The Path to Development in a Post-Aid World

At a World Food Programme distribution center in Dikwa, Nigeria, August 2025 Sodiq Adelakun / Reuters EGHOSA E. OSAGHAE is Director General of the Nigerian Institute of International Affairs. This essay emerged from the Lloyd George Study Group on Global Governance. Osaghae Share & Download Print unlock this feature or Sign in. Save Sign in and save to read later Copy This is a subscriber-only feature. or Sign in. Chicago MLA APSA APA Chicago Cite not available at the moment MLA Cite not available at the moment APSA Cite not available at the moment APA Cite not available at the moment Request reprint permissions here. Western donors are not the only game in town. China, India, and Russia also provide assistance to weaker states, and they are increasingly positioning themselves as alternative sources. Although China is the only one to have increased its development spending—aid —all three have seen demand for new partnerships and have thus expanded their presence in Africa and the global South. The New Development Bank, which is seeded by China, India, and Russia along with other countries in the BRICS consortium, is mobilizing resources for infrastructure and sustainable development in emerging markets and developing countries. Beijing and Moscow are also leading an effort to de-dollarize the international economy—or to make it easier to trade without relying on the United States’ currency—which could help developing states reduce their geopolitical exposure. Weaker states’ reliance on the dollar has not only constrained trade and investment options, including intra-regional trade, but has also rendered them easy prey for unfavorable tariffs. But relying on these countries has serious drawbacks. For starters, there are limits to their generosity. India’s and Russia’s aid budgets remain fixed despite growing demand. China’s budget has expanded, but Beijing rarely offers cash donations or Western-style grants. Instead, the main vehicle of Chinese assistance is the Belt and Road Initiative, which arrives in the form of loans, construction contracts, and state-backed commercial activities. Chinese funds are also doled out on an ad-hoc basis with little transparency. They typically don’t focus on advancing human rights or improve state capacity. In fact, they often leave recipients mired in debt and thus beholden to Chinese interests. China’s aid practices are hardly unique. India also operates largely through instrumental loans, mostly in exchange for access to recipients’ natural resources (or in exchange for deals that open their markets to Indian companies).