From Altruism to Instrumentalism? Aid-Diplomacy Mergers and the Future of Foreign Policy

Abstract Shifts in the global economic, political, and geostrategic landscape have prompted governments worldwide to reassess the role of foreign assistance in foreign policy. A trend that began over two decades ago crystallized in 2025, when the United States shuttered its Agency for International Development, joining countries such as the United Kingdom, Australia, Canada, Norway, and Denmark in consolidating development and diplomatic functions within a single bureaucratic structure. While scholars of international relations have long examined the links between development and diplomacy, relatively little attention has been paid to the drivers and consequences of institutional mergers that aim to combine aid and diplomacy in practice. This research note addresses this gap by examining the causes and consequences of a rising phenomenon of global aid-diplomacy mergers. It offers an analytical framework for assessing the political, institutional, and strategic implications of this trend, and outlines its potential effects on how countries pursue foreign policy goals in practice.