International development aid from official donors saw a significant setback in 2024, marking the first decline after five consecutive years of growth, according to preliminary data released by the Organisation for Economic Co-operation and Development (OECD). The report highlights a 7.1% decrease in Official Development Assistance (ODA) in real terms compared to 2023.
The total ODA provided by member countries of the OECD’s Development Assistance Committee (DAC) amounted to USD 212.1 billion, representing 0.33% of their combined Gross National Income (GNI). The decline was primarily attributed to reduced contributions to international organisations, decreased aid for Ukraine, lower humanitarian assistance, and a reduction in spending on hosting refugees within donor countries.
Key Areas of Decline
Net ODA to Ukraine dropped sharply by 16.7% to USD 15.5 billion, making up 7.4% of total ODA. Humanitarian aid also saw a notable decline of 9.6%, amounting to USD 24.2 billion. Additionally, spending on in-donor refugee costs fell by 17.3% to USD 27.8 billion—down from 14.6% to 13.1% of total ODA. Despite the decline, for five countries, refugee-related costs still represented more than a quarter of their development assistance in 2024.
OECD Secretary-General Mathias Cormann cautioned about the implications:
“Pressures on development finance and developing countries’ growth are increasing. Optimising the effectiveness of available official development assistance will help developing countries manage these fiscal pressures, make essential investments in growth, and protect the most vulnerable.”
Top Donors and Uneven Commitments
The United States remained the largest contributor, providing USD 63.3 billion in aid—30% of total DAC ODA. Germany followed with USD 32.4 billion, then the United Kingdom (USD 18.0 billion), Japan (USD 16.8 billion), and France (USD 15.4 billion).
Out of the 32 DAC member countries, ODA rose in only ten and fell in twenty-two. Only four countries—Denmark (0.71%), Luxembourg (1.00%), Norway (1.02%), and Sweden (0.79%)—met or exceeded the United Nations’ target of allocating 0.7% of GNI to ODA.
Carsten Staur, Chair of the OECD DAC, voiced concern about the current trajectory:
“It is regrettable that ODA decreased in 2024 after five years of continuous growth. It’s even more concerning that some major donors have signalled further, and quite significant, decreases over the coming years. In this situation, it is paramount that ODA is invested where it is most needed, especially in the poorest and most fragile countries.”
Impact on Africa and Least Developed Countries
Preliminary estimates showed net bilateral ODA to Africa stood at USD 42 billion—a 1% drop compared to 2023. Within that, sub-Saharan Africa received USD 36 billion, a 2% decrease. Net aid to the group of Least Developed Countries (LDCs) fell by 3% to USD 35 billion.
Net bilateral ODA for programs, projects, and technical assistance—excluding refugee costs and humanitarian aid—declined slightly by 1.2%. Debt relief grants also remained low, at just USD 241 million.
A Call for Smarter, Targeted Aid
As developing countries face rising fiscal challenges, the OECD stressed the need for more efficient aid strategies. Staur emphasized that poverty eradication, a just green transition, and good governance must remain central. He also underscored the importance of using ODA to mobilize additional financial resources through innovative partnerships.
With mounting global crises and constrained budgets, the international community faces a critical test: to ensure that shrinking aid budgets are deployed where they can make the most impact.