U.S. aid expenditures as a percentage of GNP fallen to a third what they were in the early sixties, when the cold war was at a high pitch, while U.S. per capita income has doubled. Spend Its Foreign Aid? Australia up 2.1%, reflecting its intention to increase ODA in real terms by 3% by 2002-2003; Canada, which intends to double its ODA by 2010, up 31.6% due, among other factors, to real increases in its ODA programme and debt forgiveness; Norway, which seeks to increase its ODA to 1% of GNI by 2005, up 16%; and. Denmark's figure was reduced by exceptional repayments from India, which cleared its ODA debts to small donors, and by lower than expected ODA expenditures outside the core aid programme. Total debt per capita: $20,687 Denmark has reduced its debt by 25% as compared to 2021 which now corresponds to just 11% of the country's GDP. Baker attributes this to a paternalistic view Americans have of themselves over those of African descent. 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. statistic alerts) please log in with your personal account. UNFPA Global Population Policy Update It is dispersed through "over 20 U.S. government agencies that manage foreign assistance programs,"[2] although about half of all economic assistance is channeled through the United States Agency for International Development (USAID). The new policy would increase the profile and participation of the United States Agency for International Development (USAID), which would coordinate more directly with the National Security Council and Secretary of State Hillary Clinton. With a rapprochement reached between the Ethiopian government and the TPLF, we expect more significant foreign aid inflows over 2023. LXXIX). Foreign aid recipients include developing countries, countries of strategic importance to the United States, and countries recovering from war. The government channels about half of its economic assistance through a specialized agency, the United States Agency for International Development (USAID). [23] Some observers criticized the link with national security and foreign policy as unhelpful for the impoverished, and others lamented the attempted streamlining as only adding more bureaucracy. This figure ranks countries by the scale of bilateral aid as percentage share of each donors GDP. Worldwide opinion of the United States improves with contributions to developing countries. [22], President Barack Obama announced to the UN Millennium Development Goals summit in September 2010 that the United States was changing its policy towards foreign aid. In 1995 the United States devoted only about 0.10 percent of its GDP to official development assistance, while all OECD providers as a whole averaged 0.27 percent. [1] Aid is financed from US taxpayers and other revenue sources that Congress appropriates annually through the United States budget process. [34], A study by Andy Baker, a political scientist at the University of Colorado at Boulder, found that Americans are more likely to support foreign aid going to an African country than they are to support foreign aid going to an Eastern European country. Foreign aid is a very complicated issue. ODA fell markedly in Austria (by -16.5%) and Spain (by -15.7%) compared to their 2001 levels, which had been boosted by exceptional debt relief operations. WebCharts and tables (data up to 2019) from the Report: Development Aid at a Glance 2021. 4. Kiel Institute. December 7, 2022. Compared to other nations, the U.S. by far spends more foreign aid than anyone else. ", "Funds should be moving from developed countries to developing countries, but these numbers tell us the opposite is happening. Funds that should be promoting investment and growth in developing countries, or building schools and hospitals, or supporting other steps towards the Millennium Development Goals, are, instead, being transferred abroad." In more than half, repayments to creditors were larger than spending on primary education. the start of reconstruction aid to Iraq ($2 billion). Source: Carol C. Adelman (Hudson Institute), "The Privatization of Foreign Aid: Reassessing National Largesse," Foreign Affairs, November 2003. ", 9. ODA rose in Belgium to 0.42% of its GNI; in Finland to 0.35% of GNI; in France to 0.36% of GNI; and in Ireland to 0.41% of GNI, reflecting progress towards the individual commitments made by these countries in addition to the collective target. Much of the remaining third is used to promote US exports or to fight a war against drugs that could only be won by tackling drug abuse in the United States. Section 2 largest donors and recipients in a region, Section 3 sectoral data on education, health and water supply & sanitation plus general data on other sectors. WebFirst and foremost, it should be noted that the 24-nations currently have foreign aid of $153 billion which is 0.31% of their GDP whereas the target is to raise the total foreign aids to This page was last edited on 27 December 2022, at 18:17. International trade will be an important topic at Monterrey, partly at the behest of the richer countries. The other two, Denmark and the Netherlands, have not. Many countries all over the world receive foreign aid from the United States, but there are a few that receive significant amounts. Three major factors are behind the $2.3 billion rise, in real terms, in 2003: The United States remains the world's largest aid donor in volume terms, followed by Japan, France, Germany and the United Kingdom. http://www.unfpa.org/ipci/newsletters/issue4.htm This Privacy Policy applies only to our online activities and is valid for visitors to our website with regards to the brent crude historical prices that they shared and/or collect in stevehacks.com. USAID. Prior to 2018, the ODA flows basis methodology Americans feel that the United States does more than its fair share on the world stage, so differentiate between foreign aid and military spending. However, campaigns to eradicate debilitating diseases, such as tuberculosis and malaria, have been highly successful. U.S. Luxembourg made the largest contribution as a percentage of gross national income (GNI) at 1.05% and the United Nations ODA target of 0.7% of GNI was also exceeded by Norway (1.02%), Sweden (0.99%) and Denmark (0.71%). [1] The European Union accumulated a higher portion of GDP as a form of foreign aid than any other economic union. [2] ", "The Surprise Bipartisan Success Story of Congress: American Aid", "Most See U.S. Foreign Aid As A Bad Deal for America", "The budget myth that just won't die: Americans still think 28 percent of the budget goes to foreign aid", "United Nations Relief and Rehabilitatin Administration", "Foreign Aid and the Policy Process: 1957", "The American Foreign Aid Program: Costs, Accomplishments, Alternatives? Ministers and aid officials are gathering in Monterrey, Mexico, to discuss the aid and trade needs of the world's poorer countries. As of November 20, 2022, the value of U.S. bilateral aid commitments to Ukraine represented 0.23 percent of donor GDP. [13] After the Chinese Civil War and the Korean War, U.S. military aid both to Europe and the developing "Third World" increased, with military aid composing 95 percent of all U.S. aid by 1954 and going largely to countries in Cold War proxy conflicts against communist forces. There are six identifiable purposes of US aid. It does not include military expenditures or military aid, trade or investment financing, public funding for cultural exchanges, expenditures on foreign intelligence gathering or covert action, or government-to-government loans at market rates of interest. Amongst these, according to the preliminary figures for 2019 reported to the OECD, Turkey exceeded the 0.7% ODA/GNI target with 1.15%.[1]. Compared to other nations, the U.S. by far spends more foreign aid than anyone else. Please create an employee account to be able to mark statistics as favorites. Twelve of the twenty-two DAC member countries reported an increase in ODA in real terms; for nine of them the increase was over 10%. Ghana ", "Doing well by doing good: foreign aid improves opinions of the U.S.", "American Public Vastly Overestimates Amount of U.S. Foreign Aid", "Americans love to hate foreign aid, but the right argument makes them like it a lot more", Preserving American Public Support for Foreign Aid., Race, Paternalism, and Foreign Aid: Evidence from U.S. Public Opinion., Brief Chronology and Highlights of the History of U.S. Foreign Assistance Activities, Dean Peter Krogh Foreign Affairs Digital Archives, U.S. Overseas Loans and Grants: Obligations and Loan Authorizations, July 1, 1945 September 30, 2013, Organisation for Economic Co-operation and Development, https://en.wikipedia.org/w/index.php?title=United_States_foreign_aid&oldid=1129910786, Articles that may contain original research from December 2017, All articles that may contain original research, Wikipedia articles needing rewrite from December 2017, Articles needing cleanup from October 2012, Cleanup tagged articles with a reason field from October 2012, Wikipedia pages needing cleanup from October 2012, Creative Commons Attribution-ShareAlike License 3.0. 3. In 2019, the nations GDP growth rate was almost 9 percent, the fifth-highest in the world. Many providers beyond the DAC have long traditions of development cooperation. Over half of the U.S. population believes that about 28 percent of the federal budget is dedicated to foreign aid. The remaining six rich nations outside the EU -- Australia, Canada, Switzerland, the United States, New Zealand and Japan -- have provided no time-frames to reach the 0.7 percent target, and no goals for interim targets either.". http://www.ncpa.org/sub/dpd/index.php?Article_ID=3942 Three other countries have given a firm date to reach the 0.7% target: Belgium by 2010; Ireland by 2007; and France to reach 0.5% by 2007 and 0.7% by 2012. 02:43 10 Aid Money is Actually Way Below What has Been Promised Show publisher information Coincidentally, Venezuela was also fighting a war for independence from Spanish colonial rule, from 1810 to 1823. Other nations have received economic and development aid. U.S. Remains Largest Donor of Foreign Aid The total amounted to $57 billion, equivalent to 0.23% of their combined resources, measured as gross national income (GNI), marking the beginning of a recovery from the all-time lows of 0.22% of GNI in each of the last three years. The world agreed to another round of negotiations to liberalise world trade at Doha last November. Though also pointed out (in the previous link) that the fall resulted "in part from falls in the exchange rates of some currencies against the United States dollar." About $12.7 billion in non-ODA funding is annually provided to Israel, Russia and Eastern Europe, as well as to the National Endowment for Democracy and International Monetary Fund, among many others. ", Kiel Institute, Total bilateral aid commitments to Ukraine as a percentage of donor gross domestic product (GDP) between January 24 and November 20, 2022, by country Statista, https://www.statista.com/statistics/1303450/bilateral-aid-to-ukraine-in-a-percent-of-donor-gdp/ (last visited January 19, 2023), Total bilateral aid commitments to Ukraine as a percentage of donor gross domestic product (GDP) between January 24 and November 20, 2022, by country [Graph], Kiel Institute, December 7, 2022. Global Development Finance, 2. One of his colleagues pointed to data that show the U.S. giving less official development assistance, as a percentage of GDP, compared to other countries ( After the war, the United States began giving large amounts of aid to Greece and Turkey under the Truman doctrine. Learn more about how Statista can support your business. WebA country's gross domestic product (GDP) at purchasing power parity (PPP) per capita is the PPP value of all final goods and services produced within an economy in a given year, divided by the average (or mid-year) population for the same year. EU countries increased their ODA in 2002 by 2.8% in real terms, representing 0.34% of their combined GNI. Infrastructure set up for the President's Emergency Plan for AIDS Relief would be used to build capacity in local health care systems to improve maternal and child health, and also fight tropical diseases. According to the Congressional Research Service, there are five categories of foreign aid: economic assistance, humanitarian aid, multilateral economic contributions, bilateral development aid, and military aid. ODA also rose in Germany (3.9% in real terms), Greece (4% in real terms), Ireland (5.1% in real terms) and Luxembourg (5.6% in real terms). The US, the world's richest country, allocates only 0.1% of GDP to aid, less than half of the OECD average. The primary recipients of US foreign aid are developing countries, countries of strategic importance to the United States, and countries recovering from war. These countries receive a significant amount of military aid. [21], Congress passed the Foreign Assistance Act on 4 September 1961, reorganizing U.S. foreign assistance programs and separating military and non-military aid. This will see the surplus widen to 7.4% of GDP in 2023, from an estimated 7.2% of GDP in 2022. [32] Most U.S. foreign aid does not go to other governments due to skepticism about corruption in other countries. Detailed data are not available on the proportion of US bilateral aid channeled through NG0s, but USAID officials have estimated that about a third of the nearly $2 billion Development Assistance funds are implemented by NG0s. The United States makes out less well if one considers its aid as a percentage of gross domestic product (GDP)> By this index, it has been the least generous official provider of aid within the OECD. In May 1947 the U.S. government granted Greece $300 million in military and economic aid. Nations that benefit include Nigeria, Kenya, Ethiopia, and Tanzania. This policy is not applicable to any information collected offline or via channels other than this website. 1. Features of EU aid included: ODA rose substantially in Belgium to 0.61% of its GNI mainly due to Paris Club debt forgiveness operations to the Democratic Republic of Congo; in France to 0.41% of GNI reflecting its debt relief efforts under the HIPC initiative; and in the UK to 0.34% of GNI partly due to contributions to the International Development Association (IDA, the concessional lending window of the World Bank) deferred from 2002. International development aid is given by many non-private donors. continuing growth in general bilateral grants ($2 billion). ODA rose significantly in Greece (by 34.2% in real terms) - mainly due to higher contributions to multilateral agencies, especially the EC; and in Italy (by 31.5% in real terms) - reflecting a major increase in bilateral aid, including debt relief operations in the context of the Heavily Indebted Poor Country initiative, as well as contributions to the EC and Global Funds. All Rights Reserved. United States foreign aid as a percent of GDP. The data on GDP (current USD) is for 2020 and taken from the World Bank. For 2018 2019, the data presented covers: Note: These regional reports will be updated early 2023 with final 2021 data. 7. Developing countries made the sixth consecutive and largest ever transfer of funds to "other countries" in 2002, a sum totalling "almost $200 billion. Japan's ODA fell by 8.9% in real terms, to $8.9 billion, representing 0.20% of its GNI. Statista. Compared to other nations, the U.S. by far spends more foreign aid than anyone else. These costs amount to around $100bn a year. US foreign aid is provided largely as grants to international organizations, foreign governments, or NG0s. November 2003. Number of civilian casualties during the war in Ukraine 2023, Comparison of the military capabilities of NATO and Russia 2022, Number of refugees from war-stricken Ukraine in CEE 2023, by country, Comparison of military capabilities of Russia and Ukraine 2022. A poll conducted by World Public Opinion in 2010 found that the average estimate for how much of the government's budget is spent on foreign aid was 25 percent. Moreover, EU governments claim that they are constrained by the stability and growth pact that sets limits on government spending and borrowing. Truman promulgated his containment doctrine in early 1947, a major component of which was to be aid to the world's poor countries in order to blunt the appeals of radicalism to their hungry peoples and to bolster their anti-communist political elements. The U.S. provides aid to countries that are recovering from war, developing countries, and countries that are strategically important to the U.S. This paragraph refers to inflation-adjusted ("constant-dollar") levels. [23], A study in 2006 found that U.S. foreign assistance to a country rose by an average of 59% when that country occupied one of the rotating seats on the UN Security Council, and fell back to normal levels when it vacated the seat.[24]. [18][19], From 1945 to 1953 U.S. provides grants and credits amounting to $5.9 billion to Asian countries, especially Republic of China/Taiwan ($1.051 billion), India ($255 million), Indonesia ($215 million), Japan ($2.44 billion), South Korea ($894 million), Pakistan ($98 million) and the Philippines ($803 million). In this year, the United States spent over $47 billion in foreign aid (on par with what it spent in 2018). Just over 35% of that budget went to just ten countries: Afghanistan ($4.89 billion) Israel ($3.3 billion) | Asia| An in-depth look at news from across the continent | DW | 22.02.2018", "China Is Giving More Foreign Aid Than It Gets", "5 charts that show how China is spending billions in foreign aid", "Line of Credit for Development work in foreign countries", "Qatar's annual development aid stands at $2bn, says minister", "A Revamped Taiwanese Approach to Foreign Assistance", "Taiwan's humanitarian aid/disaster relief: Wither or prosper? According to the World Bank an extra $40bn-$60bn will be required to meet the millennium development goals, but Oxfam, the aid group, estimates the figure to be closer to $100bn. WebIn 1995 the United States devoted only about 0.10 percent of its GDP to official development assistance, while all OECD providers as a whole averaged 0.27 percent. [28] Thomas Pogge, Director of the Global Justice Program and Leitner Professor of Philosophy and International Affairs at Yale University, has predicted that public opinion will not change even while the hardships suffered by poor people are rising, partly as a result of the Great Recession. Emphasize that only 1 percent of the federal budget goes towards foreign aid, as the Clinton administration did in the 1990s. Most of the $35bn allocated to the Cap provides subsidies to large commercial farms. We shall note the size and importance of such flows here but not include them in our overall definition and data on foreign aid. This is similar to nominal GDP per capita, but adjusted for the cost of living in each country.. That said, when considering foreign aid as a percentage of total GDP ($21.43 trillion in 2019), the U.S. is one of the lowest spenders among all developed . Note that other countries, as part of multilateral frameworks, are doing their part in contributing to foreign aid efforts. Denmark, Luxembourg, the Netherlands, Norway and Sweden are still the only countries to meet the United Nations ODA target of 0.7% of GNI. However, individual remittances -- financial assistance sent by individuals to their homelands -- accounts for the largest portion of private giving, about $18 billion annually. Initially, the main recipient was the United Kingdom; the Soviet Union began receiving supplies (paid for in gold) in June 1941 outside of Lend-lease, and was included in the Lend-lease agreement in November 1941. Ever since they started receiving assistance from the United States, the level of dependency as a percentage of their GDP rose by 16 percentage points in less than 20 years. Britain, on the other hand, has pledged to meet only 0.4 percent, and that too by 2005-2006. US aid is used to fund relief activities, investment projects, technical advice and training, and balance of payments and budgetary support -- the latter two are usually termed program aid. Switzerland down -5.6%, due to the delay in finalising the IDA replenishment, which meant deferring its contribution from 2002 to 2003. This impact can create the effect of a coup without ever setting foot in the country. But the industrialised countries avoided any concrete commitments either to improve market access for poor countries, or to reduce agricultural subsidies. Thanks to the war, however, this was projected to hit 4.8 percent in 2022. Accessed 19 April 2010. Prior to Monterrey, EU Members committed to collectively increase their ODA to 0.39% of GNI by 2006. For the OECD, the optimistic side of this was that this maybe marked "the beginning of a recovery from the all-time lows of 0.22% of GNI in each of the last three years." The U.S. administration considered the stability of the existing governments in Western Europe vital to its own interests. USAID became the first U.S. foreign assistance organization whose primary focus was long-term economic and social development. 23. Larger falls in ODA in real terms occurred in Austria (-20.7%), Denmark (-12.8%), Italy (-16.7%), Portugal (-24.8%) and Sweden (-14.1%). Three of them - promoting security, supporting development, and providing humanitarian relief - have existed for the past five decades. 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