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Federal Councilors Ignazio Cassis (left) and Guy Parmelin announced drastic cuts to development aid at the end of June—and major foundations are now up in arms over the decision.
Social Democratic Party
27 major Swiss foundations are opposing the Federal Council’s austerity plans. They warn against a withdrawal from development cooperation—and against giving more power to private donors.
An unusual coalition of opposition is forming against the Federal Council’s austerity plans: 27 of Switzerland’s largest foundations have issued a joint letter protesting the future direction of international cooperation (IZA), which includes significant cuts to development cooperation.
As the “Tages-Anzeiger” reports, the signatories include the Roger Federer Foundation as well as foundations established by Zurich, Swiss Re, and Partners Group co-founder Urs Wietlisbach. In a joint appeal, the foundations warn of the consequences of the planned cuts—and of the state increasingly shirking its responsibilities.
From the foundations’ perspective, there is more at stake than individual projects. They fear that Switzerland’s credibility in international cooperation will suffer. Especially at a time of growing conflicts, long-term development cooperation is an investment in stability and security.
The background to this is that the Federal Council wants to realign its international cooperation efforts while simultaneously cutting costs. Starting as early as 2027, the plan is to save 20 million Swiss francs annually and cut approximately 100 jobs. Starting in 2029, cuts of approximately 340 million Swiss francs per year are planned for long-term development cooperation. To this end, Switzerland intends to discontinue programs in several countries, including Ghana, South Africa, and South America.
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The Federal Council intends to use the savings to create greater financial flexibility for humanitarian emergency aid. Foreign Minister Ignazio Cassis points out that other European countries have also reduced their budgets for long-term development projects.
The foundations consider this approach problematic. “Philanthropic funds cannot and should not replace public international cooperation,” warns Grégory Renand, head of the Zurich Foundation, in an interview with the “Tages-Anzeiger.” Private foundations can promote new approaches and initiate projects, but they are no substitute for government involvement.
Andrea Studer, CEO of the Botnar Foundation, puts it even more clearly. As large private fortunes continue to grow worldwide, the influence of philanthropic organizations is also increasing. If governments simultaneously step back, power will increasingly shift to private actors. “Such a shift in power cannot be in the interest of society,” says Studer.
The plans are also sparking debate in Parliament. Representatives of the SP criticize that they have been sidelined. At the same time, the austerity measures have the support of the SVP and large segments of the FDP. The FDP is even proposing to divert half a billion francs annually from development cooperation to fund the military for a period of ten years.
Opinions are divided on this issue. While those focused on fiscal policy welcome the cuts, the Christian-social wing warns against Switzerland withdrawing from long-term development cooperation.
Strong criticism has also come from former Federal Councilor Micheline Calmy-Rey. While the former foreign minister welcomes additional funding for humanitarian aid, she opposes cuts to development cooperation.
With an eye on current Swiss foreign policy and alluding to the talks between the U.S. and Iran at Bürgenstock, she says: “This ‘hotel diplomacy’ costs a lot and yields hardly anything.” Long-term development cooperation may be less visible, she says, but it contributes to stability and security in the long run.