How the UK’s spending on foreign aid compares to other countries’

Published

3 years ago

June 7, 2021

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Conservatives rebels have been among those calling on the government to reverse its plan to cut foreign aid.

Since 2015, it has been enshrined in UK law for the country to give at least 0.7% of Gross National Income (GNI) to lower and middle-income countries to aid their development.

The plan to reduce the UK’s contribution to foreign aid to 0.5% of GNI – despite a United Nations target of 0.7% – has been met with widespread domestic and international criticism.

Here, we look at how much the UK gives in comparison to other countries.

Who gives foreign aid?

Most richer countries give aid, including some that are classed as middle or lower-income.

But the 0.7% target applies to countries that are on the Organisation for Economic Co-operation and Development’s Development Assistance Committee (OECD DAC).

These 30 countries are made up of many in the European Union, the UK, US, and other highly developed nations like Australia and New Zealand.

A couple of other countries are participants on the DAC, such as Saudi Arabia, the UAE, Bulgaria and Romania.

Last year, the UK was one of only seven countries reporting to the OECD that met the 0.7% target, giving the equivalent to $17.4bn – exactly 0.7% GNI. Out of European countries, only Germany spent more than the UK on aid in absolute terms ($27.5 billion or 0.73% of GNI). But several OECD countries gave more as a percentage of GNI.

In 2020, the proportion of GNI given by countries varied significantly from country to country, despite the UN’s target.

What is the money spent on?

The aid from DAC countries is called Official Development Assistance (ODA), which is intended to promote the economic development and welfare of developing countries, according to the OECD.

In 2020, the last year for which net flows of aid were reported, member countries sent $161bn to those developing countries, an increase of 7% in real terms compared to 2019. About three-quarters of that came from G7 countries.

Broadly, this falls into one of four categories: 1. Bilateral projects, programmes and technical assistance, which represent just over half of total net ODA; 2. Contributions to multilateral organisations (about a third of total ODA); 3. Humanitarian aid; and 4. Debt relief.

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This can include grants that fund improvements to the health of people in developing countries, such as vaccination programmes, but it can also include programmes that can benefit donor countries, such as infrastructure projects that allow greater levels of trade and investment.

Many countries, such as Japan, offer a sizable proportion of their aid in the form of loans.

How has the UK been doing up until now?

In 2013, the UK achieved the 0.7% target for the first time.

It came about after the Conservative Party committed to the target in its 2010 manifesto, when it also proposed setting up a dedicated department for international development to help achieve its aim.

It has maintained the commitment in subsequent manifestos, including in 2019 when it pledged to maintain the proportion of spending.

In 2010, then leader David Cameron defended the move, telling business leaders at the Lord Mayor’s banquet in London’s Guildhall that it saved lives, prevented conflict and was the “most visible example of Britain’s global reach” for millions of people.

Since 2015, the Government has also been under a statutory duty to meet the 0.7% target, as a result of the International Development (Official Development Assistance Target) Act.

But, in the wake of the impact of the pandemic, ministers want to slash the proportion to 0.5% saying that, while it is only a temporary measure until the nation’s finances are repaired, it will save £4bn.

If the UK had spent 0.5% of GNI in 2020, as it plans to in 2021, it would have ranked 10th in the world for its aid spending as a proportion of GNI, instead of seventh, according to the House of Commons Library.

How did the 0.7% target come about?

A target for international aid was originally proposed as far back as 1958 – at first by the Central Committee of the World Council of Churches, which suggested a 1% of GDP figure would be appropriate, and the idea was then circulated to all United Nations delegations at the 1960 General Assembly.

The 0.7% target was first agreed by the DAC in 1970 and it has repeatedly been international endorsed.

Among the key moments at which the 0.7% figure has been backed are the 15 countries that were members of the European Union by 2004 agreeing the following year to reach the target by 2015 and the 0.7% target serving as a reference for 2005 political commitments to increase ODA at the G8 Gleneagles Summit and the UN World Summit.

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In 2017, the UK government said it wanted to modernise the ODA rules to include some peacekeeping-related spending.

Currently, spending on military equipment or activity, including peacekeeping expenditure and anti-terrorism operations, are excluded, apart from the distribution of humanitarian aid.

Aid that relates to nuclear energy can be included as long as it is provided for civilian purposes.

Do countries outside the OECD provide international aid?

OECD countries are not the only ones that provide foreign aid, in its widest definition.

Evidence has been presented that China, India and Russia – which are classed as middle and upper-middle income countries – provide aid that would qualify under the ODA rules, but the amount they provide is not subject to the degree of transparency of DAC aid budgets.

US research group Aid Data has examined the Chinese loans paid to developing countries for a wide range of projects and businesses, with tens of billions in ODA payments given to lower or middle-income nations.

The vaccine diplomacy engaged in by Russia and India illustrates how two other countries outside the OECD offer one form of help.

And the World Bank reported that Russia’s ODA was $1.2bn in 2017, the last year for which figures were available, and India’s Ministry of External Affairs says it has offered “lines of credit” to 64 countries, worth $30.6bn.

Politics

The Tories are expecting a pounding at the local elections – but could Labour have the harder job?

Published

6 hours ago

April 28, 2024

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The Tories are expecting a pounding at the local elections - but could Labour have the harder job?

Thursday’s local elections have been pencilled in as a day of peril for Rishi Sunak for so long, it’s hard to remember when Tory turbulence – and maybe even a leadership challenge – was not expected after 2 May.

Most council seats up for election were last contested in 2021, the high watermark of Boris Johnson’s political prowess, when the Tories were benefiting from a vaccine bounce.

Since then, the party has plunged in the polls after ploughing through two prime ministerial downfalls.

But in the Politics At Jack And Sam’s podcast, Politico UK editor Jack Blanchard and I explore whether it might be Labour who have the harder job to do if they don’t clean up some of the highest profile races, with Tories winning in long-time Labour areas.

👉 Listen above then tap here to follow Politics at Jack at Sam’s wherever you get your podcasts 👈

Thursday’s local elections see 107 councils, 10 high-profile metro mayors and a parliamentary by-election in Blackpool South.

Unusually, both Tories and Labour are broadly setting their expectations in the same place and, by also studying the work of Sky analyst Professor Michael Thrasher, we’ve been working out what might happen.

They both expect the council elections to see decent Labour seat gains and much bigger Tory losses, with the Tories specifically endorsing Thrasher’s analysis that they could be on course for 500 losses. That’s half the candidates they’re putting up.

It’s worth pointing out that of the 107 councils up, the Conservatives only control 18, so there aren’t many for them to lose outright.

They both say that the metro mayor contests could be the most important races of the night, and they both think it’s fairly likely Ben Houchen will win, meaning the Tories will hold on to the mayoralty of Tees Valley.

Labour deny suggestions they have been pulling resources from the seat, but concede victory will be hard.

West Midlands on a knife edge

Figures in both main parties think the West Midlands metro mayor race is on a knife edge, and that Tory Andy Street will probably win this, but they’re both not sure.

If that happens, it could be down not only to Street’s independent campaign which emphasised differences with Sunak, but also to George Galloway protege the youthful lawyer Akhmed Yakoob who is campaigning on Gaza, splitting the Labour vote.

Labour think they will pick up East Midlands, although while the Tories concur, they hope that their candidate, MP and council leader Ben Bradley, gets at least a decent showing.

Meanwhile, though the new North Yorkshire mayor, which encompasses Rishi Sunak’s seat, will probably go Tory, there are some positive signs for Labour.

I’m told while Labour are hopeful the new North East mayoralty will be taken by Kim McGuinness (who they’re more proud than some candidates), the ex-Labour mayor Jamie Driscoll, who was suspended, is a wild card that could disrupt the party’s efforts.

Both parties expect the Tories to lose the parliamentary seat of Blackpool South.

So what if this is the outcome – as both parties seem to be signalling?

There’s no doubt the results will be bad for the Tories, losing so many foot soldiers. Maybe the odd council.

But one of the biggest consequences in this election cycle is how Tories in parliament respond to this, and what they decide to do about it – if anything.

If they hang on to Tees Valley and/or West Midlands, they can claim some Red Wall success. Even if those candidates had campaigns very independent of Rishi Sunak’s Conservatives.

Rebels are gearing up

The rebels are gearing up with their 100 day “policy blitz” plan – they’ve said that to me – with or probably without Rishi Sunak, but I think they know this might not being the moment they hoped.

If both Street and Houchen win – I don’t think the rebels think there’s a chance letters go in, even though the rebels still think Tories will get annihilated at the general election.

Remember, you need 53 MPs to send letters of no confidence to Sir Graham Brady, and they’ve got two publicly.

Then there’s Labour. Labour will do well objectively, but again, there are sky-high expectations given recent polling.

Labour this year have done a more concerted effort on expectation management than I’ve seen in years ahead of this election, and they’ve told us very plainly that they were going to concentrate in the East Midlands, West Midlands and Tees Valley.

And that the mayors are the best guide to what’s going on.

They add that they’re doing this for the very simple reason there are lots of Parliamentary seats in the same geographical area, so you get double bubble – you’re campaigning for the GE too.

But now they now expect to lose one, maybe two of those races, Tees and West Midlands and there could be a decent Tory share of the vote in a third, the East Midlands.

So that doesn’t feel that great against what they were pointing to a few weeks ago.

Then look at council seats. If they gain net 350 seats – that’s the same improvement as last year, and not necessarily on course for Blair-style wins seen in some polling recently.

And then there will be the National Equivalent Vote, coming at the weekend from Thrasher and Rallings, which takes the local results and projects those voting figures into a nationwide vote estimate.

This had Labour on 30% in 2021, when they didn’t do so well, then 35% in 2022 and 36% last year. Does it go up? By how much?

Labour say they’re sure they will have a good story to tell whatever happens. But oddly, they may have the harder job, which is perhaps why some Labour figures are more jittery than their Tory counterparts.

Let’s see if that remains true in a week.

The full list of metro mayor elections and candidates

Tees Valley: Ben Houchen (Conservative), Chris McEwan (Labour), Simon Thorley (Lib Dems)

West Midlands: Andy Street Conservative, Richard Parker Labour, Sunny Virk Lib Dems, Siobhan Bridget Harper-Nunes Green Party, Elaine Ruth Williams Reform UK, Akhmed Yakoob Independent.

North East: Guy Renner-Thompson Conservative, Kim McGuinness Labour, Aidan King (Lib Dems), Andrew Gray (Green), Paul Donaghy (Reform UK), Jamie Driscoll (Independent)

East Midlands: Ben Bradley (Conservative), Claire Ward (Labour), Helen Tamblyn-Saville (Lib Dems), Frank Adlington-Stringer (Green), Alan Graves (Reform UK), Matt Relf (Independent)

Greater Manchester: Laura Evans (Conservative), Andy Burnham (Labour), Jake Austin (Lib Dems), Hannah Katherine Spencer (Green), Dan Barker (Reform UK), Nick Buckley (Independent)

Liverpool City: Jade Louise Marsden (Conservative), Steve Rotheram (Labour), Rob McAllister-Bell (Lib Dems), Tom Crone (Green), Ian Edward Smith (Independent)

South Yorkshire: Nick Allen (Conservative), Oliver James Coppard (Labour), Hannah Kitching (Lib Dems), Douglas James Preston Johnson (Green), David Bettney (Social Democratic Party)

West Yorkshire: Arnold Eric Craven (Conservative), Tracy Lynn Brabin (Labour), Stewart Golton (Lib Dems), Andrew Varah Cooper (Green), Bob Buxton (Yorkshire Party), Jonathan Richard Tilt (Independent)

York and North Yorkshire: Keane Charles Duncan (Conservative), David Skaith (Labour), Felicity Claire Cunliffe-Lister (Lib Dems), Kevin Foster (Green), Paul Haslam (Independent), Keith Graham Tordoff (Independent)

London: Susan Mary Hall (Conservative), Sadiq Khan (Labour), Rob Blackie (Lib Dems), Zoe Garbett (Green), Howard Cox (Reform UK), Amy Gallagher (Social Democratic Party), Count Binface (Count Binface for Mayor of London), Brian Benedict Rose (London Real Party), Femy Amin (Animal Welfare Party), Nick Scanlon (Britain First), Natalie Denise Campbell (Independent), Tarun Ghulati (Independent), Andreas Christoffi Michli (Independent)