Six lessons from the EU for the future of aid

In this report, co-written with Jonathan Glennie, Director of the Global Cooperation Institute, we look at the EU’s Structural and Investment Funds and lessons learned for development aid.

As the global development finance system grapples with rising geopolitical tensions, new economic pressures, and the imperative of climate transition, there is widespread recognition that the traditional aid model may no longer be fit for purpose. This paper makes a case that the EU’s Structural and Investment Funds, for all their imperfections, may offer a strong real-world prototype for what a more just, sustainable and effecrtive system of international public finance for development could look like.

The EU Funds are a critical part of the EU’s operating system. They have evolved over the decades, but their core purpose remains to enable a prosperous and more cohesive region.

Through a detailed examination of the design, governance and thematic priorities of these funds, this paper raises fundamental questions about the dominant international aid model, especially the conventional dichotomies between donor and recipient, grants versus loans, and graduation from aid eligibility.

We conclude that the EU Funds provide lessons for the evolution of the international system of public finance for sustainable development, in the direction of what is now being described as “global public investment.”

Read the paper, published by the Global Cooperation Institute.