Can aid still fight poverty? | Elina Scheja

What happens to development cooperation when aid budgets are cut, geopolitical tensions rise, and poverty reduction competes with a growing range of strategic priorities? In this episode of In Pursuit of Development, Dan Banik speaks with Elina Scheja, Chief Economist at the Swedish International Development Cooperation Agency (Sida), about the changing politics of foreign aid and the future of development in a far more fragmented world.

The conversation explores why today’s turbulence cannot be explained by a single leader or decision alone, but must instead be understood in light of deeper structural shifts in global economic and political power. Dan and Elina discuss the implications of aid cuts in the United States and Europe, the growing emphasis on national interest and “enlightened self-interest,” and the difficult choices donor countries now face as support for Ukraine, climate priorities, regional security concerns, and poverty reduction compete for limited resources.

They also examine a central question in global development today: Do we still need aid, and for whom? Elina argues that the answer is clearly yes, pointing to the hundreds of millions of people who remain trapped in extreme poverty and multidimensional deprivation. The discussion highlights why poverty cannot be understood through income measures alone, and why access to healthcare, education, decent work, voice, and security must remain central to any serious development agenda.

Another major focus of the episode is evidence and learning in aid policy. Dan and Elina reflect on how development agencies such as Sida can make better use of research, impact evaluation, institutional memory, and artificial intelligence to improve decision-making. Rather than treating evaluation as something that happens only at the end of a project, they argue for a more iterative and adaptive approach — one that uses evidence throughout the entire chain of development cooperation, from country selection and sectoral priorities to implementation and course correction.

The episode also turns to jobs, productive employment, and structural transformation. If citizens across the Global South are asking for opportunity rather than handouts, what should aid agencies do differently? Should they focus more on employment, infrastructure, and economic transformation? How can democracy, human rights, and job creation be understood not as competing priorities, but as deeply interconnected parts of inclusive development?

Host:

Professor Dan Banik, 

Centre for Global Sustainability, University of Oslo

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