2023 figures for Official Development Assistance and humanitarian aid

An article by Cyprien Fabre.

The VEDI dam in Armenia was built in partnership with the Agence Française de Développement and with the support of the European Commission. It will irrigate 3 000 hectares of farmland in the Ararat plain. Photo AFD.

2023 is already a long way off, everything is moving so fast. Humanitarian actors live in an eternal present. It’s cold right now in Armenia or Ukraine, it’s scary tonight in Sudan too, and thirst won’t wait until tomorrow in Mayotte or elsewhere. Humanitarians don’t drive looking backwards, but the OECD does.

All the humanitarian responses around the world involve thousands of individual projects that need to be aggregated to get an idea of the overall amounts, to measure and compare. Once a contract has been signed, the amounts disbursed are recorded by each of the geographical or thematic offices, then put together by a ministry – Bercy for France – and sent to the OECD, which checks line by line that the projects correspond to the definition of Official Development Assistance (ODA), of which humanitarian assistance is an important part.

In mid-January this year, the OECD published the official Official Development Assistance figures for 2023. In 2023, this ODA amounted to USD 223.3 billion, continuing an upward trend that began in 2007. This increase can be explained in part by the 5.9% rise in humanitarian funding.

The largest donors

For ODA in general, and for humanitarian assistance in particular, the concentration remains as high as ever. Firstly, the United States (USD 64.7 billion in ODA, including USD 14.5 billion in humanitarian assistance). Humanitarian funding increased in volume and as a percentage of ODA under the first Trump administration, and it is difficult to predict what will happen from now on even in the short term. Much further behind is Germany (USD 37.9 billion in ODA, including USD 2.4 billion in humanitarian assistance), followed by the European institutions (USD 26.9 billion in ODA, including USD 3 billion in humanitarian assistance). In sixth place, after Japan and the United Kingdom, France was one of the ‘big donors’ in 2023 (USD 15 billion in ODA, but only USD 410 million in humanitarian assistance). A drop in one of the largest contributors has the potential to destabilise the entire humanitarian funding system, as this drop could not be compensated for by the sum of the medium-sized or smaller contributors, if only they were able and willing to do so. The budget announcements for 2024 and 2025, already discussed in previous editions of Humanitarian Challenges, show that this is where we are. The members of the Development Assistance Committee (DAC), which brings together the main contributors to ODA, still provide by far the largest share of the effort. Non-DAC donors, i.e. those who are not part of what are sometimes called “traditional donors”, are major contributors to humanitarian solidarity, but the systems in place do not allow for much predictability. In 2023, humanitarian funding from non-DAC donors will be driven by Turkey, which will remain above the USD 5 billion mark for the seventh consecutive year, followed by the United Arab Emirates, which will increase from USD 278 million in 2022 to USD 1 billion in 2023.

French ODA

French ODA is following the same overall trends as the other DAC countries. However, in addition to the overall drop in ODA in 2023, France is characterised by significantly lower humanitarian funding. The recent increase in humanitarian funding is an interesting development, but does not really change the “humanitarian effort”, as humanitarian funding will rise from 2% to 4% of French bilateral ODA between 2022 and 2023, still far behind the DAC average of around 15%. The two graphs below show the nature of France’s ODA and that of DAC countries. (The graphs are interactive here: FR Final 2023 statistics | Flourish)

Source : OECD, FR Final 2023 statistics | Flourish
Source : OECD, FR Final 2023 statistics | Flourish

Where does this aid go? In 2023, Ukraine was for the second consecutive year the largest recipient of ODA and other concessional financing, with USD 38.9 billion, an increase of 28.5% compared to 2022. Ukraine received almost five times more aid from DAC members than the second largest recipient, India. This also applies to humanitarian funding, which, taking all donors together, has increased by 23% in 2023, reaching USD 3.5 billion, the leading global recipient.

Other countries receive substantial humanitarian assistance. Ethiopia (USD 1.6 billion, +6%), Gaza (USD 1.7 billion, +122%), Somalia (USD 1.2 billion, +51%), DRC (USD 1.2 billion, +108%), Sudan (USD 865 million, +19%)

Other countries receive more modest amounts of humanitarian aid, with significant variations in response to the year’s events. Armenia received USD 5 million in 2022, but USD 35 million in 2023. Chad received USD 379 million in assistance, up 119% with the additional arrival of Sudanese refugees.

Don’t forget that 2023 was also marked by several natural disasters in already fragile contexts such as Libya, Syria and Papua New Guinea, Madagascar, Malawi and Tanzania, as well as Morocco and Turkey. In all these contexts, including those that generally receive little aid, humanitarian funding has been substantial.

The central Sahel has remained at similar levels of humanitarian funding, showing that the various coups d’état, while they have had a clear impact on bilateral development cooperation, have had less of an effect on the response to humanitarian needs.

With a 32% fall, Afghanistan remains at USD 1.4 billion, a level of humanitarian assistance that is still well above the 2020 level (USD 562 million). In Yemen, aid has fallen by 16% but remains high (USD 1.4 billion). Few other crisis contexts have seen a significant drop in humanitarian funding. Countries that used to receive little humanitarian aid have received less, with a notable downward trend in Iraq since 2016, and other countries with more established development trajectories (Sierra Leone, Liberia).

Who delivers this humanitarian aid? Financial structures are well established, built by and for actors who have developed mechanisms that enable them to mobilise funds quickly. In 2023, multilateral agencies mobilised half of all humanitarian funds, although the trend is downwards. These same agencies mobilised 60% of humanitarian funds in 2020. The proportion of humanitarian funding mobilised by NGOs remains more or less stable at 28% in 2023.

Since 2021, there has been a noticeable shift towards increasingly significant contributions to resilience projects marked as humanitarian, for example by the International Finance Corporation (IFC) in Afghanistan or Ukraine, on issues of forced displacement or food security. These channels, marked ‘other’ in the graph above, will reach 15% in 2023, compared with just 3% in 2020.

At a time when the classification of projects is not always clearly humanitarian in the “Dunantian” sense of the term, when the long-term and the short-term are intertwined, new players are appearing on the humanitarian finance scene. This trend is set to continue, taking into account the expected decline in traditional ODA and even the conceptual changes underway regarding the very nature of cooperation between countries. It’s best to be prepared.

 

Cyprien Fabre is head of the “crises and fragility” unit at the OECD. After several years of humanitarian missions with Solidarités, he joined ECHO, the European Commission’s humanitarian department, in 2003, and held several positions in crisis contexts. He joined the OECD in 2016 to analyze the engagement of DAC members in fragile or crisis countries. He has also written a series of “policy into action” and “Lives in crises” guides to help translate donors’ political and financial commitments into effective programming in crises. He is a graduate of Aix-Marseille Law School.

 

I invite you to read these interviews and articles published in the edition :

Humanitarian aid: the challenge of funding and principles

Interview with Pauline Chetcuti, President of VOICE & Maria Groenewald, Director of VOICE.

© UNICEF Mauritania-Raphael Pouget, 2021

1. For the benefit of our readers, could you remind us who VOICE is, why it exists and what it does?

Maria: VOICE officially stands for ‘Voluntary Organisations in Cooperation in Emergencies’. We are the largest European network of humanitarian NGOs promoting effective and efficient humanitarian action. We have been in existence for over 30 years and we have around 90 member organisations.

For me, VOICE means above all the voice of humanitarian NGOs in Europe and beyond, who, with their international and local staff, do their best every day, often in volatile contexts, to work with the communities concerned. VOICE is the main NGO interlocutor with the European Union for emergency actions and promotes the values of its member organisations implementing actions based on humanitarian principles in all global humanitarian crises. Unfortunately, this number continues to rise due to natural disasters, climate change and armed conflicts. There are currently no fewer than 128 crises: Humanitarian crises around the world

2. The former European Commissioner for Humanitarian Aid, Janez Lenarčič, said at the last European Humanitarian Forum in Brussels in March that the ‘humanitarian boat’ was in danger of sinking. How do you understand this statement?

Pauline: It’s a striking image, of course – the humanitarian, too small a lifeboat, not fit for purpose, facing an ocean of needs and a storm of challenges. This lifeboat isn’t sinking yet, but it’s overwhelmed by the challenges. Firstly, the increase in humanitarian needs, with more than 305 million people in need of humanitarian response: the crises are multiplying, including neglected crises that lack media visibility.

This image also highlights the imbalance of power and the lack of political will to prioritise humanitarian response over national economic interests. This boat could be a ship, if the political will allowed it: for example, total global military spending reached 2,443 billion dollars in 2023[1], while funding for the Global Humanitarian Overview 2023 totalled 21.8 billion dollars[2]. Military spending was 112 times higher.

Nevertheless, this lifeboat is fulfilling its purpose and continuing to save lives – and we must collectively support it.

Meeting between former Commissioner Lenarčič and Pauline Chetcuti on 19 July 2024 ©VOICE

3. In your opinion, what are the main challenges facing humanitarian aid today?

Pauline: The challenges we face are immense, and unfortunately far from new.

  • First of all, the general trend towards a reduction in the funding available for humanitarian aid is alarming.

The UN’s Global Humanitarian Appeal estimates that $47.4 billion is needed to meet the world’s growing humanitarian needs. And despite efforts to mobilise adequate funds, the gap between available funds and humanitarian needs continues to grow. By 2024, in the face of funding shortfalls, aid targeting targets had been reduced, resulting in a $6 billion reduction in the global appeal compared to 2023 and a drop of more than 56 million in the number of people targeted for aid. Despite this, only 45.5% of the appeal was funded in 2024, which suggests a similar or even worse scenario for 2025.

Traditional state donors are making drastic cuts to their international aid budgets, as in Sweden and the Netherlands. Germany, Europe’s largest donor, is planning to more than halve its humanitarian spending, from €2.23 billion in 2024 to €1.04 billion this year. France had already cut nearly €800 million from its Official Development Assistance by 2024, and is planning a further 18% reduction in funding between 2024 and 2025. The European Union’s budget is also shrinking: €2 billion will be cut from the development aid budget in 2024, and from 2025 to 2027, the Commission will reduce the funds it gives to the world’s poorest countries by 35%. The lack of available funding raises another challenge, that of priorities: with fewer funds, some projects will be cancelled, not renewed, or underfunded, jeopardising the continuity and quality of projects to the detriment of the populations who are the first to be affected by these budget cuts.

  • Secondly, what worries me enormously is the growing violation of international standards, in particular International Humanitarian Law (IHL), which governs the conduct of hostilities, but also the activities of humanitarian workers.

Despite political declarations in support of the international order based on international law. International law is regularly violated in a large number of conflicts. Violations are all too often committed with impunity, and the few decisions by international courts calling for them to be stopped are not implemented. Humanitarian workers have been warning of the erosion of respect for IHL for several decades, but what we are seeing in Sudan, Ukraine and Gaza today is not only an inability to ensure respect for IHL, but also an assumed double standard, or even an approach in which these violations are presented as legitimate behaviour in accordance with the law.

Civilians are unfortunately the first victims of these violations, which are increasingly accompanied by attacks on humanitarian workers. According to the UN[3], 2024 is now the deadliest year on record for humanitarian workers, due to the war in Gaza.

Most of these victims are local humanitarian workers, whose proximity to the conflict makes them particularly vulnerable to abuse. This upward trend is a direct reflection not only of the increasing dangers they face, but also of a rise in misinformation leading to mistrust of UN agencies and humanitarian organisations.

  • In addition to the challenges inherent in humanitarian action, organisations now have to contend with the rise of populist and far-right policies that undermine the values of solidarity on which they are based. By fomenting fear of the other and stigmatising vulnerable populations, these discourses make it more difficult for us to reach people and hamper our ability to carry out our missions.

4. The budget, the very condition of relief, is one of the priorities of VOICE and its members. Can you give us an overview of the budget for 2025 and beyond?

Maria: The European Union’s humanitarian budget is indeed an important issue in our work. Many EU Member States have announced cuts in funding for humanitarian action, and this is a political signal that we, as a network of humanitarian organisations, must take very seriously because these cuts will have an impact on our partners in the South as well as on the communities affected.

As already mentioned, the gap between available funds and humanitarian needs has been growing for years. We welcome the European Commission’s initiatives to broaden the donor base. In this context, the European Humanitarian Forum (EHF) is also a good opportunity to draw attention to the urgent issue of funding for humanitarian action. With the EHF taking place next May, VOICE will once again be heavily involved before and during the Forum in order to draw attention to our priority themes, in particular that of financial resources for humanitarian work.

One of our messages to Member States is to devote 0.7% of their gross national income (GNI) to official development assistance (ODA) by 2030, including at least 10% for humanitarian action.

We must continue to fight to ensure that the democratic parties in the European Parliament do not lose sight of the importance of humanitarian work. Commitment to humanitarian aid is a question of political will. If the political will is there, the financial resources will follow.

5. Advocacy is a major component of humanitarian action today. Should advocacy be developed to make it more effective, while remaining true to the humanitarian principles of humanity, neutrality, impartiality and independence, which are key conditions for access to populations at risk?

Pauline: Advocacy is an integral part of the humanitarian response: if we don’t seek to change policies that are harmful to people and address the root causes of humanitarian crises, our actions run the risk of being repeated indefinitely without making a lasting positive impact, which is the opposite of what people want.

We must therefore ensure that we can continue to inform political decision-makers so that they can act in favour of populations affected by crises. As we have already seen, the civic space for NGOs is shrinking dramatically, both in the South and the North, including for NGOs in Europe. By way of example, a guidance note from the European Commission states that EU subsidies can no longer be used for civil society advocacy work when it targets European institutions. The role of NGO coordinations, such as VOICE, is essential here – it enables strong messages to be conveyed when some NGOs are unable to do so, for reasons of mandate or capacity.

The ability of humanitarian NGOs to defend the rights of all populations in need, without discrimination, is essential. VOICE undertakes to continue to support the efforts of its members in this direction.

Speech by Maria Groenwald at a meeting of the DEVE Commission on 26 September 2024 on humanitarian aid ©VOICE

6. What are VOICE’s strategic priorities for the new European Commission?

Maria: In VOICE’s new strategic plan for the next five years, we have identified three strategic objectives.

Firstly, humanitarian principles and respect for international humanitarian law. In the increasingly complex environments we face, it is essential to protect humanitarian space. The EU and its Member States must set an example by basing their decisions on humanitarian principles, but also by using their influence vis-à-vis other States, for example in terms of compliance with IHL.

In addition to defending these essential values, obtaining adequate and quality funding for European humanitarian programmes is a key priority for us, as explained above. One of our strengths is our ability to mobilise the support of all EU institutions, Member States and key humanitarian and civil society actors.

Given the increasing complexity and protracted nature of crises, it is essential for us to call for additional resources to tackle the root causes of protracted crises and to strengthen resilience in the face of climate change. Humanitarians have been sounding the alarm for years: they cannot be the only solution. Better coordination between DG ECHO, DG INTPA, the EEAS and the Member States is needed to meet these challenges.

Our strategy also highlights our role as a collective space for coordination and reflection for European NGOs working with crisis-affected communities. VOICE provides a platform for sharing expertise and knowledge, in order to nurture evidence-based advocacy and expertise.

7. Some observers fear that the very broad mandate of the new Commissioner, Hadja Lahbib, may be to the detriment of her humanitarian dimension. What are your views on this?

Pauline: Concerns about Hadja Lahbib’s mandate are understandable, given the breadth of her responsibilities. As Commissioner for Preparedness, Crisis Management and Equality, she has many tasks in addition to coordinating emergency responses and humanitarian diplomacy.

At the launch of the Global Humanitarian Appeal in December 2024, Ms Lahbib stressed the importance of respecting international humanitarian law and filling the humanitarian funding gap. She also expressed her commitment to working with global partners to strengthen the humanitarian system and address current challenges. These statements demonstrate her interest in humanitarian issues, and that she is a key partner in the defence of affected populations.

We will work to keep current humanitarian challenges on Ms Lahbib’s agenda. VOICE will of course continue to support and encourage DG ECHO to ensure that the humanitarian dimension remains a priority that is balanced with other responsibilities. The actions and decisions taken in the coming months will be crucial in assessing the impact of its expanded mandate on humanitarian action and the next EHF will be a key milestone in taking stock of this new agenda.

8. How would you like to conclude this interview?

Pauline: It’s difficult to start 2025 optimistically, because the challenges facing the humanitarian sector are so immense. But what people are going through in Sudan, the DRC and Gaza today forces us to remain active and vigilant, and to defend our principles and values with even greater fervour.

I welcome the announcement of a ceasefire in Gaza, and I hope that the people who have suffered the worst unimaginable atrocities for over a year will finally have access to the aid they need.

VOICE and all its members are determined to work together to overcome the obstacles and bring about lasting positive change. The commitment and coordination of all humanitarian actors to defend a response that meets the challenges will be key in the face of a hostile geopolitical context. Together, we can overcome the difficulties by putting forward our shared values of humanity, while respecting international law.

Maria: I couldn’t agree more with Pauline. We are stronger together. At a time when the space reserved for civil society is being drastically reduced and undemocratic parties are trying to stifle the voices of civil society, the voice of VOICE is more important than ever.

[1] https://www.sipri.org/media/press-release/2024/global-military-spending-surges-amid-war-rising-tensions-and-insecurity

[2] https://www.unocha.org/publications/report/world/global-humanitarian-overview-2023-december-update-snapshot-31-december-2023

[3] 2024 deadliest year ever for aid workers, UN humanitarian office reports | UN News

 

Pauline Chetcuti has been President of VOICE since June 2024. She is also Head of Humanitarian Campaigns and Advocacy for Oxfam International. Her experience working for UN agencies and national and international NGOs in various regions, including Palestine, Afghanistan, the Democratic Republic of Congo (DRC) and Myanmar, has given her solid expertise in humanitarian principles, the protection of civilians, climate and the humanitarian-development-peace nexus. Her work is guided by the principles of feminist leadership, recognising the importance of a diversity of viewpoints, principles that she strives to put into practice as President of VOICE.

 

 

Maria Groenewald has been Director of VOICE since November 2021. With 20 years’ experience in the NGO sector, Maria began her career with the German organisation The Johanniter International, before joining Plan International Germany, where for ten years she held various positions, including that of Senior Resource Mobilisation Manager for DG ECHO and DEVCO (now INTPA). Since joining the VOICE secretariat, Maria has put her leadership and expertise in humanitarian action, programming, nexus and advocacy at the service of VOICE members.

 

I invite you to read these interviews and articles published in the edition :