OECD: International Aid Hit $223.7bn In 2023 – New Telegraph

International Aid Reaches All-Time High in 2023

International aid from official donors rose in 2023 to a new all-time high of $223.7 billion, up from $211 billion in 2022, as provider countries increased aid flows to Ukraine and directed more humanitarian assistance to developing countries, according to preliminary data collected by the Organisation for Economic Co-operation and Development (OECD).

Rise in Official Development Assistance

In 2023, the 1.8 per cent rise in real terms was the latest in a series of annual increases in Official Development Assistance (ODA) provided by members of the OECD’s Development Assistance Committee (DAC) and the fifth consecutive year that ODA has set a new record. Total 2023 aid is up by a third from 2019 levels, reflecting the additional aid provided since, related to COVID-19 and Ukraine.

Progress Towards UN Target

At 0.37 percent of DAC donors’ combined Gross National Income (GNI) for a second year running, the ODA total still lags behind a long-standing UN target of 0.7 per cent ODA to GNI. Of the DAC members, five countries – Denmark, Germany, Luxembourg, Norway and Sweden – exceeded the 0.7 per cent UN ODA/GNI target in 2023. The biggest providers of aid by volume were the United States, Germany, Japan, the United Kingdom and France.

Regional Variation in ODA

In 2023, out of the 31 DAC member countries, ODA was higher in 14 DAC countries and lower in 17 DAC countries, due in many cases to lower refugee costs and, in some cases, lower levels of loans provided. ODA rose for EU Institutions too, which are also a DAC member.

Focus on Ukraine and Humanitarian Aid

ODA to Ukraine, where the war is entering its third year, rose by nine per cent in 2023 to reach $20 billion, including $3.2 billion of humanitarian aid. In 2023, ODA also increased to the West Bank and Gaza with preliminary estimates showing a rise of 12 per cent on 2022 to $1.4 billion. Within that total, $758 million was in the form of humanitarian aid, which increased by 91 per cent from 2022. On a global level, humanitarian aid rose by 4.8 per cent in 2023 to reach $25.9 billion.

Refugee Costs and ODA

ODA used to cover refugee costs within donor countries fell by 6.2 per cent in 2023 to stand at $31 billion, representing 13.8 per cent of total ODA compared with 14.7 per cent in 2022. For seven of the 31 DAC countries, in-donor refugee costs still accounted for over a quarter of their ODA in 2023. ODA excluding these in-donor refugee costs was up by 3.2 percent in real terms.

Importance of Official Development Assistance

Official Development Assistance has remained an important, stable and reliable source of external finance for developing countries. Donor countries have provided a record level of international aid for the fifth year in a row, maintaining their support for long-term development priorities while helping countries around the world to meet short term needs caused by external shocks and pressures,” OECD Secretary-General Mathias Cormann said. “With slower growth and rising debt servicing costs, developing countries are facing additional fiscal pressures and increasing risk of debt distress.

Long Term structural challenges such as climate change and deepening economic and social disparities, are compounding these pressures, so we must remain focused and committed to helping the most vulnerable to meet their economic development and growth objectives.”

Aid to Least Developed Countries

The preliminary data show that bilateral aid flows from DAC members to the group of least developed countries were $37 billion, an increase of three per cent in real terms in 2023 compared to 2022, when it showed a drop of 6.2 per cent. ODA makes up over two thirds of external finance for least developed countries. The OECD also monitors flows from some non-DAC providers and private foundations.

Call for Increased Support

“I am pleased to see an overall increase in ODA, which preliminary data suggests is still the case if we exclude in donor refugee costs, COVID-19 and Ukraine. This demonstrates that overall donor funding for these crises in recent years has not come at the expense of other ODA priorities,” OECD DAC Chair, Carsten Staur said. “Going forward we need donors to ramp up their support for the poorest and most vulnerable countries, in particular least developed countries and countries in sub-Saharan Africa. We need more focus on efforts to help partner countries counter extreme poverty and address climate change,” Staur added.

Continued Growth in ODA

Since 2019, ODA has risen by 34 per cent from $160 billion to $214 billion (in constant 2022 prices), as DAC members mostly maintained or increased ODA budgets to support developing countries. Over the same period, humanitarian aid rose by 37.4 per cent (from $18 billion to $25 billion), while remaining at 10-12 percent of total ODA, while in-donor refugee costs jumped by 184 per cent from $10 billion to $29 billion.

Showing its resilience in responding to crises, ODA increased by 4.1 per cent, 8.3 per cent and 16.8 per cent respectively in 2020, 2021 and 2022 as GDP growth across OECD countries fluctuated from -4.2 per cent in 2020 to +5.9 per cent in 2021 and +2.9 per cent in 2022. The 1.8 per cent rise in 2023 ODA was in line with that year’s GDP growth of 1.7 per cent.

SDGs, Targets, and Indicators

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

• SDG 1: No Poverty
• SDG 2: Zero Hunger
• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 13: Climate Action
• SDG 16: Peace, Justice, and Strong Institutions
• SDG 17: Partnerships for the Goals

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

• Target 1.1: By 2030, eradicate extreme poverty for all people everywhere.
• Target 2.1: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious, and sufficient food all year round.
• Target 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services, and access to safe, effective, quality, and affordable essential medicines and vaccines for all.
• Target 4.7: By 2030, ensure that all learners acquire the knowledge and skills needed to promote sustainable development, including among others through education for sustainable development and sustainable lifestyles, human rights, gender equality, promotion of a culture of peace and non-violence, global citizenship, and appreciation of cultural diversity and of culture’s contribution to sustainable development.
• Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life.
• Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries.
• Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average.
• Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
• Target 16.6: Develop effective, accountable, and transparent institutions at all levels.
• Target 17.2: Developed countries to implement fully their official development assistance commitments, including the commitment by many developed countries to achieve the target of 0.7 percent of ODA/GNI to developing countries and 0.15 to 0.20 percent of ODA/GNI to least developed countries; ODA providers are encouraged to consider setting a target to provide at least 0.20 percent of ODA/GNI to least developed countries.

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

• Indicator 1.1.1: Proportion of population below the international poverty line, by sex, age, employment status, and geographical location.
• Indicator 2.1.1: Prevalence of undernourishment.
• Indicator 3.8.1: Coverage of essential health services (defined as the average coverage of essential services based on tracer interventions that include reproductive, maternal, newborn, and child health, infectious diseases, non-communicable diseases, and service capacity and access, among the general and the most disadvantaged population).
• Indicator 4.7.1: Extent to which (i) global citizenship education and (ii) education for sustainable development, including gender equality and human rights, are mainstreamed at all levels in (a) national education policies; (b) curricula; (c) teacher education; and (d) student assessment.
• Indicator 5.5.1: Proportion of seats held by women in national parliaments and local governments.
• Indicator 8.1.1: Annual growth rate of real GDP per capita.
• Indicator 10.1.1: Growth rates of household expenditure or income per capita among the bottom 40 percent of the population and the total population.
• Indicator 13.1.1: Number of deaths, missing persons, and directly affected persons attributed to disasters per 100,000 population.
• Indicator 16.6.1: Primary government expenditures as a proportion of original approved budget, by sector (or by budget codes or similar).
• Indicator 17.2.1: Net official development assistance, total and to least developed countries, as a proportion of the Organization for Economic Cooperation and Development (OECD) Development Assistance Committee donors’ gross national income (GNI).

SDGs, Targets, and Indicators