Aid Under Pressure: 3 Accelerating Shifts in Official Development Assistance

Official Development Assistance (ODA) is more than just cash. It is a powerful way to make a difference where it matters most. It is aimed at improving economic development and welfare for millions of people. ODA, also referred to as aid, means having access to electricity and medical care, having food on the table, or even having an opportunity for a better future. Global ODA reached record levels in 2022, $287 billion at constant 2021 prices, but continues to fall short of the SDG 17 aid target. ODA from DAC donors remained $143 billion below the SDG 17 aid target of 0.7% of their gross national income. In 2022, ODA for developed countries increased by $28 billion and for asylum seekers and refugees in donor countries it increased by $20 billion, driving the overall increase of ODA. Aid flows to developing regions fell by $4 billion despite global ODA reaching record levels in 2022. ODA for developing countries decreased by 2%. It fell by more than 3.5% for Africa, Asia and Oceania and least developed countries (LDCs) between 2021 and 2022. The decline in ODA affected the majority of developing countries, including 24 LDCs and 15 Small Island Developing States (SIDS).