AidWatch 2023 – Bursting the ODA inflation bubble

We are living through events few could have predicted a couple of years ago. The consequences of another war in Europe are being felt across the world in the form of increasing energy and food prices; climate change is devastating ecosystems around the world; inequalities are soaring. The world is at a crossroads where international cooperation efforts can help countries withstand the impact of these shocks while building a more sustainable and equitable world, but only if it is done the right way. Decision-makers face a difficult, yet vital series of choices to make in this critical juncture.

AidWatch reports offer insights and recommendations for policymakers dealing with these challenges. They assess European ODA, a precious tool to support those left furthest behind, in terms of quantity and quality. AidWatch represents civil society views on ODA trends and urges European policymakers to honor their commitments for partner countries’ own development objectives.

The 2023 AidWatch report employs a revised methodology, dissecting the official ODA definition to gauge the EU’s contribution to overall objectives. This reassessment is vital to redefine the concept of ‘inflated aid’ and its relevance in the debate on aid quality.

Using the revised methodology, the report critically analyses the EU’s financial support to partner countries. It questions how much of this support can genuinely qualify as ODA. The report then evaluates how ODA supports countries’ economic development and welfare, thereby acting as a powerful tool to reduce inequalities between and within countries. Additionally, it provides a detailed country-by-country analysis for EU Member States and the United Kingdom.