugees wouldn’t return to rebuild their communities—they would seek survival elsewhere, adding strain to already overwhelmed host nations.”
In light of declining government funding, Khatib advocated for NGOs to adapt through innovation and localization.
“We needed to empower local communities by leveraging their resources and building partnerships that prioritized local expertise,” he suggested.
He also saw potential in fostering collaborations between nonprofits and the private sector to address funding gaps.
“The private sector could play a transformative role, but only if partnerships were built on shared values and long-term goals,” Khatib said.
Khatib emphasized the value of international cooperation in addition to monetary remedies. He urged civic society in the Global North and South to oppose these aid cuts and insist on long-term fixes.
“We could not allow compassion and responsibility to become casualties of political convenience,” he said.
In closing, Khatib offered a powerful reflection:
“Development aid was not charity; it was an investment in global stability and humanity. When we turned our backs on the most vulnerable, we were not just failing them—we were failing ourselves.”
Listen to our latest podcast to explore these critical issues and discover ways to respond to the challenges of development aid cuts.
