Navigating the development and humanitarian funding crisis : ethical implications and strategic responses

Abstract

This report presents outcomes from a high-level off-record multistakeholder policy discussion convened by Arigatou International and Globethics in Geneva on 5 March 2025. Representatives from civil society organisations (CSOs), UN agencies, diplomats, and humanitarian experts addressed the ethical challenges posed by shrinking budgets and shifting donor priorities. Discussions focused on rethinking funding models, strengthening collaboration, and upholding ethical principles to ensure that humanitarian and development aid remains effective, responsible, and impact-driven in the face of growing financial constraints. Key ethical dilemmas identified included: 1. Accepting funding from non-traditional or ethically questionable donors. 2. Donor-driven agendas vs. actual humanitarian needs. 3. Prioritising whom to serve with limited resources. 4. Balancing short-term relief and long-term development. 5. Competition between UN agencies and CSOs for limited funding. Recurrent themes included the need for decolonised, locally-led funding models, ethical governance, and sustainable development strategies that reduce reliance on aid. Crucially, the discourse emphasised transforming the development and humanitarian field by placing justice, solidarity, empathy, and compassion at its core – calling for a fundamental shift in power dynamics and value systems that shape global cooperation