At a critical moment for international aid funds in Colombia, German organizations are forced to reduce their financial support. The Konrad Adenauer foundation (KAS) and the Friedrich Ebert Foundation (Fescol), which are affiliated with Germany’s main political parties, say they are facing challenges. These challenges reflect that fact that Germany has had to make tough decisions, leading to a reduction in its subsidies.
Germany’s cooperation organizations reduce aid to Colombia amid budget issues
This comes as bad news for Colombia, which has seen the stability of its cooperation funding begin to unravel. The scenario for Colombia worsened with the suspension aid from the United States Agency for International Development (USAID) earlier this year which led to a devastating blow for dozens of projects and social organizations. Once the largest donor abruptly and indefinitely shut off funding, many are now turning their attention to other countries, especially in Europe.
It is important to note that in recent years, Colombia received up to USD$440 million annually from USAID for more than 80 programs, making it the largest recipient of the agency’s funds in the Western Hemisphere, according to the official U.S. government data.
And as many would say, it’s rare to find a social sector in the country that USAID doesn’t fund.
Germany’s KAS, which has been active in Colombia for over 60 years, reports working with 10% less budget than the previous year. “It’s unfortunate that we have less funding, mainly because the economy is still not growing. But it’s important to clarify that this is not a decision like those made by Elon Musk or Donald Trump to shut down cooperation altogether”, explains Hartmut Rank, KAS’s representative in Colombia.
Fescol, meanwhile, acknowledges a challenging situation marked by significant “financial pressures” both in Germany and abroad. “We’re committed to transparency and maintain constant dialogue with our partners as we search for joint solutions. Budget adjustments are always made within framework, as a reality forces us to be pragmatic”, says Oliver Dalichau, director of the foundation, which has been present in Colombia since 1979.
German cooperation is vital to various social programs, many of which focus on defending democracy, promoting peace and protecting the environment. According to the Financial Monitoring Service of the United Nations Office for the Coordination of Humanitarian Affairs, Germany’s aid to Colombia in 2024 amounted to US$7,4 million – approximately 31 billion Colombian pesos. This year however, the reported figure stands at US$4,6 million, a 37% decrease.
Why is the German economy stagnating?
To understand the complex economic situation these organizations, face, it is necessary to grasp the German political context.
Europe’s largest economy entered 2024 in recession for the second consecutive year, placing enormous pressure on the Olaf Scholz’s administration to steer the finances in the right direction. That promise went unfulfilled. In early November, the governing coalition broke apart over disagreements regarding massive spending cuts proposed by the liberals. The split led to snap elections in February, which were won by the conservatives of the CDU, a party now led by Friederich Merz, poised to become the next chancellor.
In this scenario, the political paralysis prevented parliament from approving the 2025 budgets, so the 2024 budgets were extended for another year with all that entails. This led to drastic cuts in the development budget. Specifically, the failure to approve the 2025 budgets, resulted in a reduction of approximately €1 billion in the development budget (USD$1,093).
Additionally, Germany’s priorities have shifted considering the Russian threat, and much of its resources have been allocated to defense, relegating international cooperation funding to a secondary status.
Following the suspension of USAID assistance and now with Germany’s challenging economic situation, countries are running out of alternatives when it comes to international cooperation. As said by Hartmut Rank after USAID suspending assistance, “we can’t make up for the millions of dollars lost from the United States. We can’t save the world, even if we wanted to”.
For his part, Dalichau hopes that both the European Union and Germany will “recognize the opportunity this crisis presents. Another cut to development cooperation would be the worst decision”.
For now Colombia and other countries in the region remain in limbo as they search for alternative sources of funding for future social projects.