Professor Marta Postuła of Bank Gospodarstwa Krajowego examines how Europe is shifting its development policy from traditional aid toward a model focused on economic security and strategic investments.
The End of Traditional Development Aid
The conventional model of development cooperation based on public aid is losing relevance. It is being replaced by a logic centered on investment, economic security, and strategic partnerships, a shift analyzed by Prof. Marta Postuła, First Vice President of Bank Gospodarstwa Krajowego (BGK), in her recent Euractiv article.
Europe is redefining development policy not as a transfer of funds from the wealthy North to the South, but as a tool for building economic and geopolitical influence. The previous model, predicated on stable growth and predictable budgets, has collapsed under the weight of global instability, Russian aggression, and the rivalry between the US and China.
Strategic Partnerships and New Economic Realities
Development policy is increasingly functioning as an instrument to reinforce economic resilience and national interests. The focus is shifting toward sustainable partnerships, supply chain security, and access to critical raw materials. This “win-win” model aims to support partner nations while simultaneously boosting the competitiveness of European companies.
Institutional perspectives within the EU are also changing. Development policy is now closely linked to European strategic autonomy. Africa and Ukraine are no longer viewed merely as aid recipients, but as strategic economic and geopolitical partners central to European security and reconstruction architectures.
The Reshaping of Global Financial Flows
Official Development Assistance (ODA) experienced a historic decline in 2025, falling by 23.1 percent, with a significant 56.9 percent reduction in US contributions. This contraction forces a structural change, necessitating a larger role for development banks in bridging public policy goals with private capital through blended finance and risk mitigation.
BGK’s Growing International Role
Bank Gospodarstwa Krajowego is positioning itself as a key European development finance entity. The bank is actively involved in the EU’s 50 billion euro Ukraine Facility and is implementing projects in Moldova to align with European strategic priorities. These efforts reflect a broader transition for Central and Eastern European institutions from aid beneficiaries to providers.
Digitalization and the Global Gateway
BGK is focusing on digitalization in Africa, leveraging the expertise of Polish technology firms. Examples include collaborations with companies like Asseco and digital infrastructure projects in Togo. These initiatives align with the EU’s Global Gateway strategy, serving as a European response to intensifying global investment competition.