This was driven by increased spending by the Foreign and Commonwealth Office (FCO) and DFID. Ireland and Norway complete the top five nations in the index. the donor has specified where and/or what the ODA is spent on this is usually ODA going to specific countries, regions or programmes. In particular, DFIDs bilateral ODA spend increased by 711 million, to 7,064 million in 2019. Here are the six types of foreign aid: 1. Section 2 - largest donors and recipients in a region. The report finds that, partly as a result, in 2021 UK bilateral aid spending in least developed countries (LDCs) decreased to 1.4bn, which represented about 12% of the aid budget. Figure 16 shows the UK remained the third largest DAC donor in 2019 at 15.2 billion, behind the United States (27.1bn) and Germany (18.7bn). This could have an impact on the recent trends of some recipient countries. These non-DFID sources account for around 29.6% in 2019 and are largely derived from financial transaction data. 3 minutes read. These are extracted from DFIDs ARIES database, and the detailed data is subject to input errors from spending teams. Its activities include, among others, primary education, basic health services, clean water and sanitation, agriculture, business climate improvements, infrastructure, and institutional reforms. LONDON British ministers are being urged to spend the U.K.'s constrained aid budget in the world's poorest and most vulnerable nations rather than allocating spending to the Home Office. Figure 12 provides an overview of bilateral ODA by major sector in 2019, compared against 2018 spend. Least Developed Countries (LDCs/Other LICs) received more Humanitarian Aid (949m, 33.6% of total bilateral ODA to LDCs/Other LICs) and Health support (528m, 18.7% of total bilateral ODA to LDCs/Other LICs), whereas spend in these sectors was much lower for Upper-Middle Income Countries, where more ODA is spent on Multisector/Cross-Cutting sectors (140m, 20.1% of total bilateral ODA to UMICs) and Government and Civil Society (131m, 18.9% of total bilateral ODA to UMICs), View full size version of infographic: Case Study 2 Humanitarian. A project title and description are also provided. Further information on the data sources, quality and processing of the statistics in this publication are found in Annexes 1-3 on the Statistics on International Development webpage. In comparison, Norways ODA spend (3.4bn) was roughly an eighth of the United States but its ODA:GNI ratio was 1.02% showing that Norway spends a larger share of its national income on ODA. The UK's foreign aid budget is being "raided" by the Home Office to cover the costs of hotel accommodation for refugees, a committee of MPs has claimed. Second, while the transition economies in Eastern Europe and Central Asia together . This is unchanged from 2018. We are always keen to enhance the value of these statistics and welcome your feedback either via our Statistics User Group or via email statistics@fcdo.gov.uk. bilateral ODA accounted for 67.5% of total UK 2019 ODA. It highlights that although the United States spent the greatest volume of ODA of any DAC donor (27.1bn), this represented a smaller share of its national income when compared with most other donors (0.16% of its GNI). The UK's foreign aid budget is being "raided" by the Home Office to cover the costs of hotel accommodation for refugees, a committee of MPs has claimed. Conflict, Stability and Security Fund (CSSF). Department of Health and Social Care (DHSC). In addition, the CSSFs Rapid Response Mechanism allows funding to be released immediately, across government departments to respond to a crisis. Due to an update to its financial systems, the Foreign, Commonwealth and Development Office (FCDO) is temporarily unable to update DevTracker. Multilateral Aid: When multiple governments pool resources in cooperation with organizations like the World Bank, the IMF, and the UN. Developing Countries. To understand more about ODA eligible Gift Aid, please see methodology note. The lighter blue represents the same measure but for ODA delivered through the Bilateral through Multilateral channel. Office for Statistics Regulation published their finding from the compliance check of SID which confirmed that it is designated a National Statistics. Information on the main definitions and sources used in this publication can be found in Annexes 2 and 3 respectively of the Statistics on International Development publication. A report from the International Development Committee said the world's poorest countries were being "short-changed" by the government as the "political . Tied Aid: The receiving country accepts aid with the expectation that it is spent in the lending country. In 2019 the Foreign & Commonwealth Office (FCO) used ODA from its core departmental budget and the Joint Funds (Conflict, Stability and Security Fund, and Prosperity Fund) to support and deliver the strategic objectives of the governments 2015 Aid Strategy and support delivery of the UNs Sustainable Development Goals (SDGs). In 2016, the UK spent 13.4 billion on overseas aid, in line with the 0.7% target. For enquiries (non-media) about the information contained in this publication, or for more detailed information, please contact: Alice Marshall You have accepted additional cookies. This publication confirms the UKs ODA:GNI ratio for the previous year, as well as including more detailed analysis of the UKs Bilateral and Multilateral ODA, and includes the microdata used to produce the publication. You have rejected additional cookies. , From 2018 onwards, Official Development Assistance (ODA) has changed from being measured on a cash basis to a grant equivalent basis, following a decision taken by the DAC in 2014. UK foreign aid spending in 2016. Britain will only spend . This followed a peak in 2017 as a result of high levels of humanitarian aid. Figure 9: Breakdown of DFID (A) and non-DFID (B), Country/region Specific proportion of Bilateral ODA by Region, 2015 & 2019. The 5 largest sectors for bilateral spend in 2019 were: Figure 12: Bilateral ODA by major sector, 2018 & 2019. The vertical dashed line indicates the 0.7% ODA:GNI UN target. Within this major sector the top three spending areas were Research/Scientific institutions (358m), Multisector Aid (307m) and Environmental Policy and Administrative Management (208m). It outspends the next largest, Germany, by more than $10 billion a year; the United Kingdom, Japan, and France follow. For more information please see the explanatory note that was published in September 2019. Multisector/Cross-Cutting - 1,325 million (12.9%). Figure 11: Breakdown of UK 2019 bilateral ODA by Type of Aid. This drop in ODA, moved Nigeria from being the third largest recipient of UK country-specific bilateral ODA in 2018 to fifth in 2019 (Figure 7), Nigerias lowest position in 5 years. This memorandum surveys U.S. economic sanctions and anti-money laundering ("AML") developments and trends in 2022 and provides an outlook for 2023. The Government has announced that it expects to spend 10 billion on overseas development assistance (ODA) in 2021/22. In 2019 (the most recent year for which comprehensive numbers have been released), the U.S. spent over $47 billion on foreign aid - about the same as 2018 and $1 billion more than in 2017. Select country to view. by bilateral through multilateral ODA (earmarked funding) and core contributions to multilateral organisations (un-earmarked funding). The DAC reviews the list every 3 years. In 2021, the United States budgeted $38 billion for foreign aid spending. Finally, the Scottish Governments Climate Justice Fund helps tackle the effects of climate change in the poorest, most vulnerable countries, with a 3m budget. This increased to 115.1 billion for final ODA for 2018 an increase of 0.3 per cent. The list of countries is reviewed every three years by the OECD-DAC, and countries exceeding the high-income threshold for 3 consecutive years are no longer ODA eligible. See our note on Multiple Sector Codes for Project Activity Analysis 2017 which looks at the impact of this methodology change, Economic Services & Infrastructure include programmes that focus on Transport, Energy Generation, Banking & Financial Services and Business. By Jennifer Scott, political reporter. This is an increase of 61 million in 2019 compared to 2018. DWP pays an annual core contribution to the International Labour Organisation (ILO). The Government slashed the foreign aid budget from 0.7% to 0.5% of UK national income in 2021. . The fall reflected the Government's decision to reduce aid spending from 0.7% to 0.5% of Gross National Income (GNI) as a "temporary measure" in response to the pandemic's effects on the UK's public finances and economy. In 2021, UK aid spending fell 21% compared to 2020 to stand at 11.4 billion. United States foreign aid, also known as US foreign assistance consists of a variety of tangible and intangible forms of assistance the United States gives to other countries. Foreign aid by country 2022. Figure 15: Bilateral ODA by Income Group for the Major Sectors, 2019. Italy is the lowest performing G7 country in the rankings at number 20 while the US, where the administration is reviewing US aid priorities, ranks at number nine. The UK's foreign aid budget is being "raided" by the Home Office to cover the costs of hotel accommodation for refugees, a committee of MPs has claimed. Core contributions to multilateral organisations: A full breakdown of UK ODA by Government Department and Other Contributors of UK ODA and delivery channel in 2015, 2018 and 2019 is available online in Table 10. The United States is by far the largest single foreign donor. Also included is spend within specific sectors for which there are no designated benefitting country or region or where benefitting countries are not known until the end of the programme[footnote 11] (section 4.1.5). Figure 1 legend: The blue bars are the UK ODA spend from 1970 to 2019, the pink line is the calculated ODA:GNI ratio from 1970 to 2019 and the grey dashed line is the 0.7% ODA:GNI target set by the United Nations General Assembly in 1970. Dr Angela Clare. It has frequently been the top spend area in previous years, but in 2018 Humanitarian Aid was the third largest sector, after Health and Multisector/Cross-cutting. In-donor spend on support to asylum seekers and the resettlement of vulnerable people. Figure 17: DAC Donors Provisional ODA:GNI Ratio, 2018 and 2019[footnote 26]. The UK uses data on ODA spend by sector and country/region which is reported by each multilateral organisation to the OECD DAC to estimate what percentage of DFID and UK core contributions are spent in each country and sector. The entirety . This administrative source comprises 73.1% of total UK ODA in 2019, non-DFID sources, who also assess whether the spend is in line with the OECD definitions of ODA. According to Full Fact, the UK spent $12.1bn on overseas aid in 2015 after the target was introduced. Other reasons for fluctuations between years include the change in UKs share of the EU budget in comparison to other member states and exchange rate variations, in 2019, the UKs core contribution to IDA was 891 million, a decrease of 1,040 million from 2018. See Annex 1 for more detail. This reflects that core contributions to multilaterals, are in general, based on multi-year commitments which may not be uniformly spread across years, 10,258 million of UK ODA spend was delivered through bilateral channels. . BEIS=Department for Business, Energy and Industrial Strategy; FCO=Foreign & Commonwealth Office. The CSSF is able to respond both to evolving security threats and unforeseen crises. In a calendar year, FCDO and HM Treasury will monitor spend by other departments and funds, and movements in GNI during the year[footnote 28]. We use some essential cookies to make this website work. The DAC sets the definitions and classifications for reporting on ODA internationally. A separate 1m Humanitarian Emergency Fund also provides humanitarian funding to support crises as they occur, including during 2019 support for Mozambique, Malawi and Zimbabwe following Cyclone Idai, and for the Ebola crisis in the Demographic Republic of Congo. The countries that give the most foreign aid are among the wealthiest nations in the world. It is therefore not possible to directly track the use of UK core multilateral funding. Provision of technical assistance in tax policy and administration issues to support the strengthening of tax systems in developing countries. Education (for compulsory school age) and healthcare for asylum seekers based in Scotland, Wales and Northern Ireland. Figure 1: UK ODA levels ( billions) and ODA:GNI ratios (%), 1970 - 2019. DFID spend in dark blue and non-DFID spend in grey. The list also states the proportion of a core contribution to each multilateral that can be counted as ODA, and is driven by proportion of ODA eligible work the multilateral carries out, The UK contribution could be used for different programmes or initiatives as well as general operations of the organisation. Multilateral funding, by Government Departments and other contributors[footnote 20]. These shares are similar to 2018, UK bilateral ODA spend to the top 5 recipient countries in 2019 increased from 1,409 million in 2018 to 1,415 million in 2019. The majority of non-DFID country-specific ODA was channelled to Middle Income Countries 71.5% (440m to LMICs and 412m to UMICs), LDCs and Other LICs received 339 million of non-DFID bilateral ODA in 2019, this was an increase of 112 million compared to 2018. , Frontline Diplomatic Activity (FDA) costs are administrative costs of core programme and operational delivery in or in favour of DAC-listed recipient countries that meet the primary ODA purpose. Humanitarian Aid was the largest sector of ODA spend in 2019 (Figure 12). In 2019, 176 million was delivered through the Cross-Government Prosperity Fund. A new report from the cross-party Commons international development committee of MPs hits out at the use of the Foreign . Department for Digital, Culture, Media and Sport (DCMS). On 28 August, the ODA statistics team published a note on the Gross Public Expenditure statistics (GPEX). It also includes a summary of the government's current international development strategy and commentary on some of the issues affecting UK aid spending. The President's Fiscal Year (FY) 2023 Budget Request for the State Department and the United States Agency for International Development (USAID) is $60.4 billion, which includes $29.4 billion for USAID fully and partially managed accounts, $1.7 billion (6 percent) above the FY 2022 Request. Figure 15 legend: Comparison of sector spend for 2019 UK bilateral ODA between countries of different income groups ( million). , Defined as ODA-eligible multilateral organisations for core (unearmarked) contributions by the OECD DAC, see http://www.oecd.org/dac/stats/annex2.htm, The UK may also provide funding to these organisations for specific programmes, which would be recorded as bilateral spend through a multilateral organisation. Foreign aid may be given as a signal of diplomatic approval, or to strengthen a military ally. Figure 18 shows the top 15 recipient countries of total ODA from the DAC donor countries in 2018 and the UKs share of ODA in these recipient countries. When DFID or other UK government departments provide core funding to multilateral organisations, the funding is pooled with other donors funding and disbursed as part of the core budget of the multilaterals. Check benefits and financial support you can get, Find out about the Energy Bills Support Scheme, Statistics on International Development: Final UK Aid Spend 2019, Comparisons between the UK and other International Donors, Listing of main activities of UK Government Departments and other contributors of UK ODA other than DFID in 2019, nationalarchives.gov.uk/doc/open-government-licence/version/3, Statistics on International Development webpage, Charities Aid Foundations UK giving report, Table 3: Top Twenty Recipients of UK Core Funding to Multilateral Organisations - Multilateral ODA 2018 and 2019, Table 4. DEFRAs ODA programming supports the delivery of all four UK Aid Strategy objectives by strengthening global peace, security and governance, strengthening resilience and response to crises, promoting Global Prosperity and tackling extreme poverty and helping the worlds most vulnerable. The UK was spending approximately 0.43 percent on foreign aid a decade ago and 0.57 as recently as 2012. We also provide some thoughts concerning compliance and risk mitigation in this challenging environment. Figure 3 (and Table 2) shows 2019 ODA spend by government department and other contributors of UK ODA, as well as changes in ODA spend from 2018. The largest OGD shares of ODA were: the Department for Business, Energy & Industrial Strategy (BEIS) (6.3% of ODA); the Foreign and Commonwealth Office (4.5%), the Conflict, Stability and Security Fund (4.3%); and the Home Office (3.0%), the largest non-departmental sources (referred to as Other UK Contributors of ODA in Figure 3) were non-DFID EU attribution (3.2% of UK ODA) and Gift Aid claimed by charities working on ODA eligible activities (1.0% of UK ODA). DWP spend also includes ODA-eligible benefits to refugees within the first 12 months of stay in the UK as part of the Vulnerable Persons Resettlement (VPR) programme. Entertainment & Pop Culture; Geography & Travel; Health & Medicine; Lifestyles & Social Issues; Literature; Philosophy & Religion; Politics, Law & Government , The Global Partnership for Education is an example of a sectoral-specific fund where amounts allocated to countries is not known in advance. Figure 14 provides an overview of the highest spending sector for each of the top 10 recipient countries of UK bilateral ODA in 2019. First, total Russian net ODA disbursements nearly quadrupled from US$231 million in 2010 to US$902 million in 2015 (in constant 2015 dollars). Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. In 2021, about 743 million pounds was spent on humanitarian assistance such as disaster relief, a . For media enquiries please contact the FCDO Press Office on +44 (0)20 7008 3100. Rep.) remains a top 10 recipient of UK bilateral ODA after entering in 2018 due to the increase in Humanitarian Aid spend, which has been the highest sector spend in the country for the last 3 years, South Sudan became a top 10 recipient of UK bilateral ODA in 2019 due to the increase in Health spend, which became the highest spend sector in the country in 2019, while Humanitarian Aid had been the highest sector for the previous 5 years, the amount of UK ODA to the top 5 multilaterals represented 68.7% of total multilateral ODA in 2019. ODA is defined as resource flows to developing countries and multilateral organisations, which are provided by official agencies (e.g. BEISs ODA includes spend on International Climate Finance, jointly managed with FCDO and DEFRA. UK ODA spend figures for this publication are derived from: DFIDs ARIES database of financial transactions relating to DFID payments and receipts, which is quality assured centrally to ensure that data is complete, coding is correct and spend is in line with OECD definitions of ODA. Figure 5 legend: World Map coloured by amount of bilateral ODA spend in recipient country ( million) in 2019. The ONS produce estimates for UK Gross Domestic Product (GDP) and Gross National Income (GNI) on a quarterly basis. The data used for ODA flows by recipient countries is for 2018. It comes after Foreign Secretary Dominic Raab set out the allocations for UK ODA spending for 2021-22 to MPs, with the government acting on its decision to cut the UK's annual foreign aid . For the departmental breakdown see Table 4a. This share was still below the 2017 level of 28.1%, of the non-DFID contributors, Other Government Departments (OGDs) ODA accounted for 22.4% of total UK ODA, their largest share over the last 10 years. Compared with 2015, the percentage share of DFIDs region-specific bilateral ODA received by Africa has slightly decreased (by 3.3 percentage points) and the share received by Asia has slightly increased (by 2.2 percentage points). This shift in share was in part driven by the decrease seen in the UKs core contributions to multilaterals as well as the actual increase in bilateral ODA spend. Foreign aid is used to support US national security and commercial interests and can also be distributed for humanitarian reasons. The Joint Funds are covered separately as a whole, regardless of which Government Department spends the money. It includes all low, lower-middle and upper-middle income countries, except for those that are members of the G8 or the European Union (including countries with a firm accession date for EU membership). However, the nation has hit the 0.7 percent target each year since 2013. This represents 0.5% of expected gross national income (GNI) and is a reduction in aid spending from the legislative target of 0.7%. C. Other = Other contributors of UK ODA, Scottish Government, Other In-Donor Refugee Costs, Colonial Pensions administered by DFID and Welsh Government. Non-DFID contributors accounted for the total spend on Refugees in Donor Countries (477m) which consists of ODA eligible support for refugees in their first year of stay in the UK (for example food and shelter), the sector Humanitarian Aid received the largest amount of UK ODA in seven of the top 10 recipient countries in 2019, consistent with 2018, in Pakistan, UK ODA spend on Education has been consistently higher than any other sector over the past 5 years (over 100m per year), in Ethiopia, Humanitarian Aid has consistently been the largest sector spend since 2017, in response to drought affected areas, giving access to food assistance and other immediate relief, over the past 5 years in Afghanistan, the UK has consistently spent more in the Government and Civil Society sector than any other. Germany followed with over . Its International Climate Finance seeks to deliver climate mitigation and adaptation benefits focused on protecting the worlds most biodiverse forests, promoting sustainable livelihoods through improved land use and agricultural practices, and contributing to global food security. Where a multilateral organisation does not report to the DAC but the multilateral is only mandated to work in a particular country, region or sector, we allocate all of its core contributions to the relevant country, region or sector. , Please see Table C6 in Excel Tables: Statistics on International Development 2019 for underlying data, From 2017, a single project could allocate spend to one or more sectors codes. Figure 15 summarises the differences in the main sectors of 2019 UK bilateral ODA spend between countries of different income groups. Figure 3: Breakdown of UK ODA by contributor (2015, 2018 and 2019). A full micro-dataset is also available in Open Data Standard format on the Statistics on International Development webpage. It also consists of ODA-eligible expenditure within donor countries, such as the ODA-eligible portion of costs to support asylum seekers and refugees in the UK. The Office for Statistics Regulation (part of the United Kingdom Statistics Authority) designated these statistics as National Statistics in March 2016, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Statistics. Section 4.1 provides a detailed breakdown of ODA spending by recipient region and country; section 4.2 provides a breakdown of ODA spending by sector (for example, health or humanitarian aid); and . Figures released by the Foreign Office yesterday revealed that China . Dark blue = LDCs/Other LICs (Least Developed Countries/Other Low Income Countries), light blue = LMICs (Lower Middle Income Countries), grey = UMICs (Upper Middle Income Countries). You can change your cookie settings at any time. In the Blue Book 2019, the ONS implemented a major new methodology framework for GDP, which in turn had a sizable impact on GNI. Difference between Provisional and Final publications. Canada - Unlike other countries, Canada has taken a unique feminist approach. ODA allocation was 14.5 billion in 2020. Spend increased by 56 million on 2018 to 207 million in 2019. The plan to reduce the UK's contribution to foreign aid to 0.5% of GNI - despite a United Nations target of 0.7% - has been met with widespread domestic and international criticism. It supports them to deal with the impacts of climate change by building their capacity to act themselves and by catalysing large scale public and private finance investments. This publication updates previous provisional figures of UK ODA for 2019 published in April 2020. Table 4 shows multilateral UK ODA in 2015, 2018 and 2019 by government agency and delivery channel i.e. The headline grant equivalent measure of UK ODA for 2019 was 15,197 million, compared to 15,179 million on the cash basis measurement (a difference of 0.1%). It covers the total amount of UK ODA spent in 2019, the calculation of the ODA:GNI ratio, longer-term spending trends, breakdowns of UK ODA spend by main delivery channel, and by Government Departments and other contributors.