It really is time to turn the tide and spend more in beneficiary rather than donor countries. A further decline in CPA in 2022 is almost inevitable. Country programmable aid (CPA) – the core component of ODA spent in country – fell marginally from $64.1 billion in 2020 to $61.4 billion in 2021 in real terms despite total ODA going up. The UN Secretary General has issued a global call to rescue the SDGs. We are now midway through the Sustainable Development Goals. But this has come at the expense of efforts on the existing development agenda. DAC members have collectively responded to crises: the rise in ODA in recent years to help mitigate the consequences of the Covid-19 pandemic and the war in Ukraine are testament to that. More in-country spending to help rescue the SDGs.But from the data we have, the stronger bilateral component of ODA is of concern and is again largely driven by rising in-donor refugee costs. Figures for 2022 are preliminary and we don’t have enough detail to comment about the other ways DAC members are working with international organisations, i.e. Lastly, while contributions to the core budgets of international organisations were stable in 2022, their share of total ODA fell to a quarter from 30% in previous years. This signals that the proportion of ODA to LICs has fallen against other income groups. Furthermore, while ODA rose across all income groups, the pace was much slower for low-income countries (LICs). This is probably the statistic of greatest concern, not least as trust especially between African leaders and their Western counterparts has significantly eroded in recent years. ODA to sub-Saharan African countries fell by 7.8% in real terms. If ODA flows to Ukraine are also discounted, in 2022 ODA to other causes and countries actually fell by 4.0% compared to 2021, totalling around $160 billion, much the same as 2020 (slide 2).Īgainst this backdrop, it is not unexpected that other regions and income groups were worse off. Under these assumptions, across DAC members the increase in ODA in 2022 would be much smaller, 4.6%. If refugee costs in donor countries are excluded, ODA would fall across many more DAC members, 12 instead of four. We outlined this likely trend for 2022 last year as ODA resources were already being reallocated away from some sectors to support in-country refugee costs, as in Sweden, Denmark and the UK. Spending to support refugees in donor countries is also rising.
The Kiel Institute for the World Economy estimated a total of €78.0 billion (equivalent to $82.1 billion) committed financial and humanitarian aid to Ukraine in 2022, albeit not all of this can be classified as ODA. The rise in ODA in 2021 was driven by vaccine purchases, and in 2022 the war in Ukraine triggered growing financial and humanitarian aid to the country.
… but ODA to the core development agenda for lower-income countries is falling On the multilateral front, both the African Development Fund (AfDF) and the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) enjoyed record replenishment rounds in 2022. These trends are even more surprising given predictions that ODA flows would shrink in the aftermath of severe and systemic crises, such as the 2008–2009 Global Financial Crisis and the Covid-19 pandemic. Nearly all bilateral donor members of the Development Assistance Committee (DAC), 26 out of 30 recorded more ODA flows in 2022 than 2021. Annual growth in 2022 was among the highest ever recorded, second only to 2005, when exceptional debt relief packages were agreed at the G7 Summit in Gleneagles. Annual official development assistance (ODA) passed a symbolic threshold of $200 billion and kept rising in 2022, by 13.6%, even taking inflation out of the equation. ODA passed the $200 billion mark in 2022 for the first time …
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