Publications / Report
Report · November 2025
Six lessons from the EU for the future of aid
Does Europe’s experience offer insights for a more effective global financing system?
Jonathan Glennie & Gail Hurley
Summary.
There is wide recognition that the traditional aid model may no longer be fit for purpose. This paper argues that the EU Structural and Investment Funds, for all their imperfections, offer a strong real-world prototype for a fairer, more sustainable and more effective system of international public finance.
Looking closely at how the funds are designed, governed and prioritised, it questions the familiar divides between donor and recipient, grants and loans, and graduating out of aid.
The EU funds point towards an evolution of international public finance for sustainable development: what is now called global public investment.
The way forward
- More comparative research on EU funds and international aid models.
- Pilots of EU-style financing in other regional blocs, such as the African Union and ASEAN.
- A stronger narrative of mutual benefit and global public investment for the common good.
- Exploring membership-based global funds, where all countries pay in and receive support on agreed priorities.
Key findings.
1Strategic mutuality
The EU funds rest on mutual interest, not charity. Convergence benefits every member, net contributors included.
2Support at higher income levels
Support follows relative need rather than rigid income thresholds, so lagging regions in wealthier countries still qualify.
3Stakeholders, not beneficiaries
Every country pays in, receives support and helps set the rules, which strengthens ownership and accountability.
4Beyond poverty reduction
The aim is convergence in living standards, which opens up investment in innovation, infrastructure and inclusion.
5Grants, not loans
Grants are the main instrument and remain valuable even in richer contexts, while global aid drifts towards loans.
6Multi-level and territorial governance
Funding reaches regions, municipalities and local organisations directly, tackling inequality where it happens.
How to cite
Glennie, J. and Hurley, G. (2025). Six lessons from the EU for the future of aid: Does Europe’s experience offer insights for a more effective global financing system? Bogotá: Global Cooperation Institute.