Data published today shows that the amount of overseas development aid fell by 7.1 per cent compared to 2023. This is the first decrease since 2017, anticipating a deeper crisis to come for aid in the future. Governments in the US and across Europe have made further extensive cuts to their aid budgets this year. This has dramatic impacts on the lives of people in the global south.

The preliminary statistics, published by the OECD’s Development Assistance Committee (DAC), are the latest blow to the world’s poorest countries, which saw a 3 per cent drop.

Matthew Simonds, Senior Policy and Advocacy Officer at the European Network on Debt and Development, said: “Today’s aid figures paint a bleak picture for those living in the world’s poorest countries. But in fact they are just the tip of the iceberg. In 2025, wealthy countries have continued to double down on cuts to aid budgets, placing human rights in peril, and opening the door for worsening global instability.

“Wealthy countries appear to be making these cuts with a startling degree of short-sightedness and impunity. They keep favouring their geopolitical priorities, contributing to further diversion and inflation of aid. It is clearer than ever that the way aid is governed is not working and must change.”

Rich countries reported US$212.1 bn as Official Development Assistance (ODA) in 2024, with just four countries meeting the 0.7% GNI target - Denmark, Luxembourg, Norway and Sweden. On average, ODA represents just 0.33 per cent of GNI, less than half the amount rich countries committed to providing. Only 16.5 per cent of these resources actually went to the world’s poorest countries.

The significant drop in aid this year is also a striking illustration of the extent to which aid was inflated in the last two years of reporting. In 2023, the reportable costs of receiving refugees in rich countries represented 14.6 per cent of ODA. These were lower this year, accounting for 13.1 per cent of total aid. Likewise, ODA and humanitarian aid to Ukraine fell drastically.

Moreover, it is alarming to see that in a year where ODA decreased considerably, more funds are being diverted from much-needed direct support for essential services to the private sector through so-called ‘private sector instruments’. This increased from US$ 2.1bn to $ 3.8bn and comes after changes two years ago that allowed the expansion of a private sector-oriented development agenda. Direct investments in private enterprises in low- and middle-income countries, or through development finance institutions and investment funds, can now be counted as ODA.

Civil Society in the global south and north has been calling for the governance of aid to move from the OECD to the United Nations for almost a decade - and some governments in the global south have also joined them. This June, there is an opportunity for governments across the world to get behind this call when the UN International Conference on Financing for Development (FfD4), takes place in Sevilla, Spain.

Matthew Simonds said “The UN Financing for Development conference is a once-in-a-decade opportunity to write a new future for foreign aid. Up to now, rich countries have been allowed to break promises, as is clear in the data released today. By shifting governance away from exclusive, closed-door institutions like the OECD, and bringing it under the umbrella of the United Nations, countries from the global north and south have a crucial opportunity to re-legitimise aid and develop a more representative and democratic process where all countries can participate on an equal footing. This is a chance that cannot be missed.”

ENDS

Notes to editors:

Media contact: Julia Ravenscroft, Communications Manager, [email protected] , +44 7958 184695

• The preliminary ODA data for 2024 can be found on the OECD website here: https://www.oecd.org/en/topics/official-development-assistance-oda.html
  According to reporting rules, in-donor refugee costs are only eligible to be reported as ODA for the first year from when a refugee enters the country. See point three here: https://www.oecd.org/en/topics/sub-issues/oda-eligibility-and-conditions/in-donor-refugee-costs-in-official-development-assistance-oda.html