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%.
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