As reported by Middle East Economy, The latest report from Oliver Wyman, ‘ The New Silk Road—Growth, Connection, Opportunity,’ predicts that the share of new Silk Road economies in global GDP will rise to 48% by 2040. Would this mean a rebirth of the medieval merchant economies of the Middle East? Or shall we prepare for a new economic order by 2030 / 2050?
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New Silk Road economies’ share of global GDP to rise to 48 percent by 2040: Report
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Increasingly assertive role of GCC countries reshapes economies of the New Silk Road
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Almost 60 percent of total trade activity in the region is currently taking place with other modern Silk Road economies
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The New Silk Road, currently home to eight of the world’s top 20 economies, will see its share of global gross domestic product (GDP) rise to 48 percent by 2040, according to the latest report from Oliver Wyman titled ‘The New Silk Road – Growth, Connection, Opportunity’. The report identifies multiple priority economic opportunities in the New Silk Road region that stretches across Asia, the Middle East, and North Africa.
Oliver Wyman identifies six key areas that have emerged in the increasingly interwoven economies of Asia and the MENA region. Moreover, it believes that a new phase has begun in the relationship between the countries due to intraregional flows of capital, talent and technology. In addition, business activity is expanding beyond trade and construction into a range of new sectors, including automotive, clean technology and artificial intelligence.
Assertive role of GCC countries
Oliver Wyman states in their report that one of the major factors reshaping the economies of the New Silk Road is the increasingly assertive role of GCC countries. Hence, Gulf countries are leveraging high energy prices to diversify their economies and secure their post-oil futures through investment in multiple non-oil sectors.
“The countries that are part of the New Silk Road region are powering ahead with economic opportunity being driven by three major triggers: energy transition, global supply chain disruption, and geopolitical tensions and regionalization,” stated Adel Alfalasi, Head of the UAE at Oliver Wyman, a partner in the Government and Public Institutions Practice and a co-author of the report.
Supply chains and trade
The New Silk Road is an essential component of global supply chains. Thus, it holds 86 percent global export share for semiconductors, 65 percent for clothing, and 40 percent for oil. In addition, it features some of the world’s largest export manufacturers, including China and Japan, and emerging contenders such as India and Indonesia. Moreover, almost 60 percent of total trade activity in the region is currently taking place with other modern Silk Road economies.
Notably, two of the world’s three largest regional free-trade agreements now focus on the New Silk Road region:
The Comprehensive Economic Partnership (RCEP)
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Moreover, the number of bilateral agreements between Asia and the Middle East is rising.
Future outlook
If the New Silk Road region manages to navigate critical geopolitical and environmental issues, it will see greater collaboration, connectivity, and capital growth.
“We envisage a region where energy ties will grow tighter, clean technology will play a greater role, and where manufacturing supply chains will spread out across a wider set of countries as companies build resilience,” says Ben Simpfendorfer, Asia Pacific Lead of Oliver Wyman Forum, a Partner at Oliver Wyman, and a co-author of the report.
The report also states that the flow of private wealth will expand and cross-border payment solutions will improve. In addition, investments in aviation and transport infrastructure will support the rising flows of people and goods. “Finally, a young population of early adopters will drive digital disruption,” added Alfalasi.
To capitalize on the increasing connectivity, countries across the New Silk Road need to adopt new strategies, operating models, value propositions, and mindsets, the report states. “To capture the opportunities, private companies should establish cross-market strategies, align with national priorities, and find the right partners. Governments, on the other hand, should deploy and leverage resources, such as sovereign wealth funds, to facilitate trade, investment, and technology flows and support private sectors,” added Alfalasi.
The Press and Information Team of The Delegation To Türkiye’s description of Izmir as leading the way to a climate-neutral future is an eye-opener about that corner of the Mediterranean Sea. İzmir after rolling up its sleeves, Izmir took decisive steps to become a resilient city in the face of climate change. The European Union (EU) has supported Izmir’s substantial efforts.
The 8,500-year-old pearl of the Aegean, İzmir is a coastal city built on the gulf. From time to time, the sea level rises because of storm surges and the coastline is flooded. Sudden weather events cause flooding. The city is also under the threat of water scarcity and drought.
İzmir has rolled up its sleeves, taking decisive steps to become a resilient city in the face of the climate change. The European Union (EU) has supported Izmir’s substantial efforts.
In 2015, Aziz Kocaoğlu, the then Mayor of Izmir Metropolitan Municipality, signed the EU Covenant of Mayors for Climate & Energy, committing to a 20% reduction in greenhouse gas emissions by 2020. The Convenant aims at supporting mayors in realising the shared climate and energy goals.
In 2019, Tunç Soyer, the previous mayor of Izmir Metropolitan Municipality, reviewed the city’s climate adaptation targets, committing to a 40% reduction in greenhouse gas emissions by 2030. The Izmir Sustainable Energy and Climate Action Plan has received funding from the EU’s Instrument for Pre-Accession Assistance (IPA).
SUMP İzmir for sustainable transport
The preparation of the EU-backed Izmir Sustainable Urban Mobility Plan (SUMP Izmir) commenced in September 2022. It will contribute significantly to achieving the city’s ambitious sustainability targets.
EUROPEAN UNION, 2024 Ambassador attended the opening meeting of SUMP Izmir in 2022
The Head of the EU Delegation to Türkiye, Ambassador Nikolaus Meyer-Landrut, says: “Unlike traditional transport planning, this plan will not focus on vehicles but on people and respect for the environment. Teams from the Izmir Metropolitan Municipality are implementing the project. Stakeholders and the people of Izmir have a big say in defining this vision. Izmir has been at the forefront of the transition to sustainable mobility planning.”
Pioneer projects
The city is implementing flagship projects, ranging from rainwater harvesting to solar power plants.
Under the Izmir Sponge City Project, the Metropolitan Municipality distributed 5,000 rainwater harvesting tanks to 5,000 buildings and encouraged people to use them. A 5-tonne tank that stores only the water that collects on a roof can save 220 tonnes of water a year. The stored rainwater is used for watering gardens, washing cars, and cleaning buildings.
EUROPEAN UNION, 2024 Rainwater harvesting in Izmir
Another prominent project in Izmir is the EU-funded Inter-Cluster Cooperation for Carbon Management project, which had the inaugural meeting in April 2024. It is implemented in partnership with Aegean Exporters’ Associations and CoSviG – DTE2V Distretto Tecnologico Energia ed Economia Verde from Italy, with the participation of Izmir Development Agency, Izmir Metropolitan Municipality’s IzEnerji company and Eurosolar Türkiye. The project, which will come into force in 2026, will contribute to producing clean energy. The EU supports the project with a €520,000 grant.
The Aegean Exporters’ Associations Coordinator Vice President Yalçın Ertan said: “Our goal is to increase our use of renewable energy from 6 per cent to 25 per cent. By 2026, we will provide the necessary support mechanisms for our member companies.”
EU award to Izmir
Izmir is also involved in the EU’s Climate-Neutral and Smart Cities Mission under the Horizon Europe Program. The activities of the Climate-Neutral and Smart Cities Mission are coordinated by IzEnerji.
For these dedicated efforts, in March 2024, Izmir received the prestigious EU Mission Label, along with 22 cities in Europe. This award represents an important milestone in the city’s work on sustainability.
EUROPEAN UNION, 2024 The award is an important step towards making Izmir a sustainable city
Tunç Soyer, who received the award in Brussels on behalf of Izmir just before the end of his term as mayor, said: “This award will place our city in a very privileged position in terms of access to EU funding.”
Ercan Türkoğlu, former Chairman of the Board of Directors of IzEnerji, stated: “We are proud to be the only non-EU city to win this award. The EU has recognised Izmir’s determination and efforts towards achieving sustainability and smart city solutions. We will build a greener, cleaner, and smarter city by working hand in hand for the future of Izmir.”
EUROPEAN UNION, 2024 The award ceremony in March 2024
It is notable that Dr Cemil Tugay, elected Mayor of Izmir Metropolitan Municipality on 31 March, had implemented effective climate-friendly projects as mayor of Karşıyaka, one of Izmir’s central districts.
Call for a unified effort to cut emissions
Mustafa Güleş, Chairman of the Board of Directors of the Izmir Branch of the Chamber of Environmental Engineers, reflects: “To achieve our green targets, the people of the city, all private and public institutions as well as organisations, must support the work and reduce their own emissions.”
The people in Izmir are quite optimistic about these developments. System engineer Sadık Çakıcı remarks: “We are feeling the effects of the climate crisis more and more each day. It is good to see that work is progressing toward achieving a green future for a resilient Izmir.”
Fulya Cengiz, a retired worker, says, “In the last four years, we have experienced floods, rising sea levels due to storm surges, and tsunamis as a result of sudden weather events. This already shows why Izmir needs to be a resilient city.”
What are IPA and Horizon Europe?
The Instrument for Pre-Accession Assistance (IPA) is the means by which the EU has supported reforms in the enlargement region with financial and technical assistance since 2007. IPA funds build up the capacities of the beneficiaries throughout the accession process, resulting in progressive, positive developments in the enlargement region to which Türkiye belongs.
Horizon Europe is the EU’s key funding program for research and innovation, with a budget of €95.5 billion for 2021-2027.
Author: Maroun Kairouz, Head of Middle East and North Africa, World Economic Forum
World leaders came together for a two-day Special Meeting on Global Collaboration, Growth and Energy for Development.
The Israel-Gaza conflict was a key focus of discussion, while leaders also discussed how to achieve a just energy transition and inclusive growth.
Here are some of the key takeaways from speakers from the MENA region on the core themes of the meeting.
Khalil Gibran, a poet from my own village, once said, “Progress lies not in enhancing what is, but in advancing towards what will be.”
Today, the world is at an inflection point, where myriad challenges, from climate change to conflict, are creating a polycrisis that threatens such progress.
But collaboration on common goals can help countries from across the Global North and South shape a more prosperous future for all.
Saudi Arabia’s bold and ambitious Vision 2030 is transforming the kingdom, making it a fitting location for the World Economic Forum’s Special Meeting on Global Collaboration, Growth and Energy for Development, which convened under the patronage of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Prime Minister, and Chairman of the Council of Economic and Development Affairs.
More than 1,000 leaders from 90 countries, including 220 government and public sector figures, came together to discuss solutions to immediate crises while laying the groundwork to create a more sustainable, resilient world.
The Middle East and North Africa region acutely faces the challenges of conflict, economic disparities and the climate crisis – and leaders from the region were at the centre of dialogues across the meeting’s core themes.
Here are some of the key takeaways from speakers from MENA.
On a just energy transition
Saudi Arabia, in one of the most water-scarce countries in the world, understands the need for urgent action on the climate crisis. But the MENA region cannot solve it alone, said H.R.H. Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, Minister of Energy of Saudi Arabia.
“We have to be conscious of the fact that we here in this room have choices that at least 60, 70% of the world population do not have. Those who are suffering from energy poverty, those who cannot make ends meet, those who are still burning trees, converting it into charcoal, and making ends meet through selling that charcoal and buying food for themselves.”
“Energy is the lifeblood of our economies, but it must be produced, supplied and consumed responsibly,” said Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning. “We cannot allow a world where some have access when others do not.”
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We must invest in clean and renewable solutions, and we must do everything we can to balance the energy trilemma of security, equity and sustainability. —Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning”— Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning
“No one should be left in the dark. But let’s be clear: none of these problems or challenges exist in a vacuum. They do not know borders,” he added.
Saad Sherida Al-Kaabi, Minister of State for Energy Affairs of the State of Qatar agreed the energy transition must be just.
“The importance is to do it in a way that’s responsible for this generation and the next, and make sure people who want to grow and countries that want to grow their economy have the same rights the richer countries have had all along,” he said.
Fatma Thabet Chiboub, Tunisia’s Minister of Industry, explained how the country is reducing its reliance on fossil fuels and the cost of energy by supporting its citizens to use solar power.
On driving inclusive growth
The role of technology – and AI in particular – in accelerating progress and growth was widely discussed, but MENA leaders emphasized the need to invest in people and ensure inclusive growth.
“Inclusive growth is not just a lofty ideal, it is a categorical imperative,” he said.
“We must co-create a global economy that works for everyone. Where every nation has the chance to thrive, regardless of its wealth or status. This means investing in people in their skills, in their education and in their well-being.
“We must also harness and direct new technologies to benefit humanity. Artificial intelligence has the potential to contribute trillions of dollars to the global economy over the next decade.”
“International trade and globalization are the main driver for economic growth, and the main driver for inclusive growth,” said Hala H. El Said Younes Minister of Planning and Economic Development of Egypt.
“What developing and middle-income countries need is more transfer of technology, more foreign direct investment and more capacity building for their people in order to become more resilient and to become more agile to any external shocks.”
Ahmed Galal Ismail, CEO, of Majid Al Futtaim Holding, sounded a note of optimism for the region: “I think from a private sector point of view, we need to deal with the current short-term challenges, but we must not lose hope that this region is on the brink of potential, a new golden economic age.”
There are “no egos” in economic planning said Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan. “It’s OK to change and adjust” in order to deal with the multiple shocks the world is experiencing.
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You need to focus, first of all, on your own people and the human capital development. This is a long-term play that is critical. Human capital is very, very critical. —Mohammed Al-Jadaan, Minister of Finance, Saudi Arabia”— Mohammed Al-Jadaan, Minister of Finance, Saudi Arabia
But, he stressed, many countries will find it very difficult to provide quality education and healthcare for their people.
During the meeting, Saudi Arabia and the Bill & Melinda Gates Foundation pledged to work together to help protect 370 million children annually from polio and lift millions out of poverty across 33 countries.
Women leaders from the region emphasized the need for inclusion of women, young people and marginalized communities to drive growth and job creation.
Noor bint Ali Alkhulaif, Minister of Sustainable Development of Bahrain, said: “What we’re seeing is amazing in terms of recognition by the private sector of the importance of women. You cannot isolate half of society. It’s almost easy maths – you add more inputs, you get more output.”
Emon Shakoor, a Young Global Shaper from the Forum’s Riyadh Hub said: “I think of diversity as meaning being invited to the party. But inclusivity is being asked to dance. As world leaders, as government leaders, as leaders of our organizations, we must ensure that the people who work with us are always being asked to dance, that they truly feel included in these environments.”
On collaboration and conflict resolution
The Israel-Gaza conflict was uppermost in MENA government leaders’ thoughts, with calls for a ceasefire, humanitarian aid and a Palestinian state.
In his special remarks, Mahmoud Abbas, President of the Palestinian National Authority, said: “The first thing we ask for is a ceasefire. And, secondly, we want the humanitarian aid to be able to reach the Palestinian people who are in dire need of it in all of Gaza. And, third, we will not accept in any case, the displacement of Palestinians from Gaza or from the West Bank outside their country.”
The Prime Minister of Jordan, Bisher Hani Al Khasawneh, said: “The world should unite in bringing about a sustained ceasefire and ensure the continuous and sustained flow of humanitarian assistance and goods into Gaza.”
Egyptian Prime Minister Mostafa Madbouli also called for the immediate creation of a Palestinian state. “Now, not tomorrow, the whole world should gather to recognize the right of Palestinians to have their own state.”
There was a strong focus on the need for collaboration to counter growing divergence and “geopolitical recession”.
“Global collaboration is not optional,” said Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning.
“It is essential at this critical juncture … human development calls for a convergence of cultures and ideas as we are all in the same boat, and we can either collaborate to steer it towards peace and prosperity, or we will drift towards a future that is out of our control.”
Competition not conflict is needed to aid economic growth and development, said Faisal bin Farhan Al Saud, Foreign Minister of the Kingdom of Saudi Arabia.
Abu Dhabi: The Economy Middle East Summit 2024 convened high-profile leaders at Abu Dhabi Global Market to share insights on ‘Accelerating Future Growth’ of the MENA region, said the organisers in a media release.
The event brought together top-tier attendees including UAE Minister of Economy Abdulla Bin Touq Al Marri. Salem Al Darei, CEO of ADGM Authority, delivered the welcome notes before the summit hosted several panel discussions. The summit’s agenda focused on key challenges and opportunities in banking and finance, technology, hospitality, tourism and the future of mobility.
The event focused on navigating the global economic landscape beyond 2024 and emphasized the MENA region’s economic outlook amidst new global realities. Discussions explored tomorrow’s digital financial services landscape and highlighted the significance of tourism as a key economic driver. The summit also featured insights into future technology ecosystems and fireside chats with key industry figures including Hatem Dowidar, Group CEO, e& and Badr Al Olama, Director General, Abu Dhabi Investment Office, which provided further perspectives on economic development and innovation.
Abdulla bin Touq Al Marri, UAE minister of Economy, confirmed that the Emirates has made great strides in diversifying its national economy and shifting towards a flexible economic model based on knowledge and innovation. As a result, the non-oil sector today accounts for 74% of the country’s total GDP. This confirms the effectiveness of the steps the UAE has adopted to further economic diversification, in line with the goals of the ‘We the UAE 2031’ vision and the UAE Centennial Plan 2071.
In his speech at the summit, the economy minister said: “The UAE continues its efforts to provide an incubating environment for conducting business and economic activities and develop flexible and competitive legislation and economic policies that will enhance the country’s attractiveness for foreign investments through establishing a suitable economic climate for investors, capital owners, and entrepreneurs. The most notable developments in this regard include the granting of 100% foreign ownership of companies, the modernization of visa and residency systems, and the introduction of self-employment and long-term residency pathways, which contribute to strengthening the country’s ability to confront global economic changes. They also contribute to consolidating its position as a leading destination for business and investment.”
Bin Touq pointed out that the summit serves as a key platform to shed light on the most prominent shifts in the global economic dynamics, and how to benefit from them in promoting sustainable economic growth at the local, regional and international levels, especially since the global economy is going through a state of uncertainty.
Roberta Gatti Chief Economist to the MENA region, The World Bank, said: “The MENA region is returning to its pre-pandemic trend of low growth, in the context of a global economy that is decelerating for the third consecutive year. MENA’s gross domestic product (GDP) is forecast to rise to 2.7% in 2024, which is a tepid increase from 1.9% in 2023. This outlook is marked by uncertainty, amidst the conflict in the region and rising levels of debt. In addition, rising debt is heavily concentrated in oil-importing economies, which now have a debt-to-GDP ratio 50 per cent higher than the global average of emerging market and developing economies. Oil importers in MENA are borrowing against an uncertain future. In the past decade, they have not been able to grow or even inflate their way out of debt, stressing the need for fiscal discipline and debt transparency, when debt stocks increase due to below-the-line spending. For oil exporters, the challenge is one of economic and fiscal-revenue diversification. This is because of the structural change in global oil markets and the rising demand for renewable sources of energy.”
In the first panel discussion, ‘Economic Frontiers: Navigating the Global Landscape in 2024 and Beyond,’ speakers included Dr Mahmoud Mohieldin, UN Special Envoy on Financing the 2030 Agenda for Sustainable Development and Executive Director, International Monetary Fund; Chris Williamson, Chief Business Economist at Standard & Poor’s Markets Intelligence; and Andrew Torre, Regional President of Visa for the Central and Eastern Europe, Middle East and Africa region. The session was moderated by Ziad Daoud, chief emerging markets economist, Bloomberg Economics, and highlighted the importance of strategic economic diversification, innovation ecosystems and the role of foreign investments. It also discussed emerging industries, investment opportunities, and the role of the Middle East in the rapidly evolving international business environment.
In panel two, ‘MENA Economic Outlook: Adapting to New Global Realities,’ Dr Hala Elsaid, Minister of Planning and Economic Development of Egypt, Roberta Gatti, who attended virtually, Chief Economist for the MENA region at the World Bank and Dr. Nasser Saidi, President and Founder Nasser Saidi & Associates Former DIFC Chief Economist, Economic Adviser & Consultant, focused on how geopolitical shifts affect regional economies, including Middle East conflicts, the Red Sea’s strategic importance and changes within BRICS countries. They analyzed economic policies’ impact on stability and growth, offering insights for exploring this evolving landscape. The session was moderated by Dr. Rawaa Harati, Founder & CEO, KINZ consultancy.
The ‘Digital Frontiers in Finance: Exploring Tomorrow’s Financial Services Landscape,’ panel examined accelerating digital transformation, embracing fintech innovations and navigating regulatory challenges. Speakers included Emmanuel Givanakis, CEO of FSRA at ADGM, Rola Abu Manneh, CEO of Standard Chartered UAE, Middle East, and Pakistan, Damian Hitchen, CEO of Saxo Bank MENA, and the moderator Jean Abou Assi, Partner leading digital financial services at PwC Middle East. They also discussed future market trade, highlighting the interplay between innovation and regulation and shared insights on adapting to an ever-evolving regulatory landscape.
The session ‘Tourism: The Pillar of Economic Strength,’ was moderated by Sunil John, founder of Asdaa’ BCW and former CEO of the MENA region for BCW. This discussion examined tourism as a key driver of economic growth, contributing to job creation, infrastructure development and cultural exchange, including its effects on small businesses and regional investment. Tourism serves as a double engine for the Gulf region, encouraging entrepreneurship and innovation while fostering cultural understanding, though growth must be balanced for environmental sustainability. Speakers included Saeed Ali Obaid Al Fazari, Executive Director of the Strategic Affairs Sector at the Department of Culture and Tourism – Abu Dhabi; and Dr. Saeeda Jaafar, Senior Vice President and Group Country Manager of the Visa Group in the GCC; and Haitham Mattar, President of IHG Hotels & Resorts, India, Middle East and Africa.
Joe Chidiac, CEO and publisher of Economy Middle East, organized the summit. He said: “Bringing together visionary leaders, distinguished ministers and industry experts, the Economy Middle East Summit 2024 served as a vibrant platform for innovative thinking, revolutionary ideas and collaboration, all aimed at driving accelerated growth across the Middle East.”
The summit was held in partnership with ADGM, one of the world’s leading international financial centres. It was supported by the Department of Economic Development in Abu Dhabi and Visa, the leading global company in payment services. Strategic partnerships included Alef Education and Standard Chartered.
Official development assistance (ODA) is defined as government aid designed to promote the economic development and welfare of developing countries. Loans and credits for military purposes are excluded. And the Flows increase again as reported today by Mahmoud Mamart in El Watan-DZ.
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Official Development Assistance: Flows increase again
Official Development assistance provided by donors in 2023 reached a new high of $223.7 billion, up from $211 billion recorded in 2022, the Organisation for Economic Co-operation and Development (OECD) said in a statement. According to preliminary data from this international organization, supplier countries have increased aid flows to Ukraine and sent more humanitarian aid to developing countries.
The 1.8% increase in real terms in 2023 is the latest in a series of annual increases in official development assistance (ODA), provided by members of the OECD’s Development Assistance Committee (DAC), the statement released this week added. This is the fifth year in a row that ODA has reached a record level. The total amount of aid for 2023 is up by a third compared to 2019 levels, reflecting the additional aid provided since the following crises of the COVID-19 pandemic and the Russia-Ukraine war.
Accounting for 0.37% of the combined gross national income (GNI) of DAC donors for the second year in a row, total ODA remains below the UN’s long-standing target of 0.7% ODA relative to GNI. Among DAC members, five countries – Germany, Denmark, Luxembourg, Norway and Sweden – exceeded the UN target of 0.7% of GNI for ODA in 2023. The main providers of aid by volume were the United States, Germany, Japan, the United Kingdom and France.
In 2023, ODA increased in 14 of the 31 DAC member countries, and decreased in 17 countries, some due to lower refugee costs and others due to lower lending. ODA provided by the European Union institutions, which are also members of the DAC, has also increased.
Aid to Ukraine increased by 9% in 2023 to $20 billion, including $3.2 billion in humanitarian aid. In 2023, ODA also increased to the West Bank and the Gaza Strip, with preliminary estimates showing a 12% increase from 2022 to $1.4 billion. Of this total, $758 million was allocated to humanitarian assistance, which increased by 91% compared to 2022. Globally, humanitarian aid increased by 4.8% in 2023 to $25.9 billion. ODA used to cover the costs of hosting refugees in donor countries fell by 6.2% in 2023 to $31 billion.
Helping the most vulnerable
“Official development assistance (ODA) remains an important, stable and reliable source of external financing for developing countries. Donor countries have provided a record level of international assistance for the fifth consecutive year, maintaining their support for long-term development priorities while helping countries around the world meet short-term needs related to shocks and external pressures,” said OECD Secretary-General Mathias Cormann.
“With slowing growth and rising debt servicing, developing countries face new fiscal pressures and a growing risk of debt distress. Long-term structural challenges exacerbate these pressures, such as climate change and widening economic and social disparities. We must therefore remain focused and determined to help the most vulnerable achieve their economic development and growth goals.” In a similar vein, Carsten Staur, Chair of the OECD-DAC, said that in the future, “donors will need to step up their support to the poorest and most vulnerable countries, particularly the least developed and sub-Saharan African countries. We need to focus more on efforts to help partner countries fight extreme poverty and climate change.”
According to preliminary data from the OECD, bilateral aid flows from DAC members to the group of least developed countries (LDCs) amounted to $37 billion, an increase of 3% in real terms in 2023 compared to 2022, when they recorded a decline of 6.2%. Mahmoud MamartDevelopment assistance provided by official donors in 2023 reached a new high of $223.7 billion, up from $211 billion recorded in 2022, the Organisation for Economic Co-operation and Development (OECD) said in a statement. According to preliminary data from this international organization, supplier countries have increased aid flows to Ukraine and sent more humanitarian aid to developing countries.
The 1.8% increase in real terms in 2023 is the latest in a series of annual increases in official development assistance (ODA), provided by members of the OECD’s Development Assistance Committee (DAC), the statement released this week added. And this is the fifth year in a row that ODA has reached a record level. The total amount of aid for 2023 is up by a third compared to 2019 levels, reflecting the additional aid provided since the following crises of the Covid-19 pandemic and the Russia-Ukraine war.
Accounting for 0.37% of the combined gross national income (GNI) of DAC donors for the second year in a row, total ODA remains below the UN’s long-standing target of 0.7% ODA relative to GNI. Among DAC members, five countries – Germany, Denmark, Luxembourg, Norway and Sweden – exceeded the UN target of 0.7% of GNI for ODA in 2023. The main providers of aid by volume were the United States, Germany, Japan, the United Kingdom and France. In 2023, ODA increased in 14 of the 31 DAC member countries, and decreased in 17 countries, some due to lower refugee costs and others due to lower lending. ODA provided by the European Union institutions, which are also members of the DAC, has also increased.
Aid to Ukraine increased by 9% in 2023 to $20 billion, including $3.2 billion in humanitarian aid. In 2023, ODA also increased to the West Bank and the Gaza Strip, with preliminary estimates showing a 12% increase from 2022 to $1.4 billion. Of this total, $758 million was allocated to humanitarian assistance, which increased by 91% compared to 2022. Globally, humanitarian aid increased by 4.8% in 2023 to $25.9 billion. ODA used to cover the costs of hosting refugees in donor countries fell by 6.2% in 2023 to $31 billion.
Helping the most vulnerable
“Official development assistance (ODA) remains an important, stable and reliable source of external financing for developing countries. Donor countries have provided a record level of international assistance for the fifth consecutive year, maintaining their support for long-term development priorities while helping countries around the world meet short-term needs related to shocks and external pressures,” said OECD Secretary-General Mathias Cormann.
“With slowing growth and rising debt servicing, developing countries face new fiscal pressures and a growing risk of debt distress. Long-term structural challenges exacerbate these pressures, such as climate change and widening economic and social disparities. We must therefore remain focused and determined to help the most vulnerable achieve their economic development and growth goals.” In a similar vein, Carsten Staur, Chair of the OECD-DAC, said that in the future, “donors will need to step up their support to the poorest and most vulnerable countries, particularly the least developed and sub-Saharan African countries. We need to focus more on efforts to help partner countries fight extreme poverty and climate change.”
According to preliminary data from the OECD, bilateral aid flows from DAC members to the group of least developed countries (LDCs) amounted to $37 billion, an increase of 3% in real terms in 2023 compared to 2022, when they recorded a decline of 6.2%.
– our new study may warn us of future climate tipping points Martin H. Trauth, University of Potsdam; Asfawossen Asrat, Addis Ababa University, and Mark Maslin, UCL Image of Capitano Footage / shutterstock Around five and half millenia ago, northern Africa went through a dramatic transformation. The Sahara desert expanded and grasslands, forests and lakes favoured […]
. By Sanjana Gajbhiye Earth.com staff writer For centuries, desert travelers have relied on oases as life-giving sanctuaries. These pockets of green have sustained communities, fueled trade, and sparked imaginations. Yet, oases are under pressure. New research exposes the delicate balance between human intervention and natural forces such as desertification shaping the fate of these vital ecosystems. What is […]
Prefacing such a book is no small feat. You have to get into the swing of things, and whether it’s Moorish or Turkish, it doesn’t matter; the main thing is the feverish, friendly and vaporous atmosphere that reigns in the hot room, the quality of its accessories, such as the “kèssa”, the “tassa”, the “bligha” […]
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