As the Swiss parliament considers a further reduction to the country’s aid budget next year, politicians should be mindful not to forget that multilateralism is an investment in peace, writes Agi Veres, director of the UNDP Office in Geneva.

Eighty years ago, in the aftermath of a devastating world war, nations came together to create a framework to prevent future catastrophes: the United Nations. Today, as conflicts multiply and global challenges – from climate change to pandemics – grow more complex, multilateralism is not a relic of the past. For countries, like Switzerland, whose prosperity depends on global stability and open markets, investing in multilateralism is not charity – it is strategy.

The Swiss parliament is currently weighing further reductions to Switzerland's international cooperation budget, which already saw a CHF110 million cut in 2025, echoing a widespread retreat by several major donor countries. Any further cuts could have a direct impact on international Geneva.

Investing in global common goods

Sceptics often question whether multilateralism and global cooperation deliver results. The evidence says it does. From Singapore’s transformation in the 1960s, supported by UNDP’s planning and governance expertise, to Rwanda’s recovery after genocide, multilateral cooperation has turned fragility into resilience. In Colombia, UN-backed efforts helped end 50 years of conflict. In Ukraine, UN agencies are clearing landmines across an area 1.5 times the size of Switzerland literally making the ground safe for life to return. In Myanmar, UNDP meets the urgent needs of millions of people, restoring water and agricultural systems and restoring livelihoods. These are not handouts – they are investments in peace and social stability that pay dividends for generations.

Switzerland, via international Geneva, is already a powerhouse of world governance, hosting 43 international organisations and 750 NGOs. These institutions safeguard “global common goods”: peace, health, climate, biodiversity, stability, and human rights. When Switzerland invests in these areas, it is not just doing the right thing. This leadership enhances its reputation, influence, and ability to shape rules that govern global trade, technology, and security.

Investing in stability opens markets

Investing in an efficient system to fight crisis and poverty is more than “a diplomatic no-brainer”. Switzerland’s economy thrives on exports. Nearly every second franc earned in Switzerland comes from abroad. For such an economy, global instability is not an abstract risk – it is a direct threat to jobs and growth. By supporting multilateral institutions, Switzerland helps prevent conflicts, stabilise fragile states and foster sustainable development. These efforts open doors to new markets and secure supply chains, benefiting the private sector, including Swiss companies and workers alike.

Consider the Swiss insurance industry. Its global reach depends on predictable regulatory environments and functioning economies. Or take cocoa and coffee – commodities that underpin Swiss chocolate and beverage sectors. Stability in west Africa and Latin America ensures these value chains remain thriving despite the many hurdles they face. When Switzerland invests in peacebuilding and development, it is safeguarding the raw materials that fuel iconic Swiss brands and keep the products affordable for final consumers.

The financial argument is compelling. The International Monetary Fund estimates that every dollar invested in conflict prevention saves up to $103 in crisis-related costs. Compare that to global military spending – 13 times higher than development spending – and the case for investing in peace becomes undeniable.

Reform and efficiency: The UN80 Initiative

Critics argue that multilateral institutions are costly and bureaucratic. Yet, many quiet reforms are already being undertaken, from common back offices to shared digital payment platforms. At UNDP, 92 cents of every CHF1 goes to development programmes, and we provide operational services to more than 60 UN entities at country level, reducing duplications and generating savings for all. A strong, universal multilateral platform also opens a channel for bilateral actors to extend their reach in countries where they do not have embassies and presence. From streamlining humanitarian operations to creating global data platforms, UN secretary general António Guterres’ UN80 reforms aim to ensure that every Swiss franc delivers maximum impact.

Supporting these efforts means backing a system that works better for all. By investing in multilateralism, Switzerland strengthens its security, economy and reputation. It is not altruism – it is enlightened self-interest. In a fractured world, neutrality alone is not enough; leadership in global cooperation is Switzerland’s best insurance policy. The Swiss voice matters in shaping global norms on digital governance, climate action, and human rights – issues that directly affect Swiss businesses and citizens.

As funding for multilateral institutions faces unprecedented cuts, countries like Switzerland must stand firm. Reducing support now would save pennies while risking billions in future crises and taking away from future investments. We urge policymakers, businesses, and citizens to advocate for sustained investment in global solidarity. Every franc that is contributed helps build a safer, more stable world – and secures Switzerland’s prosperity.

Agi Veres is the director of the United Nations Development Programme (UNDP) office in Geneva, responsible for UNDP’s external relations and advocacy, as well as UNDP’s Geneva-based policy and programme work.

The OpEd has originally been published in the Geneva Solutions. Check our UNDP/Switzerland Partnership for a snapshot of 🇨🇭 Switzerland’s global cooperation priorities, delivered in partnership with UNDP.