EU aid reached its highest level ever in 2022, mainly as a result of support to Ukraine. But the erosion of aid also reached new record levels. More than a fifth of EU aid does not meet the basic criteria to be defined as aid. This is according to the AidWatch report produced by CONCORD Europe every year.
EU aid increased to 0.59% of gross national income (GNI) in 2022, compared to 0.48% in 2021. Support to Ukraine and the neighbourhood accounted for almost all of the increase in EU and Member State aid. At the same time, aid to sub-Saharan Africa decreased by as much as 7.8% in 2022, home to the majority of the least developed countries as defined by the UN, and many of the people most affected by the impacts of climate change, war and conflict, growing debt burdens and threats to food security.
Only three countries, Luxembourg, Sweden and Germany, reached the commitment to spend at least 0.7% of GNI on aid. Denmark fell below 0.7% for the first time in four decades.
- At Erikshjälpen, we are fully focused on using our scarce resources to fight poverty and contribute to the Global Goals. The least we can expect in the critical global situation right now is that our decision-makers in Sweden and the EU use the aid so that the most vulnerable are reached first and receive the most, says Daniel Grahn.
As much as one in five aid dollars, as much as €20 billion, is reported as aid but does not meet the criteria. The money does not focus on the people in poverty and oppression it is intended for.
- We work with 3.5 million farmers in 20 countries. Often women. They are struggling against droughts, torrential rains, floods and growing hunger in an economic crisis that has shocked prices of seeds, grains and fuel. "There is a fundamental injustice in how they are affected by climate change, war and inequalities that they did not cause," said Anna Tibblin, Secretary-General of We Effect.
Most of the erosion is due to the use of aid funds to cover domestic refugee costs. This has led to some EU Member States giving as much as half, and in some cases even more, of their aid to themselves in 2022. In total, domestic refugee costs amount to €13.9 billion. Another contributing factor is that Member States overstate how much of their lending is aid by as much as €1.7 billion.
In Sweden, 3.9 billion Swedish kronor (SEK) ended up being used to cover domestic refugee costs, after a year of numerous and sudden budget changes. As the Migration Agency's forecasts turned out to be exaggerated, Swedish kronor (SEK) 2.1 billion was not used. The government, neither the current nor the previous one, has not returned the money to aid activities anyway.
While EU aid is increasing overall, Sweden's aid is decreasing to 0.9% of GNI, and the decline is expected to continue in the coming years.
Read more about Sweden's expected reduction in aid, "Only the Greens and the Left stand by the 1% target".
- It was also appalling to see how much the work was made more difficult for our members and their partners because this and previous governments handled the transfer of money between Sida's and the Migration Agency's budgets so badly. A more stable and long-term system is needed for this," said Anna Stenvinkel, Secretary-General of ForumCIv.
The AidWatch report is produced annually by the European platform for sustainable development and international cooperation, CONCORD Europe. CONCORD Sweden is one of 26 national platforms within CONCORD Europe.
CONCORD Sweden has coordinated the work on the recommendations to the Swedish government on the Sweden side of the report. Here is a short version of them:
Find out more about CONCORD Europe.
Link to the full report: Aidwatch 2023
Author: Lena Elf
Published: 20 October 2023