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| Aid spending pushed up by refugee crisis, OECD says | Aid spending pushed up by refugee crisis, OECD says |
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| A doubling of spending on refugees led to an increase in aid spending by the world’s richest countries in 2015, the Organisation for Economic Cooperation and Development has announced. | A doubling of spending on refugees led to an increase in aid spending by the world’s richest countries in 2015, the Organisation for Economic Cooperation and Development has announced. |
| The OECD’s annual update on development assistance showed that aid budgets totalled $131.6bn (£92bn) last year – a 6.9% increase on 2014. | |
| But the rise was exaggerated by the $12bn spent on helping to cope with a massive increase in refugees, the Paris-based body said. Once this was stripped out, aid spending was up by 1.7%. | But the rise was exaggerated by the $12bn spent on helping to cope with a massive increase in refugees, the Paris-based body said. Once this was stripped out, aid spending was up by 1.7%. |
| Money spent hosting or processing refugees in donor countries accounted for 9.1% of aid budgets in 2015, up from 4.8% in 2014. The OECD said the rise in refugee costs did not significantly eat into development programmes, with around half of donor countries using money from outside their aid budgets to cover refugee costs. | Money spent hosting or processing refugees in donor countries accounted for 9.1% of aid budgets in 2015, up from 4.8% in 2014. The OECD said the rise in refugee costs did not significantly eat into development programmes, with around half of donor countries using money from outside their aid budgets to cover refugee costs. |
| Related: Big aid donors failing to lift the lid on how they spend their cash | Related: Big aid donors failing to lift the lid on how they spend their cash |
| “Countries have had to find large sums to cover the costs of an historic refugee crisis in Europe, and most have so far avoided diverting money from development programmes. These efforts must continue. We also welcome that more aid is being provided to the poorest countries,” said OECD secretary-general Angel Gurría. | “Countries have had to find large sums to cover the costs of an historic refugee crisis in Europe, and most have so far avoided diverting money from development programmes. These efforts must continue. We also welcome that more aid is being provided to the poorest countries,” said OECD secretary-general Angel Gurría. |
| “Governments must ensure that development aid keeps rising. They also need to develop long-term options for meeting future refugee costs and the integration of refugees in our societies, while ensuring at the same time that ODA [official development assistance] reaches those countries and people that need it the most.” | “Governments must ensure that development aid keeps rising. They also need to develop long-term options for meeting future refugee costs and the integration of refugees in our societies, while ensuring at the same time that ODA [official development assistance] reaches those countries and people that need it the most.” |
| The OECD said a record 1.5 million refugees claimed asylum in OECD countries in 2015, more than a million of them arriving in Europe. | The OECD said a record 1.5 million refugees claimed asylum in OECD countries in 2015, more than a million of them arriving in Europe. |
| The rules of the OECD’s development assistance committee (DAC) permit member countries to count certain refugee-related expenses as ODA for the first year after their arrival. Three countries – Australia, Korea and Luxembourg – do not count refugee costs as ODA. Others – Austria, Greece, Italy, the Netherlands and Sweden – saw refugee costs account for more than 20% of their ODA in 2015. | The rules of the OECD’s development assistance committee (DAC) permit member countries to count certain refugee-related expenses as ODA for the first year after their arrival. Three countries – Australia, Korea and Luxembourg – do not count refugee costs as ODA. Others – Austria, Greece, Italy, the Netherlands and Sweden – saw refugee costs account for more than 20% of their ODA in 2015. |
| Despite the increased spending on refugees, the 2015 data showed that bilateral aid to the poorest countries rose by 4% in real terms, in line with commitments by donors to reverse recent declines. The OECD said a survey of donor spending plans through 2019 suggested flows to the poorest countries will keep rising. | Despite the increased spending on refugees, the 2015 data showed that bilateral aid to the poorest countries rose by 4% in real terms, in line with commitments by donors to reverse recent declines. The OECD said a survey of donor spending plans through 2019 suggested flows to the poorest countries will keep rising. |
| The OECD said aid budgets, adjusted for inflation, had increased by 83% since 2000 when the United Nations set its 2015 millennium development goals. The MDGs have subsequently been replaced by new sustainable development goals. | The OECD said aid budgets, adjusted for inflation, had increased by 83% since 2000 when the United Nations set its 2015 millennium development goals. The MDGs have subsequently been replaced by new sustainable development goals. |
| “We need to remember that the best way to achieve the sustainable development goals and avoid future refugee crises is to continue the current momentum of aid flows, particularly to the neediest and most fragile countries,” said Erik Solheim, DAC chair. “I am glad that we have reversed the recent declines in aid to the poorest countries and that most countries aren’t spending large amounts of their ODA on hosting refugees.” | “We need to remember that the best way to achieve the sustainable development goals and avoid future refugee crises is to continue the current momentum of aid flows, particularly to the neediest and most fragile countries,” said Erik Solheim, DAC chair. “I am glad that we have reversed the recent declines in aid to the poorest countries and that most countries aren’t spending large amounts of their ODA on hosting refugees.” |