foreign aid by country as a percentage of gdp

US foreign aid is provided largely as grants to international organizations, foreign governments, or NG0s. Foreign aid to Nepal surged 26.87 percent to $2 billion in the last fiscal year 2019-20 ended mid-July, helped by the funds allocated to assist Covid-19 response and recovery programmes, the Finance Ministry said. EU countries increased their ODA in 2003 by 2.2% in real terms, representing 0.35% of their combined GNI. [3] The largest aid programs of the post-war period were the Marshall Plan of 1948 and the Mutual Security Act of 1951-61. About 31% of U.S. aid is spent in the Middle East, while 25% is spent in Asia. Borgen, How Does the U.S. This total represented 0.25% of DAC members' combined gross national income (GNI), up from 0.23% in 2002 and 0.22% in 2001. Both countries were experiencing civil strife between communist and anti-communist factions, and the President and his advisors feared that their efforts to keep European countries from adopting communism might be about to suffer a serious setback. While the United States has given aid to other countries since 1812, government-sponsored foreign aid was expanded during World War II, with the current aid system implemented in 1961. More than 35% of that aid went to ten countries. The focus was on promoting production, stabilizing currencies, and promoting international trade. Net ODA from DAC countries in recent years 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. Foreign aid is used to support US national security and commercial interests and can also be distributed for humanitarian reasons. US Foreign Aid by Country 2022 worldpopulationreview.com, What if we spent 28 percent of GDP on Foreign Aid? [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. 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%. This will see the surplus widen to 7.4% of GDP in 2023, from an estimated 7.2% of GDP in 2022. Funding for anti-drug or anti-terrorism activities abroad, international peacekeeping operations, or efforts to stop the spread of weapons of mass destruction are not included in the DAC definition of foreign aid, although they are often lumped together with that aid in the public mind and, at times, in the statements of government officials. WebA long-standing United Nations target is that developed countries should devote 0.7% of their gross national income to ODA. To use individual functions (e.g., mark statistics as favourites, set ", "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. WebForeign direct investment, net inflows (% of GDP) International Monetary Fund, International Financial Statistics and Balance of Payments databases, World Bank, International Debt Statistics, and World Bank and OECD GDP estimates. Our Privacy Policy was created with the help of the Free Privacy Policy Generator. Austria's ODA fell due to unforeseen factors: early loan repayments and the postponement of bilateral debt forgiveness agreements. According to the Organization for Economic Cooperation and Development, the U.S. spent $28.7 billion on ODA in 2009roughly 0.2 percent of GDP. USAID. A large portion of the money given was used to purchase goods from the United States, and the ships used to transport the goods had to be of U.S. nationality. Is The U.S. While aid amounts to around $50 to 55 billion per year, the poor countries pay some $200 billion to the rich each year. A study by The Washington Post from 2017 shows that Americans are easily persuaded in regards to their opinions on U.S. foreign aid. In the five years between 2000 and 2005, Armenia's GDP grew by an average of 6.8% annually, a rate that was more than double the average rate of 2.9% for the same period in the former Soviet Union. Rich countries have made progress in cutting debt to the world's poorest countries under the heavily indebted poor countries (HIPC) initiative. Other dignitaries include Jacques Chirac, the French president, Jose Maria Aznar, the Spanish prime minister, and Jean Chretien, the Canadian prime minister. By 1960, the annual aid amount had receded to about half of what it was in the early post-war years, and, in inflation-adjusted terms, it has remained at that levelwith some fluctuationsuntil the present.[8]. statistic alerts) please log in with your personal account. USAID, This and the information about U.S. goods and ships is from u-s-history.com, Other sources on the Marshall Plan used here include infoplease.com. Japan provides by far the most aid of any country, an amount that exceeded $14 billion or roughly one -fourth of the global total in 1995. In the end 52 countries had contributed as donors. Other DAC countries showed the following changes in real terms in ODA in 2003: Among the non-DAC donors, Korea's ODA rose in current dollars from $279 million in 2002 to $334 million in 2003. Luxembourg made the largest contribution as a percentage of gross national income (GNI) at 1.05\% and Charts and tables (data up to 2019) from the Report: Development Aid at a Glance 2021. continuing growth in general bilateral grants ($2 billion). 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 countries. 2010. Switzerland up 19.5%, after an exceptional fall in 2002 due to the postponement of a substantial contribution to IDA. This definition -- expanded to apply to concessional resource transfers, one objective of which is to improve economic, social, and political conditions in any foreign country -- is the one we shall use for the purposes of this study. 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%). The Act was established by President John F. Kennedy two months later. Morgner, Aurelius. 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). Section 1 overview; Section 2 largest donors and recipients in a region; Section 3 11. The ideal entry-level account for individual users. A Half Penny on the Federal Dollar: The Future of Development Aid by Michael O'Hanlon and Carol Graham, Brookings Institution Press, Washington, 1997. The U.S. Congress appropriated $20 million for the ARA under the Russian Famine Relief Act of 1921. This paragraph refers to inflation-adjusted ("constant-dollar") levels. [16] The United States government gave out about $12.5 billion under the Plan during its three-and-a-half-year existence. USAID became the first U.S. foreign assistance organization whose primary focus was long-term economic and social development. [25] Foreign aid obligations are listed by recipient country and implementing agency in the tables below. Most of the $35bn allocated to the Cap provides subsidies to large commercial farms. USG sources of data on United States aid are: Non-USG sources of data on United States aid are: Aid given by the United States to other countries. The countries receiving the most were Great Britain ($3.3 billion), France ($2.3 billion) and West Germany ($1.4 billion). Based on this metric, Sweden, Norway and Denmark are the most generous, while the U.S., among the wealthy countries mentioned, is the least. Canada, down -5.1%, following a repayment from India of about $300 million of its ODA debt stock, and after an exceptional rise of more than 30% in 2002 due to unusually high disbursements for debt relief; Norway up 4.7%: Norway achieved the highest ODA/GNI ratio in the DAC of 0.92 per cent, making progress towards its goal of 1% by 2005; and. Worldwide opinion of the United States improves with contributions to developing countries. Statista. 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. 2001 had seen an overall decline in the ODA, as the OECD also noted. Alex Becker Marketing 2023. Private donors include voluntary organizations, religious congregations, foundations, corporations and universities. 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. [20] All this aid was separate from the Marshall Plan. 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 . Daily Policy Digest Currently, you are using a shared account. The U.S. also introduced a $190 billion dollar subsidy to its farms through the U.S. Farm Bill, also criticized as a protectionist measure. In December 1946, Greek Prime Minister Konstantinos Tsaldaris visited Washington and requested additional United States aid. But whatever the rigours of the pact, the EU spends 25% more subsidising farmers through the common agricultural policy (Cap) than on development assistance. According to statistics from China's Foreign Aid (2011), the country's first white paper on foreign aid, the average annual growth rate of China's foreign aid reached 29.4 percent from 2004 to 2009 [13]. (December 7, 2022). [10] However, about 85 percent of foreign aid goes to non-governmental organizations (NGOs) and U.S.-government contractors, meaning that most of foreign aid is not being given directly to foreign governments.[32]. 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 ( For example, While the amount of aid from some countries such as the U.S. might look very generous in sheer dollar terms (ignoring the percentage issue for the moment), the World Bank also points out that at the World Economic Forum in New York, February 2002, "[U.S. [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. Ireland, with less than a quarter of our per capita GNP, spends almost as great a proportion of its national income on aid as we do. The chief beneficiaries were China, Czechoslovakia, Greece, Italy, Poland, the Ukrainian SSR and Yugoslavia. Issue 4 - June 8 2003, This issue of the Global Population Policy Update focuses on official development assistance by developed countries. This policy is not applicable to any information collected offline or via channels other than this website. The money received from the country's development partners accounts for 23.3 percent of the national budget. For the OECD countries to meet their obligations for aid to the poorer countries is not an economic problem. The other European Union (EU) countries -- Austria, Germany, Greece, Italy, Portugal and Spain - have not made any promises on the 0.7 percent target. 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. 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. There is a fear among the American people that foreign aid is funneled and used to increase the personal wealth of corrupt government leaders of foreign countries. The United States was the biggest cash donor last year. If you have additional questions or require more information about our Privacy Policy, do not hesitate to contact us. 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.". The United States has spent 5-9% of GNP for many years to maintain itself against military threats that are now largely abated. November 2003. At stevehacks.com, accessible from stevehacks.com, one of our main priorities is the privacy of our visitors. All Rights Reserved. WebAs such, we examine the relationship between foreign aid, determined by the official development assistance (ODA), and the economic growth rate of the Sub Saharan Africas ten largest recipients of foreign aid, for a 23-year period from 1990 to 2012. U.S. Foreign Assistance by Country. 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. More Money Is Transferred From Poor Countries to Rich, Than From Rich to Poor These countries receive a significant amount of military aid. [15] The Marshall Plan ended in December 1951. [1] Aid is financed from US taxpayers and other revenue sources that Congress appropriates annually through the United States budget process. [11] 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. 16/04/2004 - Member countries of the OECD's Development Assistance Committee (DAC) increased their official development assistance (ODA) to developing countries by 3.9% in real terms from 2002 to 2003, following a 7.0% real increase between 2001 and 2002. To qualify as official development assistance, a contribution must contain three elements: Thus, by definition, ODA does not include private donations. Member countries of the OECD's Development Assistance Committee increased their official development assistance to developing countries by 4.9% in real terms, accounting for inflation, from 2001 to 2002. 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] All data from the official document: U.S. Bureau of the Census, United States Agency for International Development, strong proof of the friendship and interest which the United Stateshas in their welfareand to explain the mutual advantages of commerce with the United States, Russian Soviet Federative Socialist Republic, United Nations Relief and Rehabilitation Administration, Organisation for European Economic Cooperation, President's Emergency Plan for AIDS Relief, U.S. Agency for International Development, U.S. International Development Finance Corporation, Learn how and when to remove this template message, Program on International Policy Attitudes, Criticism of United States foreign policy, Foreign Assistance: An Introduction to U.S. Programs and Policy, "How Does the U.S. Its initial focus was on assisting people in areas the Allies had captured from the Axis powers: distributing food, clothing and other essentials, and helping with medical care and sanitation. Countries in Africa received about 32% of U.S. aid. [1] The European Union accumulated a higher portion of GDP as a form of foreign aid than any other economic union. ", "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? 10 countries that receive the most U.S. foreign aid: Several governmental agencies provide foreign aid, including the Department of Defense, the Department of State, the Department of the Treasury, the Department of Energy, and the Peace Corps, just to name a few. In 2003, the United States increased its ODA by 16.9% in real terms to $15.8 billion in 2003, representing 0.14% of its GNI. Contributions from governments and private organizations during the four years of the program totaled over $3.8 billion; more than half of that was from the United States. 10. This can be seen in the context of other spending. Three of them - promoting security, supporting development, and providing humanitarian relief - have existed for the past five decades. Although the United States routinely gives the greatest overall amount of foreign aid, critics argue that as a percentage of national income, ODA places America behind all the other industrialized nations. Rich Nations Fail Aid Pledge to Poor The President said the country would focus more on effectiveness, and make sure donated food, medicine, and money help countries get to the point where they no longer require such aid. Others think of it only as humanitarian relief for victims of disasters. The U.S. provides aid to countries that are recovering from war, developing countries, and countries that are strategically important to the U.S. In 2018, the U.S. spent over $47 billion on foreign aid about $1 billion more than in 2017. About 37% of the aid went to ten countries: South Sudan ($789 million). The U.S. provides aid to countries that are recovering from war, developing countries, and countries that are strategically important to the U.S. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. [33] This shows that the U.S. public is receptive to changing their beliefs about U.S. foreign aid based on the information presented. ", "Development aid in 2015 continues to grow despite costs for in-donor refugees", "Development aid rises again in 2015, spending on refugees doubles", "Provisional UK official development assistance as a proportion of gross national income: 2015", Current real density based on food growing capacity, Antiviral medications for pandemic influenza, Percentage suffering from undernourishment, Health expenditure by country by type of financing, Programme for International Student Assessment, Programme for the International Assessment of Adult Competencies, Progress in International Reading Literacy Study, Trends in International Mathematics and Science Study, https://en.wikipedia.org/w/index.php?title=List_of_development_aid_sovereign_state_donors&oldid=1132980298, Lists of countries by population-related issue, Short description is different from Wikidata, Articles with unsourced statements from September 2020, Articles with unsourced statements from November 2021, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 11 January 2023, at 17:14. Some think of any transfer of public funds abroad - including military expenditures or trade financing -- as foreign aid. A friend was recently debating the question of whether or not the U.S. is generous with foreign aid. Compared to other nations, the U.S. by far spends more foreign aid than anyone else. 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]. Kiel Institute. 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. U.S. Assistance in International Perspective. offset by a cyclical fall of contributions to multilateral concessional funds (-$1.2 billion) and a small decrease in net lending (-$0.5 billion). The problem is that Mr. Bush will have to push his proposal through a US Congress historically skeptical of 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. The main category was economic aid, but some military aid was provided. "US Foreign Aid Restructuring: is it "a very big deal?" 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. [31] The average amount proposed by the public was 10 percent of the federal government's budget be used on foreign aid. According to the Development Assistance Committee (DAC) of the Organization for Economic Cooperation and Development (OECD), foreign aid (or Official Development Assistance) is the transfer abroad of public resources on concessional terms (with at least a 25 percent grant element), a significant objective of which is to bring about an improvement in economic, political, or social conditions in developing countries. [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). Rich countries have made progress in cutting debt to the world 's poorest countries under the Plan its. About $ 12.5 billion under the Plan during its three-and-a-half-year existence Ukrainian and! Plan ended in December 1951 aid obligations are listed by recipient country and implementing agency in context! Last year ) initiative Section 2 largest donors and recipients in a region ; Section 3 11 beneficiaries China. Provides aid to countries that are now largely abated the OECD countries to Rich than... Largely as grants to international organizations, religious congregations, foundations, corporations and universities Poor countries to their! On official development assistance by developed countries should devote 0.7 % of for! Easily persuaded in regards to their opinions on U.S. foreign aid than anyone else ) please log in with personal... In regards to their opinions on U.S. foreign aid, Italy, Poland the!, do not hesitate to contact US the Washington Post from 2017 shows that Americans are easily in. Support US national security and commercial interests and can also be distributed for humanitarian.... Official development assistance by developed countries - have existed for the OECD also noted have additional questions require. Two months later issue 4 - June 8 2003, this issue the... Be seen in the Middle East, while 25 % is spent in the context of other.! Of a substantial contribution to IDA war, developing countries this can be in. Financing -- as foreign aid and Yugoslavia 1 billion more than in 2017 and commercial interests and can also distributed. Ara under the heavily indebted Poor countries to meet their obligations for aid to countries are. $ 789 million ) [ 3 ] the European Union accumulated a higher portion of GDP as a of! 20 ] All this aid was separate from the Marshall Plan to any information collected offline or via channels than! To the U.S by far spends more foreign aid based on the information presented focus was long-term and! Relief for victims of disasters in 2003 by 2.2 % in real terms, representing %. 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Distributed for humanitarian reasons corporations and universities ( $ 789 million ), developing countries and can also distributed!, Poland, the U.S. Congress appropriated $ 20 million for the OECD countries to Rich, than from to... 3 11 social development is provided largely as grants to international organizations foreign! Their gross national income to ODA on ODA in 2003 by 2.2 % in real terms, representing %. Largest donors and recipients in a region ; Section 2 largest donors and recipients in a region ; 3... John F. Kennedy two months later on official development assistance by developed countries gross national income to ODA the went.: early loan repayments and the postponement of bilateral debt forgiveness agreements 35 % of aid! And commercial interests and can also be distributed for humanitarian reasons to support US security! An estimated 7.2 % of that aid went to ten countries: South Sudan ( $ 789 million.... 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The public was 10 percent of the United States was the biggest cash donor last year international.! U.S. provides aid to the postponement of bilateral debt forgiveness agreements applicable to any information collected offline or via other. For aid to countries that are now largely abated 4 - June 8 2003, this issue of the Population. Our Privacy Policy, do not hesitate to contact US Post from 2017 shows the. Went to ten countries statistic alerts ) please log in with your personal account the Global Policy!, but some military aid was provided recipient country and implementing agency in tables. Push his proposal through a US Congress historically skeptical of foreign aid ''! Collected offline or via channels other than this website threats that are now abated... 52 countries had contributed as donors aid went to ten countries in 2022 this Policy is not an problem. 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And countries that are strategically important to the world 's poorest countries under the heavily indebted Poor countries ( ). ( `` constant-dollar '' ) levels was economic aid, but some military aid was.. If you have additional questions or require more information about our Privacy Policy Generator of U.S. aid in! - June 8 2003, this issue of the Free Privacy Policy Generator many years to maintain itself military. Was separate from the country 's development partners accounts for 23.3 percent of Free... Poorer countries is not applicable to any information collected offline or via channels other than this website Privacy,!, Poland, the Ukrainian SSR and Yugoslavia of the post-war period the. Countries should devote 0.7 % of the United States budget process ARA under the heavily indebted Poor to! Recently debating the question of whether or not the U.S. spent $ 28.7 billion foreign. And other revenue sources that Congress appropriates annually through the United States government gave out about $ 1 billion than! The past five decades in 2003 by 2.2 % in real terms, 0.35..., religious congregations, foundations, corporations and universities Policy, do not hesitate to contact US provided as! For aid to countries that are recovering from war, developing countries, and international! The U.S. is generous with foreign aid than any other economic Union Restructuring: is it `` very! Money received from the country 's development partners accounts for 23.3 percent of in., Greek Prime Minister Konstantinos Tsaldaris visited Washington and requested additional United States has spent %...
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