Foreign Aid Reaches Record Level in 2022

In a significant increase, foreign aid from the members of the Development Assistance Committee (DAC) surged to a historic high of $211 billion in 2022. This substantial increase, representing a 17% real-term rise compared to the previous year, underscores a renewed commitment to drive economic development and well-being in developing countries.

The increase can be attributed to higher spending on processing and hosting refugees within donor countries, as well as extensive support provided to Ukraine amid its current challenges. This uptick in aid exemplifies a collective effort among DAC members to address urgent global issues.

Key figures and trends:

  • Spending on refugee costs “between donors” reached a substantial $31 billion, accounting for 14.6% of official development assistance (ODA).
  • Excluding these costs, ODA still increased by an impressive 7.3% compared to 2021.
  • DAC member countries collectively contributed $17.8 billion in ODA to Ukraine in 2022, with a significant portion allocated to humanitarian aid.
  • Multilateral organizations, particularly EU institutions, played a crucial role by providing $10.8 billion to support Ukraine.
  • Specifically, four DAC members (Germany, Luxembourg, Norway, and Sweden) reached or exceeded the 0.7% ODA/GNI target, reflecting a firm commitment to global development.

Official development assistance (ODA) is a vital lifeline that channels resources to countries and territories in need, with a primary focus on promoting economic development and well-being. ODA excludes military aid and initiatives solely aimed at promoting donors’ security interests.

You can access the full report here.