With the myriad far-reaching health, humanitarian and economic impacts of the coronavirus pandemic, scarce aid resources have come under tremendous pressure. But it would be naïve to expect that the ODA pie will grow in accordance with the expanding needs. Recent trends point in the opposite direction; global aid is shrinking, especially for the neediest. Moreover, the traditional donor economies are having to spend billions of dollars at home to deal with the pandemic and mitigate an economic meltdown. As a result, aid budgets might well decrease moving forward.

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Swedfund is the winner in the Swedish aid budget proposal for 2020, which indicates a substantial scaling up in funding for the aid-financed investor and more in coming years. Sweden also wants to revitalise the Nordic Development Fund (NDF) and to make oceans a new focus area for the fund. Core funding of UN agencies is at a standstill next year.

The new Social Democratic government taps into the aid pie to fund climate efforts. Danish NGOs want additional funds and will lobby government allies in parliament to increase the aid budget which remains at 0.7 per cent of Gross National Income (GNI).

Norway steps up aid to the Sahel region in the aid budget for 2020 and, in an innovative move, provides a NOK 3.1 billion short term loan for Somalia to clear its defaulted World Bank debt.

UN agencies, Africa and NGOs are the winners as the new Finnish government increases aid after four years of austerity and cuts. Finnish aid will reach 0.42 per cent of Gross National Income (GNI) next year, but the long-term goal is to raise aid to of 0.7 per cent of GNI.