How much aid goes to East and Southeast Asia – Devex

Official Development Assistance in East and Southeast Asia: A Report on Contributions to Sustainable Development Goals (2019-2023)

Regional Context and Sustainable Development Challenges

This report analyzes Official Development Assistance (ODA) flows to East and Southeast Asia from 2019 to 2023, with a specific focus on alignment with the Sustainable Development Goals (SDGs). The region, as defined by the Organisation for Economic Co-operation and Development (OECD), comprises 11 countries:

• Cambodia
• China
• Indonesia
• Laos
• Malaysia
• Mongolia
• North Korea
• The Philippines
• Thailand
• Timor-Leste
• Vietnam

Despite significant natural and cultural assets, the region faces considerable challenges related to civil unrest and human rights, which directly impede progress on SDG 16 (Peace, Justice and Strong Institutions). Issues in the Philippines concerning extrajudicial killings and journalist attacks, political arrests in Cambodia, and suppression of freedoms in Vietnam highlight the critical need for ODA to support the development of effective, accountable, and inclusive institutions.

Overall Funding Landscape

Between 2019 and 2023, the East and Southeast Asia region received a total of $44.4 billion in ODA. In 2023 alone, the ODA amounted to $9.2 billion. This analysis is based on data from the OECD’s Creditor Reporting System and the International Aid Transparency Initiative (IATI), presented in 2023 constant prices.

Leading Donor Contributions and Global Partnerships (SDG 17)

The distribution of ODA from donor countries exemplifies the function of SDG 17 (Partnerships for the Goals). The top three bilateral donors in 2023 were:

1. Japan: Contributed $3.7 billion, representing 40.7% of the total ODA. Key recipients of Japanese aid included the Philippines ($1.4 billion), Indonesia ($982.8 million), and Vietnam ($736.7 million).
2. Germany: Contributed $1.5 billion, or 16.5% of the total. Its largest recipients were China ($658 million) and Indonesia ($531.3 million).
3. United States: Contributed $1.2 billion, accounting for 12.7% of the total. Aid was primarily directed to the Philippines ($218.1 million) and Vietnam ($213.5 million).

Distribution of ODA Among Recipient Nations

In 2023, ODA was concentrated in a few key recipient countries, with the top five receiving the majority of the funding:

1. Indonesia: Received $2.6 billion (28% of total ODA).
2. The Philippines: Received $2.1 billion (22.7% of total ODA).
3. Vietnam: Received $1.5 billion.
4. Cambodia: Received $808.6 million.
5. China: Received $716.2 million.

Sectoral Allocation and Alignment with Key SDGs

The allocation of ODA across various sectors demonstrates a commitment to several core SDGs. The most heavily funded sectors in 2023 were:

1. Transport and Storage: Received $4.2 billion (22.6%). This funding is critical for advancing SDG 9 (Industry, Innovation and Infrastructure) and SDG 11 (Sustainable Cities and Communities) by improving connectivity and trade infrastructure. Japan was the largest contributor to this sector.
2. Education: Received $2 billion (11%). These investments directly support SDG 4 (Quality Education), aiming to ensure inclusive and equitable quality education for all. Germany was the leading donor in this sector.
3. Energy: Received $1.7 billion (9.2%). Funding in this area contributes to SDG 7 (Affordable and Clean Energy) by supporting the development of sustainable energy systems. Germany was also the largest donor to this sector.
4. Other Multisector Projects: Received $1.7 billion. These funds support a range of cross-cutting development initiatives.

Analysis of Implementing Organizations

Data from IATI, which includes private financing, indicates that multilateral development banks are central to achieving the SDGs in the region, in line with SDG 17.

Top Reporting Organizations (Fund Providers):

• World Bank: Provided $6.7 billion (35.5%).
• Asian Development Bank (ADB): Provided $6.3 billion (33.8%).

Top Receiving Organizations (Implementers):

• Philippines Department of Finance: Received $2.7 billion.
• Indonesian Ministry of Finance: Received $1 billion.

Future Outlook and Implications for Sustainable Development

Potential shifts in donor contributions, particularly from the United States, may impact future progress on the SDGs. The U.S. has been a significant funder for the government and civil society sector, providing nearly $226 million for related projects. A reduction in this funding could significantly hinder initiatives aimed at strengthening governance and human rights, thereby posing a risk to the advancement of SDG 16 (Peace, Justice and Strong Institutions) in countries like the Philippines, Vietnam, and Indonesia.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 16: Peace, Justice and Strong Institutions
   • The article explicitly discusses issues that fall under this goal. It mentions “civil unrest and human rights issues,” “extrajudicial killings,” “disappearances and journalist attacks,” “corruption in the government,” the arrest of opposition members, and the suppression of citizens’ rights to “freedom of expression, association, movement, and peaceful assembly” in countries like the Philippines, Cambodia, and Vietnam. These are core challenges that SDG 16 aims to address.
2. SDG 17: Partnerships for the Goals
   • The entire article is centered on Official Development Assistance (ODA), which is a primary mechanism for global partnerships. It details the flow of financial resources from donor countries (Japan, Germany, U.S.) and multilateral organizations (World Bank, Asian Development Bank) to recipient countries in East and Southeast Asia. This analysis of aid flows is directly related to strengthening the means of implementation and revitalizing global partnerships for sustainable development.
3. SDG 4: Quality Education
   • The article identifies education as the second most funded sector in the region, receiving “$2 billion — or 11% of the total” ODA in 2023. This financial commitment from donors like Germany, Japan, and the U.S. directly supports the aim of ensuring inclusive and equitable quality education.
4. SDG 7: Affordable and Clean Energy
   • The “energy sector” is highlighted as the third most funded sector, receiving “$1.7 billion — 9.2% of the total” aid. The article notes contributions from Germany, Canada, South Korea, and Japan to this sector, which is central to achieving SDG 7.
5. SDG 9: Industry, Innovation and Infrastructure
   • The article states that the “transport and storage sector received the most funding with $4.2 billion — or 22.6%.” This significant investment in infrastructure is a key component of building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation as outlined in SDG 9.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 16: Peace, Justice and Strong Institutions
   • Target 16.1: Significantly reduce all forms of violence and related death rates everywhere. This is relevant due to the mention of “extrajudicial killings” and “journalist attacks” in the Philippines.
   • Target 16.5: Substantially reduce corruption and bribery in all their forms. The article points to “multiple protests have also broken out against corruption in the government” in the Philippines, indicating this is a key issue.
   • Target 16.6: Develop effective, accountable and transparent institutions at all levels. The issues of corruption, human rights abuses, and the failure of countries like Cambodia to “make progress with the recommendations it has accepted” from the Human Rights Council point to the need for more accountable institutions.
   • Target 16.10: Ensure public access to information and protect fundamental freedoms. This is directly addressed by the article’s mention of Vietnam’s suppression of “citizens’ rights to freedom of expression, association, movement, and peaceful assembly” and “journalist attacks” in the Philippines.
2. SDG 17: Partnerships for the Goals
   • Target 17.2: Developed countries to implement fully their official development assistance commitments. The article is a detailed analysis of this target in action, quantifying the ODA provided by donors like Japan, Germany, and the U.S. to the East and Southeast Asia region, totaling “$44.4 billion in aid” from 2019-2023.
3. SDG 4: Quality Education
   • Target 4.a: Build and upgrade education facilities that are child, disability and gender sensitive and provide safe, non-violent, inclusive and effective learning environments for all. The $2 billion in ODA for the education sector is a direct financial contribution towards achieving this target by providing resources to improve educational infrastructure and programs.
4. SDG 7: Affordable and Clean Energy
   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The $1.7 billion in ODA for the energy sector from international partners is a clear example of the cooperation and investment described in this target.
5. SDG 9: Industry, Innovation and Infrastructure
   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being. The $4.2 billion allocated to the “transport and storage sector” is a direct investment in the type of infrastructure development this target aims to promote.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. SDG 16: Peace, Justice and Strong Institutions
   • Implied Indicators for Target 16.1 & 16.10: While no specific numbers are given, the article’s reference to “extrajudicial killings,” “disappearances,” and “journalist attacks” implies that the frequency of these events serves as a key indicator of violence and the lack of protection for fundamental freedoms.
   • Implied Indicator for Target 16.5: The mention of “multiple protests have also broken out against corruption” implies that public perception and reports of corruption are used as indicators of the scale of the problem.
2. SDG 17: Partnerships for the Goals
   • Direct Indicator for Target 17.2: The article is built around the primary indicator for this target: total Official Development Assistance (ODA). It provides precise figures, such as “a total of $44.4 billion in aid” from 2019-2023 and “$9.2 billion” in 2023 alone. This is a direct measurement of financial flows (Indicator 17.2.1: Net official development assistance).
3. SDG 4, 7, and 9
   • Direct Financial Indicators: The article provides specific financial data that can be used as indicators of support for these goals. These are:
     • Amount of ODA for infrastructure: “$4.2 billion” for the transport and storage sector (relevant to SDG 9).
     • Amount of ODA for education: “$2 billion” for the education sector (relevant to SDG 4).
     • Amount of ODA for energy: “$1.7 billion” for the energy sector (relevant to SDG 7).

4. SDGs, Targets, and Indicators Table

Source: devex.com