Course in the Module "Globalisation, the Economy and Sociology of Law" (1,5 ECTS)
Course Description
Over the past decade, while humanitarian and development needs have continued to rise, traditional sources of aid have declined, largely due to budget cuts by major donor governments. In the humanitarian sector, the funding gap increased to US$31.5 billion in 2023. This shortfall meant that only about 45% of the needs were met, leaving 55% of humanitarian needs unmet. This trend reached a critical point in 2025 with the suspension of over 80% of programmes run by the United States Agency for International Development (USAID), adding to cuts already made by other donor countries, particularly Germany, the United Kingdom, and France. For their part, the financial resources required to meet the Sustainable Development Goals (SDGs) amount to trillions. Without significant reform, the gap is set reach 6.4 trillion dollars by 2030, the target year for the SDGs. The rapidly growing gap between humanitarian and development needs and resources available coupled with some global initiatives and normative frameworks, have led to the creation of new innovative financing mechanisms aimed at attracting private capital.
The course introduces students to new financing strategies and instruments used in the development and humanitarian sectors, with a particular focus on “development finance,” “climate finance,” and “refugee finance”, the latter still being an emerging and therefore novel field. These topics are explored through theoretical discussions and practical exercises designed to foster critical thinking. The course also examines the emergence of new actors in the development and humanitarian fields brought about by the creation of innovative financial instruments, including international financial institutions, multilateral development banks, corporations, philanthropic foundations, and institutional investors. In addition, the course analyses the extent to which current standards and practices adequately address the human rights implications of these financial instruments.
Contents:
- Sustainable development, finance, and human rights
- Development finance
- Climate finance
- Refugee finance