Support to Ukraine raised level of Finland’s official development assistance in 2022
Russia’s invasion of Ukraine has put pressure on official development assistance (ODA) budgets in Finland and in many other EU Member States, according to the preliminary data on 2022 released by the OECD today. Especially the level of in-donor refugee costs increased in Finland.
On 12 April, the Organisation for Economic Co-operation and Development (OECD) released preliminary data on official development assistance (ODA) in 2022 by member countries of the Development Assistance Committee (DAC).
The preliminary data shows that DAC members used EUR 15.3 billion in ODA to support Ukraine. This included EUR 1.7 billion in humanitarian assistance. In 2021, ODA support to Ukraine was 873 EUR million.
ODA administered by Foreign Ministry accounted for less than half of Finland’s total ODA
Finland’s official development assistance (ODA) in 2022 totalled EUR 1,534 million, showing a rise of EUR 315 million on 2021. This represented 0.58 per cent of Finland’s gross national income (GNI), according to the OECD’s preliminary data.
Finland’s exclusive ODA, administered by the Ministry for Foreign Affairs, totalled EUR 727 million, while Finland’s other ODA totalled EUR 808 million. This is the first time in Finland’s history that the share of other ODA is larger than the ODA administered by the Foreign Ministry. Other ODA include Finland’s share of the EU’s ODA budget and Finland’s support in the form of loans and investment (so-called development policy investments).
In-donor refugee costs rose the most of all Finland’s official development assistance, totalling EUR 390 million, which is nearly six times more than in 2021. Most of this sum was spent on addressing the temporary protection needs of Ukrainians in Finland. Support to Ukraine accounted for EUR 58 million of the ODA administered by the Foreign Ministry. Development cooperation ensured that help was available to Ukraine immediately after Russia launched its aggressive invasion.
A significant share of Finland’s ODA in 2022 was channelled through the EU (EUR 284 million), the UN (EUR 294 million) and the World Bank Group (EUR 116 million). An estimated EUR 356 million, representing 0.13 per cent of Finland’s GNI, was allocated to least developed countries (LDCs).
Last year, Finland granted EUR 114 million in humanitarian assistance as part of the official development assistance. Humanitarian assistance is an efficient means of responding rapidly to sudden crises, such as the COVID-19 pandemic and the support to Ukrainian civilians in the humanitarian crisis created by Russia’s aggression against Ukraine.
Development cooperation increased also in other OECD and EU countries
Globally, official development assistance (ODA) amounted to USD 204 billion (EUR 194 billion) in 2022, rising by 13.6 per cent in real terms compared to 2021. The largest donor was the United States, followed by Germany, Japan, France and the United Kingdom. The UN agreed target of spending 0.7 per cent of GNI on ODA was exceeded by Denmark, Germany, Luxembourg, Norway and Sweden. Total ODA for all DAC member countries combined as a per cent of GNI stood at 0.36 per cent.
The ODA flows of the EU Member States that are members of DAC totalled USD 91.6 billion (EUR 87.1 billion), representing 45 per cent of total ODA and 0.57 per cent of the combined GNI of the DAC-EU countries. ODA from the DAC-EU countries rose by 18.6 per cent on 2021.
Twenty-six member countries of the OECD Development Assistance Committee (DAC) increased their official development assistance (ODA) expenditure. ODA expenditure decreased in four DAC member countries.
The data will be updated in the final ODA statistics as regards the regional breakdown of spending, among other data. Finland’s ODA to GNI ratio may change, too, once Statistics Finland revises its GNI estimate.
Development cooperation an integral part of Finland’s foreign and security policy
Recent crises underline the importance of development cooperation as a key instrument of Finland’s foreign and security policy. By taking part in resolving global problems, Finland is consolidating its own position.
Finland’s development cooperation aims to support developing countries so that in the future they can take responsibility for the wellbeing of their people and for the stability of their society. Read more about Finland’s development cooperation in the 2022 Development Policy Results Report or in Finnish on the Foreign Ministry’s website presenting development cooperation results.
Jasper Hakala, Programme Officer, Unit for Administrative and Legal Development Cooperation Matters, tel. +358 295 350 796
Titta Maja-Luoto, Director General, Department for Development Policy, tel. +358 295 350 017
The email addresses of the Ministry for Foreign Affairs are in the format [email protected].
Read more about Finland’s development cooperation disbursements at the website openaid.fi