Paris: International aid from official donors fell in 2024 by 7.1% in real terms compared to 2023, marking the first decline after five years of consecutive growth, according to preliminary data collected by the Paris-based Organisation for Economic Cooperation and Development (OECD).
According to Emirates News Agency, the reduction in official development assistance (ODA) was attributed to decreased contributions to international organisations and reduced aid for Ukraine. Additionally, there were lower levels of humanitarian aid and decreased spending on hosting refugees in donor countries. In 2024, ODA by member countries of the OECD’s Development Assistance Committee (DAC) reached USD 212.1 billion, accounting for 0.33% of DAC members’ combined GNI.
OECD Secretary-General Mathias Cormann highlighted the growing pressures on development finance and growth in developing countries. He noted that optimizing the effectiveness of the available official development assistance would aid developing countries in managing fiscal pressures, making essential investments in growth, and protecting the most vulnerable populations.
Net ODA to Ukraine saw a significant decline, dropping by 16.7% in real terms compared to 2023, amounting to USD 15.5 billion, which represents 7.4% of total net ODA. Humanitarian aid also experienced a decrease, falling by an estimated 9.6% in 2024 and totaling USD 24.2 billion.
The costs associated with hosting refugees within donor countries decreased by 17.3% in 2024 compared to 2023, amounting to USD 27.8 billion, or 13.1% of DAC member countries’ total ODA, down from 14.6% in 2023. In five countries, in-donor refugee costs still represented more than a quarter of their ODA in 2024.
The United States remained the largest DAC member country provider of ODA, contributing USD 63.3 billion, which equates to 30% of total DAC ODA in 2024. Germany followed with USD 32.4 billion, the United Kingdom with USD 18.0 billion, Japan with USD 16.8 billion, and France with USD 15.4 billion.
OECD DAC Chair Carsten Staur expressed regret over the decrease in ODA in 2024 after five years of growth. He emphasized the importance of investing ODA where it is most needed, particularly in the poorest and most fragile countries. Staur also stressed the need for poverty eradication, a just green transition, and governance to remain central, along with enhancing aid effectiveness and mobilizing other sources of finance.
ODA increased in ten DAC member countries and decreased in twenty-two. Only Denmark (0.71%), Luxembourg (1.00%), Norway (1.02%), and Sweden (0.79%) exceeded the United Nations’ target of 0.7% ODA to GNI.
Net bilateral ODA for programs, projects, and technical assistance, excluding in-donor refugees and humanitarian aid, saw a slight decrease of 1.2% in real terms, partly due to the reduction in ODA for Ukraine. Net debt relief grants remained low at USD 241 million.
Preliminary estimates indicate that net bilateral ODA flows from DAC members to Africa stood at USD 42 billion in 2024, a 1% decrease in real terms compared to 2023. Within this total, net ODA to sub-Saharan Africa was USD 36 billion, a 2% decrease in real terms.
Net bilateral aid flows from DAC members to the group of least developed countries (LDCs) were USD 35 billion, marking a 3% decrease in real terms compared to 2023.