International cooperation: more resources and less rhetoric

International cooperation is facing its greatest global challenge in recent decades, not only due to armed conflicts and climate change, but also due to a greater challenge: the crisis of multilateralism , which is manifesting itself in a very significant reduction in funding for recipient countries. Although more than 100 concrete measures were approved at the recent UN summit in Seville , many of them related to financing for countries with the greatest needs , the absence of the United States and the low representation of other countries were decisive in the event's final outcome.

It's enough to recall that one of Donald Trump's first political decisions in his second term was to abolish its aid agency (USAID) , which provided more than 40% of global aid. As justification, Secretary of State Marco Rubio declared on July 1 that "USAID marketed its programs as a charity, rather than as instruments of American foreign policy designed to promote our national interests," thereby abandoning the charitable objectives that aid has historically had. He also criticized the volume of investment in recent decades, which, in his opinion, were funds dedicated to actions with poor results. Regrettably, according to the Organization for Economic Cooperation and Development (OECD), other countries as important in providing funds as France, Germany , and the United Kingdom are also cutting their contributions.

The North American agency's contribution to Latin America and the Caribbean accounted for more than 20% of the total funding received by the region, so these cuts aggravate the decline in funds experienced in recent decades.

The North American agency's contribution to Latin America and the Caribbean accounted for more than 20% of the region's total funding, so these cuts exacerbate the decline in funding experienced in recent decades. While in the 1980s it received nearly 20% of global aid, it currently sits at less than 10% ($10 billion a year).

The outlook for international cooperation in the region is facing increasing challenges, and with the announcements of financial cuts by countries that have historically contributed the most, it requires a reflection on those strategies that have not worked, but also a deeper look at successful models that have been implemented in Latin America, such as South-South cooperation.

Probably the biggest problem with the efficient use of resources has been a clear lack of focus on priorities, whether due to poor external decisions not aligned with local definitions and needs, or due to political decisions that have prioritized short-term solutions over truly structural strategies.

A paradigmatic example of this has been seen in the education sector in Latin America: over the last two decades, billions of dollars have been invested in technological devices and inconsistent programs, whose lack of connectivity or inadequate teacher training has led to failure.

Another important point to reflect on is the growing role of philanthropic organizations . In the last decade, according to data from the Development Bank of Latin America and the Caribbean (CAF), $70 billion has been allocated to the region. Returning to the example of education, the funds allocated would be in the range of $3 to $5 billion. However, many of the educational projects launched have not been designed and implemented according to local needs , and in some cases, they even responded to the interests of the very foundations supported by the main global technology companies.

Among the strategies and actions that work, the increase in South-South Cooperation in recent decades stands out, which allows technical cooperation between the countries of the region.

For this reason, the Organization of Ibero-American States (OEI) in its report Education in Ibero-America: Perspectives Report 2020 and 2022 praised philanthropy and public-private partnerships, but emphasized that "their interventions must be aligned with national policies and respond to local contexts to be sustainable and equitable." To which we would add that its origin must always respond neatly to tax compliance in the countries of origin and destination: zero evasion and zero avoidance.

Among the strategies and actions that are working, the increase in South-South Cooperation stands out in recent decades, which allows for technical cooperation between countries in the region. It seems clear that the reduction in funding from northern countries will continue to strengthen this type of cooperation, which moves around $400 million annually and allows not only greater economic and strategic independence, but also facilitates the use of experiences in similar environments that have already demonstrated successful results. In this sense, multilateral banks such as the CAF (Federal Administration of Finance) and the Inter-American Development Bank (IDB) play a prominent role , as we can see from the OEI, not only as providers of financial resources but also as liaisons between governments, promoting transparency and accountability.

Faced with the growing challenges facing the Latin American region, the solution should never be to reduce funding for cooperation and development. However, the nationalist isolation we are experiencing, manifested in funding cuts, requires a reevaluation of all action strategies. Establishing clear objectives aligned with the region's needs, as well as efficient use of resources, coordination among all stakeholders, and greater regional integration will be key in the new world order we are experiencing.