Ed Miliband, 9 June 2021. Its worth noting that, like other multilateral organisations, core contributions to IDA are based on multi-year commitments which may not be uniformly spread across years, four of the top 5 receiving organisations of UK multilateral ODA in 2019 were among the top 5 multilaterals in 2018. the UK Government) or their executive agencies, where each transaction meets the following requirements: The list of countries eligible to receive ODA is set by the OECD Development Assistance Committee (DAC). ODA eligible countries are classified into 4 groups Least Developed (LDC), Other Low Income (Other LIC), Lower Middle Income (LMIC) and Upper Middle Income (UMIC) Countries. LONDON The U.K.'s Foreign, Commonwealth and Development Office will cut its aid budget for programs in China by 95 percent. II. The UK works with a wide range of organisations, for example to: respond to humanitarian need; develop infrastructure; support economic growth; or ensure that particular diseases are tackled in line with the best available evidence. Foreign aid is used to support US national security and commercial interests and can also be distributed for humanitarian reasons. Countries graduate if they have surpassed the high- income GNI per capita threshold for the 3 consecutive years prior to a graduation year. The Foreign, Commonwealth & Development Office is now responsible for producing the Statistics on International Development statistical series, the designation of National Statistics carries through to the new Department. 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. CSSF delivers ODA activities to tackle instability and prevent conflicts. Canada has been a global laggard in terms of aid generosity and . Within Health, the top three spending areas in 2019 were Medical Research (339m), Family Planning (252m) and Infectious Disease Control (182m). The entirety . Germany followed with over . Figure 13 provides a breakdown of sector spend by DFID and all Other Government Departments and other contributors of ODA (non-DFID). Figure 13: Bilateral ODA by Government Department and Major Sector, 2019. See Annex 1 for more detail. 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. This allows regional teams to adjust funding to ensure they have a strategic fit with HMG objectives and are delivering effectively. This article looks at statistics on aid spending and how it is being spent. Humanitarian Aid was the largest sector of ODA spend in 2019 (Figure 12). 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 15: Bilateral ODA by Income Group for the Major Sectors, 2019. The Biden-Harris Administration's Request is a . Total ODA from DAC country donors in 2019 was 119.7 billion (grant-equivalent measure), an increase from 115.1 billion in 2018. To illustrate the impact of using provisional figures, DAC members provisional ODA for 2018 was 114.7 billion. the social, economic or humanitarian assistance area it aims to support. Using this approach, Luxembourg is rated the most principled aid donor, followed closely by the UK and Sweden. Figure 8 legend: Breakdown of Country-Specific UK Bilateral ODA by Country Income Group, 2009-2019. This is an increase of 61 million in 2019 compared to 2018. Economic Infrastructure and Services - 1,195 million (11.7%). Information on this spend can be found in the Office for National Statistics, Living costs and Food Survey or the Charities Aid Foundations UK giving report. DFID spent 11,107 million of ODA in 2019. For the first time since 2014, there was no core contribution to the IMF-Poverty Reduction Growth Trust. The largest increase in UMIC country-specific spend was to Lebanon (increased by 52m), followed by Colombia (increased by 15m), UK ODA to UMICs represented 13.9% of UK country specific bilateral ODA in 2019 compared to 12.4% in 2018, DFID spent 3,815 million of UK bilateral country-specific ODA - accounting for 76.2% of total UK bilateral country-specific ODA in 2019 (Figure 9), the majority of DFIDs country-specific ODA was received by LDCs or Other LICs in 2019 65.1% (2,485m), non-DFID contributors spent 1,190 million of UK bilateral country-specific ODA in 2019, a 308 million increase compared to 2018. 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 was partly due to an increase in Developing Country Unspecified spending in 2019. The increase in bilateral spend was the largest increase seen since 2016, when the UK switched to the ESA 2010 methodology for GNI estimates, 3,066 million of bilateral ODA was delivered through multilateral organisations, an increase of 294 million compared to 2018. The UK government has been signed up to the target since 1974, but reached it for the first . On 2 September 2020, DFID and FCO merged to form the new Department Foreign, Commonwealth and Development Office (FCDO). The majority of this increase was spent in the health sector, and the largest country-specific increase was to South Sudan (see for more information). The Telegraph. 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. The Statistics on International Development: Provisional Aid Spend 2019 publication outlines provisional ODA spend information and an estimate of GNI for 2019 published by ONS in March to calculate a provisional estimate of the ODA:GNI ratio. In 2022, the United States government donated over 12 billion U.S. dollars in humanitarian aid worldwide. BEISs ODA includes spend on International Climate Finance, jointly managed with FCDO and DEFRA. This support relates to the provision of publicly-funded education services for asylum seekers of compulsory school age. Figure 8: Country-specific bilateral ODA by Income Group, 2009-2019. The rank (1:10) is on the y-axis, ODA spend (million ) is on the x-axis. This is an increase compared to 2018 when 38.7% (3,579m) of bilateral ODA was not assigned to a single benefitting country or region. 17 That level of per capita spending exceeded any other OECD Development Assistance Committee (DAC) country during 2018-21. by bilateral through multilateral ODA (earmarked funding) and core contributions to multilateral organisations (un-earmarked funding). This is an in-depth investigation of the UKs development systems and policies. Figure 18 legend: Top 15 recipient countries of total ODA from the DAC donor countries in 2018 and the UKs share of ODA in these recipient countries (orange) compared to other DAC countries ODA share (blue). Which countries receive UK aid money? It outspends the next largest, Germany, by more than $10 billion a year; the United Kingdom, Japan, and France follow. This spending is helping developing countries reduce their emissions in line with the ambition set out in the Paris Agreement. Over 5 years: Africa has consistently received the largest amount of UK ODA. The government says the cut to the foreign aid budget save will save around 4bn a year. Dark blue = Africa, light blue = Asia, grey = Americas, pink = Europe, teal = Pacific. As outlined above, these include programmes where there are designated benefitting countries or regions, but it is not possible to directly assign exact spend to them in the current administrative system, 22.0% of spend within this category consists of expenditure in the UK or another donor country (e.g. Office for Statistics Regulation published their finding from the compliance check of SID which confirmed that it is designated a National Statistics. 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. The amount spent on aid also fell in 2020 due to the contraction of the economy, equivalent to around . The DAC reviews the list every 3 years. UK aid spending reduced by 3bn, or 21%, from 2020 to 2021. The estimates for 2018 can be found in our published Table A9 and A10. The dark blue section represents the proportion of total UK ODA delivered through Other Bilateral channels. The Development Tracker can be used to explore details of the individual development projects that the UK is funding. The FY 2021 Congressional Budget Justification describes the funding required for State and USAID to carry out our missions worldwide. , The Global Partnership for Education is an example of a sectoral-specific fund where amounts allocated to countries is not known in advance. Highlighted countries are those in receipt of UK bilateral ODA, and colours are based on amount received (dark blue=higher amounts UK Bilateral ODA received, light blue=lower amounts UK Bilateral ODA received). 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. For more information please see the Grant Equivalent Technical note. The nation paid 1 out of every 8 in foreign aid given by 29 major countries, figures reveal. 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. In 2019, UK bilateral ODA to the region was 16 million, 0.3% of total UK bilateral ODA spend allocated to a region or country. 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. The size of the dots corresponds to the total amount of ODA spent in each income groups sector. C. Other = Other contributors of UK ODA, Scottish Government, Other In-Donor Refugee Costs, Colonial Pensions administered by DFID and Welsh Government. 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. As part of this, other government departments will provide project-level data which will have codes that allocate for each project: sectors, delivery partner, type of aid and other key variables. Further information on the technical terms, data sources, quality and processing of the statistics in this publication are found in Annexes 1-3 on the Statistics on International Development webpage. These non-DFID sources account for around 29.6% in 2019 and are largely derived from financial transaction data. There are multiple levels of sector classification used: at the lowest level are sector codes[footnote 16] that describe specific areas, and these are then grouped together into OECD DAC broad sectors. Tied Aid: The receiving country accepts aid with the expectation that it is spent in the lending country. 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%). The final ODA data and an updated GNI estimate are then used to calculate the final ODA:GNI ratio in the autumn publication. Africa continues to be the region receiving the largest proportion of UK bilateral ODA allocated to a specific country or region (50.6%). 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. 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). Outside of the top 5 sectors by bilateral spend, the largest changes between 2018 and 2019 were Production Sectors (increased by 171m) and support for asylum seekers in the UK known as Refugees in Donor Countries (increased by 108m). 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. Humanitarian Aid - 1,536 million (15.0% of total UK bilateral ODA). 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.. ###Bilateral ODA Spend with No Single Benefitting Country or Region. On 28 August, the ODA statistics team published a note on the Gross Public Expenditure statistics (GPEX). The UK pledged to spend at least 0.7 per cent of GNI on foreign aid in 1970. Figure 12 legend: Major Sector Spend comparison between 2018 and 2019 bilateral ODA ( millions). The UKs ODA spend is only slightly affected by this change as most of its ODA is issued through grants. The UK was spending approximately 0.43 percent on foreign aid a decade ago and 0.57 as recently as 2012. 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. This is an increase in spend (5,659m in 2018) but a decrease in terms of percentage share from 2018 (61.3% in 2018). ODA is defined as resource flows to developing countries and multilateral organisations, which are provided by official agencies (e.g. , European countries that received ODA in 2019 were: Albania, Belarus, Bosnia-Herzegovina, Kosovo, Moldova, Montenegro, North Macedonia, Serbia, Turkey and Ukraine. Designation means the statistics carry the National Statistics label and conform to the standards summarised below. Charities accuse chancellor of stealth raid on aid. Multilateral organisations[footnote 18] are an essential part of the international system for humanitarian and development ODA. Figure 9 legend: DFID (A) and Non-DFID (B) Breakdown of Country-Specific UK Bilateral ODA by Country Income Group, 2019. This decrease was partly due to smaller spend in the Caribbean. In 2019, the UK was one of 5 DAC donors along with Denmark, Luxembourg, Norway and Sweden to either meet or exceed the UNs target of an ODA:GNI ratio of 0.7%. To understand more about ODA eligible Gift Aid, please see methodology note.
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