Official development assistance funding is holding steady. But the number of people in need of humanitarian assistance more than doubled in the past year.
Today we’re following World Bank funding for Ukraine and asking what should be done now to plan for the country’s eventual reconstruction.
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When it comes to global development funding, “there's no room for complacency,” says Susanna Moorehead, chair of the OECD’s Development Assistance Committee, which presides over official global aid numbers.
Last year’s total of $179 billion in official development assistance from the 30 DAC members was a 4.4% increase in real terms compared with 2020, but that takes into account donated COVID-19 vaccines, which OECD is allowing countries to count as aid, Vince Chadwick reports. Without those donations included — which remains controversial in advocacy circles — assistance was roughly flat.
Vince writes: “DAC failed to reach a consensus on the issue earlier this year, though most donors used DAC guidance issued in February. It recommended a set price of $6.72 per dose, with donors adjusting how much they claimed as ODA if they paid less than that to acquire the vaccine themselves. NGOs have criticized that fix, saying it could inflate aid numbers and encourage hoarding of vaccines — as high-income countries would still get credited for donating their surplus doses.”
Across the 30 donor countries, ODA amounted to 0.33% of their combined gross national income. Only five countries hit the United Nations target of 0.7%.
Moorehead also confirmed to Vince in Paris on Tuesday that Lithuania has written asking to join the 30-member committee, though she said “it’s early stages” as the letter has just been received.
Look out for Vince's full interview with Moorehead in the coming days.
Read: OECD warns donors against 'complacency' as 'the worst is yet to come'
Recap: Hungary thwarts consensus on vax donation rules, a Devex exclusive
The U.K. government isn’t exactly leading the charge when it comes to meeting the moment with resources and resolve.
Will Worley reports that a new analysis puts a price tag on the government’s reduction of aid spending from 0.7% to 0.5% of GNI: £4.6 billion in 2021.
Bilateral assistance to specific countries — from what was formerly the Department for International Development — bore the brunt of the cuts, while funding under the foreign policy and domestic portfolios increased.
“This prioritisation led to dramatic reductions in sectors such as humanitarian assistance and health, at a time of global crisis where governments in the world’s poorest countries faced reduced fiscal space through constrained revenue generation and higher debt burdens,” Richard Watts of Save the Children UK tells Devex.
Read: FCDO releases data on the £4.6B cut to UK aid
+ Catch up on all the latest news in U.K. aid.
Desperate times
The World Bank is planning to tap its highly lauded fund for low-income countries for $1 billion in assistance to Ukraine, Shabtai Gold reports.
While Ukraine is a lower-middle-income country that would not typically qualify for concessional financing from the International Development Association, the fund’s representatives have already given their approval and a board vote is expected soon.
The bank estimates that the country’s economy will shrink 45% this year because of the Russian invasion.
Read: World Bank to tap $1.5B more for Ukraine, mostly from IDA fund
+ For Devex Pro subscribers, we looked at UNOCHA data to examine where the humanitarian aid in Ukraine is coming from and where it is going. Not gone Pro yet? Start your 15-day free trial.
Call and response
My colleague Justin Sablich continues to keep tabs on hiring trends in response to the crisis in Ukraine. His latest update finds a significant uptick in job postings in countries neighboring Ukraine, where many of the country’s over 4.6 million refugees have fled.
Ukraine jobs: The globaldev organizations hiring in response to Ukraine crisis
+ Ready for a career leap? Check out our Career Center where you can explore our job board to see other hirings in globaldev and access valuable insights and tips from career experts.
Be prepared
“The scope and details of any globally supported reconstruction plan must be developed and led by Ukrainians.”
— Paul Weisenfeld, executive vice president for international development, RTI InternationalRefugee resettlement, basic service provision, European economic integration, and civil society support are a few of the areas that will be critical for the global development community to prioritize, Weisenfeld writes for Devex.
Opinion: It is not too early to plan for Ukraine’s reconstruction
In other news
The U.S. State Department’s annual report on global human rights warns of the rise in authoritarianism and highlights a trend of governments overreaching their borders to silence critics. [New York Times]
The death toll from mudslides caused by heavy rainfall in Durban, South Africa has reached 59, while landslides in Leyte, Philippines have killed at least 25. [France24 and AP]
The World Bank will provide $495 million to finance four projects to boost development in education, rural access, energy, and economy in Senegal. [Reuters]
Update, April 14, 2022: This article has been updated to clarify that the DAC has 30 members.
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About the author
Michael Igoe@AlterIgoe
Michael Igoe is a Senior Reporter with Devex, based in Washington, D.C. He covers U.S. foreign aid, global health, climate change, and development finance. Prior to joining Devex, Michael researched water management and climate change adaptation in post-Soviet Central Asia, where he also wrote for EurasiaNet. Michael earned his bachelor's degree from Bowdoin College, where he majored in Russian, and his master’s degree from the University of Montana, where he studied international conservation and development.
