From Financing to Investing for Development: The End of ODA as We Know It

Ferid Belhaj

No 2501, Research papers & Policy papers on Economic Trends and Policies from Policy Center for the New South

Abstract: The traditional model of Official Development Assistance (ODA) has not only entrenched financial dependence but also served as a tool for geopolitical influence, often prioritizing donor interests over genuine economic self-sufficiency in developing nations. The 2015 Sustainable Development Goals (SDGs) envisioned a shift towards private investment, but this strategy has largely failed. Capital flight, rising debt burdens, and systemic financial asymmetries have ensured that investment flows remain skewed towards middle-income markets, leaving the most vulnerable economies exposed. Initiatives like Billions to Trillions have been more rhetorical than transformative, as private capital remains risk-averse in politically unstable regions. Meanwhile, donor priorities are shifting under growing geopolitical pressures. In Europe and beyond, aid budgets are increasingly diverted toward defense and security, reflecting the hard power calculations of a more fractured international order. The illusion of a cooperative global financial architecture is giving way to a multipolar reality where economic sovereignty, not concessional aid, will determine long-term development trajectories.

Date: 2025-03
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.policycenter.ma/sites/default/files/20 ... erid%20Belhaj%29.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ocp:rpaeco:pp07_25

Access Statistics for this paper

More papers in Research papers & Policy papers on Economic Trends and Policies from Policy Center for the New South Contact information at EDIRC.
Bibliographic data for series maintained by Policy Center for the New South's Customer service ( this e-mail address is bad, please contact ).