The DAC reviews the list every 3 years. The FY 2021 Congressional Budget Justification describes the funding required for State and USAID to carry out our missions worldwide. Image: ODI. UK's Foreign Office slashes aid to China by 95 percent The data shows that the UK met its spending target of allocating 0.7% of Gross National Income (GNI) towards aid in 2019, a commitment that is enshrined in UK law. In 2019, frontline diplomatic activity (the FCOs administrative costs not included elsewhere, which are reported under FCO spend as Aid-related frontline diplomacy in support of aid flows to ) were reported at the country level compared to recent years when they were reported at the regional level. This followed a peak in 2017 as a result of high levels of humanitarian aid. For example, delivering family planning services across Malawi through an NGO, 4,939 million of UK ODA spend was delivered through core contributions to multilateral organisations. There are 2 main delivery channels for ODA: bilateral and multilateral (Figure 2). This was an increase of 83 million compared to 2018, reflecting increased spending by FCO and DFID. Due to an update to its financial systems, the Foreign, Commonwealth and Development Office (FCDO) is temporarily unable to update DevTracker. 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. 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. 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. Bilateral ODA is earmarked spend either through multilateral organisations or other delivery partners, compared with multilateral ODA which is un-earmarked funding to multilateral organisations[footnote 9]. See SID 2018 p.35 case study for more information on Developing Country Unspecified spend. In addition, the CSSFs Rapid Response Mechanism allows funding to be released immediately, across government departments to respond to a crisis. As part of his spending review, chancellor Rishi Sunak has announced a cut to the UK's foreign aid budget, which will be reduced from 2021 from 0.7% of gross national income to 0.5%.. For more information see the Multilateral Funding section, it is administered with the promotion of the economic development and welfare of developing countries as its main objective, it is concessional, including grants and soft loans, total UK spend on ODA, the UKs ODA:GNI ratio and a breakdown of spend by main government department delivery channels, analysis of UK ODA spend by recipient country or multilateral organisation, as well as type of assistance and sector, comparisons between the UK and other donor countries, the ODA:GNI ratio was 0.70%. The UK is participating in the OECD DAC Peer Review process in 2019/20. For more information please see the published note which outlines a new approach in more detail and provides an opportunity for users to give feedback. It also includes a summary of the government's current international development strategy and commentary on some of the issues affecting UK aid spending. This decrease contrasts with the direction of travel in 2018 when DFIDs share increased for the first time since 2013, the share of total ODA spent by non-DFID contributors increased from 25.1% in 2018, to 26.9% in 2019. Countries graduate if they have surpassed the high- income GNI per capita threshold for the 3 consecutive years prior to a graduation year. DfEs ODA covers support of asylum seekers in the first 12 months after they make a claim for asylum in the UK. First, total Russian net ODA disbursements nearly quadrupled from US$231 million in 2010 to US$902 million in 2015 (in constant 2015 dollars). Developing Countries. Figure 6 legend: Top 5 Recipients of 2019 UK Bilateral ODA ( millions), 2009 to 2019. Foreign aid by country 2022 - Concern Worldwide The UK was the only G7 member to cut foreign aid last year UK PM Sunak could freeze foreign aid for two more years, the Telegraph Individual departments that bid for funding are accountable for their own spending and delivery under the given fund. The dark blue section represents the proportion of total UK ODA delivered through Other Bilateral channels. This is unchanged from 2018. The figure presented for the Welsh Assembly Government represents their estimated spend for the financial year 2019/20 and are used as a proxy for their calendar year 2019 spend. After final decisions on UK ODA spending are made the GNI estimate can still shift due to later economic data for the year becoming available, so can the amount of ODA spent by other government departments and ODA contributions from non-departmental sources. Figure 17: DAC Donors Provisional ODA:GNI Ratio, 2018 and 2019[footnote 26]. Multilateral funding, by Government Departments and other contributors[footnote 20]. 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. 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. UK ODA spend includes DFID spend, ODA spend by government departments other than DFID and other sources of ODA (such as EU attribution and Gift Aid). For comparability, UK ODA data by recipient countries is also for 2018. Africa continues to be the region receiving the largest proportion of UK bilateral ODA allocated to a specific country or region (50.6%). In particular, DFIDs bilateral ODA spend increased by 711 million, to 7,064 million in 2019. For example, Afghanistan in 2018 was in 4th position, and in 2019 is in 3rd position (a change of +1). This represents 0.5% of expected gross national income (GNI) and is a reduction in aid spending from the legislative target of 0.7%. the donor has specified where and/or what the ODA is spent on this is usually ODA going to specific countries, regions or programmes. The Government slashed the foreign aid budget from 0.7% to 0.5% of UK national income in 2021. . Explore the official U.S. Foreign Aid country data across sectors, implementing agencies, and activities in a highly visual and interactive dashboard, where you can compare values across regional averages and income groups. The data used for ODA flows by recipient countries is for 2018. In 2019, 97.1% of DFIDs region-specific bilateral ODA went to countries in Africa and Asia (4,224m). Foreign Aid - Definition, Types, History, How Does it Work? 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. Saudi Arabia Saudi Arabia,[c] officially the Kingdom of Saudi Arabia (KSA),[d] is a country on the Arabian Peninsula in Western Asia. This section covers ODA spend from the FCOs core budget. Multilateral organisations offer economies of scale in their operations and expertise, and often have the mandate and legitimacy to work in politically sensitive situations. DFID considered several factors and consulted with key stakeholders, ONS and HM Treasury when determining its approach for implementing the new framework for reporting on the ODA:GNI ratio. DCMSs Cultural Protection Fund supports developing countries, mainly in Middle Eastern conflict zones, to protect and restore their cultural heritage. These non-DFID sources account for around 29.6% in 2019 and are largely derived from financial transaction data. , For breakdowns of spend to the top 20 recipients, see Table 6 on the publication landing page. 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. In 2019, 42.4% (4,350m) of UK bilateral ODA was made up of spend that was not assigned to a single benefitting country or region (i.e. A small proportion of UK bilateral ODA goes to the Pacific (Figure 4). Statistics on International Development: final UK aid spend 2020 - GOV.UK The Joint Funds are covered separately as a whole, regardless of which Government Department spends the money. Figure 8 legend: Breakdown of Country-Specific UK Bilateral ODA by Country Income Group, 2009-2019. ###Bilateral ODA Spend with No Single Benefitting Country or Region. Figure 12 provides an overview of bilateral ODA by major sector in 2019, compared against 2018 spend. On 28 August, the ODA statistics team published a note on the Gross Public Expenditure statistics (GPEX). Aid spending in the UK - International Development Committee Anton Petrus/Getty Images(NEW YORK) -- One year after Russian President Vladimir Putin launched a full-scale invasion of neighboring Ukraine, both sides are still fighting for control of areas in eastern and southern Ukraine. 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). Non-DAC members included in the OECD's publishing are listed separately. Figure 8: Country-specific bilateral ODA by Income Group, 2009-2019. Between the spring and the autumn, the previous years ODA spending of government departments are finalised. The Scottish Government, though its 10M pa International Development Fund, supports development work in its partner countries Malawi, Zambia, Rwanda and Pakistan, in pursuit of the Global Goals. Only asylum seekers within the first 12 months after they make a claim for asylum in the UK are included. 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). The National Institute for Health Research (NIHR) Global Health Research (GHR) portfolio was established to support high-quality applied health research for the direct and primary benefit of people in low and middle-income countries (LMICs). Britain's foreign aid: where does the money go? | Context Publication of the FCDO's monthly programme data will resume as soon as the system changes have completed. 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 . 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. 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). , 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. Where does UK foreign aid go? | The Week UK Well send you a link to a feedback form. This support relates to the provision of publicly-funded education services for asylum seekers of compulsory school age. , For further analysis on DAC country donors, see the OECD report on donors provisional figures. Cuts to UK foreign aid budget are shortsighted and could damage British There are two types of bilateral ODA: Core multilateral ODA is un-earmarked funding from national governments to multilateral organisations[footnote 4], which are pooled with other donors funding and disbursed as part of the core budget of the multilateral organisation[footnote 5]. HMT ODA relates to a core contribution to the Asian Infrastructure Investment Bank (AIIB) and development-related administrative costs. These broad sectors can then be further grouped into major sectors, bringing together related themes to help simplify the key messages. The UK's 2022 aid strategy - House of Commons Library 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. 3. 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. DFIDs Annual Report provides information on DFIDs spending, performance and efficiency for 2019/20. , The EU is also a DAC member but has not been included in this chapter. Second, while the transition economies in Eastern Europe and Central Asia together . Bilateral ODA to Africa increased steadily from 2015 briefly dropping in 2018 to 2,863 million. Where we do have to revise information included in this publication, we will follow the procedures set out in our revisions policy. 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. Where does the UK's foreign aid money go and how does it - ITV News FCDO releases 2 editions of Statistics on International Development over the year: provisional UK Aid spend will be published in the spring and includes a preliminary estimate of the UKs ODA:GNI ratio for the previous calendar year. MoD ODA spend includes training in human rights, rule of law, international humanitarian law, protection of civilians in conflict, maritime law, and the UK Hydrographic Office support to developing countries in maritime charting. Within this sector, the majority of spend in 2019 was on Financial Policy and Administrative Management (746m). 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. 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. 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). , The Global Partnership for Education is an example of a sectoral-specific fund where amounts allocated to countries is not known in advance. II. The ONS will release further updates of GNI throughout the year. See our technical note for more information. 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. Other major changes in top 10 country-specific rankings, Figure 7: Rank of top 10 recipients of country-specific 2019 UK bilateral ODA. The British government has ended direct bilateral aid to more than 100 countries and territories, according to a Devex analysis of a letter written by Foreign Secretary Dominic Raab. Figure 7 legend: Top 10 Recipients of UK 2019 Bilateral ODA[footnote 14]. 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. More UK Aid Went to Higher Income Countries Last Year. Here's How We A new report from the cross-party Commons international development committee of MPs hits out at the use of the Foreign . Difference between Provisional and Final publications. 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. , 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. Delivery of leadership and tax audit training to tax administration officials from developing countries. This was driven by increased spending by the Foreign and Commonwealth Office (FCO) and DFID. 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. Figure 13 provides a breakdown of sector spend by DFID and all Other Government Departments and other contributors of ODA (non-DFID). The DAC sets the definitions and classifications for reporting on ODA internationally. Work upstream in ODA countries to build capacity and capability in recipient countries in order to improve security, protect children and tackle modern slavery. See section 4.3.3 for information on how we estimate which countries and sectors the UK core contributions benefit, Information on the Cross-Government Prosperity Fund, In 2019, frontline diplomatic activity (the FCOs administrative costs not included elsewhere, which are reported under FCO spend as Aid-related frontline diplomacy in support of aid flows to ) were reported at the country level compared to recent years when they were reported at the regional level. DEFRAs ODA spend delivers against international climate, biodiversity and development objectives. Most policymakers understand that foreign assistance is a key instrument of U.S. foreign policy, but they also need to recognize that disruptions . The United Kingdom's aid budget is to be effectively cut by 580 million ($800 million) in 2022, after it was revealed that canceling debt owed by Sudan will count toward the nation's reduced . 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. bilateral ODA accounted for 67.5% of total UK 2019 ODA. The same countries also met or exceeded the target in 2018. Figure 11 legend: Breakdown of UK Bilateral ODA, 2019. The most significant reduction was seen in Turkey (16.3m decrease since 2018) reversing previous increases in funding (2016 and 2017) to support displaced refugees during the Syria Crisis. You can change your cookie settings at any time. 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. Dark blue = Africa, light blue = Asia, grey = Americas, pink = Europe, teal = Pacific. 2019: Europe received 189 million of UK bilateral ODA in 2019, a decrease of 6 million compared to the previous year (Figure 4). This was an increase of 211 million (or 1.9%) compared with 2018, ODA spend by departments other than DFID and other contributors of UK ODA was 4,090 million in 2019, an increase of 434 million, or 11.9%, on 2018, Africa remained the largest recipient of UK region-specific bilateral ODA in 2019 accounting for 50.6%, the top 3 recipients of UK bilateral country specific ODA were Pakistan (305m), Ethiopia (300m) and Afghanistan (292m), UK bilateral ODA to Yemen was 260 million, an increase of 94 million compared to 2018 - this was the largest increase to any country in 2019, the largest amount of bilateral ODA was focused on Humanitarian Aid (1,536m), Health (1,431m) and Multisector/ Cross-Cutting (1,325m) sectors. This means that in 2016, for example, 7.85% of the UK's total foreign aid budget (ODA), which totalled 13,348m (pdf) that year, was spent on climate-related projects. Chart by Carbon Brief using Highcharts. Figure 9: Breakdown of DFID (A) and non-DFID (B), Country/region Specific proportion of Bilateral ODA by Region, 2015 & 2019. It also provides small grants to organisations based in Wales to promote development awareness. 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. Foreign aid: Who will be hit by the UK government cuts? - BBC News 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 section 4.3 provides a breakdown of ODA spending to multilateral organisations. By Jennifer Scott, political reporter. 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). The Central Emergency Response Fund is now in the top 5 recipients of UK multilateral ODA, DFID also provided the majority of the UKs core multilateral ODA, accounting for 81.9% (4,043m), a decrease on 2018 when DFID accounted for 85.5% (4,544m), BEIS was the largest non-DFID department to provide core multilateral ODA in 2019, accounting for 3.4% (167m), this includes their core contribution to the Clean Technology Fund (166.5m), over the last 5 years, the share of UK core funding to multilateral organisations from non-DFID contributors has fallen from 21.6% (967m) in 2015 to 18.1% (896m) in 2019. This is an increase of 61 million in 2019 compared to 2018. UK bilateral ODA spend was 9,533 million (65.8% of total UK . To help us improve GOV.UK, wed like to know more about your visit today. 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 . In 2021, the United States budgeted $38 billion for foreign aid spending. Data for this publication comes from the following sources: i) DFIDs ARIES database that records financial transactions relating to DFID payments and receipts. However, a closer examination of recent trends and the latest federal budget reveals a grimmer picture. On 2 September 2020, DFID and FCO merged to form the new Department Foreign, Commonwealth and Development Office (FCDO). The United States is by far the largest single foreign donor. This follows a peak in 2017, in part driven by increased humanitarian assistance to conflict affected populations, South Sudan returned to the top 10 in 2019, becoming the third highest African recipient of UK bilateral country-specific ODA.