Donor funding crisis goes global

Towards the end of the ancient Indian epic the Mahabharata, Krishna's Yadava clan self-destructs. Many dark omens presage their downfall: nature behaves erratically and pests multiply.

- Jayati Ghosh

Sin, deception, and violence proliferate, eroding trust and solidarity. Clan members humiliate and insult wise elders. When Krishna's extended family goes on a picnic, the men get drunk, argue, and attack each other, until eventually all of them are dead.

This cautionary tale has gained new resonance as geopolitical tensions — including in South Asia — escalate, and many countries embrace protectionist policies. US President Donald Trump's second administration has contributed significantly to the current fragmentation and disorder. But other wealthy countries have exacerbated the situation by failing to show any real solidarity in response to Mr Trump's hostile policies.

The lack of development cooperation is a prime example of this growing appetite for mutually assured destruction. To be sure, aid from donor countries was already declining, and recent events have exposed the system's injustices. The Covid-19 pandemic highlighted Western governments’ greed, undermining others’ trust in their global leadership. Moreover, the fact that these governments have directed most of their dwindling foreign-aid budgets to Ukraine since Russia's 2022 invasion, diverting funds away from other war-torn and desperately poor countries, has underscored the largely self-serving approach to such “charity” flows.