Sweden's Smart Aid Strategy: Teaching Ukraine to Code While Rethinking Development
Of course, there are risks. What if Swedish companies just use this to subsidize their own expansion?
July 8, 2025
Sometimes the best foreign policy stories hide in plain sight. Today, Sweden announced two initiatives that reveal something fascinating about how smart countries are rethinking aid in 2025.
The Ukraine Tech Investment That Actually Makes Sense
Sweden just committed $1 million USD (10 million SEK) to train 2,000 Ukrainian IT professionals. Not soldiers. Not weapons. Coders, data analysts, and AI specialists.
Here's why this matters: Ukraine's economy was already heavily tech-focused before the war. Now, as they rebuild, they need digital infrastructure more than ever. Sweden isn't just sending money—they're investing in human capital that will compound for decades.
The recipient? Beetroot Academy, a Swedish-Ukrainian IT school that's been quietly training developers since 2012. They've already trained 14,000 people across 30 countries, with 60% being women. Last year, they won an award at the Ukraine Recovery Conference in Berlin.
This isn't charity—it's strategic partnership. Ukraine gets skills for reconstruction and EU membership prep. Sweden gets goodwill and future tech partnerships. Everyone wins.
The Bigger Picture: Sweden's "Trade + Aid" Experiment
The second announcement is even more intriguing. Sweden is launching a new financing model that combines development aid with export credits. Translation: Swedish companies can now bid on development projects in poor countries with government backing.
The old way: Send aid money. Hope it helps. Cross fingers.
The new way: Swedish companies build infrastructure in developing countries. Government subsidizes the parts that aren't profitable. Everyone has skin in the game.
This starts August 1, 2025, as a five-year pilot with up to $120 million USD (1.2 billion SEK) committed through 2041.
Why This Matters (And Why It's Actually Hopeful)
Minister Benjamin Dousa put it bluntly: "No country has been lifted out of poverty through development assistance alone; rather, what is needed is growth and investment."
This sounds obvious, but it's radical in the aid world. For decades, development aid has been about giving fish, not teaching fishing. Sweden is betting on something different:
Skills over handouts (Ukraine IT training)
Trade partnerships over charity (the new financing model)
Long-term thinking over quick fixes (multi-year commitments)
The Human Element
Here's what gets me: Both announcements came from the same minister on the same day. This isn't coincidence—it's strategy. Sweden is showing how a middle-sized country can punch above its weight through smart partnerships.
Ukraine gets the skills to rebuild stronger. Developing countries get infrastructure that actually works. Swedish companies get new markets. Swedish taxpayers get better returns on their aid investments.
It's almost like... cooperation works?
The Skeptic's Corner
Of course, there are risks. What if Swedish companies just use this to subsidize their own expansion? What if the training doesn't translate to actual jobs? What if the new financing model becomes corporate welfare?
Fair questions. But here's the thing: the status quo clearly isn't working. Traditional aid has a mixed track record at best. At least Sweden is trying something different and measuring results.
What This Means for the Rest of Us
Sweden's approach offers lessons for anyone thinking about effective altruism, foreign policy, or just how to help:
Invest in capabilities, not just needs
Align incentives so everyone benefits
Think long-term, act consistently
Measure what matters
In a world full of performative gestures and virtue signaling, Sweden is quietly doing something that might actually work. They're teaching Ukraine to code and showing the world how aid can create real partnerships instead of dependency.
Not bad for a Tuesday.
What do you think? Is Sweden onto something, or just repackaging old ideas? Let me know in the comments.
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These initiatives remind me of the old saying "Give someone a fish and they'll have food for the day. Teach them to fish and they'll have food every day."
That said, Ukrainians seem to have a natural aptitude for coding, IT and related technology. They're certainly teaching the world about asymmetric warfare -- drones vs. tanks, howitzers, obscenely costly and irreplaceable supersonic bombers. In that respect it perhaps seems a little like teaching a bird to fly ☺️