A New Paradigm for Aid

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In the wake of the 2025 collapse of USAID and the sharpest UK aid cuts in history, The Policy Practice Director Neil McCulloch is calling for a bold shift in how international aid is conceived and delivered. Current debates on how to restructure aid focus on how to “do more with less” e.g. by focussing on multilateral institutions, fragile states, humanitarian aid, or soft power. Instead, Neil proposes a “transformational” approach to aid that prioritises coalitions of domestic changemakers. Drawing on political economy analysis, McCulloch advocates identifying and supporting local actors with the potential to drive meaningful reform in their own societies. This means moving away from imposing external solutions and towards a model of adaptive, low-cost, and politically informed engagement.

His model emphasises experimentation, local ownership, and a blending of development, diplomacy, and security tools to support sustainable change. McCulloch suggests that the UK and US aid sector’s recent dismantling could open the door for this leaner, more effective approach—one rooted in how real development has historically occurred. The blog calls for a reimagining of aid as a long-term, locally driven process, not just a transaction for measurable results.

This post was originally published on the LSE Activism, Influence and Change Programme blog here.