Insights from the COVID-19 pandemic: trends in development assistance committee countries’ aid allocation, 2011–2021

ABSTRACT

Background

Official Development Assistance (ODA) significantly aids sustainable development in low- and middle-income countries (LMICs). However, the COVID-19 pandemic has impacted aid allocation, posing challenges for attaining the Sustainable Development Goals (SDGs).

Objective

This study explores and underscores the profound implications of shifts in ODA allocation by Development Assistance Committee (DAC) member countries, resulting from the COVID-19 pandemic, offering a unique perspective on the evolving landscape of international aid.

Methods

Drawing from the gross ODA disbursement data for LMICs by DAC member countries from 2011 to 2021, a linear regression analysis assessed the changes in ODA amount, ODA-to-gross national income (GNI) ratio, sectoral aid allocation, and the balance between bilateral and multilateral aid, primarily focusing on the differences pre- and post-COVID-19. For non-specialised multilateral agencies’ core funding, the OECD’s methodology for calculating imputed multilateral ODA was employed to estimate ODA flows.

Results

The study found an increasing trend in the total ODA provided by DAC member countries from 2011 to 2021. However, the average ODA/GNI ratio showed a slight but significant decrease before the pandemic, followed by an increase after the COVID-19 pandemic. The health sector received the highest percentage of aid after the pandemic, with a marked increase in both bilateral and multilateral aid. However, other sectors such as humanitarian aid, water and sanitation, and energy experienced a significant decrease in sectoral aid share.

Conclusions

Emerging from this analysis is a strong recommendation for DAC members to re-evaluate aid objectives and escalate their financial commitments to reinforce SDGs and sustainable development efforts. While the rise in health aid is essential, other sectors also require equal focus to offset the ramifications of the COVID-19 pandemic. Understanding the intricacies of aid allocation can improve aid efficacy, culminating in greater, transformative results for recipient countries.

KEYWORDS:

• ODA
• OECD
• DAC
• COVID-19
• SDGs

Responsible Editor Maria Nilsson

Responsible Editor Maria Nilsson

Authors’ contributors

SN conceived and conceptualised the study. SN conducted data collection and analysis. All authors performed data interpretation. SN prepared the initial draft of the manuscript. All authors critically reviewed and revised the manuscript draft and approved the final version for submission.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Paper context

Stronger Official Development Assistance (ODA) policies and their efficient use are critical for achieving the Sustainable Development Goals. We estimated the gross disbursement of ODA of the 29 Development Assistance Committee member countries of the Organisation for Economic Co-operation and Development from 2011 to 2021 by sectors. Our estimates will contribute to the review of the post-COVID-19 pandemic strategic decision-making of future ODA policy discussions.

Supplementary data

Supplemental data for this article can be accessed online at https://doi.org/10.1080/16549716.2023.2258707.

Additional information

Funding

This work was supported by a grant from the Bill & Melinda Gates Foundation and a grant PRESTO [JPMJPR22R8] from the Japan Science and Technology Agency. The statements made and views expressed are solely the responsibility of the authors.