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Development aid: This is how the German economy benefits from it!
The traffic light government is drastically cutting the development budget, which could have negative effects on the German economy and jobs.
Development aid: This is how the German economy benefits from it!
Berlin – A dramatic turnaround for the German economy is imminent! The traffic light government is planning a drastic cut in the development budget, which could put the German economy in a critical situation. In 2025, funding for global development cooperation is to be reduced by more than eight percent. Instead of the previous 11.22 billion euros, only 10.28 billion euros are planned. A cut of almost a billion euros that could endanger economic relations with developing countries!
The question of whether development aid actually benefits the German economy is becoming increasingly louder. However, a current study by the University of Göttingen shows: Every euro in development aid leads to an increase in German exports by 36 cents! Between 2013 and 2023, the aid resulted in an annual export increase of 7.9 billion euros. Minister Christiane Laibach from KFW emphasizes that development cooperation not only combats global crises, but also improves living conditions in partner countries and thus has positive effects on the German export economy.
Economic ties in jeopardy
But the looming cuts could jeopardize all of this! The study highlights that higher incomes in the recipient countries increase demand for German goods. However, this positive development could come to a halt if the federal government drastically cuts funding for development cooperation. With 139,000 jobs secured by government development funds in poorer countries, there is a lot at stake. International integration, which is particularly important in times of crisis, could be weakened.
The traffic light government now faces the challenge of finding the balance between budget cuts and securing jobs and export opportunities. The decision to drastically reduce funding for development cooperation could not only have a lasting impact on the German economy, but also on international relations. Time is of the essence and the effects of this decision are already being felt!