Funding contraction, displacement surge and food price shock in a highly indebted fragile economy
A conditional statement under stated assumptions, never a prediction.
Contents
- ·Edition home
- ·Executive summary
- 1Need is rising as support contracts
- 2Key findings
- 3Systems and sectors at baseline
- 4Risks and capability
- 5Funding contraction, displacement surge and food price shock in a highly indebted fragile economy
- 6Readings from the other desks
- 7The 2027 agenda
- 8Systems in depth
- AMethodology
- BData appendix
- CReferences and record
- ·Complete edition, for print
5.1Assumptions
Scenario SCN-GS06-FND-01: what is assumed, and what is held constant.
- Baseline
- the 2026 reference state in this edition
- Drivers
- a further fall in humanitarian and development funding that coincides with a new displacement surge and a food price shock in an economy with heavy debt service
- Analogues
- 2025 aid cuts; 2026 food assistance phase-outs; 2025 storm displacement478
- Interventions
- none modelled: the specification describes the unmitigated case
- Run state
- narrative specification; quantified run scheduled for 2027
5.2The cascade, step by step
- 1
FIN → GOV
funding falls; plans are prioritised and service packages shrink
2025 · 2026
- 2
GOV → FOO
food assistance is cut for some refugees and displaced people
2026
- 3
CLI → WAT
a storm or conflict surge displaces people and breaks water services
2025
- 4
WAT → HLT
outbreak risk rises in crowded sites with fewer clinics
2026
- 5
TRD → FOO
prices of food and fuel rise and shrink the value of cash assistance
2026
- 6
FIN → FIN
interest costs squeeze the national budget that would backfill
2025
5.3The scenario as a table of steps
How the shock in scenario SCN-GS06-FND-01 would travel through Global Development and Humanitarian’s coupled systems, step by step, under the assumptions the edition states.
| Step | What happens | Source |
|---|---|---|
| 01 Finance to governance | Funding falls; plans are prioritised and service packages shrink. Analogue or source: 2025 · 2026. | Edition GS-06, scenario SCN-GS06-FND-01, step 1 |
| 02 Governance to food | Food assistance is cut for some refugees and displaced people. Analogue or source: 2026. | Edition GS-06, scenario SCN-GS06-FND-01, step 2 |
| 03 Climate to water | A storm or conflict surge displaces people and breaks water services. Analogue or source: 2025. | Edition GS-06, scenario SCN-GS06-FND-01, step 3 |
| 04 Water to health | Outbreak risk rises in crowded sites with fewer clinics. Analogue or source: 2026. | Edition GS-06, scenario SCN-GS06-FND-01, step 4 |
| 05 Trade to food | Prices of food and fuel rise and shrink the value of cash assistance. Analogue or source: 2026. | Edition GS-06, scenario SCN-GS06-FND-01, step 5 |
| 06 Finance to finance | Interest costs squeeze the national budget that would backfill. Analogue or source: 2025. | Edition GS-06, scenario SCN-GS06-FND-01, step 6 |
A teaching model of a conditional scenario under the edition’s stated assumptions: not a forecast, not a prediction and not a warning. Sources: Global Development and Humanitarian 2026, scenario SCN-GS06-FND-01 (2026); Global Development and Humanitarian 2026, references (NR-CIT-1) (2026).
Notes
Numbers are the edition’s reference numbers, so a note reads the same in every chapter. The full list, with every source and its licence, is in Annex C. Annex C, references
- 4OCHA (ed.), Mid-Year Review of the Global Humanitarian Overview 2026, Humanitarians in action in 2026: delivering against the odds (people targeted, prioritised and reached; contributions to end-May 2026). United Nations Office for the Coordination of Humanitarian Affairs, Geneva. Observation year 2026. Accessed 2026-11-03.back
- 7IDMC (ed.), Global Report on Internal Displacement 2026 (full report, May 2026). Internal Displacement Monitoring Centre, Geneva. Observation year 2025. Accessed 2026-11-03.back
- 8OECD (ed.), Preliminary official development assistance levels in 2025 (data note, April 2026; text read from the European Commission Knowledge for Policy record of the note, the OECD page returned an access error). Organisation for Economic Co-operation and Development, Paris. Observation year 2025. Accessed 2026-11-03.back
