The global development landscape faces a moment of profound upheaval as major donors, most notably the United States, sharply cut back on foreign aid. The Pacific Islands face an especially uncertain outlook as the world’s most aid-dependent region, confronting both large development financing gaps and an aid landscape increasingly shaped by geopolitical competition.

This eighth edition of the Pacific Aid Map presents five key findings that are critical to understanding the future of development and competition in the region. The report includes an analysis of the Pacific Islands’ evolving development finance landscape and a series of profiles on trends in the 14 Pacific Island countries covered in the database.

The report is accompanied by the Pacific Aid Map interactive database which tracks and maps aid and development finance flows from the international community to the Pacific.

Key findings

1. Pacific Islands aid falls to pre-pandemic levels amid steep lending contraction.
2. Australia holds the line despite aid retreat by Western donors.
3. Impact of USAID cuts overstated but compounds US reputational freefall.
4. China’s aid model grows more sophisticated with record grants and grassroots projects.
5. Strategic infrastructure spending booms as health and education support slides.