Prime Minister KP Sharma Oli said on Tuesday, July 1, that the fragmentation of development aid—spread across too many small projects, parallel channels, and conflicting priorities—is diluting its effectiveness.
Equally concerning, he noted, is the global shift from grants to loans, even for countries already burdened by unsustainable debt.
Oli made the remarks during a special event hosted by Spanish Prime Minister Pedro Sánchez on “Investing in Global Solidarity: A New Vision of Development Cooperation” in Seville. The session was held on the sidelines of the Fourth International Conference on Financing for Development (FFD4), which began on June 30 and runs until July 3.
The Prime Minister reached Spain Sunday leading Nepal’s delegation to the FFD4.
He stressed that development cooperation remains vital at a time when the world is grappling with rising nationalism, growing protectionism, and increasing regional and global conflicts.
“Development cooperation is not a gesture of charity,” Oli said. “It is a commitment to leave no one behind. It is about partnerships that empower communities, strengthen institutions, build capacity, and foster resilience.”
He described it as “solidarity in action”—critical for lasting peace, shared prosperity, climate justice, and building the foundations of a just, equitable world.
Despite its continued relevance, Oli warned that official development assistance (ODA) is in decline, even as the wealth of advanced economies continues to grow.
“And this decline,” he added, “comes at a time when the need is greatest—when countries in special situations face mounting challenges and widening gaps. They require enhanced and sustained global support to accelerate inclusive growth.”
Oli welcomed the Seville Commitment, adopted on Monday, as a positive step toward turning principles into progress through strengthened global solidarity.
He praised the commitment’s emphasis on revitalising international development cooperation as a key driver of sustainable development. “This is the moment to act,” he said. “We must deliver—not just on our commitments, but on the principles of effectiveness. We must innovate, mobilise resources, and ensure that development cooperation brings meaningful change to people’s lives.”
With developing nations facing increasing financial stress and debt burdens, Oli said concessional finance must be viewed not as optional, but essential.
(With inputs from RSS)
