OECD: International Aid Rose to All-time High of $223.7bn in 2023
OECD: International Aid Rose to All-time High of $223.7bn in 2023 THISDAY Newspapers
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International Aid Reaches All-Time High in 2023
Introduction
According to a new report by the Organisation for Economic Cooperation and Development (OECD), international aid from official donors increased by 1.8% in 2023, reaching an all-time high of $223.7 billion. This is up from $211 billion in 2022. The rise in aid flows can be attributed to increased assistance to Ukraine and a greater focus on humanitarian aid to developing countries.
Sustainable Development Goals (SDGs)
The Sustainable Development Goals (SDGs) are a key focus of international aid efforts. The SDGs aim to address global challenges such as poverty, inequality, and climate change. The increase in international aid reflects the commitment of provider countries to support the achievement of these goals.
Aid to Nigeria
The total aid provided to Nigeria in 2023 was not disclosed in the OECD report. However, it was previously reported that Nigeria received over $36.16 billion in Official Development Assistance (ODA) between 2015 and 2022. Additionally, the United States of America provided Nigeria with over $1.2 billion in aid last year.
Record-Breaking ODA
The 1.8% rise in real terms in Official Development Assistance (ODA) in 2023 marks the fifth consecutive year of growth and sets a new record. ODA is government aid that promotes economic development and welfare in developing countries. The increase in ODA reflects the ongoing commitment of OECD member countries to support global development efforts.
ODA as the “Gold Standard”
The Development Assistance Committee (DAC) of the OECD adopted ODA as the “gold standard” of foreign aid in 1969. ODA remains the main source of financing for development aid. The total aid in 2023 increased by a third compared to 2019 levels, primarily due to additional aid provided in response to the COVID-19 pandemic and Russia’s war of aggression against Ukraine.
Progress Towards UN Target
Despite the record-breaking ODA, the total amount falls short of the United Nations’ target of 0.7% ODA to Gross National Income (GNI). In 2023, the ODA/GNI ratio stood at 0.37% for DAC donors. However, five DAC member countries – Denmark, Germany, Luxembourg, Norway, and Sweden – exceeded the 0.7% target. The United States, Germany, Japan, the United Kingdom, and France were the largest providers of aid by volume.
DAC Member Countries
Out of the 31 DAC member countries, ODA increased in 14 countries and decreased in 17 countries in 2023. The changes can be attributed to factors such as lower refugee costs and reduced levels of loans provided. ODA also rose for EU Institutions, which are also DAC members.
Aid to Ukraine
ODA to Ukraine, where Russia’s war of aggression is ongoing, increased by 9% in 2023, reaching $20 billion. This includes $3.2 billion of humanitarian aid.
SDGs, Targets, and Indicators
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SDG 1: No Poverty
- Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
- Indicator: The article mentions that international aid flows increased, including humanitarian assistance to developing countries. This can be seen as a measure to address poverty and improve the welfare of people in those countries.
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SDG 8: Decent Work and Economic Growth
- Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% per annum GDP growth in the least developed countries.
- Indicator: The increase in international aid flows can contribute to economic growth in developing countries, as it promotes economic development and welfare.
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SDG 10: Reduced Inequalities
- Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average.
- Indicator: The increase in international aid flows, particularly to developing countries, can help reduce income inequalities by providing support to those in need.
-
SDG 17: Partnerships for the Goals
- Target 17.2: Enhance global macroeconomic stability, including through policy coordination and policy coherence.
- Indicator: The increase in international aid flows and cooperation among countries, as reflected in the OECD report, demonstrates efforts towards enhancing global macroeconomic stability and promoting partnerships for sustainable development.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions. | The increase in international aid flows, including humanitarian assistance to developing countries, can be seen as a measure to address poverty and improve the welfare of people in those countries. |
| SDG 8: Decent Work and Economic Growth | Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% per annum GDP growth in the least developed countries. | The increase in international aid flows can contribute to economic growth in developing countries, as it promotes economic development and welfare. |
| SDG 10: Reduced Inequalities | Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average. | The increase in international aid flows, particularly to developing countries, can help reduce income inequalities by providing support to those in need. |
| SDG 17: Partnerships for the Goals | Target 17.2: Enhance global macroeconomic stability, including through policy coordination and policy coherence. | The increase in international aid flows and cooperation among countries, as reflected in the OECD report, demonstrates efforts towards enhancing global macroeconomic stability and promoting partnerships for sustainable development. |
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Fuente: thisdaylive.com
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