David Miliband has expressed concerns that reductions in international aid by nations such as the United States and the United Kingdom could exacerbate global economic instability, particularly in light of the humanitarian crisis stemming from the conflict in Iran.
The former UK foreign secretary, who now leads the International Rescue Committee (IRC), emphasized that the withdrawal of U.S. aid initiatives during Donald Trump’s administration could intensify economic shocks that would adversely affect both impoverished and affluent nations.
Miliband also voiced disappointment over the UK government’s decision to decrease its aid budget, highlighting that aiding the world’s most vulnerable populations is not only a moral obligation but also a beneficial investment for the UK.
“Neglecting a humanitarian crisis can lead to political instability. In our increasingly interconnected world, the ongoing war in Iran illustrates these connections, which also flow from poorer nations to richer ones,” Miliband remarked.
During an interview with the Guardian at the International Monetary Fund and World Bank meetings in Washington, he noted that the ongoing conflict in the Middle East is likely to escalate global poverty levels and could displace millions.
Reflecting on the European refugee crisis of 2016, Miliband stated, “While it is challenging to predict the extent of future crises, it is clear that conflict significantly influences migration patterns.”
With the rise in warfare and threats to food security worldwide, Miliband argued that the cuts to overseas aid are depriving essential support that could mitigate future global economic turmoil.
“It is difficult to imagine a worse time to reduce the aid budget, given the high number of individuals living in extreme poverty. We also have ample evidence demonstrating effective strategies for poverty alleviation, and the benefits of aid are increasingly well-documented,” he added.
This week, the United Nations reported that 32.5 million people worldwide could face poverty as a result of the economic repercussions of the Iran war, with developing nations likely to suffer the most severe impacts.
Following the closure of the Strait of Hormuz, global energy and fertilizer prices have surged, which Miliband referred to as a “food security timebomb,” capable of triggering widespread hunger across the globe.
The conflict coincides with a trend among Western governments, including those of the U.S., Germany, France, and the UK, to cut foreign aid budgets in the face of rising debt and calls for increased defense spending.
Recent data from the Organisation for Economic Co-operation and Development (OECD) revealed that aid expenditures from wealthy nations are projected to decline by $174.3 billion (£129 billion) in 2025, a reduction of nearly 25% compared to 2024.
At the IMF and World Bank meetings, Miliband criticized the U.S. for abandoning its historical leadership role in global development under the Trump administration.
“For both moral and strategic reasons, the U.S. aimed to be a global anchor rather than a global empire. This administration has explicitly rejected that role,” he stated.
Miliband acknowledged that while the U.S. has made mistakes over the past 80 years, its aid policy has generally had a positive impact. He described the decision to forfeit this global anchor role as a significant historical shift.
When asked about the Labour government’s cuts to the UK aid budget, Miliband noted a correlation between decreased British aid and rising global fatalities.
“The UK contributes to global development in various ways beyond the aid budget, but I certainly regret the cuts to it,” he said.
He concluded, “Britain’s aid budget is not only the right choice ethically; it is also a sound investment for the country. It demonstrates that aid aligns our actions with our commitments, reinforcing Labour’s internationalist perspective as a strong element of its platform.”
