Global trends in 2025 will significantly impact international donor organizations and institutions, shaping their strategies and operational landscapes. These trends include:
Growing Complexity of Crises: Crises are increasingly multifaceted, driven by interconnected factors such as climate change, economic instability, geopolitical tensions, and pandemics. Donor organizations will need to be more adaptive and flexible in their responses. A systems-thinking approach will be critical to addressing these compounded crises, as seen in conflicts like Ukraine, which had ripple effects on food and energy supplies worldwide.
Increased Focus on Localization: There is a rising awareness that locally designed and implemented solutions are more sustainable. Donors are expected to shift toward empowering local entities to lead development efforts rather than imposing external solutions. This trend aligns with calls for meaningful community participation in decision-making and program design.
Systems Thinking in Development: Global development organizations are increasingly recognizing the importance of understanding and addressing the broader systems in which individuals and communities operate. For example, addressing women’s economic empowerment requires not just financial support, but also tackling household dynamics, gender norms, and community-level challenges.
US Elections and Global Political Dynamics: The outcome of the 2024 US election will have a mid-to-long-term impact on international donors, particularly in shaping foreign aid policies, funding priorities, and diplomatic relations. As one of the largest contributors to international development, the US influences global donor patterns. Leadership changes may shift the focus of aid towards different regions or sectors, such as climate adaptation, migration, or democratic governance.
Digitalization and Technology: The rise of AI and other digital technologies will present new opportunities and challenges for donors. While AI can enhance project monitoring, data collection, and service delivery, there are concerns about the digital divide, as many low-income countries lack access to these technologies. Donors will need to support digital infrastructure and capacity building to ensure equitable access to technological benefits.
Polycrisis and Multilateralism: The increasing frequency of polycrises—where multiple crises intersect and compound—will test the resilience of multilateral systems. Geopolitical fragmentation, such as growing tensions between major powers and the rise of Global South alliances, will challenge traditional donor models. International institutions may need to rethink their approaches to collaboration and multilateralism to remain effective.
In sum, donor organizations in 2025 will face a more complex, interconnected world. To remain relevant and practical, they must adapt to shifting political landscapes, foster local leadership, integrate systems thinking into their programming, and harness the power of emerging technologies.
References:
UNDP (2024). 2024 UNDP Trends Report: The Landscape of Development.
This report provides insights into major global trends, including polycrises, growing inequality, and technological shifts that will shape the future of international development.
[Source: UNDP]World Economic Forum (2024). Global Risks Report 2024.
This report outlines the top risks facing the world in 2024, including geopolitical tensions, environmental crises, and the potential for AI-driven misinformation, all of which impact global development strategies.
[Source: WEF]World Relief (2024). Three Trends We’re Seeing in Global Development in 2024.
This blog discusses emerging trends in global development, emphasizing the growing complexity of crises and the importance of local solutions, both of which will influence donor organizations.
[Source: World Relief Blog]McKinsey & Company (2023). The Complication of Concentration in Global Trade.
This report examines the disruptions in global trade and economic fragmentation, highlighting how these issues are likely to impact donor organizations and their funding strategies in developing countries.
[Source: McKinsey Global Institute]Edelman Trust Barometer (2024). Global Report.
This report details declining trust in public institutions, increasing polarization, and the role of civil society, all of which influence the environment in which international donors operate.
[Source: Edelman]