In a sobering assessment of global development finance, The Great Reversal , produced by ONE Data, reveals how the financial architecture supporting low- and middle-income countries is undergoing a dramatic shift. For African economies still striving to meet the Sustainable Development Goals while building resilience against climate shocks, pandemics and inflation, this shift carries far-reaching implications.
By looking beyond the traditional focus on aid inflows and instead accounting for both money coming in and money flowing out, the analysis presents a more realistic picture of development finance today. It shows not only how much countries receive, but what they ultimately retain after servicing debt. For many African countries, that figure is shrinking, and in some cases turning negative.
Rethinking how development finance is measuredFor decades, official development assistance has been the headline indicator of international support. While ODA remains an important measure, it captures only part of the story. It records gross inflows of concessional finance but ignores the growing burden of debt repayments flowing in the opposite direction.
