Sweden has withdrawn core funding from Swedwatch, an independent watchdog that has monitored business, human rights, and environmental justice for the past 20 years. The decision by the Swedish International Development Cooperation Agency (Sida) has been described as a major setback for civil society, potentially leaving vulnerable populations, particularly in the Global South, exposed to corporate harm. Swedwatch director Alice Blondel stated that the official reason given was that the organization’s work no longer aligns with the government’s new strategy on sustainable growth and green transition. Blondel warned that the move signals a reduced commitment to independent oversight of corporate impacts on people and the planet.
The withdrawal comes amid rising attacks on individuals challenging corporate abuses. Between 2015 and 2024, the Human Rights Centre recorded 6,400 attacks on people speaking out against business-related risks. A 2025 United Nations report also highlighted growing harassment, legal threats, arbitrary arrests, and physical attacks against human rights defenders. These trends coincide with broader international aid cuts by countries including the US, UK, Netherlands, Germany, France, and Austria, with human rights-focused aid projected to fall by $1.9 billion in 2026 compared to 2023.
Sweden has led the world in per capita aid cuts between 2020 and 2027, and is the second largest in cuts relative to gross national income. These reductions align with the policies of the current coalition government, supported by the nationalist Sweden Democrats, who have also raised military spending by 18% in 2026. Aid priorities have shifted towards trade and private sector alignment, which Blondel warns will leave vulnerable communities without support to hold corporations accountable. The reduction in core funding could undermine independent oversight, making it harder even for responsible companies to detect abuses in their value chains.
Despite the challenges, Swedwatch emphasizes the continued importance of civil society and philanthropy. Flexible and core funding from philanthropic sources is critical to help organizations survive and adapt in the wake of funding cuts. Programme officer Ben Claeson highlighted the need for pooled funds and funder collaboratives to support the broader accountability ecosystem, ensuring that civil society can continue documenting corporate abuses and advocating for vulnerable communities. Blondel stressed that while funding cuts threaten oversight, the responsibility to protect human rights and hold corporations accountable grows stronger, and change often begins with those who refuse to stay silent.
