Policy Updates

On May 7, 2024, Norad presented the statistics on Norwegian development assistance in 2023, showing that Norwegian ODA reached a record high of NOK58.6 billion (US$5.4 billion), an increase of 18% or NOK9 billion (US$832 million) compared to 2022.

ODA increased in all regions, significantly affected by the one-time additional allocation of NOK5 billion (US$462 million) to LICs particularly affected by Russia's full-scale invasion of Ukraine.

By region, the largest increase in ODA was to Europe. In total, European countries received NOK9.1 billion (US$842 million) in funding. Of the total European allocation, the largest share of funding went to Ukraine and Moldova. The funding to Ukraine in 2023 stood at NOK7.9 billion (US$730 million).

Development assistance to the African continent increased by NOK2.5 billion (US$321 million), reaching a total of NOK10.2 billion (US$943 million). Africa remains the region receiving the most development assistance from Norway. The increase in funding to Africa is explained by long-term assistance to agriculture, fisheries, food security and emergency relief.

Development assistance to the Middle East increased by over NOK1 billion (US$92 million), reaching NOK3.8 billion (US$351 million) in 2023. The increase was almost exclusively in emergency assistance. Palestine was the second-largest recipient of Norwegian development assistance in 2023, receiving NOK1.2 billion (US$111 million). The majority of the funding was given as humanitarian assistance and emergency relief.

By partner, multilateral organizations were the largest partner group for Norwegian ODA, followed by CSOs and the public sector. Multilaterals received NOK31.7 billion (US$2.9 billion) in 2023, an increase of NOK6.3 billion (US$582 billion) from 2022. CSOs received NOK13.2 billion (US$1.2 billion) in 2023, compared to NOK10.3 billion (US$952 million) in 2022.

The World Bank Group was the largest partner with NOK7.4 billion (US$684 million) in 2023, of which slightly over one-fifth was core support. The WFP was the second-largest recipient with NOK2.4 billion (US$222 million), approximately half of which was earmarked for emergency relief. Overall, multilateral organizations were the dominant partner group for Norwegian health assistance, with over 80% being channeled through multilateral partners in 2023.

By sector, emergency relief and multisectoral support saw the largest growth from 2022 to 2023, while there was a decrease in refugee expenses and earmarked assistance for education.

ODA to agriculture, fisheries, and food security significantly increased from NOK3.9 billion (US$360 million) in 2022 to NOK6.4 billion (US$592 million) in 2023. Most of the increase of NOK2.5 billion (US$231 million) was funded by the one-time funding package for LICs particularly affected by Russia's war against Ukraine.

Total Norwegian ODA to health stood at NOK6.5 billion (US$601 million) in 2023, up from NOK6.3 billion (US$582 million) in 2022. This is significantly lower than in 2020 and 2021, when development assistance globally was influenced by the Covid-19 pandemic.

Between 2014 and 2023, health assistance slightly increased when measured in 2024 prices, from NOK4.7 billion (US$434 million) in 2014. The largest partners in health assistance in 2023 were Gavi at NOK1.5 billion (US$138 million), UNFPA at NOK1.1 billion (US$101 million) and the WHO at NOK687 million (US$63.5 million). Of the earmarked health ODA, totaling NOK3.5 billion (US$323 million) in 2023, 58% went to programs targeting LICs not geographically earmarked. Africa received the most of the geographically earmarked health support, with around NOK600 million (US$55.5 million).

In 2023, NOK1.7 billion (US$157 million) went to SRHR, down from NOK1.8 billion (US$166 million) in 2022. Multilateral organizations, an important partner group in Norwegian SRHR efforts, received 51% of the earmarked support in addition to the calculated core support, totaling 81% of SRHR support. UNFPA was the largest individual partner and received nearly half of total SRHR support.

On May 3, 2024, representatives from the Netherlands attended the 30^th ICPD in New York, where Dutch Director-General for International Cooperation Pascalle Grotenhuis and Dutch SRHR Youth Ambassador Sarah Bahgat called for further action on CSE and youth involvement to continue SRHR progress.

Grotenhuis delivered a statement on behalf of the Netherlands, Belgium, and Luxembourg and highlighted priorities set out by young people. The Netherlands also supported the ICPD Program of Action and co-hosted 300+ young people at the Global Youth Dialogue to reflect on its urgent call to ensure women and girls’ right to decide over their bodies and futures.

Bahgat delivered a statement at the General Debate of the Commission on Population and Development, highlighting the need to tackle information online, deliver CSE in humanitarian settings, and showcase the outcomes of the Global Youth Dialogue.

On May 3, 2024, Canada announced CAD65 million (US$48 million) in international assistance funding to Lebanon, including CAD38 million (US$28 million) in development assistance funding and CAD27 million (US$20 million) in humanitarian assistance funding.

The humanitarian assistance will help provide WASH services, health care including SRH services, and protection services including for survivors of SGBV.

The development funding includes:

• CAD20 million (US$15 million) to the UN FAO to improve the capacities of farmers and increase food security in response to climate change and economic shocks;
• CAD13 million (US$10 million) to UNDP to improve the economic security and prosperity of women-led micro-, small-, and medium-sized enterprises in sectors with high growth and export potential; and
• CAD5 million (US$4 million) to UN Women and UNDP to address barriers facing women’s representation in decision-making and leadership positions, specifically for women in parliament and municipal councils.

On May 3, 2024, Australian Minister for International Development and the Pacific Pat Conroy announced a pledge of AUD492 million (US$317 million) to the Asian Development Funds’ 14^th pledging round, covering the period of 2025–2028.

The low-interest financing arm of the ADB focuses on grants to lower-income countries. Conroy emphasized the value of these grants to regional needs such as climate resilient hospitals and education facilities, as well is improving the systems that run them.

Conroy indicated Australia had worked with representatives from Kiribati and the Cook Islands to ensure that more funding would be received by the Pacific. An increase of over AUD500 million (US$323 million) was expected for the Pacific, compared to the previous replenishment.

Australia has also pursued arrangements to ensure access to finance for people in Afghanistan, Myanmar, and the Rohingya refugee population in Bangladesh, particularly women and girls. Australia urged the ADB and the World Bank to improve their procurement processes by avoiding approving artificially low-priced, poor-quality projects where higher prices were later demanded during implementation. Conroy encouraged tender processes to focus more strongly on quality and value for money and expressed concerned that low bid prices were discouraging a broader range of bidders from seeking work, particularly in the Pacific countries.

Australia is the second-largest contributor to the fund, behind Japan.

On April 30, 2024, it was announced that, as a part of the G7 Finance Track, the Italian MEF and ISTAT will host the seventh edition of the OECD World Forum on Wellbeing, entitled Strengthening Wellbeing Approaches for a Changing World, in Rome from November 4-6, 2024.

The event is part of the G7 Finance Track promoted by the Italian government. The Forum will be structured into five round tables that will discuss topics, including:

• The development of policy frameworks oriented towards equitable and sustainable well-being;
• The measurement and statistical methodology, as well as the analysis of well-being indicators;
• Climate change;
• Technological innovation and the use of artificial intelligence; and
• The next steps in the well-being agenda.

Other topics to be addressed include gender inequalities, inequalities and poverty, physical and mental health, and the aging population.

On April 24, 2024, the UNDP announced that the Netherlands contributed EUR36 million (US$39 million) in core funding to the UNDP for 2024.

The flexible funding supports implementing the UNDP’s strategic plan for 2022-2025 to tackle multidimensional poverty, promote good governance, foster the rule of law, and champion gender equality globally.

The UNDP also highlighted positive results coming from its partnership with the Netherlands. With Dutch support, the UNDP is strengthening Ukraine’s capacity and use of advanced technology to manage mine action operations.

On April 17-19, 2024, the G7's Ministers of Foreign Affairs met in Capri, Italy, and released a communiqué summarizing the intents and goals of Italy's G7 presidency.

A new meeting is planned in Fiuggi in autumn 2024. The G7 Minister of Development's meeting in Pescara is scheduled for the end of October. The Italian Minister of Foreign Affairs is committed to continually working on some of the most urgent international crises.

The G7 Ministers expressed concern about rising food insecurity and malnutrition stemming from the combined impact of climate change, loss, and degradation of ecosystems, the growing number of conflicts, inflationary pressures, and the reduced fiscal space in many developing economies.

The ministers also emphasized the importance of strengthening PPR and global health, as well as supporting LGBTQI+ rights and SRHR. The communiqué also reaffirmed the need for strengthened international financial institutions and underscore the role of MDBs in achieving the SDGs, including in crisis-affected contexts.

On April 17, 2024, the European Commission's Directorate-General for International Partnerships published the 6^th EU Aid for Trade Progress Report, finding that the bloc continues to be the largest provider of aid for trade at 42% of global 'aid for trade' in 2021.

At EUR18.6 billion (US$19.8 billion) EU 'aid for trade' decreased 26%, or EUR4.9 billion (US$5.2 billion), between 2020-2021, following downward trends among other donor organizations for the same year.

55% of spending in 2021 prioritized production capacity in partner countries, while trade-related infrastructure remained stable around 42% of funding. By region, 46% of spending supported partner countries in Africa, continuing an upward trend from 2014.

34% of EU 'aid for trade' in 2021 supported gender equality and WEE as a significant objective, but only 1% as a principal objective. 2021 volumes returned to just below pre-COVID-19 pandemic levels, at EUR6.6 billion (US$7 billion).

Agricultural 'aid for trade' has fluctuated since 2017. In 2021, support for agriculture decreased 37% from a high of EUR4.5 billion (US$4.8 billion) in 2020 and 23% from pre-pandemic levels.

The EU's climate-related 'aid for trade' decreased 15% in 2021 to EUR9.7 billion (US$10.3 billion), driven by decreases in funding for projects related to adaptation alone and both mitigation and adaptation. Funding for mitigation-related projects remained stable from 2019-2021.

On April 16, 2024, Canada released its Budget 2024, which included new funding to support Ukraine and bolster Canada’s international humanitarian assistance, but was criticized for a lack of transparency and did not include an increase in longer-term development assistance.

New funding announced included:

• CAD2.4 billion (US$1.7 billion) in loans to Ukraine in 2024 to support civilian services;
• CAD217 million (US$157 million) over five years starting in FY2025/26 for the EBRD to support Ukraine’s reconstruction;
• CAD76 million (US$55 million) for additional peace and security assistance for Ukraine between FY2024/25 and FY2026/27;
• CAD350 million (US$254 million) over two years beginning in FY2024/25 to international humanitarian assistance;
• CAD146 million (US$106 million) over five years starting in FY2027/28 to purchase shares in the Inter-American Development Bank to support clean economic growth and create economic opportunities for women in Latin America and the Caribbean; and
• CAD40 million (US$29 million) in FY 2023/24 for humanitarian assistance to Gaza.

Budget 2024 also recommits to leadership on international women’s rights and gender equality, support for global LGBTQI+ rights, and the modernization of international financial institutions, including the European Bank for Reconstruction and Development Agreement Act, the International Development Assistance Act, and the IMF to support responsiveness to emerging global threats.

Canadian international cooperation organizations and coalitions, including Cooperation Canada, Oxfam Canada, UNICEF Canada, and more, released statements lauding the government's commitment to CAD350 million (US$254 million) in new international humanitarian assistance. However, Cooperation Canada criticized the lack of budget transparency surrounding Canada’s IAE as well as the absence of any increase in funding for longer-term development assistance.

While previous budgets presented rough estimates of the IAE, Budget 2024 does not provide a spending forecast. Cooperation Canada noted that it is difficult to know whether Canada’s assistance budget is increasing or decreasing with no information on trends, sectoral or spending-type breakdowns, or multi-year forward spending plans. The coalition estimated the IAE budget for this year to be around CAD7.2 billion (US$5.2 billion) per year, representing a growth of about 5% from 2023's CAD6.9 billion (US$5 billion).

On April 15, 2024, Canadian Minister of International Development Ahmed Hussen participated in the International Humanitarian Conference for Sudan and its Neighbours, where he announced CAD132million (US$96 million) in international assistance funding to Sudan and neighbouring Central African Republic, Chad, Ethiopia, and South Sudan.

The announcement included nearly CAD101 million (US$73 million) in humanitarian assistance and nearly CAD32 million (US$23 million) in development assistance amid the ongoing armed conflict in Sudan. The funding is slated to provide crisis-affected people with emergency health services, food and nutrition assistance, protection services for gender-based violence survivors, and other assistance including shelter, water, and sanitation services. The development assistance will support critical programming in SRHR and education infrastructure.