Development cooperation and humanitarian aid need a new direction and stable financing

One year after the new German government took office, Terre des Hommes and Welthungerhilfe have published their latest report, Compass 2026, taking stock: The reform of development policy contains many relevant points, but falls short of what is needed in light of the global crises. Terre des Hommes and Welthungerhilfe welcome the German government's commitment to reform – but at the same time warn against reducing development policy to rhetoric, debates in Berlin, and short-term priorities.

“The reform of development policy must not become a Berlin bureaucratic project,” says Joshua Hofert, spokesperson for the board of Terre des Hommes . “Anyone who wants effectiveness must involve partner countries, local civil society, and young people early and in a binding manner. A credible partnership thrives on responsible action, not fine words.”

Both organizations call for a strong development policy that guides Germany toward a balanced course between global responsibility and national interests. This also includes cooperation with German businesses, from which people in partner countries also benefit.

The new figures on official development assistance (ODA) are particularly concerning. German ODA funding fell by 17 percent in real terms in 2025, and support for the least developed countries (LDCs) even declined by around a third in 2024. This puts pressure on precisely those countries that are most affected by hunger, poverty, climate crises, and conflicts, and which, according to the reform agenda, are supposed to receive more support. "It is not credible to identify the LDCs as a priority and then fail to provide them with sufficient resources. This needs to be addressed. Anyone who promises transformation must also finance it – reliably, for the long term, and together with partners. The German government must decide whether it wants to remain a reliable partner in times of increasing challenges," emphasizes Mathias Mogge, CEO of Welthungerhilfe. 

The cuts to humanitarian aid are also cause for concern. Germany reduced its funding by 53 percent to €1.05 billion in 2025. Funding is slated to remain at the same level in 2026 – the lowest level in ten years. In a time of multiple crises, this sends a dangerous signal. Humanitarian aid must be consistently geared towards people's needs and not, as is increasingly happening, politicized and instrumentalized. Its neutrality and independence must be preserved. The German government should also better integrate development cooperation, peacekeeping, and humanitarian aid and secure them through multi-year financing. 

The Compass 2026 makes it clear: The German government must not only reform its humanitarian aid, development cooperation, and peacebuilding efforts, but also secure them politically and financially. Without genuine partnership, sufficient resources, and a clear guiding principle, the aspirations will fall short of reality.

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The "Compass" is a further development of the annual report on the "Reality of Development Policy," published by Terre des Hommes and Welthungerhilfe since 1993. It continues to subject German development policy to critical analysis, but in doing so, it takes particular account of the requirements for German policy set out in the UN Agenda for Sustainable Development, adopted in 2015.

------------------------------------------------------------------------------------------ Welthungerhilfe is one of the largest private aid organizations in Germany; politically and religiously independent. It is courageously and resolutely committed to a world without hunger. Since its founding on December 14, 1962, it has supported 12,128 international projects in approximately 72 countries with €5.07 billion. Welthungerhilfe according to the fundamental principle of helping people to help themselves: from rapid disaster relief and reconstruction to long-term development cooperation projects with national and international partner organizations. Welthungerhilfe

Terre des Hommes – Strong Children – A Just World.
The children's rights organization Terre des Hommes protects children and young people from violence, exploitation, and the consequences of war, displacement, and environmental destruction. Together with local partner organizations, sustainable projects are implemented in more than 40 countries. In times of crisis, the organization provides humanitarian aid. As a registered association with 1,500 members, Terre des Hommes independently of governments, businesses, religious communities, and political parties.