developing country, unspecified ODA) (Figure 11). However, to provide an indication of the destination and sector of UK multilateral ODA, overall percentages of ODA disbursements by the relevant multilateral organisations are used to impute a UK estimate. The dark blue section represents the proportion of total UK ODA delivered through Other Bilateral channels. DFIDs Annual Report provides information on DFIDs spending, performance and efficiency for 2019/20. 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. Due to an update to its financial systems, the Foreign, Commonwealth and Development Office (FCDO) is temporarily unable to update DevTracker. Compared to 2018, Government and Civil Society had an increased spend of 118 million in 2019, with the majority of this coming from DFID (90m). This was due to a rise in spending to support asylum seekers in the UK, primarily reflecting an increase in Asylum Support volumes in 2019 when compared to 2018, BEIS spent 960 million of ODA in 2019 an increase of 110 million, or 12.9%, on 2018. Figure 3 legend: A) Percentage of UK ODA spend by DFID, Other Government Departments (OGDs) and Other UK Contributors (Other Contributors) in 2015 (dark blue), 2018 (light blue) and 2019 (grey). A small proportion of UK bilateral ODA goes to the Pacific (Figure 4). The House of Lords will hold a debate on the subject on 15 December 2022. The lighter blue represents the same measure but for ODA delivered through the Bilateral through Multilateral channel. 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. See Annex 1 for more detail. BEISs ODA includes spend on International Climate Finance, jointly managed with FCDO and DEFRA. In-donor spend on support to asylum seekers and the resettlement of vulnerable people. The ONS produce estimates for UK Gross Domestic Product (GDP) and Gross National Income (GNI) on a quarterly basis. The UKs share of total DAC ODA was 12.7 per cent. For example, Afghanistan in 2018 was in 4th position, and in 2019 is in 3rd position (a change of +1). ODA spend allocated to Africa increased by 125 million increase in 2019 to 2,989 million, whilst the percentage share remained similar to the share in 2018 (50.6%), (Figure 4). Figure 12 legend: Major Sector Spend comparison between 2018 and 2019 bilateral ODA ( millions). The amount spent on aid also fell in 2020 due to the contraction of the economy, equivalent to around . BBC World Service contributes to the BBCs international news mission to address the global gap in provision of trusted news by broadcasting and distributing accurate, impartial and independent news and analysis in developing countries. This information is primarily inputted by spending teams in DFID country offices and central departments, with some quality assurance carried out at input and centrally to ensure that spend is in line with OECD definitions of ODA ii) Other Government Departments and contributors some of which have similar databases to record ODA transaction data. Australia's Official Development Assistance (ODA) will remain at $4 billion in 2020-21, down $44 million from last year and in line with the Government's freeze on aid funding expected to remain in place until 2022-23.. The quality assurance Annex 3 describes the steps that have been taken by FCDO statisticians to minimise these kinds of input errors, and to produce UK ODA statistics. For enquiries (non-media) about the information contained in this publication, or for more detailed information, please contact: Alice Marshall Whilst the majority of funding is delivered via multi-year programmes or spending commitments, each year the CSSF reviews its spending via the allocations process. Dont worry we wont send you spam or share your email address with anyone. 'Opaque' aid spending short-changing poorest countries, say MPs Note that provisional 2019 spend from other DAC donors is used in this chart. Office for National Statistics technical assistance to build capacity of statistical systems in developing countries. In 2019, the UK remained the country with the fifth highest ODA:GNI ratio with 0.70%; Luxembourg had the highest with 1.05%. From 2018 onwards, ODA has changed from being measured on a cash basis to being measured on a grant equivalent basis, following a decision taken by the DAC in 2014[footnote 3]. For the 2019 ODA:GNI ratio, the GNI estimate is based on the pre-Blue Book 2019 framework since the first quarterly estimate of 2019 GNI under the new framework did not become available until 30 September 2019. This was the largest year-on-year increase compared to the other income groups, 43.0% of spend within this category consists of project-type interventions and includes expenditure on multi-country or multi-region projects. The estimate for the UKs EU attribution in 2019 was 983 million compared to 951 million in 2018, EU attribution fluctuates from year to year because the EU works on a 7 year programming cycle and so EU disbursements in a given year can vary. It shows: Figure 18: Map of the top 15 highest recipients of total DAC Members bilateral ODA Spend and UKs Share by Country, 2018. The DAC sets the definitions and classifications for reporting on ODA internationally. The tracker uses open data on development projects, compliant with the International Aid Transparency Initiative (IATI) standard, to show where funding by the UK Government and its partners is going and trace it through the delivery chain. You have rejected additional cookies. Seven of the top ten country-specific ODA increases from 2018 were seen in LDC/Other LICs (Yemen, Bangladesh, South Sudan, Uganda, Afghanistan, Mozambique and Zambia), LDCs and Other LICs continue to account for the largest proportion of bilateral country-specific ODA spend in 2019 at 56.4%, UK ODA to LMICs represented 29.7 per cent (1,488m) of UK country specific bilateral ODA in 2019, compared to 32.3% (1,458m) in 2018, total UK bilateral ODA received by UMICs increased by 136 million to 694 million in 2019. For the first time since 2014, there was no core contribution to the IMF-Poverty Reduction Growth Trust. Other reasons to give foreign aid include to reward a government for behavior desired by the donor, to extend the donor's cultural influence, to provide the infrastructure needed by the donor for resource extraction from the recipient country, or to gain other kinds of . Over 5 years: ODA to the Americas is on a smaller scale than spend to Africa and Asia, however despite the drop this year, it had been increasing steadily year-on-year from 159 million in 2015 to 355 million in 2018. Bilateral Aid: Direct government-to-government assistance. What is the UK's overseas aid budget? The size of the circles indicates the amount of ODA spent on that sector in that country relative to the other sectors and other countries. The report released on Saturday, October 29 says that is because a large percentage of the money set aside for aid is being spent on housing and supporting refugees. 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. Figure 8 legend: Breakdown of Country-Specific UK Bilateral ODA by Country Income Group, 2009-2019. [2] China's Belt and Road Initiative (BRI)announced in 2013is the flagship under which China has made hundreds of pledges to support different countries and . The 2021 federal budget announced an additional $1.4 billion for international assistance over five years. We also use cookies set by other sites to help us deliver content from their services. In 2019, 659 million was delivered through the fund, an increase of 54 million compared to 2018. Such spend comprises of, for example, centrally-funded research or programmes that develop policies which aim to benefit several developing countries. Foreign aid is used to support US national security and commercial interests and can also be distributed for humanitarian reasons. Spend increased by 56 million on 2018 to 207 million in 2019. While Ukraine has been able to acquire a variety of modern weapons from the U.S. and Europe, few countries have been willing to d. 17 hours ago. This was mostly due to an increase in humanitarian aid spend, with the largest country specific increase to Yemen (see Case Study 1, p. 32, for a more detailed look at the story in Yemen). In 2014, China's aid flows were officially estimated at over $4 billion per yearsimilar in volume to Canada or Norway, and about a third of the size of the UK's aid budget. Private spending or donations made in support of developing countries, for example by the public, the voluntary sector or through remittances, are not part of the ODA definition and not covered in this publication. The Cross-Government Prosperity Fund has increased its ODA spend year on year, since the fund started spending ODA in 2016, as they move more programmes into implementation, despite DFIDs ODA spend increasing, DFIDs share of total ODA dropped from 74.9% in 2018 to 73.1% in 2019. The rank (1:10) is on the y-axis, ODA spend (million ) is on the x-axis. Cuts to UK foreign aid budget are shortsighted and could damage British To understand more about ODA eligible Gift Aid, please see methodology note. 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. The UK government has been signed up to the target since 1974, but reached it for the first . The Joint Funds are covered separately as a whole, regardless of which Government Department spends the money. the social, economic or humanitarian assistance area it aims to support. Department of Health and Social Care (DHSC). DfEs ODA covers support of asylum seekers in the first 12 months after they make a claim for asylum in the UK. The analysis in this chapter is based on provisional[footnote 21] 2019 ODA data from all 29 Development Assistance Committee (DAC) member countries[footnote 22] except the UK, for which final 2019 ODA data is used. Dark blue = Pakistan, light blue = Ethiopia, grey = Afghanistan, pink = Yemen, teal = Nigeria. For media enquiries please contact the FCDO Press Office on +44 (0)20 7008 3100. Foreign aid - The Telegraph Through its donor contributions, IDA aims to reduce poverty by providing concessional loans and grants for programs that boost economic growth, reduce inequalities, and improve peoples living condition. For more detail on the grant-equivalent impact on other donors see Final SID 2018. In the Blue Book 2019, the ONS implemented a major new methodology framework for GDP, which in turn had a sizable impact on GNI. Since 2013, UK ODA has continued to increase in line with growth in the UKs GNI. Multilateral funding, by Government Departments and other contributors[footnote 20]. Department for Environment, Food and Rural Areas (DEFRA). U.S. Foreign Assistance by Country - FA.gov The majority of this increase was spent in the health sector, and the largest country-specific increase was to South Sudan (see 4.1.3.2 for more information). Provision of technical assistance in tax policy and administration issues to support the strengthening of tax systems in developing countries. The strategy is published in the context of reduced UK aid spending and the Government's wider foreign policy intentions to increase UK efforts in Africa and the Indo-Pacific, partly in response to China. Table 3 shows the 20 multilateral organisations that received the most core funding (Multilateral ODA) from the UK in 2018 and 2019. Table 3: Top Twenty Recipients of UK Core Funding to Multilateral Organisations - Multilateral ODA 2018 and 2019 Multilateral Aid: When multiple governments pool resources in cooperation with organizations like the World Bank, the IMF, and the UN. , 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. Economic Infrastructure and Services - 1,195 million (11.7%). Britain still gives mega-rich China 51.7million in foreign aid despite promises to end the handouts. 3. Uses of Foreign Aid. 4. The government says the cut to the foreign aid budget save will save around 4bn a year. 2019: The Americas received 244 million of UK bilateral ODA in 2019, a decrease of 111 million or 31.3% compared to 2018 (Figure 4). The Foreign, Commonwealth and Development Office said in a statement that Britain spent more than 11 billion in aid in 2021 and to date has invested 4.4 billion to fight H.I.V., tuberculosis . The risk of input error is relatively low for estimates of total spend, and by country/region, and relatively higher for spending by sector (where there is sometimes ambiguity, especially for projects or programmes that cut across sectors) and by funding channel. DEFRAs ODA spend also supports the conservation and sustainable management of natural resources and biodiversity, both terrestrial and marine, through initiatives including the Darwin Initiative and the Illegal Wildlife Trade Challenge Fund. UK aid spending reduced by 3bn, or 21%, from 2020 to 2021. Gross National Income (GNI) per capita below the World Bank high-income threshold defines the coverage and boundaries of the list. DFID spent 11,107 million of ODA in 2019. Section 2 - largest donors and recipients in a region. The users represent the government, civil society and non-government organisations, students and academia and the media. HMRC supports developing countries revenue authorities to improve their tax administration functions and tax policies to increase revenue collection, providing economic integration, stability and growth. Only asylum seekers within the first 12 months after they make a claim for asylum in the UK are included. , 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. More of the UK's foreign aid budget is being spent in the UK rather than in poor developing countries, according to a report by Centre for Global Development (CGD). 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. Figure 1: UK ODA levels ( billions) and ODA:GNI ratios (%), 1970 - 2019. The ONS will release further updates of GNI throughout the year. Multilateral funding, by Government Departments and other contributors, Statistics on International Development: Provisional Aid Spend 2019, International Aid Transparency Initiative (IATI) standard, https://www.gov.uk/government/collections/official-development-assistance-oda2, See commitments made by the UK and other donors at the 2005 G8 Summit in Gleneagles, Information on the Cross-Government Prosperity Fund, 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, Multiple Sector Codes for Project Activity Analysis 2017, OECD report on donors provisional figures, OECD, Aid Statistics, Methodology webpage, Department for Business, Energy and Industrial Strategy (BEIS). This was partly due to an increase in Developing Country Unspecified spending in 2019. Official Development Assistance (ODA) is provided according to the standardised definitions and methodologies of the Organisation for Economic Cooperation and Developments (OECD) Development Assistance Committee (DAC). , Finalised figures for DAC members will be published in December 2020, therefore we are using provisional figures in this chapter. Programmes involved providing humanitarian assistance such as immediate relief and emergency food, Nigeria saw the largest decrease in bilateral ODA compared to all other recipients, with spend decreasing from 297 million in 2018 to 258 million in 2019 (the next largest decrease was Pakistan by 26m). The UK is participating in the OECD DAC Peer Review process in 2019/20. The overall amount of ODA spend is determined by the size of GNI, however shifts in departments and other ODA contributors share of ODA depends on their spending in the given year. The United States is by far the largest single foreign donor. The size of the dots corresponds to the total amount of ODA spent in each income groups sector. ODA is defined as resource flows to developing countries and multilateral organisations, which are provided by official agencies (e.g. It is bordered by the Red Sea to the west; Jordan, Iraq, and Kuwait to the north; the . 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. HMT ODA relates to a core contribution to the Asian Infrastructure Investment Bank (AIIB) and development-related administrative costs. In 2020, the most recent year for which the data is complete, military aid accounted for 23% of all foreign aid spending - the smallest share since 2004 - while economic assistance accounted . First, total Russian net ODA disbursements nearly quadrupled from US$231 million in 2010 to US$902 million in 2015 (in constant 2015 dollars). These are laid out in the DAC Statistical Reporting Directives[footnote 30]. For more information please see the explanatory note that was published in September 2019. Aid is financed from US taxpayers and other revenue sources that Congress appropriates . Other Government Departments spent 3,398 million of ODA in 2019, increasing by 434 million on 2018, Home Office spent 452 million of ODA in 2019, an increase of 115 million, or 34.0%, on 2018. The countries hit by the UK foreign aid budget cuts, as vote on rebel Britain's foreign aid: where does the money go? | Context Figure 13: Bilateral ODA by Government Department and Major Sector, 2019. 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. Humanitarian Aid - 1,536 million (15.0% of total UK bilateral ODA). Foreign Aid - Intelligent Economist See our technical note for more information. The UK provided the largest share of total DAC donor ODA to Pakistan (34%), three of the top 15 DAC ODA recipients received 5 per cent or less of their total ODA from the UK. View the full fiscal year 2021 Congressional Budget Justification: Department of State, Foreign Operations, and Related Programs [6 MB] | State and USAID Appendix 1 [7 MB] | State and USAID Appendix 2 [18 MB . This memorandum surveys U.S. economic sanctions and anti-money laundering ("AML") developments and trends in 2022 and provides an outlook for 2023.