Episode 81

MULTILATERAL: Aid Money Down in 2024 & more – 22nd April 2025

Slow economic growth predicted, pandemic preparedness agreements, a NATO visit, a warning for Haiti, UNICEF to cut its budget, and much more!

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Transcript

Saluton from BA! This is the Rorshok Multilateral Update from the 22nd of April twenty twenty-five. A summary of what's going down in the world's major multilateral institutions.

First up this week, on Wednesday the 16th, the Organization for Economic Cooperation and Development announced that international aid in the form of official development assistance dropped by about 7% in twenty twenty-four, marking the first decline after five consecutive years of growth. Official development assistance refers to aid from governments that is used to help foreign economies and the welfare of other countries’ citizens.

The total aid amounted to over $200 billion US dollars. This decrease was mainly due to reduced contributions to international organizations, less aid directed to Ukraine, a decline in humanitarian assistance, and lower spending on refugee support from donor countries.

In twenty twenty-four, the United States was the biggest contributor overall, and other big donors included Germany, Japan, France, and the United Kingdom. In terms of aid relative to national income, Nordic countries led the way.

Next up, on Thursday the 17th, the International Monetary Fund announced it’s predicting slower economic growth for twenty twenty-five than it previously estimated. The change is largely due to the recent U.S. tariffs. The organization’s head noted that while a worldwide recession isn't necessarily on the horizon, these trade policies are stirring up uncertainty and inflation, particularly affecting financial markets and supply chains. The full economic outlook is expected to be released next week.

In some good news on health, on Wednesday the 16th, member countries of the World Health Organization agreed on a draft treaty aimed at improving global readiness for future pandemics. The agreement proposes measures like establishing a system for sharing virus samples and benefits, strengthening health systems, and ensuring fair access to vaccines and treatments. While the agreement is seen as a significant step toward international cooperation, some critics point out its reliance on voluntary compliance and the absence of strict enforcement mechanisms.

In defense updates, on Tuesday the 15th, Mark Rutte, NATO’s Secretary General, visited Ukraine to reaffirm the alliance's support following a deadly Russian missile strike that killed thirty-five people. During his visit, Rutte met with President Volodymyr Zelenskyy and wounded soldiers, emphasizing NATO's commitment to Ukraine, while U.S. President Donald Trump leads challenging ceasefire negotiations.

Rutte underscored that Russia initiated the conflict, countering Trump's recent criticisms of Zelenskyy. The Ukrainian president highlighted Ukraine's urgent need for air defense systems, particularly U.S.-made Patriot missiles, and expressed readiness to purchase them.

The situation is changing quickly these days, as the United States just announced that it might not help Ukraine find peace through a deal with Russia anymore.

Speaking of Trump, on Thursday the 17th, he met with Italian Prime Minister Giorgia Meloni at the White House, and expressed optimism about reaching a trade agreement between the United States and the European Union, despite ongoing tensions over proposed tariffs. Meloni positioned herself as a mediator, emphasizing the importance of transatlantic cooperation and proposing a future visit by Trump to Italy to further discussions. Both leaders highlighted shared interests in areas such as defense, energy, and immigration.

Even though tensions between the EU and the US have been pretty high these days, Meloni has generally been on better terms with Trump than other leaders from the bloc.

In Africa, on Wednesday the 16th, the UN’s top official in South Sudan alerted the UN Security Council about the escalating tensions and violent clashes in the country. He urged the council to encourage both parties to adhere to a lasting ceasefire and engage in dialogue to prevent further escalation in the war and to limit human suffering. Additionally, the humanitarian situation is worsening, with millions in need of assistance, highlighting the urgency for a political resolution.

Meanwhile, on Tuesday the 15th, the Director of the International Organization for Migration called for increased international assistance for Haiti, where over a million people have been displaced due to escalating violence and deteriorating living conditions. She emphasized the urgent need for global solidarity to support the people affected and to address the root causes of the instability.

The organization already provides essential services, including clean water, medical care, and shelter, but she stressed that sustained international support is crucial to meet the growing needs and to help Haitians rebuild their lives.​

Haiti is currently experiencing one of its most severe humanitarian crises in decades. Gang violence has led to almost 6,000 deaths in the past year and displaced more than 1 million people, including many children. Gangs control approximately 85% of the capital. Additionally, there is a widespread famine threatening millions of people.

On another note, on Thursday the 17th, the World Food Program stopped sending food to areas in Yemen controlled by the Houthis, after members of this Shia Muslim rebel group looted a warehouse, taking about $1.6 million US dollars worth of supplies. The Houthis are clashing with the Saudi-led coalition backing the recognized government of Yemen.

The organization had already paused operations in the region earlier this year due to the detention of UN staff, one of whom died in custody. The agency is now seeking permission to distribute remaining food stocks and hopes to resume aid if detained workers are released.

In some sad news, on Tuesday the 15th, UNICEF announced that it will need to cut its budget by about 20% in twenty twenty-six, largely due to significant cuts in U.S. foreign aid under President Donald Trump's administration. Recall that the U.S. was historically UNICEF's largest donor.

The funding shortfall has prompted the organization to implement efficiency measures and consider further cost-cutting steps, including staffing evaluations. The organization is important because it protects children’s rights, health, and well-being in most countries. It provides life-saving aid such as vaccines, clean water, nutrition, and education, especially in conflict zones and disaster areas. UNICEF also advocates for policies that protect children from exploitation, abuse, and poverty.

In the Caucasus, on Tuesday the 15th, Nikol Pashinyan, the Armenian Prime Minister, proposed that Armenia and Azerbaijan sign a peace agreement and simultaneously dissolve the Minsk Group through the Organization for Security and Cooperation in Europe, which was established in nineteen ninety-two to mediate the conflict between the two nations. Pashinyan argued that if both countries move past the conflict, there will be no need for a group focused on its resolution. The two nations have been working towards a deal to prevent further conflict for a while, despite having tensions and on-and-off wars for generations.

Going Back to Ukraine for a bit: on Thursday the 17th, the Food and Agriculture Organization or FAO introduced a $150 million US dollar plan to assist rural Ukrainians affected by the ongoing conflict. This initiative aims to help farmers resume production, reduce dependence on aid, and bolster food security. The plan includes distributing agricultural inputs, clearing landmines, and providing technical support for market access.

Given the extensive damage to Ukraine's agricultural sector, the FAO emphasized the urgency of restoring rural livelihoods and ensuring long-term resilience.

Finally, some updates on the International Labor Organization, or ILO. On Wednesday the 16th, it announced its first-ever program focused on establishing living wages. This initiative aims to calculate fair wage levels using national data and input from both employers and workers. It also seeks to bolster systems like collective bargaining and minimum wage frameworks.

A wage data hub will be created to support informed wage-setting processes. The program received backing from the Netherlands and Germany, with efforts underway to engage additional partners.

Aaand that’s it for this week! Thank you for joining us!

Got any feedback? Send us an email at info@rorshok.com and help us make our updates better.

See you next week!

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Rorshok Multilateral Update