Ukraine tops aid list again, but EU spending slumps

Ukraine Remains Top Recipient of International Aid in 2023, EU Aid Spending Drops

According to new data published on Thursday (11 April), Ukraine has once again emerged as the largest single recipient of international aid in 2023. However, EU aid spending has decreased by almost eight percent. The statistics, released by the Organisation for Economic Co-operation and Development (OECD) based in Paris, reveal that Kyiv received €18.5bn in Official Development Assistance (ODA). It is important to note that the total cost of hosting refugees in donor countries accounted for over $31bn [€28.9bn], which is equivalent to 13.8 percent of the total ODA in 2023.

EU Aid Spending Declines

Despite a small increase in ODA across all wealthy countries in 2023, aid from the 21 EU members of the OECD’s Development Assistance Committee (DAC) has fallen by 7.7 percent to €92.9bn. The rise in in-donor refugee costs, where a donor country counts as aid the money spent accommodating and providing for refugees fleeing war, has contributed significantly to this decline. It is worth noting that these figures have increased dramatically following Russia’s war in Ukraine.

Development policy specialists have expressed concerns about using in-donor costs to inflate domestic aid budgets, as it risks devaluing aid policy and the commitment made by wealthy governments over 50 years ago to spend at least 0.7 percent of gross national income (GNI) on aid. In 2023, only Luxembourg, Norway, Sweden, Germany, and Denmark met this target. To fulfill this commitment, DAC countries would have had to increase their combined contributions by nearly $200bn.

Sustainable Development Goals (SDGs) and Future Aid

Carsten Staur, the chair of OECD DAC, has emphasized the need for donors to increase their support for the poorest and most vulnerable countries, especially least developed countries and those in sub-Saharan Africa. He also stressed the importance of focusing on efforts to combat extreme poverty and address climate change. Analysts predict that the increased refugee flows resulting from the war in Gaza could lead to high in-donor costs becoming a permanent feature of aid spending.

The OECD reported that ODA to the West Bank and Gaza increased by an estimated 12 percent in 2023, a figure that is expected to grow significantly this year due to the ongoing war between Israel and Hamas, which has resulted in massive humanitarian costs. Many argue that in-donor costs should not be included in ODA budgets.

Criticism and Calls for Change

Matthew Simmonds, senior policy and advocacy officer at the European Network on Debt and Development, criticized the prioritization of geopolitical interests and domestic budgets over the needs of the world’s poorest people. He argued that keeping aid at stagnating levels costs lives and is a moral failure. Salvatore Nocerino, an aid expert at Oxfam, echoed this sentiment.

The UK government, which published its own aid spending figures, revealed that nearly 30 percent of its aid budget is being spent on refugee costs. However, some countries are taking a different approach. Simmonds highlighted that Germany and Austria are distinguishing between in-donor refugee costs and ODA. He suggested that this practice should be formalized if in-donor costs are to become a permanent aspect of aid spending. Simmonds also stated that if this is the case, the rules on aid need to be revised.

SDGs, Targets, and Indicators in the Article

1. SDG 1: No Poverty

   • Target 1.1: By 2030, eradicate extreme poverty for all people everywhere
   • Indicator: Not mentioned in the article

2. SDG 10: Reduced Inequalities

   • Target 10.7: Facilitate orderly, safe, regular, and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies
   • Indicator: Not mentioned in the article

3. SDG 13: Climate Action

   • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries
   • Indicator: Not mentioned in the article

4. SDG 16: Peace, Justice, and Strong Institutions

   • Target 16.6: Develop effective, accountable, and transparent institutions at all levels
   • Indicator: Not mentioned in the article

5. SDG 17: Partnerships for the Goals

   • Target 17.2: Enhance global macroeconomic stability, including through policy coordination and policy coherence
   • Indicator: Not mentioned in the article

Analysis of the Article

The article discusses international aid and the decrease in EU aid spending. It highlights Ukraine as the biggest recipient of international aid and mentions the costs of hosting refugees in donor countries. The article also mentions the target of spending at least 0.7 percent of gross national income (GNI) on aid and the need for more focus on efforts to help partner countries counter extreme poverty and address climate change.

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

The issues highlighted in the article are connected to SDG 1 (No Poverty), SDG 10 (Reduced Inequalities), SDG 13 (Climate Action), SDG 16 (Peace, Justice, and Strong Institutions), and SDG 17 (Partnerships for the Goals).

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

Based on the article’s content, the specific targets that can be identified are:

• Target 1.1: Eradicate extreme poverty for all people everywhere
• Target 10.7: Facilitate orderly, safe, regular, and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies
• 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: Enhance global macroeconomic stability, including through policy coordination and policy coherence

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

The article does not mention any specific indicators that can be used to measure progress towards the identified targets.

Table: SDGs, Targets, and Indicators

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Source: euobserver.com

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