The Economics Show Development funding is in crisis. What now? With Mark Suzman
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Aug 4, 2025 Mark Suzman, the Chief Executive of the Gates Foundation and former Financial Times journalist, discusses the unfolding crisis in global development funding. He highlights how wealthy nations are retracting support, threatening progress made in the 21st century. Suzman unpacks the Seville Commitment, exploring its potential efficacy in facilitating aid. The conversation also addresses the heavy debt burdens facing developing nations and innovative funding strategies like blended finance. Additionally, he touches on transformative AI innovations that can empower smallholder farmers, enhancing sustainable development.
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Development Finance Crisis Unfolds
- The first Financing for Development conference in 2002 marked a global commitment that triggered unprecedented progress in human development.
- Since COVID-19, wealthy countries have rapidly withdrawn funding, causing a crisis amid rising debt and economic pressures in the global South.
Aid Diversion and Domestic Pressures
- Much designated development aid is diverted to in-country refugee costs, humanitarian aid, and climate finance, reducing funds for economic growth investments.
- Domestic fiscal pressures in wealthy countries make foreign aid a tempting target for cuts, worsening resource withdrawal.
SDG Funding Gap Reality
- Achieving two-thirds of Sustainable Development Goals is now unrealistic, requiring over $4 trillion yearly which is unattainable.
- Nevertheless, focused, smart use of existing resources can accelerate progress beyond 2030.