Oil Shocks, Political Upheaval and the One Solution Governments Keep Ignoring

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Oil Shocks, Political Upheaval and the One Solution Governments Keep Ignoring

Credit: Marcelo Del Pozo/Reuters via Gallo Images

LONDON, Mar 16 2026 (IPS) – Once again, global oil prices are spiking, driven by the Israeli-US war against Iran. With Iran retaliating by attacking infrastructure and transport hubs and blocking the Strait of Hormuz, through which one-fifth of the world’s oil passes, oil supplies from the region are being choked, pushing up prices. The cost of a barrel of Brent crude – the international benchmark for oil prices – stood at US$73 before the conflict but has surged beyond US$100 since. It could go higher still as war continues.

The impacts are already being felt when drivers fill up their petrol- and diesel-powered vehicles. But they go much wider. Bigger household energy bills will likely result, while businesses will pass on their increased costs in the form of higher prices. Russia’s 2022 full-scale invasion of Ukraine sent oil prices soaring and sparked a global cost-of-living crisis, and now, as many economies seemed to be recovering, the war in the Gulf has brought another shock. Impacts could be political as well as financial: in numerous countries, the cost-of-living crisis helped drive voters towards right-wing populist and nationalist politicians. Recent years have seen Gen Z-led protests erupt in countries around the world, fuelled in part by young people’s anger at failing economies.

In a world increasingly characterised by conflict and with powerful states tearing up the international rulebook in pursuit of material interests, more oil shocks and big economic and political impacts seem inevitable. Governments typically react with economic policies that fail to protect those with the least, and by meeting political unrest with repression. They should consider another way.

The world will remain vulnerable to oil price shocks only for as long as it stays dependent on oil. The climate crisis compels a rapid move away from fossil fuel dependency to abate the worst impacts of global heating. Increasingly, this should also be seen as a matter of economic and political security.

Some steps have been taken in the right direction. Renewables now provide over 30 per cent of global electricity. Investments in renewables more than double those in fossil fuels. But fossil fuel companies have immense power and are determined not to give it up. That was reflected in the fact that 1,600 fossil fuel lobbyists attended the latest global climate summit, COP30 in Brazil, and succeeded in preventing any new commitment to end fossil fuel extraction. Their power is shown in the lawsuit an oil company brought against Greenpeace, leading to a widely criticised trial in North Dakota, USA, with the campaigning organisation facing a punitive US$345 million damages bill. Their influence was reaffirmed by Donald Trump’s election win, after a campaign in which fossil fuel companies gave US$450 million in donations to Trump and his allies – and they were rewarded by US intervention in Venezuela.

Fossil fuel companies are determined to hold back the tide of renewables for as long as possible, because every day of delay is another day of profit, even though every fraction of a degree of temperature rise means avoidable suffering for millions of people. Delay is the new climate denial.

As the latest State of Civil Society Report points out, civil society’s working to make the difference, urging governments to hasten the transition and calling on global north states to make funding available for global south states to decarbonise and adapt to climate impacts. Civil society is exposing the environmental devastation caused by extraction and the complicity of fossil fuel companies in human rights abuses. Its strategies include advocacy, public campaigning, protests, direct action and, increasingly, litigation.

In 2025, climate litigation scored some big successes. The International Court of Justice (ICJ) issued an unprecedented advisory opinion, ruling that states have a legal duty to prevent environmental harm, which requires them to mitigate emissions and adapt to climate change. This victory originated in civil society: in 2019, student groups from eight countries formed the Pacific Islands Students Fighting Climate Change network to persuade their governments to seek an ICJ ruling.

Following extensive civil society engagement, the Inter-American Court of Human Rights issued a similar ruling. The African Court for Human and Peoples’ Rights is set to issue its advisory opinion following a petition brought by the African Climate Platform, a civil society coalition.

These rulings can seem symbolic, but they strengthen national-level efforts to hold states and corporations accountable. These have paid off recently too. In 2025, two South African groups stopped an offshore oil project after a court found its environmental assessments were deeply flawed. More litigation is coming, including in New Zealand, where civil society has filed a lawsuit after the government weakened its emissions reduction plan.

But civil society faces a backlash. Around the world, climate and environmental activists and their allies, Indigenous and land rights defenders, experience severe state and corporate repression.

Last year in Uganda, authorities arrested 11 activists for protesting against the construction of the East African Crude Oil Pipeline. In Peru, police used teargas and non-lethal weapons against people blocking a road to protest against a mine. In Cambodia, five young activists from the Mother Nature environmental group have been in jail since July 2024.

The French government has repeatedly vilified environmental campaigners and deployed police violence against protests, while last year the German government launched an inquiry into public funding of environmental groups and the Dutch parliament adopted a motion condemning Extinction Rebellion and urging the removal of its tax-exempt status.

As the latest oil price shocks reverberate around the global economy, governments should learn the lessons. As economies deteriorate, the temptation will be to say that transition is a luxury, something that can be put off even further. This is the wrong lesson: recent research in the UK suggests that the cost of achieving net zero will be about the same as the cost of another oil price crisis. Economic and political security lies in ending fossil fuel dependency as quickly as possible. To learn the right lessons, governments should stop repressing climate activism and instead listen to and work with civil society.

Andrew Firmin isCIVICUS Editor-in-Chief, co-director and writer for CIVICUS Lens and co-author of the State of Civil Society Report.

For interviews or more information, please contact research@civicus.org

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Graduation Must Be a Springboard, Not a Stumbling Block

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UNITED NATIONS, Dec 1 2025 (IPS) – As we gather in Doha for the High-Level Meeting on “Forging Ambitious Global Partnerships for Sustainable and Resilient Graduation of Least Developed Countries,” the stakes could not be higher. A record number of fourteen countries-equally divided between Asia and Africa are now on graduation track. Graduation from the Least Developed Country (LDC) category is a landmark national achievement—a recognition of hard-won gains in income, human development, and resilience. Yet, for too many countries, this milestone comes with new vulnerabilities that risk undermining the very gains that enabled graduation.

Since the establishment of the LDC category in 1971, only eight countries have graduated. Today, 44 countries remain in the group, representing 14% of the world’s population, but contributing less than 1.3% to global GDP. The Doha Programme of Action (DPoA) charts an ambitious yet achievable target: enabling at least 15 additional countries to graduate by 2031. But as the DPoA underscores graduation must be sustainable, resilient and irreversible. It must serve as a springboard for transformation— not a moment of exposure to new risks.

USG Rabab Fatima

Graduation with momentum:
Graduation often coincides with a significant shift in the international support landscape. As preferential trade arrangements, concessional financing, and dedicated technical assistance begin to phase down, countries may face heightened fiscal pressures, reduced competitiveness, and increased exposure to external shocks. Without well-sequenced and forward-looking transition planning, these shifts can slow progress toward the Sustainable Development Goals (SDGs) and strain national systems.

Yet within these challenges also lie opportunities. With the right policies, partnerships, and incentives, graduation can catalyse deeper structural transformation, expand access to new financing windows, strengthen institutions, and unlock pathways to diversified, resilient, and inclusive growth. The task before us is to manage risks while harnessing these opportunities—ensuring that no country graduates without momentum.

Smooth Transition Strategies: A National Imperative
The DPoA calls for every graduating country to develop inclusive, nationally owned Smooth Transition Strategies (STS) well-ahead of the graduation date. These strategies must be fully integrated into national development plans and SDG frameworks, ensuring coherence and resilience. They should prioritize diversification, human capital investment, and adaptive governance, while placing women, youth, and local actors at the center of design and oversight. STS must be living documents—flexible, participatory, and backed by robust monitoring and financing.

Reinvigorated Global Partnerships: The essential Pillar
No country can navigate this transition alone. The Doha Programme of Action calls for an incentive-based international support structure that extends beyond graduation. For LDCs with high utilization of trade preferences – the withdrawal of preferential market access must be carefully sequenced to avoid abrupt disruptions. For climate-vulnerable SIDS and LLDCs, enhanced access to climate finance, debt solutions, and resilience support are key elements in their efforts to tackle post-graduation challenges.

Deepened South-South and triangular cooperation, innovative financing instruments, blended finance, and strengthened private-sector engagement will be essential to building productive capacities and unlocking opportunities in digital transformation, green and blue economies, and regional market integration.

iGRAD: A Transformative Tool
The operationalization of the Sustainable Graduation Support Facility—iGRAD—is a concrete step forward. By providing tailored advisory services, capacity-building, and peer learning, iGRAD can serve as a critical tool to help countries anticipate risks, manage transitions, and sustain development momentum. Its success, however, hinges on strong political support and adequate, predictable resourcing from development partners.

Graduation as a Catalyst for Transformation
Graduation should not be the end of the story—it should be the beginning of a new chapter of resilience and opportunity. With integrated national strategies and reinvigorated global partnerships, we can turn graduation into a catalyst for inclusive, sustainable development. Let us seize this moment in Doha to reaffirm our collective commitment: no country should graduate into vulnerability. Together, we can ensure that graduation delivers on its promise—for communities, for economies, and for future generations.

Rabab Fatima is UN Under Secretary General and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States

IPS UN Bureau

 

UN80: Three Tests to Make Reform About People, Not Spreadsheets

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Sarah Strack is Forus Director and Christelle Kalhoulé is Forus Chair and civil society leader in Burkina Faso

Credit: Forus – UN High-Level Political Forum 2025

NEW YORK, Sep 26 2025 (IPS) – This September the UN turns 80, but the lessons of peace, justice, and cooperation are still unfinished. The world today faces the flames of inequality, conflict, ecological collapse and growing digital threats. In short, the very problems the UN was created to solve are once again staring us in the face.

That’s why the UN’s latest reform push, “UN80,” matters. Launched this spring, it promises to make the multilateral system more inclusive and accountable. But here’s the real question: can it align with 21st century’s needs? Will it be remembered as a budget drill or the start of a renewal that truly delivers for people where they live?

If this moment is going to count, three things must happen.

First, reforms must put people at the center, and we must avoid a reform by spreadsheet.

The UN is under financial strain. Geopolitical tensions are sky-high, negotiations are gridlocked, Member States are late on dues and membership fees, arrears run into the billions, and the UN’s mandate, efficiency, and effectiveness are under question.

“In a polycrisis world, shrinking the UN’s capacity is like cutting the fire brigade during wildfire season,” warns Christelle Kalhoulé, Forus Chair and civil society leader in Burkina Faso. “Reform cannot be about cutting corners. It must be about giving people the protection, rights, and solidarity they are being denied today.”

The UN80 Initiative marks the most sweeping reform effort in decades, with three tracks: streamlining services and consolidating IT and HR systems, reviewing outdated mandates, and exploring the consolidation of UN agencies into seven thematic “clusters.”

On paper, these reforms could bring overdue coherence. But the process has too often felt opaque, with key documents surfacing via leaks and staff unions flagging limited transparency and consultation.

Increasing the use of tools like AI is among the “solutions” being floated to “flag potential duplication” and shorten resolutions — yet without clear guardrails, there’s a risk of automating cuts and reinforcing bias rather than empowering people-first innovation. And the debate has too often been framed around cash flow, back payments, and cuts. The United States alone owes $1.5 billion in dues. Major donors are cutting ODA, and several UN humanitarian agencies are planning double-digit reductions in 2025 in their budgets.

As Arjun Bhattarai, Executive Director of the NGO Federation of Nepal warns: “Reform cannot be a synonym for austerity. Cutting budgets may make spreadsheets look tidy in New York, but it leaves communities in Kathmandu, Kampala, Khartoum, or Kyiv without support when they need it most.”

The danger is a reform focused on management efficiencies instead of reimagining what the UN must be to meet today’s and tomorrow’s challenges.

Second, a better compass exists.

Despite its flaws, multilateralism remains indispensable. Without the UN, the world would be poorer when it comes to peace, cooperation, and collective problem-solving.

What makes the UN matter most, however, are not the halls of New York or Geneva, but the people and communities it exists to serve.

The UN was created “for the people and by the people”. Protecting, safeguarding and promoting healthy sustainable lives for communities must remain the core priority.

Our measure for reform is simple: a transformed UN must reduce inequalities, ensure fairer and more inclusive representation across its governance structures, deliver public goods fairly with accountability, and protect people better, faster, while safeguarding rights.

As Moses Isooba, Executive Director of the Uganda National NGO Forum, puts it: “A reformed UN must stand closer to the people than to the corridors of power. It must be measured not by the length of resolutions, but by the depth of hope it restores and the changes it makes for communities worldwide.”

If UN80 becomes a technocratic exercise in “doing less with less,” we will emerge with a smaller, weaker UN at precisely the moment we need it most.

If instead it becomes a justice-driven reimagining — linking architecture and finance to a clear vision of protection, equity, participation, and decentralization — it could renew the UN’s capacity to act as a backbone of international cooperation.

As Justina Kaluinaite, Policy and advocacy expert at the Lithuanian NGDO Platform, stresses: “The UN will survive another 80 years only if it learns to listen. True reform is not about doing more with less, but about doing better with those who have been left out.”

Third, put reforms through three simple tests.

When leaders meet in New York, we challenge them to have every reform proposal answering three questions:

    1. The Inequality Question: Does this reform measurably narrow gaps — by income, gender, geography, or status — in who is protected and who benefits?

    2. The Localisation Question: Does it move money, decisions, and accountability closer to communities, with transparent targets and timelines?

    3. The Rights Question: Does it strengthen — not dilute — protection, gender equality, and human rights?

As Christelle Kalhoulé, sums it up: “The measure of UN80 should not be how much paper it saves, but how many lives it protects. History and the legacy we leave to future generations will not ask whether the UN balanced its budget in 2025; it will ask whether it stood with people.”

If leaders embrace this moment, the UN can emerge sharper, stronger, and more inclusive, with a justice-driven renewal of multilateralism, reclaiming its place as the backbone of global cooperation. If not, UN80 may go down in history as the moment when multilateralism chose retreat over renewal.

If UN80 is going to matter, it must prevent crises before they explode, deliver for both people and planet, give underrepresented countries and communities a real voice, keep civil society free and strong, and fix financing so money reaches those on the frontlines. The real test isn’t how tidy the org chart looks, it’s whether lives are saved, trust is rebuilt, and the UN proves it can still rise to the moment and be fit to serve this 21st century world.

IPS UN Bureau

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Time to Redesign Global Development Finance

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Opinion

Sarah Strack, Forus Director and Christelle Kalhoule, Forus Chair

Farmer in Colombia. Credit: Both Nomads/Forus

SEVILLE, Spain , Jun 23 2025 (IPS) – Can the Fourth International Conference on Financing for Development (FFD4) be a turning point? The stakes are high. The international financial system—so important to each and every one of us—feels out of reach and resistant to change, because it is deeply entrenched in unjust power imbalances that keep it in place. We deserve better.

Under its current form, the Compromiso de Sevilla – the outcome document of FFD4 adopted on June 17 ahead of the conference – reads like a mildly improved version of business as usual with weak commitments. To avoid being derailed, decision-makers at FFD4 must act with clarity and courage, and here’s why.

With predatory interest rates, the international financial system is pushing hundreds of millions into misery as several nations continue to be shackled by a deepening debt crisis. While millions struggle without adequate food, healthcare, or education – basic services and rights – their governments must funnel billions to creditors.

Shockingly, 3.3 billion people – almost half of humanity – disproportionately in Global South nations, live in countries where debt interest payments outstrip education, health budgets and urgent climate action. This imbalance is particularly pernicious toward women, who bear the brunt of the failure of the gender-blind global financial architecture. This system fails to acknowledge and redistribute care and social reproduction responsibilities, resulting in women, especially those located in the Global South, lacking access to adequate essential services and decent jobs.

“The current model of international cooperation is not working, and its financing is also not working while we are facing a series of interconnected crises,” says Mafalda Infante, Advocacy and Communications Officer at the Portuguese Platform of Development NGOs, sharing their recently released Civil Society Manifesto for Global Justice calling for change and a restoration of fairness at FFD4 and beyond.

“Gender equality perspectives are absolutely central to how we understand global justice and financial reform, because let’s be clear: the current system isn’t neutral. It produces and reinforces inequalities, including gender-based ones. The debt crisis and climate emergency disproportionately affect women and girls, especially in the global south. We’ve seen it again and again when public services are cut, when healthcare is underfunded or when food systems collapse, it’s women who carry the heaviest burden. But at the same time, feminist economics also offer solutions. They challenge the idea that GDP growth is the ultimate goal. They prioritise care, sustainability and community well-being. They demand that financing should be people-centered and rights-based and accountable as well. So the role of civil society has been to bring these ideas into the FFD4 space to connect macroeconomic reform with everyday realities and to insist that justice – economic, climate, racial, gender justice – is indivisible,” Infante adds.

FFD4 offers an opportunity to reimagine a financial architecture that can be just, inclusive, and rights-based. This is not a technical summit for experts alone. It is the only global forum where governments, international institutions, civil society organisations, community representatives and the private sector sit together to shape the future of global finance, and it’s happening after 10 years since the latest edition in Addis Ababa.

But there are realities that decision-makers just can’t shy away from. While some powerful countries borrow at rock-bottom rates, other nations face interest charges nearly four times higher. We must thus ask ourselves: is this really a pathway to truly sustainable development or a continuation of profound financial injustices through something akin to “financial colonialism” ?

“Many countries like us in the South, are totally concerned that there can be no development with the current debt situation not discussed. The issue of debt vis-a-vis taxes is vitally important. The money that countries are collecting from the domestic mobilization of resources is all channeled to self-debt servicing. And debt handcuffs social policy. Without these resources, these countries cannot deliver on public services like health and education. There can be no way of improving people’s social indicators without addressing the question of debt stress,” says Moses Isooba , Executive Director of the Uganda National NGO Forum (UNNGOF).

Forus is attending FFD4 as a global civil society network with one clear message: the current model must change.

We call for a radical transformation of global finance that moves away from a system that enables “tax abuse” and outsized influence from a powerful few.

A crucial step for transformation is creating a UN Convention on Sovereign Debt to fairly and transparently restructure and cancel illegitimate debt, as many countries spend more on debt than on essential services.

In today’s context of shrinking development aid, the role of public development banks is ever more important in support of Agenda 2030 and the Paris Agreement on climate change. Forus therefore calls on public development banks to work in partnership with civil society and community representatives through a formal global coalition and local engagement to ensure development finance is locally-led and reflects the real needs of people, rooted in consent and mutual trust.

Official development assistance (ODA) must be protected and increased, reversing harmful aid cuts that damage civil society as well as urgent and basic services. The UN has warned that aid funding for dozens of crises around the world has dropped by a third, largely due to the decrease in US funding slashed US funding and announced cuts from other nations.

Finally, governments should support a new UN Framework Convention on International Tax Cooperation, adopting gender-responsive, environmentally sustainable fiscal policies while disincentivizing polluters and extractive industries.

“Development financing must not perpetuate cycles of debt, austerity, and dependency. Instead, it must be grounded in democratic governance, fair taxation, climate justice, and respect for human rights. It’s also crucial to promote inclusive decision-making by strengthening the role of the United Nations in global economic governance, countering the dominance of informal and exclusive clubs such as the OECD,” says Henrique Frota, Executive Director of the Brazilian Association of NGOs (ABONG) and former C20 Brazil Chair.

FFD4 must ensure that there is a genuine space for civil society engagement, where all voices are heard and can influence financial decision making, to strengthen accountability and transparency, and to promote greater inclusion.

“The voices of the communities most affected should be included, otherwise large-scale development projects are not sustainable. Local communities and local civil society are the point of contact to make implementation more inclusive,” says Pallavi Rekhi, Programmes Lead at Voluntary Action Network India (VANI), reinforcing that FFD4 must shift from vague aspirations to binding, systemic reforms that rebalance power and serve justice.

“Don’t take stock of what has been done. Instead, look at what has not yet been done at this conference and you will see the immense challenges that lie ahead for the future of our planet,” says Marcelline Mensah-Pierucci, President of FONGTO, the national platform of civil society organisations in Togo.

“The continuous cycle of unfairness and social inequality must come to an end. The time to act is now,” adds Zia ur Rehman, Chairperson of Pakistan Development Alliance.

For many, the road to Sevilla has been long and hard and still, the world’s majority are left behind on this journey. The hard work continues after FFD4 on the need for bold leadership, real action and transformative change that can lead to a more effective and responsive global financial architecture.

IPS UN Bureau

 

Portugal: No Longer an Exception to Europe’s Far-right Rise

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Credit: Zed Jameson/Anadolu via Getty Images

MONTEVIDEO, Uruguay, Jun 5 2025 (IPS) – For decades, Portugal stood as a beacon of democratic stability in an increasingly unsettled Europe. While neighbours grappled with political fragmentation and the rise of far-right movements, Portugal maintained its two-party system, a testament to the enduring legacy of the 1974 Carnation Revolution that peacefully transitioned the country from dictatorship to democracy. It was long believed that Portugal’s extensive pre-revolution experience of repressive right-wing rule had effectively inoculated it against far-right politics, but that assumption is now demonstrable outdated. An era of exceptionalism ended on 18 May, when the far-right Chega party secured 22.8 per cent of the vote and 60 parliamentary seats, becoming the country’s main opposition force.

This represents more than an electoral upset; it marks the collapse of five decades of democratic consensus and Portugal’s reluctant entry into the European mainstream of political polarisation. Chega could hold the balance of power. The centre-right Democratic Alliance, led by Prime Minister Luís Montenegro, won the most parliamentary seats, but fell far short of the 116 needed for a majority. Meanwhile, the Socialist Party, which governed from 2015 to 2024, suffered its worst defeat since the 1980s, relegated to third place by a party that’s only six years old.

Chega’s meteoric rise from just 1.3 per cent of the vote and one seat in 2019 to its role as today’s main opposition demonstrates how quickly political landscapes can shift when mainstream parties fail to address people’s fundamental concerns. The roots of the transformation lie in a toxic combination of economic pressure and political failure that has systematically eroded public confidence in the political establishment.

Portugal has endured three elections in under four years, a sign of its novel state of chronic instability. The immediate trigger for the latest election was the collapse of Montenegro’s government following a confidence vote, with opposition parties citing concerns over potential conflicts of interest involving his family business. This followed the previous Socialist government’s fall in November 2023 amid corruption investigations, creating a recurring cycle of scandal, government crisis and electoral upheaval.

The political turmoil unfolds against a backdrop of mounting social challenges that mainstream parties have failed to adequately address. Despite its economy growing by 1.9 per cent in 2024, well above the European Union average, Portugal faces a severe housing crisis that has become the defining issue for many voters, particularly those from younger generations. Portugal now has the worst housing access rates of all 38 OECD countries, with house prices more than doubling over the past decade.

In Lisbon, rents have jumped by 65 per cent since 2015, making the capital the world’s third least financially viable city due to its punishing combination of soaring housing costs and traditionally low wages. This crisis, driven by tourism, foreign investment and short-term rentals, has pushed property ownership beyond most people’s reach, creating widespread frustration with governments perceived as ineffective or indifferent to everyday struggles.

Immigration has provided another flashpoint. The number of legal migrants tripled from under half a million in 2018 to over 1.5 million in 2025. This rapid demographic change has fuelled populist narratives about uncontrolled migration and its alleged impact on housing and employment markets. It was precisely these grievances that Chega, led by former TV commentator André Ventura, expertly exploited.

As an outsider party untainted by association with the cycle of scandals and governmental collapses, Chega positioned itself as the defender of ‘western civilisation’ and channelled anti-establishment anger into electoral success. It combines promises to combat corruption and limit immigration with a defence of what it characterises as traditional Portuguese values, including through extreme criminal justice policies such as chemical castration for repeat sexual offenders.

Despite Ventura’s insistence that Chega simply advocates equal treatment without ‘special privileges’, the party’s ranks include white supremacists and admirers of former dictator António Salazar. Its openly racist approach to immigration and hostility towards women, LGBTQI+ people, Muslims and Roma people reflects a familiar far-right playbook that has proven successful across Europe. Chega has cultivated significant connections with Marine Le Pen’s National Rally in France, Germany’s Alternative for Germany, and Spain’s Vox party, and Ventura was among the European far-right leaders invited to Donald Trump’s inauguration.

Montenegro has so far refused to work with Chega, which he has publicly characterised as demagogic, racist and xenophobic – a rejection that may have inadvertently strengthened Chega’s anti-establishment credentials. However, the arithmetic of Portugal’s fractured parliament suggests that any significant policy initiatives will require either Socialist abstention or, more controversially, Chega support, creating new opportunities for far-right influence, particularly on criminal justice and immigration policies.

Portugal’s experience offers sobering evidence that far-right influence should no longer be viewed as a passing fad but rather as an established feature of contemporary European politics. The speed of the shift offers a stark reminder that no democracy is immune to the populist pressures reshaping the continent.

The question now is whether Portugal’s institutions can adapt to govern effectively in this new fractured landscape while preserving democratic values. Portugal’s civil society has an increasingly vital part to play in holding newly influential far-right politicians to account and offering collective responses to populist challenges.

Inés M. Pousadela is CIVICUS Senior Research Specialist, co-director and writer for CIVICUS Lens and co-author of the State of Civil Society Report.

For interviews or more information, please contact research@civicus.org

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African Countries Still Underfunding Health by as Much as 50 Percent

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Health

Health workers getting ready for duty at an mpox treatment center in Lwiro in DR Congo, a hotspot for the pandemic that CD Africa handled in 2024. Credit: WHO

Health workers getting ready for duty at an mpox treatment center in Lwiro in the Democratic Republic of Congo’, a hotspot for the pandemic that CD Africa handled in 2024. Credit: WHO

NAIROBI, Apr 24 2025 (IPS) – The majority of African countries are yet to commit 15 percent of their GDP to funding the health sector, despite the growing disease burden weighing down the continent and two decades after the coming into force of the Abuja declaration on health sector funding.

Only a few countries, including Rwanda, Botswana, and Cabo Verde, have consistently met the 15 percent target, with some countries allocating less than 10 percent of their budget to the crucial sector.

Under the Abuja Declaration of 2001, African Union (AU) member states made a commitment to end the continent’s health financing crisis, pledging to allocate at least 15 percent of national budgets to the sector. However, more than two decades later, only three countries—Rwanda, Botswana, and Cabo Verde—have consistently met or exceeded this target (WHO, 2023). In contrast, over 30 AU member states remain well below the 10 percent benchmark, with some allocating as little as 5–7 percent of their national budgets to health.

Countries including Nigeria, Chad, and the Central African Republic are allocating as little as 5–7 percent to the sector, thanks to a myriad of political and economic challenges, including a high debt burden and narrow tax base, according to Director General of Africa Centres for Disease Control (Africa CDC), Dr. Jean Kaseya.

Competing demands for security and infrastructure financing and limited coordination between ministries of health and finance, plus the fact that the COVID-19 pandemic “hit national budgets hard,” worsened by global economic instability, haven’t helped matters, he said, while commenting on the latest annual report of the continental health body and the 2025 concept paper on Africa’s Health Financing in a New Era, both released in April.

Wivine M'puranyi, a 30-year-old mother of six,from village of Karanda in D.R Congo's South Kivu reflects on the distressing days when her two daughters were diagnosed with mpox, one of the pandemics that hit Africa in 2024.

Wivine M’puranyi, a 30-year-old mother of six from the village of Karanda in the Democratic Republic of Congo’s South Kivu, reflects on the distressing days when her two daughters were diagnosed with mpox, one of the pandemics that hit Africa in 2024. Credit: WHO

“It also exposes just how costly underinvesting in health can be. The real story here is political will, where leaders prioritize health, and budgets follow,” he noted.

The report finds that only 16-29 percent of African countries currently have updated versions of the National Health Development Plan (NHDP) supported by a National Health Financing Plan (NHFP), the two documents being critical in driving internal resource mobilization.

“Updating National Health Development Plans (NHDPs) and National Health Financing Plans (NHFPs) is not just a matter of paperwork—it’s a heavy lift. Countries need robust data, skilled teams, funding, and strong inter-ministerial coordination,” he said.

Low funding has a consequence: it has led to many health departments being understaffed and overstretched, partly because some governments ‘deprioritize’ updating the two documents because they fear the plans won’t be implemented or be funded. “But without current, credible plans, it’s nearly impossible to make a case for more domestic or external investment. These documents are not bureaucratic checkboxes—they’re investment blueprints,” the DG told IPS.

He noted that countries that have updated and actively used their NHDPs and NHFPs have seen tangible benefits, one such country being Burkina Faso, where an updated NHFP had helped streamline funding and implementation for free healthcare policy.

In Senegal, incorporating macroeconomic forecasting into the NHFP improved budget predictability and donor alignment. “These tools are powerful when they are costly, realistic, and regularly monitored. But let’s be clear; plans must be funded and used—not just filed away—to make a real difference,” Kaseya added.

According to the documents, Africa continues to carry a disproportionate share of the global disease burden—25 percent—but with only 3 percent of the global health workforce, resulting in a “dangerously overstretched workforce,” according to the documents. Should this shortage be prioritized over all other health needs and deficiencies, or what should be addressed first?

The shortage of health workers remains a fundamental challenge, with Africa carrying 25 percent of the global disease burden but a disproportionate 3 percent of the global health workforce—a challenge that cannot be addressed “in isolation.”

Likobiso Posholi, 35, from Ha Sechele village in Mohale's Hoek in Lesotho who is recovering from a recent caesarean section. Many countries in Africa are yet to commit 15% of the national budgets so that women like Posholi can access affordable maternity services.

Likobiso Posholi, 35, from Ha Sechele village in Mohale’s Hoek in Lesotho, recovering from a recent cesarean section. Many countries in Africa are yet to commit 15 percent of the national budgets so that women like Posholi can access affordable maternity services. Credit: WHO

However, recruiting en masse without sustainable financing or strategic deployment can strain the system, and in some countries, trained professionals remain unemployed due to fiscal constraints or wage bill ceilings. “Kenya, for example, is piloting co-financing mechanisms between national and local governments to overcome this. The key is to tackle workforce gaps through integrated, context-specific reforms that link financing, recruitment, and health system needs,” Kaseya said.

The Africa CDC has drafted a three-pronged strategy and placed it at the forefront of a health financing revolution that could potentially represent a paradigm shift from dependency to self-determination. Some aspects of the strategy can be implemented immediately without being subjected to a lot of bureaucracy in view of the emergency brought about by cuts in Overseas Development Assistance (ODA), he added.

Reductions in ODA went down by 70 percent between 2021 and 2025, exposing health systems to deep-rooted structural vulnerabilities and placing immense pressure on Africa’s already fragile health systems, with overseas financing being seen as the backbone of critical health programmes.

These include pandemic preparedness, maternal and child health services, and disease control initiatives, all of which are at risk, threatening Sustainable Development Goal 3 and Universal Health Coverage.

“Some components of our strategy can be rapidly deployed. Health taxes on products like tobacco, sugar, and alcohol are politically sensitive but technically straightforward and yield dual benefits, generating revenue and promoting healthier populations. Strengthening health financing units within ministries is a high-impact, low-cost intervention that can dramatically improve budget execution and efficiency,” Kaseya suggested.

Likewise, deploying digital tools—such as real-time dashboards to track financing flows—can happen quickly and with limited bureaucracy. Countries like Benin, South Africa, and Ethiopia are already implementing such reforms with measurable progress.

He pitched that digitization of the health sector is no longer a luxury, as it is foundational to the much-needed resilient, transparent, and efficient health systems.

On the other hand, the platforms improve decision-making, enable better resource tracking, and enhance service delivery. However, fragmentation of digital solutions remains a challenge, with many platforms developed in ‘silos,’ often “donor-driven and poorly integrated,” he commented.

He singled out Ghana, which offered a strong example of progress, having developed a national platform that integrates health and financing data. “The true value of digitization is realized when countries lead the process, ensure interoperability, and embed digital solutions into broader system reforms,” Kaseya said.

On the positive side, CDC Africa for the first time led an emergency response, putting in place a Joint Continental Incidence Management Support Team (IMST) co-led with the World Health Organization and bringing together over 28 partners to collaborate on the Mpox response. This work was done under the “One team with a One unified plan, One budget, and One monitoring framework.”

“This is a historic first that marked a significant milestone in Africa’s leadership of public health emergencies of continental significance,” the report observed.

It further supported national responses to “multiple major public health emergencies,” including the mpox outbreak in 20 AU member states and the Marburg virus disease outbreak in Rwanda. This was in declaring the former a Public Health Emergency of Continental Security (PHECS) on August 13, 2024, in consultation with the affected countries and relevant stakeholders.

Also on the positive side, the continental health body was advancing a comprehensive three-pillar strategy centered on domestic resource mobilization, innovative financing, and blended finance.

IPS UN Bureau Report

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