In early 2013, the Organization for Economic Cooperation and Development named the European Union as the world’s top aid donor in 2012, contributing more than half of official development assistance disbursed that year.
Despite a drop of 8 billion euros ($11 billion) in aid spending, the European Union was still able to provide 55.1 billion euros in development assistance in 2012. Lower aid levels that year were largely as a result of the European financial crisis, which led to budget cuts across several EU member countries. Nonetheless, EU Commissioner for Development Andris Piebalgs is steadfast in his commitment to bring aid spending to 0.7 percent of the bloc’s gross national income by 2015.
But the tight fiscal environment meant the European Union had to be smarter about the way it delivers aid, prompting the implementation of a new policy dubbed the Agenda for Change. Under the policy, EU aid will target only the poorest countries, prioritize inclusive and sustainable growth, and encourage increased investments from the private sector.
About the author
Ezekiel Carlo Orlina
Ezekiel is a Senior Development Analyst and Team Leader at Devex. His primary role is monitoring and reporting on project opportunities and trends of leading multilateral and bilateral donor agencies. A graduate of Ateneo de Manila University with a degree in Political Science, Ezekiel has extensive global development research experience having also worked at the World Youth Alliance, Asia and the Pacific (WYAAP).