The Organisation for Economic Cooperation and Development's (OECD) Development Assistance Committee (DAC) released the preliminary data on its official development assistance (ODA) flows for 2020. Spending on COVID-19 relief pushed foreign assistance to an all-time high in 2020 (US$161.2 billion, +3.5% from 2019), but the OECD says funds are still insufficient.
Although governments internationally have provided the equivalent of US$16.00 trillion in COVID-19 stimulus measures, just 1% of that spending has been mobilized to help low-income countries respond to the COVID-19 crisis, said OECD Secretary-General Angel Gurría. A "much greater effort" is needed to support vaccine distribution and health services and to support the income and livelihoods of the world’s most vulnerable people, he said.
The data showed that in 2020, 22% of bilateral ODA was provided as "non-grants" (loans or equity investments), an increase of 17% from previous years and a 39% increase from 2019 levels. By income group, flows to low-income countries decreased by 4% compared to 2019 while ODA to lower-middle- and upper-middle-income countries increased by 7% and 36%, respectively. These trends imply that part of the ODA increase in 2020 is due to loans to middle-income countries at a time when debt relief is increasingly discussed, with the World Bank and International Monetary Fund recently calling for greater assistance to middle-income countries for tackling debt and the climate crisis.
Some of the donor-specific information includes the following:
- Australia's ODA decreased by 11% due to cuts to bilateral assistance;
- Canada's ODA increased by 8% due to heightened climate financing and in-country refugee costs;
- EU Institutions saw a 25% increase in ODA due to a significant amount of additional funds for COVID-19 related activities and with sovereign lending increasing by 136% in real terms over 2019;
- France's ODA increased by 11% due to an increase in its bilateral assistance and funding for COVID-19, including through lending;
- Germany's ODA increased by 14% due primarily to the mobilization of additional ODA resources to fight the pandemic;
- Italy's ODA decreased by 7% due to a drop in bilateral grants as well as in-country refugee costs;
- Japan's ODA increased by 1% due to heightened bilateral lending;
- The Netherlands' ODA decreased by 3% due to a loss of gross national income (GNI), as ODA levels were set based on maintaining the previous year's ODA-to-GNI ratio (0.59%);
- Norway's ODA increased by 8% due to a rise in health-related ODA and contributions to the Green Climate Fund;
- South Korea's ODA decreased by 9% due to cuts in its overall assistance program;
- Spain's ODA decreased by 2% due to decreases in bilateral assistance;
- Sweden's ODA increased by 17% due to heightened contributions to the Green Climate Fund;
- The UK's ODA decreased by 10%, driven by the decrease in GNI while meeting the ODA to GNI ratio of 0.7%; and
- The US' ODA increased by 5% due to increased contributions to multilateral organizations.