The Development Sector at a Crossroads: Crisis or Evolution?

The development sector is facing an unprecedented crisis. Recent global developments indicate a drastic reduction in funding, leading to potential job losses, project closures, and uncertainty about the future of humanitarian aid. The situation is further exacerbated by the fact that millions of students are currently pursuing degrees in development studies, anticipating careers in this sector.

Having spent over a decade in the development field, I have always been aware of the inherent risks and uncertainties. From the very beginning of my career, I understood that while we teach farmers and entrepreneurs about resilience and risk anticipation, we, too, must be prepared for a sector that may not offer long-term job security. However, if development work is truly a passion, survival will be possible, albeit through the principle of 'survival of the fittest.'

The USAID Fund Crisis and Global Aid Cuts : The recent decision by the U.S. government to impose a 90-day pause on all USAID projects for review has sent shockwaves through the sector. Many had assumed that potential changes in USAID funding would only result in minor cuts or project suspensions. However, the reality is very disasterious. In the U.S. alone, approximately 1,600 USAID jobs have been lost, and the impact in aid-receiving countries is catastrophic. It is estimated that around 5,000 people in Nepal, working in 300 NGOs, consultancies, and nonprofits, are directly affected. 

The humanitarian and health sectors, which are critical for providing basic necessities such as food and medicine, are among the hardest hit. The question remains: how will millions of people survive without the support these projects provide?

The U.S. is not the only country slashing aid budgets. The Netherlands has announced plans to cut its development aid budget by €2.4billion starting in 2027, reducing aid as a percentage of Gross National Income from 0.62% in 2024 to 0.44% by 2029. Similarly, the Swiss Agency forDevelopment and Cooperation (SDC) has reduced its budget from CHF 2.16 billion in 2024 to CHF 2.04 billion, leading to the closure of programs in Albania, Bangladesh, and Zambia by 2028.

The UK (FCDO) is also following suit, with Prime Minister Starmer cutting aid spending by 40%. These cuts come amid increased defense spending, indicating a shift in priorities from humanitarian support to national security interests.

The Unanswered Questions

These developments raise critical questions:

  • What will happen during and after the 90-day review period for USAID projects?
  • How will people who depend on development funding for basic needs survive?
  • Is it time to redefine the development sector?
  • What about the future of students who are preparing for careers in development?

A Need for Redefining Development Work

Over the years, I have worked on projects that have genuinely benefited communities, providing real and lasting impact. However, I have also witnessed projects that existed merely to meet numbers and targets without creating meaningful change. The focus on distribution, demonstrations, and short-term success stories has often overshadowed sustainable impact.

Moving forward, we must shift our approach. Instead of simply securing funds, implementing projects, and reporting numbers, we need to establish initiatives that create real and measurable change. Development work should not be about ticking boxes but about ensuring that the resources reach and benefit those who need them the most.

Despite the current crisis, I remain hopeful. This challenging period could serve as an opportunity to redefine and refocus the development sector towards more result-driven, impactful work. Development workers must remain resilient, committed to their passion, and dedicated to making a genuine difference in the lives of communities.

Development work is my passion. I am not just in this field as an employee but to create meaningful change in communities. I will continue to contribute as long as I can, regardless of my employment status. I have worked in remote villages even without formal employment, and I will keep doing so—with or without an official role.

Let us redefine this sector through collaboration and collective effort. 


Thank you. 

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