Being a Good Neighbour in the Pacific: Why New Zealand’s Aid Matters More Than Ever
As 2025 unfolds, the Pacific finds itself at a crossroads. Global instability is rising, and governments worldwide are slashing foreign aid in favour of defence spending, economic stimulus, and migration control. Yet, amid these shifting geopolitical tides, New Zealand has a critical decision to make: Will we continue to invest in being a good neighbour, or will we retreat from our commitments just when they matter most?
The Ministry of Foreign Affairs and Trade (MFAT) recently released its review of New Zealand’s International Development Cooperation programme, signalling upcoming changes aimed at streamlining aid activities. At the same time, the Government is set to refresh its climate finance commitments, a decision that will define the scope of New Zealand’s support for Pacific communities battling the intensifying impacts of climate change.
This is a pivotal moment. Against the alarming trend of industrialised nations stepping back from their global responsibilities, New Zealand has the opportunity to reinforce its commitment to the Pacific to ensure that our aid programme remains grant-based, effective, and responsive to the needs of our closest neighbours.
The Risk of Doing Less
New Zealand has long distinguished itself by prioritising the Pacific in its development assistance, with at least 60% of its International Development Cooperation programme dedicated to the region.
Unlike many other partners, we provide grants rather than loans thereby strengthening Pacific economies without adding to their debt burden. Our aid supports vital initiatives, from climate adaptation and resilient infrastructure to education, sanitation, and child protection.
Yet, there is a real risk that upcoming changes could dilute this commitment. While the Government has reaffirmed the importance of climate action in its recent aid review, there is concern that rather than increasing overall climate finance, funding will simply be reallocated within the existing development assistance envelope.
If this happens, other critical areas, such as education, governance, and gender equality, could face cuts, ultimately weakening the broader foundation of sustainable development in the Pacific.
Furthermore, reducing New Zealand’s aid contributions risks undermining our credibility as a partner. During Scrutiny Week in 2024, the Government itself acknowledged that diminishing our aid footprint could erode trust with our Pacific neighbours, contradicting our stated declarations of “understanding, friendship, mutual benefit, and shared ambition.”
The Opportunity to Lead
Instead of following the global trend of retrenchment, New Zealand has the chance to lead by example. World Vision, alongside other humanitarian organisations, is calling for an increase in grant-based climate finance to NZ$558 million by the end of 2025 and at least NZ$1.7 billion by 2035.
This would represent New Zealand’s fair share of the global US$300 billion climate finance goal agreed upon under the United Nations Framework Convention on Climate Change (UNFCCC).
This is not just a moral imperative – it is a strategic investment. The 2050 Strategy for the Blue Pacific Continent, which New Zealand has endorsed, envisions a region where all Pacific peoples can lead free, healthy, and productive lives. Central to this vision is trust, accountability, and long-term commitment. By increasing our aid and climate finance contributions, New Zealand would tangibly reinforce these values, and demonstrate that we are not just a donor, but a dependable and engaged neighbour in our Pacific community.
A Budget That Reflects Our Values
Budget 2025 presents a defining moment. At a time when global tensions threaten to potentially destabilise the Pacific, New Zealand can choose to stand firm in its commitment to our Pacific neighbourhood. Ensuring a well-funded, grant-based aid programme is not just about goodwill; it is about creating a stable, resilient, and prosperous Pacific that benefits everyone, including New Zealand.
Being a good neighbour means more than rhetoric. It means showing up, listening, and responding to the needs of those with whom we share a region. It means ensuring that our aid investments - whether in climate resilience, economic development, or humanitarian support - are robust, strategic, and forward-looking.
As we look to the future, let us not view rising tensions as a threat, but as a reminder of why our partnerships matter. By showing up and doing the right thing in Budget 2025, New Zealand can reaffirm its place as a trusted Pacific partner, one that values solidarity over short-term savings and commitment over convenience. Now is the time to strengthen, not shrink, our role as a good neighbour.
The Ministry of Foreign Affairs and Trade (MFAT) recently released its review of New Zealand’s International Development Cooperation programme, signalling upcoming changes aimed at streamlining aid activities. At the same time, the Government is set to refresh its climate finance commitments, a decision that will define the scope of New Zealand’s support for Pacific communities battling the intensifying impacts of climate change.
This is a pivotal moment. Against the alarming trend of industrialised nations stepping back from their global responsibilities, New Zealand has the opportunity to reinforce its commitment to the Pacific to ensure that our aid programme remains grant-based, effective, and responsive to the needs of our closest neighbours.
The Risk of Doing Less
New Zealand has long distinguished itself by prioritising the Pacific in its development assistance, with at least 60% of its International Development Cooperation programme dedicated to the region.
Unlike many other partners, we provide grants rather than loans thereby strengthening Pacific economies without adding to their debt burden. Our aid supports vital initiatives, from climate adaptation and resilient infrastructure to education, sanitation, and child protection.
Yet, there is a real risk that upcoming changes could dilute this commitment. While the Government has reaffirmed the importance of climate action in its recent aid review, there is concern that rather than increasing overall climate finance, funding will simply be reallocated within the existing development assistance envelope.
If this happens, other critical areas, such as education, governance, and gender equality, could face cuts, ultimately weakening the broader foundation of sustainable development in the Pacific.
Furthermore, reducing New Zealand’s aid contributions risks undermining our credibility as a partner. During Scrutiny Week in 2024, the Government itself acknowledged that diminishing our aid footprint could erode trust with our Pacific neighbours, contradicting our stated declarations of “understanding, friendship, mutual benefit, and shared ambition.”
The Opportunity to Lead
Instead of following the global trend of retrenchment, New Zealand has the chance to lead by example. World Vision, alongside other humanitarian organisations, is calling for an increase in grant-based climate finance to NZ$558 million by the end of 2025 and at least NZ$1.7 billion by 2035.
This would represent New Zealand’s fair share of the global US$300 billion climate finance goal agreed upon under the United Nations Framework Convention on Climate Change (UNFCCC).
This is not just a moral imperative – it is a strategic investment. The 2050 Strategy for the Blue Pacific Continent, which New Zealand has endorsed, envisions a region where all Pacific peoples can lead free, healthy, and productive lives. Central to this vision is trust, accountability, and long-term commitment. By increasing our aid and climate finance contributions, New Zealand would tangibly reinforce these values, and demonstrate that we are not just a donor, but a dependable and engaged neighbour in our Pacific community.
A Budget That Reflects Our Values
Budget 2025 presents a defining moment. At a time when global tensions threaten to potentially destabilise the Pacific, New Zealand can choose to stand firm in its commitment to our Pacific neighbourhood. Ensuring a well-funded, grant-based aid programme is not just about goodwill; it is about creating a stable, resilient, and prosperous Pacific that benefits everyone, including New Zealand.
Being a good neighbour means more than rhetoric. It means showing up, listening, and responding to the needs of those with whom we share a region. It means ensuring that our aid investments - whether in climate resilience, economic development, or humanitarian support - are robust, strategic, and forward-looking.
As we look to the future, let us not view rising tensions as a threat, but as a reminder of why our partnerships matter. By showing up and doing the right thing in Budget 2025, New Zealand can reaffirm its place as a trusted Pacific partner, one that values solidarity over short-term savings and commitment over convenience. Now is the time to strengthen, not shrink, our role as a good neighbour.