How much aid goes to southern and Central Asia – Devex

Report on Official Development Assistance to Southern and Central Asia (2019-2023)

Introduction and Regional Context

This report analyzes Official Development Assistance (ODA) flows to the Southern and Central Asian regions from 2019 to 2023, with a specific focus on alignment with the United Nations Sustainable Development Goals (SDGs). The region, comprising 17 countries, faces significant challenges that directly impact progress towards the SDGs, including issues related to poverty, gender inequality, and institutional stability.

• South Asia: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka
• Central Asia: Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Myanmar, Tajikistan, Turkmenistan, Uzbekistan

Several countries in the region face critical hurdles in achieving the SDGs:

• Afghanistan: Severe human rights issues, particularly gender persecution, undermine SDG 5 (Gender Equality) and SDG 16 (Peace, Justice and Strong Institutions).
• Bangladesh and Nepal: Political turmoil and governance challenges create obstacles for SDG 16 (Peace, Justice and Strong Institutions).
• Sri Lanka: A persistent high poverty rate directly contravenes the objectives of SDG 1 (No Poverty).

Analysis of ODA Flows (2019-2023)

The Southern and Central Asian region received a total of $81.6 billion in ODA between 2019 and 2023. In 2023, the total ODA amounted to $16.5 billion. This funding is critical for addressing the region’s development challenges and advancing the SDG agenda.

Leading Donor Contributions in 2023

1. Japan: Contributed $7.0 billion (42.7% of total ODA), with major allocations to India ($3.8 billion) and Bangladesh ($2.0 billion).
2. United States: Contributed $3.8 billion (22.9% of total ODA), with Afghanistan ($1.2 billion) as the largest recipient.
3. Germany: Contributed $2.2 billion (13.2% of total ODA), primarily directed towards India ($1.1 billion) and Afghanistan ($275.2 million).

Top Recipient Countries in 2023

1. India: $5.6 billion
2. Bangladesh: $3.4 billion
3. Afghanistan: $2.3 billion
4. Myanmar: $1.1 billion
5. Pakistan: $800 million

Sectoral Allocation of ODA and Alignment with SDGs

The distribution of ODA across various sectors reflects donor priorities and directly corresponds to specific Sustainable Development Goals.

Top-Funded Sectors in 2023

1. Transport and Storage ($4.6 billion): This funding, largely from Japan, supports SDG 9 (Industry, Innovation and Infrastructure) by enhancing regional connectivity and economic infrastructure.
2. Humanitarian Aid ($2.5 billion): Primarily funded by the United States, this aid is crucial for addressing immediate crises and contributes to SDG 1 (No Poverty), SDG 2 (Zero Hunger), and SDG 16 (Peace, Justice and Strong Institutions).
3. Energy ($2.0 billion): With significant contributions from Japan and Germany, investments in this sector advance SDG 7 (Affordable and Clean Energy).

Implementation and Future Outlook

Key Implementing Organizations

Analysis of International Aid Transparency Initiative (IATI) data indicates that United Nations institutions and national government bodies are the primary implementers of development projects. The leading organizations are:

• World Food Programme ($2.4 billion): Directly contributes to SDG 2 (Zero Hunger).
• Food and Agriculture Organization ($1.8 billion): Work aligns with SDG 2 (Zero Hunger) and sustainable agriculture goals.
• Ministry of Economy and Finance of Uzbekistan ($800 million): Implements projects related to national economic development goals.
• Ministry of Finance of India ($750 million): Manages development finance for projects across multiple SDGs.

Future Funding Considerations and SDG Impact

A potential reduction in funding from the United States, a major donor, would significantly impact the region. Total ODA would decrease to $12.7 billion without the U.S. contribution. The humanitarian aid sector would be most affected, facing a potential loss of nearly $1 billion. Such a reduction would pose a substantial risk to progress on foundational SDGs, particularly SDG 1 (No Poverty) and SDG 2 (Zero Hunger), especially in fragile contexts like Afghanistan. The continued commitment of other major donors, such as Japan, will be critical to sustaining momentum towards the 2030 Agenda.

Analysis of Sustainable Development Goals in the Article

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

• SDG 1: No Poverty

  The article directly addresses this goal by highlighting Sri Lanka’s struggle with its poverty rate, which is expected to remain above 22% until 2026 despite receiving aid.

• SDG 5: Gender Equality

  This goal is connected through the description of the situation in Afghanistan, where “women and girls faced crimes against humanity due to gender persecution” and “continued to be deprived of their rights” under the Taliban leadership.

• SDG 7: Affordable and Clean Energy

  The article mentions that “Energy is another priority sector with almost $2 billion in aid,” indicating that development assistance is being channeled towards improving energy infrastructure in the region.

• SDG 9: Industry, Innovation and Infrastructure

  The analysis of Official Development Assistance (ODA) shows that the “transport and storage sector was funded the most with $4.6 billion.” This funding is crucial for building resilient infrastructure, which is a core component of SDG 9.

• SDG 10: Reduced Inequalities

  The article points to a “tumultuous landscape of inequality” in the region. It specifically mentions the “Shia-Hazara community — a Muslim religious minority in Afghanistan — continues to face targeted attacks and killings,” which is a clear issue of inequality and persecution of a minority group.

• SDG 16: Peace, Justice and Strong Institutions

  Several issues discussed in the article relate to this goal. These include the “human rights issues under the Taliban leadership” in Afghanistan, the political “turmoil” in Bangladesh, and the “huge protests broke out in response to poor governance and leadership” in Nepal.

• SDG 17: Partnerships for the Goals

  The entire article is centered on this goal. It analyzes the flow of Official Development Assistance (ODA) from donor countries (Japan, United States, Germany) to recipient countries in Southern and Central Asia, detailing the financial contributions that form the partnerships for development.

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

1. Target 1.2: Reduce poverty in all its dimensions

   The article’s statement that Sri Lanka’s “poverty rate will remain above 22% until 2026” directly relates to this target, which aims to reduce at least by half the proportion of people living in poverty according to national definitions.

2. Target 5.1: End discrimination against all women and girls

   The mention of “gender persecution” and women and girls being “deprived of their rights” in Afghanistan aligns with the goal of ending all forms of discrimination.

3. Target 7.a: Enhance international cooperation to facilitate access to clean energy

   The allocation of nearly “$2 billion in aid” to the energy sector, with contributions from Japan, Germany, and the U.S., is a direct example of the international cooperation and investment needed to achieve this target.

4. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure

   The article identifies the “transport and storage sector” as the most funded, receiving $4.6 billion in ODA. This funding directly supports the development of regional infrastructure as specified in this target.

5. Target 10.2: Empower and promote the social, economic and political inclusion of all

   The persecution of the Shia-Hazara community in Afghanistan, which faces “targeted attacks and killings,” is a critical issue that this target aims to address by promoting the inclusion and safety of all, irrespective of religion or ethnicity.

6. Target 16.6: Develop effective, accountable and transparent institutions

   The “huge protests… in response to poor governance and leadership” in Nepal and the political “turmoil” in Bangladesh highlight the need for effective and accountable institutions, which is the focus of this target.

7. Target 17.2: Developed countries to implement fully their ODA commitments

   The article’s core analysis is about ODA flows, quantifying the total aid ($81.6 billion from 2019-2023) and contributions from specific developed countries like Japan ($7 billion) and the United States ($3.8 billion). This directly tracks the financial commitments central to this target.

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

• Indicator for SDG 1 (Poverty): Proportion of population living below the national poverty line

  The article provides a specific data point that serves as this indicator: “it is expected that its poverty rate [in Sri Lanka] will remain above 22% until 2026.”

• Indicator for SDG 16 (Peace and Justice): Number of victims of intentional homicide

  While not providing a number, the article implies this indicator by mentioning that the Shia-Hazara community in Afghanistan “continues to face targeted attacks and killings” and that the protest in Nepal was the “deadliest” the country has experienced.

• Indicator for SDG 5 (Gender Equality): Prevalence of discrimination and violence against women

  The article provides a qualitative indicator by citing Amnesty International’s report on “crimes against humanity due to gender persecution” against women and girls in Afghanistan.

• Indicators for SDGs 7, 9, and 17 (Energy, Infrastructure, and Partnerships): Volume of Official Development Assistance (ODA)

  The article is rich with quantitative data that serves as a direct indicator for financial flows. It provides:

  • Total ODA to the region from 2019-2023 ($81.6 billion).
  • Total ODA in 2023 ($16.5 billion).
  • ODA by donor (e.g., Japan provided $7 billion).
  • ODA by recipient country (e.g., India received $5.6 billion).
  • ODA by sector (e.g., Transport and storage received $4.6 billion; Energy received almost $2 billion).

  These figures are direct measures of financial resources provided to developing countries, aligning with indicators 7.a.1, 9.a.1, and 17.2.1.

4. Table of Identified SDGs, Targets, and Indicators

Source: devex.com