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Economic Policies Prioritizing Rich Over Impoverished Populations

Escalating armed conflicts globally coincide with dwindling funds allocated for humanitarian assistance and development programs. Germany apparently aligns with this dismal trajectory.

Cost-Cutting at the Detriment of the Most Vulnerable
Cost-Cutting at the Detriment of the Most Vulnerable

Economic Policies Prioritizing Rich Over Impoverished Populations

In a call for action, Michael Herbst, Chairman of the Board at VENRO (German Development and Humanitarian Aid Organisations), has urged a paradigm shift in state funding for development cooperation and humanitarian aid. This appeal comes as Germany moves away from the internationally agreed target of providing 0.7 percent of its GNI for development and humanitarian aid.

According to VENRO, the organization plans to lobby Bundestag members for at least 2.5 billion euros for humanitarian aid and at least 11.2 billion euros for development cooperation. The need for increased funding is dire, as the cuts from Germany alone could lead to devastating consequences.

These cuts could result in 4.3 million people losing access to food aid, 1.5 million being denied basic health services, 1.4 million losing secure drinking water supplies, and over half a million children losing access to education. The situation is even more alarming when considering that approximately 320 million people worldwide are in acute need of humanitarian aid, and over 200 million acutely aid-needy people are not currently being reached.

Germany has reached 13 million people with its acute aid, but the proposed budget cuts could see this number decrease significantly. The 2026 draft budget does not indicate a willingness to reallocate funds from Special Purpose 60 towards development policy and humanitarian aid. In fact, the draft budget plans to cut funds for the Federal Ministry for Economic Cooperation and Development (BMZ) by 331 million euros, a decrease of over three percent compared to 2025 and over eleven percent compared to 2024.

The proposed cuts to the 2025 budget could result in around seven million people no longer receiving humanitarian aid. The medium-term financial planning foresees a further drop in the budget for development and humanitarian aid, to 9.4 billion euros.

In response to these proposed cuts, VENRO has demanded at least 2.5 billion euros for humanitarian aid, at least 11.2 billion euros for development cooperation, at least 0.2 percent of the GNI for the poorest countries, and at least 100 million euros for gender-transformative, intersectional, and post-colonial feminist projects to compensate for the planned cuts.

Dorothee Baldenhofer of Venro suggests potential financing options, such as wealth-based taxes, reducing climate-damaging subsidies, and reallocating funds from Special Purpose 60. The cuts from the USA, according to a study by "The Lancet", could lead to the death of around 14 million people by 2030.

As the world grapples with numerous crises, VENRO's call for a paradigm shift in German aid funding is a crucial step towards ensuring that those most in need continue to receive the support they require.

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