“Kompass 2025”: German Development Policy at a Turning Point
Despite its new priorities, the German government should use its influence in these times of disruption to work for a world without hunger - with a stronger focus on food security, conflict prevention and the poorest regions of the world.
Development cooperation and humanitarian aid are facing unmistakable upheavals. Budget constraints, shifting political priorities and increasing questions of legitimacy are causing tremors in the entire system. This year's Compass, which Welthungerhilfe and Terre des Hommes have been publishing for over three decades, therefore focuses on the question: Quo Vadis, Development Cooperation and Humanitarian Aid?
Germany misses 0.7 percent target for the first time in five years
After the international community reacted responsibly to crises such as the COVID-19 pandemic or the war of aggression against Ukraine and significantly increased official development assistance (ODA), massive cuts are now imminent – even though global demand continues to rise. This could significantly reduce the effectiveness and sustainability of international development cooperation (DC) and humanitarian aid and endanger numerous lives.
Germany has already noticeably reduced its financial commitments: In the 2024 federal budget, both the funds of the Federal Ministry for Economic Cooperation and Development (BMZ) and of the Federal Foreign Office (AA) for humanitarian aid were significantly reduced (Fig. 1). As a result, Germany's ODA ratio fell to 0.67 percent of gross national income (GNI) in 2024. This was the first time in five years that the internationally agreed 0.7 percent target, which Germany has expressly adopted, was missed. In the current coalition agreement, the federal government is no longer clearly committed to the 0.7 percent target – a politically and financially questionable signal.
Figure 1
German ODA-Quota 2015-2024
0.7 percent target for total ODA - 0.2 percent target for ODA to LDCs
1. Figures for three countries (Bangladesh, Rwanda, Senegal) were calculated on the basis of averages for the years 2020–2022 since the OECD figures for these countries are not plausible. For instance, the imputed OECD figures for Rwanda for 2023 were 30 times higher than the historical averages without publicly available information to support such increases.
2. For 2024, no figures are yet available for German ODA to LDCs in preliminary ODA data.
In addition, according to the coalition agreement, the new federal government wants to reduce the ODA quota "appropriately". This contradicts its claim to ensure "adequate" funding for humanitarian aid, to advocate for global public goods and to fight poverty, hunger and inequality. In view of the large number of obligations, it is clear that the ODA ratio should not fall further – it should rise again to at least 0.7 percent of GNI.
Negative trend reversal: Cuts mainly affect vulnerable groups
Between 2023 and 2025, there is a risk of a global decline in ODA of up to a third (Fig.2). The change in course by the USA under the Trump administration is particularly significant: At the beginning of 2025, the de facto dissolution of USAID (United States Agency for International Development) was initiated. Around 80 percent of US aid programs were to be discontinued by March 2025.
Figure 2
Predicted Reduction in ODA of the 17 Largest Donor Countries
USA, Germany, United Kingdom, France, Others*
*Australia, Belgium, Canada, Denmark, Ireland, Italy, Japan, Korea, Netherlands, Norway, Spain, Sweden, Switzerland
The massive cuts in ODA have disproportionately affect vulnerable and marginalized groups, which are already most impacted by hunger. ODA funds for food security, balanced nutrition and rural development contribute significantly to reducing hunger and malnutrition.
Cuts in humanitarian aid mean that more and more funds are lacking to implement life-saving measures. This is felt most immediately and most acutely in fragile contexts. It is true that the gap between needs and available funds in humanitarian aid has been widening for years; however, the withdrawal from financing of the Trump administration in particular affects numerous countries directly – and with serious consequences. Global ODA for humanitarian aid in 2024 amounted to $24.2 billion, of which $13.16 billion (54 percent) was funded by the United States. In Sudan, for example, where the world's largest humanitarian crisis is currently unfolding, the US has financed almost half of all humanitarian aid in recent years, with a focus on food aid.
Most people affected by humanitarian crises live in fragile, conflict-affected regions. Climate-related extreme weather conditions increase demand even more. To make humanitarian aid dispensable in the long term, investments in climate adaptation, resilience, disaster risk reduction and peacebuilding are essential. The goal must be to reduce the need for humanitarian aid in the long term. However, as long as people have to live in conflict and crisis situations, aid is essential to save lives.
Even in countries without acute emergencies, the cuts could well have serious consequences – especially in the Least Developed Countries (LDCs), where ODA accounts for a significant share of gross national income and supports essential government tasks such as school feeding programs, health care or social security (Fig.3). In many of these countries, the food situation is "serious" or "alarming" according to the Global Hunger Index, while at the same time high public debt, low tax revenues and limited access to financial markets make self-financing difficult.
Figure 3
ODA as a Share of Gross National Income and Hunger Levels
Global Hunger Index: Low – Moderate – Serious – Alarming
1. The Arab Republic of Syria and North Korea are the only states that are listed as “Low Income Countries” by the World Bank but are not listed with LDC status by the United Nations.
2. Only countries with an ODA share of 5 percent of GNI or more are listed by name.
However, ODA alone is not a solution; states must be able to allocate more of their own resources to food security. Industrialized countries have a central role to play here: They must support a fair Multilateral Sovereign Debt Resolution Mechanism. The Fourth Conference on Financing for Development (FfD4), scheduled for Seville from 30 June to 3 July, will be an opportunity to set the necessary course and give the UN a mandate to work on a framework convention on sovereign debt.
Food security as a key prerequisite for development
Only when people have access to adequate, sufficient, and healthy food are they able to achieve their full potential. Food security is therefore a prerequisite for economic development and must be a priority of German development cooperation. To reach food security, a number of measures need to be financed. Some of these do not generate direct revenue (such as social security measures, school feeding or nutrition programs), while others offer potential for private sector participation and could be self-sustaining in the medium term. The latter applies in particular to the areas of agriculture and rural development, which offer great leverage for development.
In 2024, however, BMZ's budget for food security and rural development (Fig. 4) stagnated at 2.38 billion euros – after a decline of 32 per cent in the previous year. At the same time, 2024 saw exceptionally high contributions paid to multilateral organizations, while in the last two years funds were reduced for important initiatives – such as the "Transformation of Agricultural and Food Systems", which addresses key levers for sustainable development, and for the budget position "Crisis Management and Reconstruction, Infrastructure" (KWI), which is utilized above all in fragile countries and accounts for a significant share of German expenditure on food security.
Figure 4
BMZ Expenditure for Rural Development and Food Security 2015-2024
- Crisis Management and Reconstruction, Infrastructure
- Grant Recipient
- Multilateral Development Cooperation
- Bilateral Development Cooperation
- Special Initiative “Transformation of Agricultural and Food Systems”
In view of the coalition's commitment to fighting hunger, poverty and inequality, it is now up to the new German government to present a coherent and long-term strategy with which German development cooperation can make an effective contribution to global food security. This is inconceivable without an increase in funding – with a focus on crisis management and reconstruction in fragile contexts as well as the strengthening of civil society initiatives. The focus should lie on vulnerable population groups such as women, youth and children. In addition, investments in agriculture and rural areas should be given the priority they deserve. On the one hand, these regions are comparatively seriously affected; according to the United Nations, about one in three adults in rural areas suffers from food insecurity, compared to one in four in urban areas. On the other hand, rural areas in particular have a crucial role to play in the urgently needed transformation of food systems.
Quo Vadis? Understanding challenges as opportunities
In a tense international environment – where the role of the United States as a global regulatory power is dwindling and many countries in the Global South are setting their own priorities – resources for achieving development goals are increasingly underfunded. At the same time, international cooperation is under pressure – due to the increase in violent conflicts, the spread of autocratic systems and the growing fragility of state structures. One measure of the increasing pressure to justify such goals was a debate that raged in Germany in 2024 about the financing of infrastructure and gender equality projects abroad. The discussion quickly broadened into a fundamental critique of the legitimacy and effectiveness of development cooperation. It was also used for party political and budgetary purposes and to fuel a feeling of "Germany First".
Despite correcting data and facts, the BMZ has not been successful enough in overcoming its defensive stance towards the public and in presenting a convincing argument for the importance of development cooperation, including its successes. At the same time, there are critical voices (old and new) from the Global South which charge development cooperation with reproducing colonial structures and applying double standards in cooperation with partner countries.
The criticism is understandable in parts and must be taken seriously. It shows that development cooperation urgently needs to be reformed. This applies equally to governmental and non-governmental organizations. The challenging situation should be taken as an opportunity to realign international cooperation and develop sustainable solutions for a fairer world in equal partnership with the countries of the Global South.
The positions of the new federal government
In the coalition agreement of April 2025 ("Responsibility for Germany"), the new German government commits itself to combating poverty, hunger and inequality – but at the same time there is a strong focus on Germany's own interests, for example in securing raw materials or in migration policy. Particularly in the context of declining funding, it must be ensured that core goals of social, development and climate policy remain a priority. The protection of democratic principles, the rule of law and respect for basic and human rights are an inherent part of the fundamental values of the Federal Republic of Germany. Ultimately, Germany's economic and security interests can only be achieved in a global framework that is not based on short-term utility maximization, but on solidarity, cooperation and legal reliability.
With regard to the goal of stronger coordination between development cooperation and foreign trade promotion, it must be ensured that the interests of partner countries are also protected. The promotion of local value creation, especially in rural regions, should be strengthened – not least to create jobs and enable sustainable development.
It is also of concern that the coalition agreement makes no reference to the necessary transformation of food systems and the promotion of rural areas – although these are central levers for poverty reduction and food security in the Global South.
Reforms to increase effectiveness, efficiency and coherence
The call for increased effectiveness, interdepartmental coordination and coherence of development cooperation and humanitarian aid has accompanied the sector for decades and is justified. Despite earlier efforts, thematic and geographical bundling has so far failed to materialize – there are currently 118 partnerships with over 80 countries. Norway can serve as an example of a successfully implemented thematic focus in development cooperation. As a "smaller" donor, the country has managed to pool available resources and take on an internationally leading role in forest protection, for example.
The humanitarian system also needs reforms. Its structural weaknesses were once again exposed by the de facto dissolution of the US development agency USAID at the beginning of this year. Germany, one of the largest donors and an active supporter of important reform processes – such as the "Grand Bargain" agreement – can and should make a substantial contribution to the urgently needed realignment of the system, as discussed in the context of the "Humanitarian Reset". Concrete proposals are on the table – for example, on transferring responsibilities to local actors. Their early involvement, capacity building and access to finance are crucial for effective aid. Such a step towards localization is also called for within the framework of the Grand Bargain. Especially in crisis situations, local organizations that are familiar with conditions on the ground can often provide faster and more targeted help.
Civil society more important than ever
In addition, greater attention should be paid to the important role that civil society plays, for example in conflict prevention. In many places, NGOs act as mediators between conflicting parties, building capacities for peaceful conflict resolution and working to involve previously marginalized groups in decision-making. An organized, diverse and inclusive community can also better manage conflicts, for example over resources. Local initiatives to tackle poverty or hunger are also an important pillar of sustainable economic development, which in turn promotes stability.
This is particularly important in economically weak, impoverished rural areas, where other actors are often not well represented. Local civil society organizations promote income generation, support the development and dissemination of innovations, and by implementing basic infrastructure projects and local social security measures they lay the foundations for the development of state-supported, comprehensive social security systems. In addition, civil society can play an important watchdog role over governments, for example by critically monitoring governance processes, defending fundamental rights and demanding transparency and accountability.
Commitment to a development and humanitarian agenda is required
In both development cooperation and humanitarian aid, Germany is a reliable and recognized global partner. And in absolute terms it is currently the second-largest ODA donor. The German government should use this weight in development policy to continue unabated in its commitment to just and sustainable global development and a peaceful world without hunger and poverty. This also includes adequate funding for development cooperation and humanitarian aid. The Federal Government has set the direction for the coming years with its coalition agreement. In doing so, it should be guided by the priorities mentioned above – regardless of the emphasis given to economic self-interest in implementation – and concentrate its work thematically (on food security, agriculture and rural development) and geographically (on the poorest regions/LDCs). It should have particular regard to vulnerable groups such as women and, above all, children and youth.
How Germany can use its room for maneuver at the international level
The new Kompass also demonstrates in concrete terms how Germany can use its room for maneuver to embed food security and the Right to Food more firmly at international level. A difference can be made both through active support for the G20 process for the implementation of the Global Alliance against Hunger and Poverty (GAHP) and dynamic cooperation with the African Union to implement the CAADP-Kampala agenda (Comprehensive Africa Agricultural Development Programme) (Fig.5).
Figure 5
The Goals of the Kampala Agenda
Welthungerhilfe Checklist for German government support of Kampala Agenda:
1. Ensure that DC projects in the area of food systems contribute to implementation of the Agenda.
2. Support the 10 percent goal in dialogue with African governments, financial institutions and donors.
3. Systematic participation of African actors in formulation of German Africa strategies.
4. Support African civil society in critical monitoring of national Agenda implementation.
5. Encourage North-South exchange in order to overcome sectoral boundaries, for instance, between agriculture and health.
6. Initiate institutional dialogue with African parliamentarians on implementation of Kampala Agenda.
