Countries cut billions from international aid donations

International aid. | Newsreel
Many countries are cutting back their international aid contributions. | Photo: Ugurhan (iStock)

Countries across the world are reducing international aid, with contributions dropping by more than seven percent last year.

OECD Secretary-General Mathias Cormann said aid from official donors fell by 7.1 percent in real terms in 2024, compared to 2023, the first drop after five years of consecutive growth.

Secretary-General Cormann said the fall in official development assistance (ODA) was due to a reduction in contributions to international organisations, as well as a decrease in aid for Ukraine, lower levels of humanitarian aid and reduced spending on hosting refugees in donor countries.

He said ODA by member countries was US $212.1 billion in 2024, representing 0.33 percent of those countries combined Gross National Income (GNI).

“Net ODA to Ukraine fell by 16.7 percent to US $15.5 billion, representing 7.4 percent of total net ODA.

“Humanitarian aid dropped by an estimated 9.6 percent in 2024, to US $24.2 billion.”

OECD Development Assistance Committee (DAC) Chair Carsten Staur said the United States continued to be the largest provider of ODA (US $63.3 billion), accounting for 30 percent of the 2024 total, followed by Germany (US $32.4 billion), the United Kingdom (US $18.0 billion), Japan (US $16.8 billion) and France (US $15.4 billion).

“It is regrettable that ODA decreased in 2024 after five years of continuous growth. It’s even more concerning that some of the major donors have signalled further, and quite significant, decreases over the coming years.” Mr Staur said.

“In this situation, it is paramount that ODA is invested where it is most needed, especially in the poorest and most fragile countries. Going forward, poverty eradication, the just green transition and governance should remain at the core, and we must also make ODA work harder in mobilising other sources of finance. Doubling down on aid effectiveness, together with partner countries, will be the key to achieve this.”

Mr Staur said ODA rose in 10 DAC member countries and fell in 22 countries, with only four countries exceeding the United Nations’ target of 0.7 percent ODA to GNI: Denmark (0.71 percent), Luxembourg (1 percent), Norway (1.02 percent) and Sweden (0.79 percent).

Australia’s ODA was 0.19 percent of GNI, with a value of US $3.32 billion.