The geopolitical turn in aid and its effect on aid modalities

Bernhard Reinsberg and Dan Xu

No wp-2026-105, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The contemporary foreign aid landscape is increasingly defined by a strategic turn toward geopolitics. As non-Development Assistance Committee (DAC) sovereign donors—particularly the BRICS nations—deploy an expansive toolkit of diplomatic visits, foreign aid, and minilateral initiatives to exert influence, traditional (DAC) donors face pressure to maintain their relevance. This paper investigates how DAC donors respond to these competing influences by strategically shifting their aid modalities based on their discretionary value to recipient governments.

Keywords: Official development assistance; Aid; Geopolitics (search for similar items in EconPapers)
Date: 2026
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