Mapping the Global Flow of Foreign Aid
Mapping the Global Flow of Foreign Aid
Billions of dollars routinely flow between countries for a number of reasons that go beyond simply helping people in less wealthy nations.
Extending foreign aid can be a tool to help strengthen relationships with allies, to help bolster a military presence in a key area, or even to project a positive image at home and abroad. Of course, aid also helps less wealthy nations do all kinds of things, from constructing new infrastructure to recovering from humanitarian crises or natural disasters.
Today’s infographic, from Wristband Resources, is a comprehensive look at the flow of foreign aid funds around the world in 2017.
The visualization raises a number of questions. For example:
- Why does Japan send so much foreign aid to places like India and Vietnam?
- Why does Turkey—one of the top 20 economies in the world—receive so much foreign aid?
- And why did Ethiopia receive over $1 billion in aid from the United States?
Below we’ll answer key questions about foreign aid, while examining some of the more interesting relationships in detail.
What Constitutes Foreign Aid?
In simple terms, foreign aid is the voluntary transfer of resources from one country to another country—typically capital. Here are the six types of foreign aid:
Note: The graphic above measures official development assistance (ODA), as defined by the OECD. ODA excludes military aid and the “promotion of donors’ security interests” as well as transactions that have primarily commercial objectives.
Which Countries Give the Most Foreign Aid?
Every country’s budget is different, and priorities can change as the economic and political cycles progress. As of 2018, here are the countries that contributed the most foreign aid as a portion of their Gross National Income (GNI).
In a 1970 resolution, the UN challenged countries to spend 0.7% of their GNI on foreign aid. Today, only four countries—Sweden, Luxembourg, Norway, and Denmark—surpassed the United Nations’ official development assistance target.
Using this measure, all top 10 countries are located in Europe. That said, in absolute terms, countries like Japan and the United States are still major contributors of aid around the world.
Below are a few real world examples of foreign aid flow, and more context around why money is flowing between the countries.
Japan → India
India is the top recipient of foreign aid, with the majority of funds coming from Japan. The country received close to $2.4 billion from Japan in 2017.
In recent years, the growth of Japan-India relations is viewed as a counter to China’s expanding economic and political influence across the Asian continent. As China’s national banks continue to fund megaprojects around the world, Japan is helping to fill a similar role in India.
One major project currently under construction is the Mumbai–Ahmedabad High Speed Rail Corridor. To move the $22 billion project forward, Japan offered India a 50-year loan at a 0.1% interest rate, covering 80% of the project cost.
European Union → Turkey
European institutions contributed nearly $2.6 billion to Turkey in 2017. On the surface this may seem confusing, as Turkey is more developed than most nations receiving foreign aid—however, much of this funding stems from the migration crisis. In 2016, the EU struck a deal with Turkey to reroute any migrant arriving in Europe via the Aegean Sea back to Turkey. In exchange, the EU agreed to fast-track Turkey’s EU membership bid.
Turkey has been bearing the brunt of caring for refugees, and the EU has contributed significant funds to the effort. For example, funding for the Emergency Social Safety Net (ESSN) program in Turkey has reached $1.2 billion.
In 2019, EU-Turkey relations took a chilly turn as European Parliament voted to suspend Turkey’s EU membership bid, expressing concern over creeping authoritarianism and human rights violations.
United States → Ethiopia
In 2017, Ethiopia was under a state of emergency as the African country faced a third straight year of drought, and security forces and anti-government protesters clashed in the streets. Though the U.S. does provide plenty of military and security-oriented aid, this is an example of humanitarian aid in the face of a crisis.
The United States was also the top source by far for aid flowing into other countries in the region, including Kenya, Tanzania, and South Sudan.
Charted: The Number of Democracies Globally
How many democracies does the world have? This visual shows the change since 1945 and the top nations becoming more (and less) democratic.
Charted: The Number of Democracies Globally
The end of World War II in 1945 was a turning point for democracies around the world.
Before this critical turning point in geopolitics, democracies made up only a small number of the world’s countries, both legally and in practice. However, over the course of the next six decades, the number of democratic nations would more than quadruple.
Interestingly, studies have found that this trend has recently reversed as of the 2010s, with democracies and non-democracies now in a deadlock.
In this visualization, Staffan Landin uses data from V-DEM’s Electoral Democratic Index (EDI) to highlight the changing face of global politics over the past two decades and the nations that contributed the most to this change.
V-DEM’s EDI attempts to measure democratic development in a comprehensive way, through the contributions of 3,700 experts from countries around the world.
Instead of relying on each nation’s legally recognized system of government, the EDI analyzes the level of electoral democracy in countries on a range of indicators, including:
- Free and fair elections
- Rule of law
- Alternative sources of information and association
- Freedom of expression
Countries are assigned a score on a scale from 0 to 1, with higher scores indicating a higher level of democracy. Each is also categorized into four types of functional government, from liberal and electoral democracies to electoral and closed autocracies.
Which Countries Have Declined the Most?
The EDI found that numerous countries around the world saw declines in democracy over the past two decades. Here are the 10 countries that saw the steepest decline in EDI score since 2010:
|Country||Democracy Index (2010)||Democracy Index (2022)||Points Lost|
Central and Eastern Europe was home to three of the countries seeing the largest declines in democracy. Hungary, Poland, and Serbia lead the table, with Hungary and Serbia in particular dropping below scores of 0.5.
Some of the world’s largest countries by population also decreased significantly, including India and Brazil. Across most of the top 10, the “freedom of expression” indicator was hit particularly hard, with notable increases in media censorship to be found in Afghanistan and Brazil.
Countries Becoming More Democratic
Here are the 10 countries that saw the largest increase in EDI score since 2010:
|Country||Democracy Index (2010)||Democracy Index (2022)||Points Gained|
|🇬🇲 The Gambia||0.25||0.50||+25|
|🇱🇰 Sri Lanka||0.42||0.57||+15|
Armenia, Fiji, and Seychelles saw significant improvement in the autonomy of their electoral management bodies in the last 10 years. Partially as a result, both Armenia and Seychelles have seen their scores rise above 0.5.
The Gambia also saw great improvement across many election indicators, including the quality of voter registries, vote buying, and election violence. It was one of five African countries to make the top 10 most improved democracies.
With the total number of democracies and non-democracies almost tied over the past four years, it is hard to predict the political atmosphere in the future.
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