The Future of Foreign Aid: A Call to Action for Canadian International Development

The world is changing—and fast. The old international order wasn’t perfect, but it was predictable. We knew where we stood on issues like international relations and trade. We understood the norms that governed diplomacy and global cooperation. All of that has changed.

The shift became most visible with the election of Donald Trump, whose “America First” agenda challenged long-standing assumptions about international collaboration and foreign aid. But Trump was not the cause; he was a symptom of a larger, global trend toward nationalism and isolationism. The world is increasingly fragmented, and the values that underpinned decades of international development are under attack.

A Crisis in Foreign Aid

Foreign aid used to be straightforward: wealthier nations—like the U.S., Canada, and countries across Europe—recognized a moral obligation to assist nations facing economic and development challenges. It wasn’t just charity; it was a commitment to a shared global future, rooted in principles of solidarity, human dignity, and mutual prosperity.

That consensus has crumbled. Nowhere is this more evident than in the United States these last weeks. The Trump administration has undertaken drastic cuts to the U.S. Agency for International Development (USAID), with funding freezes and mass layoffs of experienced staff across the globe. The impacts of this are only just starting to be felt and will have massive global repercussions. Once the world’s largest humanitarian donor with a budget exceeding $50 billion, the U.S. withdrawal from international development has left a gaping void. Organizations like World Vision, CARE, and Save the Children, among others, are scrambling to fill the gaps left by this retreat.  They can’t fill gaps that big.

The situation is hardly better in Europe. In the last year, the Netherlands slashed 30% of its aid budget, redirecting funds to projects that prioritize Dutch interests. Belgium followed suit with a 25% cut, and France reduced its aid spending by a staggering 37%. In Germany, one billion euros are set to be cut from the aid budget.  On February 25, 2025, the UK slashed 40% of its aid budget, apparently to fund increased military spending.

The Canadian Context: Standing on Shaky Ground

Here in Canada, aid funding is stable—for now. The current government has committed to increasing international assistance every year until 2030. Yet this stability is fragile. Canada’s official opposition has publicly stated the intention to cut foreign aid, with plans to redirect some of the funds to domestic priorities, including building a military base in Canada’s north.

This could become an issue in the next federal election, and Canadian aid organizations must be prepared. With other donor countries pulling back, Canada’s role becomes even more critical. But are we ready to step up?

The Implications for Canadian Aid Groups

Where does all this leave Canadian aid organizations? The reality is stark. The international development sector is facing an existential crisis. This is not just about budget lines and program cuts; it is about a shift in values, priorities, and political will.

1. Adapting to a New Reality

Ignoring these changes is not an option. Foreign aid is under attack in the Western world and could be in Canada soon. Globally, needs will rise further even as the sector’s capacity to respond diminishes. Competition for limited funds will force difficult choices. Some organizations will merge to survive, while others may close their doors altogether. The international development community must prepare for this uncertain future, not just react to it.

2. Navigating Shifting Values

The values that once underpinned international development are shifting. There is a growing trend toward isolationism and a narrow focus on national interests. The old vision of internationalism—represented by initiatives like the Sustainable Development Goals or the World Health Organization—faces growing skepticism. In its place, we see a transactional, zero-sum approach to international relations, marked by tariffs and domestic-first policies. This shift challenges the very foundation of global solidarity which we have come to take for granted.

3. Addressing Public Anxiety

Canadians are feeling anxious about their own futures, grappling with economic uncertainty, housing crises, and healthcare challenges. Simply telling them to care about poverty in distant countries isn’t enough. We need a new narrative—one that connects global challenges to local realities. It’s not about choosing between domestic and international needs; it’s about recognizing our interconnectedness and building a “whole of society” approach to supporting underserved populations everywhere.

4. Acknowledging Valid Criticisms

Critics of foreign aid aren’t entirely wrong. There are inefficiencies, redundancies, and accountability gaps. Global Affairs Canada, for instance, could be more streamlined and less bureaucratic. Multilateral institutions need to cut overhead costs and deliver better results. NGOs must address wasteful competition and duplication, focusing on collaboration and impact. The aid sector must embrace these criticisms as opportunities for reform and innovation.

5. Securing Public Support

Public support for foreign aid has been strong in Canada, with surveys showing that 80% of Canadians support international assistance. Yet this support cannot be taken for granted. Donors are aging, and economic pressures are affecting charitable giving across all sectors. The aid community needs to engage younger generations and communicate the relevance of international development in new and compelling ways.

6. Collaborating for Collective Action

No organization can face these tectonic shifts alone. The aid sector must unite—coordinating advocacy, messaging, and public engagement. This is not about organizational survival; it’s about preserving Canada’s leadership in global development. Collaboration isn’t just strategic; it’s essential. By working together, Canadian aid groups can amplify their voices and ensure that international development remains a priority for both the public and policymakers.

A Call to Action

This moment demands bold action and visionary leadership. The stakes are high—not just for Canadian aid organizations but for millions of vulnerable and underserved people around the world who rely on international assistance for survival, health, and hope.

We must stand up for the values that have guided international development for decades: solidarity, human dignity, and shared prosperity. We must also adapt and reform to meet the challenges of this new era.

This is not just about preserving budgets or protecting institutions. It is about defining what kind of country we want Canada to be and what kind of world we want to live in. It is about reaffirming our commitment to a just, equitable, and sustainable global community.

Over the coming months, I will explore these challenges in greater depth, offering insights and strategies to navigate this complex landscape. I invite your thoughts, perspectives, and, most importantly, your commitment to stand together in the face of these challenges. The future of international development—and Canada’s role in it—depends on it.

Nicolas Moyer

Chief Executive Officer

Cuso International