The international system of development co-operation stands at a critical juncture. Amid shifting geopolitics, tightening fiscal space and compounding global crises, the traditional frameworks of official development assistance (ODA) are being severely tested.
Yet, despite the immense pressures on the system, development co-operation remains essential and, at its best, is transformative. The central challenge is not whether development co-operation still matters, but how it must evolve to remain fit for purpose under profoundly changed conditions. This question is shaping action across the OECD, the Accra Reset initiative, and a wider community of policymakers and practitioners working to redefine the future of development co-operation.
An emerging social contract
A new organising logic must start with genuine country ownership. This means that countries have the space and resources to set their own trajectory – and even walk away from well-intended funding.
For example, in 2020, the government of Costa Rica was offered a significant package of international support for a digital infrastructure project. Despite intense fiscal pressure, with the economy contracting 5% due to the COVID-19 pandemic, they declined. The pre-packaged technical model did not align with the country’s long-term National Decarbonization Plan, nor did it reflect the digital realities of its rural territories.
The message is clear: developing nations do not need an imported solution that expires in five years; they need a partnership that strengthens the foundations they are building for the next fifty. This will not be achieved by restoring old models, but by nurturing the sovereign capacity to finance, deliver, negotiate, and implement on terms defined by Global South countries themselves, while remaining open to partnerships that are truly mutual. Development is not a commodity to be imported or a “gift” to be received. It must be an internal fire – a social contract nurtured from within.
Hon. Nana Oye Bampoe Addo, Presidential Advisory Liaison to the Accra Reset Secretariat, speaks at the Future of Development Co-operation conference in Paris.
Changing the math of development
When a country moves from being a “recipient” to a “strategic architect”, the math of development changes. Every dollar of co-operation works exponentially harder because it isn’t just funding a project; it is fuelling a sovereign vision. That vision, whether in San José or in Accra, is what remains standing long after the donor’s budget cycle has closed or global headlines have moved on.
As official development funding faces unprecedented pressure, with some allocations experiencing drops of 23.1%, the sector must confront these global shifts. But low- and middle-income countries will not simply accept “less of the same” going forward. Rather, they are demanding “a wholesale reimagining”. This means sustainable investments that address structural vulnerabilities and drive whole-of-economy transitions, rather than just isolated, short-term projects.
This demand is already taking concrete shape through Global South-led initiatives like the Accra Reset, a Head-of-State-anchored platform working to retool how development co-operation functions in practice. A prime example of this sovereign delivery approach is its High-Level Panel on Reform of the Global Health Architecture and Governance, which is designing a blueprint for international public health that reflects developing country realities.
Crucially, the Panel is backed by mechanisms like HINGE (Health Investment National Gateways Enabler), designed to turn existing commitments into bankable, executable investments within 24 months by coordinating national pipelines and unlocking bottlenecks. By building sovereign capacity rather than deepening dependence, this model moves development from rhetoric to execution, targeting tangible outcomes like maternal and newborn health.
María del Pilar Garrido Gonzalo, OECD Director for Development Co-operation, speaks at The Future of Development Co-operation conference in Paris.
Connecting to wider systems
Fortunately, there is a foundation of consensus for the type of paradigm shift that the Accra Reset embodies. Recent OECD analysis reveals that economic transformation – specifically relating to jobs, private sector and trade – is now a central, shared priority for approximately 70% of major bilateral providers.
To achieve this transformation, development co-operation must therefore be connected to the wider systems shaping countries’ futures – from debt and trade to energy and resilience. Because development challenges increasingly sit within interconnected systems, interventions must be highly coordinated and politically informed. Donors must therefore look beyond traditional bilateral aid, integrating their efforts with development finance institutions, multilateral banks and private capital to lower risks and catalyse systemic change.
A modern Marshall Plan mentality
Seventy-five years ago, the Marshall Plan demonstrated what is possible when international co-operation is driven by sovereign ownership, structural transformation and mutual economic resilience rather than piecemeal charity. Today, as the international community confronts compounding crises and a fragmenting global order, it must channel that same historic resolve.
As global development leaders convene to chart strategic directions for the future – for example at OECD’s recent conference on the future of development co-operation in Paris – the focus now shifts from dialogue to concrete actions.
To facilitate this, multilateral institutions must strengthen their role as convenors and coalition builders, finding ways to work together with sovereign-led initiatives, like the Accra Reset. This vision will be further crystallised in the OECD’s upcoming flagship report on the future of development co-operation this October, offering a strategic blueprint to ensure that development co-operation remains a powerful, equitable force in a profoundly altered world.
