OECD raises concerns as countries slash foreign aid

PARIS: The OECD voiced concerns Wednesday over the outlook for foreign aid as it announced a drop in development assistance worldwide in 2024, the first decline in six years as more countries slash their budgets.

Foreign aid overall reached $212.1 billion last year, down 7.1 percent from the previous year, the Paris-based Organisation for Economic Cooperation and Development said in a report, with aid to Ukraine particularly affected.

“Recent announcements… have raised concerns about future levels of official development assistance and the OECD is examining the importance and implications of such budgetary cuts,” the organisation said in a report.

Initial OECD estimates suggest a further drop in foreign aid of nine to 17 percent for 2025.

In recent months, many developed countries have announced cuts to their foreign aid budget, including the United States, Britain and France.

Since his return to the White House in January, US President Donald Trump has announced a drastic reduction in foreign aid, with 92 percent of overseas program funding from the US Agency for International Development (USAID) cut.

USAID had an annual budget of $42.8 billion, representing 42 percent of the world’s foreign aid.