- Under #Trump2.0, bilateral grants and contributions to multilateral organizations are expected to decrease significantly once more. In parallel, we can expect a continued rise in non-concessional bilateral lending that aligns more closely with U.S. strategic interests.

- Due to the DFC, US non-concessional financial commitments surged from $2 billion in 2018 to $12 billion in 2024 - a sixfold increase in less than a decade.
-> The US is increasingly emulating #China by providing loans that are non-concessional in nature

- The U.S. Development Finance Corporation (DFC) is transforming the US into a growing lender of first resort. Established under the BUILD Act of 2018, the DFC merged several development finance institutions (OPIC + DCA) into a single and more financially capable agency.

- During his first term Trump reduced Official Development Assistance (ODA), but cuts were primarily concentrated in multilateral aid
- Reductions in US contributions to #UN agencies under Trump 1.0 were partly offset by European donors

- China's lending peaked in 2016 but remains substantial, it has not “collapsed”!
- In 2020, the EU reclaimed it position as the top development financier. Disbursements have almost doubled since 2014.

Key takeaways:
- EU was leader in development finance until 2009, when China overtook it to become the largest bilateral lender to developing countries
- China's global lending didn't start with the #BRI in 2013, but has propelled it to new heights