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Mapping the Global Flow of Foreign Aid

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Global flow of foreign aid by country

flow of foreign aid by country

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:

    1. Bilateral Aid: Direct government-to-government assistance
    2. Multilateral Aid: When multiple governments pool resources in cooperation with organizations like the World Bank, the IMF, and the UN
    3. Tied Aid: The receiving country accepts aid with the expectation that it is spent in the lending country
    4. Voluntary Aid: A charitable donation, particularly when countries are facing a humanitarian crisis
    5. Project Aid: When aid is used to finance a specific project
    6. Military Aid: Similar to tied aid, but specific to weapons and military supplies

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).

foreign aid by country

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.

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Energy

Mapped: The World’s Nuclear Reactor Landscape

Which countries are turning to nuclear energy, and which are turning away? Mapping and breaking down the world’s nuclear reactor landscape.

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The World’s Changing Nuclear Reactor Landscape

View a more detailed version of the above map by clicking here

Following the 2011 Fukushima nuclear disaster in Japan, the most severe nuclear accident since Chernobyl, many nations reiterated their intent to wean off the energy source.

However, this sentiment is anything but universal—in many other regions of the world, nuclear power is still ramping up, and it’s expected to be a key energy source for decades to come.

Using data from the Power Reactor Information System, maintained by the International Atomic Energy Agency, the map above gives a comprehensive look at where nuclear reactors are subsiding, and where future capacity will reside.

Increasing Global Nuclear Use

Despite a dip in total capacity and active reactors last year, nuclear power still generated around 10% of the world’s electricity in 2019.

Global Nuclear Reactors and Electrical Capacity

Part of the increased capacity came as Japan restarted some plants and European countries looked to replace aging reactors. But most of the growth is driven by new reactors coming online in Asia and the Middle East.

China is soon to have more than 50 nuclear reactors, while India is set to become a top-ten producer once construction on new reactors is complete.

Asia's Growing Nuclear Footprint

Decreasing Use in Western Europe and North America

The slight downtrend from 450 operating reactors in 2018 to 443 in 2019 was the result of continued shutdowns in Europe and North America. Home to the majority of the world’s reactors, the two continents also have the oldest reactors, with many being retired.

At the same time, European countries are leading the charge in reducing dependency on the energy source. Germany has pledged to close all nuclear plants by 2022, and Italy has already become the first country to completely shut down their plants.

Despite leading in shutdowns, Europe still emerges as the most nuclear-reliant region for a majority of electricity production and consumption.

world-nuclear-landscape-supplemental-3

In addition, some countries are starting to reassess nuclear energy as a means of fighting climate change. Reactors don’t produce greenhouse gases during operation, and are more efficient (and safer) than wind and solar per unit of electricity.

Facing steep emission reduction requirements, a variety of countries are looking to expand nuclear capacity or to begin planning for their first reactors.

A New Generation of Nuclear Reactors?

For those parties interested in the benefits of nuclear power, past accidents have also led towards a push for innovation in the field. That includes studies of miniature nuclear reactors that are easier to manage, as well as full-size reactors with robust redundancy measures that won’t physically melt down.

Additionally, some reactors are being designed with the intention of utilizing accumulated nuclear waste—a byproduct of nuclear energy and weapon production that often had to be stored indefinitely—as a fuel source.

With some regions aiming to reduce reliance on nuclear power, and others starting to embrace it, the landscape is certain to change.

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Politics

How Much Do Countries Spend on Healthcare Compared to the Military?

Every year, governments spend trillions on healthcare and defense. But how much is spent per person, and how does this compare by country?

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Healthcare vs. Military Spending, by Country

Keeping citizens both healthy and secure are key priorities for many national governments around the world—but ultimately, decisions must be made on how tax dollars are spent to accomplish these objectives, and funding must fall into one bucket or another.

This infographic from PixlParade examines how much 46 different countries put towards healthcare and military spending in 2018, per capita.

Head to Head: Healthcare versus Military

Data for government and compulsory healthcare spending comes from the Organization for Economic Co-operation and Development (OECD). Note that these figures do not include spending through private insurance or out-of-pocket expenses.

Meanwhile, the data for military spending comes from the Stockholm International Peace Research Institute (SIPRI).

CountryHealth spending (Per capita, 2018 US$)Military spending (Per capita, 2018 US$)
U.S.$9,008.77$2,086.50
Norway$5,361.00$1,323.90
Germany$5,262.83$559.50
Switzerland$4,687.26$546.00
Sweden$4,623.68$574.90
Netherlands$4,461.30$651.50
Denmark$4,441.07$792.50
Luxembourg$4,385.66$650.80
France$4,310.55$791.00
Austria$4,137.25$381.00
Belgium$3,868.82$421.60
Japan$3,787.74$366.50
Canada$3,719.86$613.10
Ireland$3,629.43$229.80
UK$3,336.55$743.10
Finland$3,331.65$680.30
Australia$3,311.33$1,078.00
NZ$3,188.39$532.30
Czhechia$2,632.67$254.10
Italy$2,574.96$458.70
Malta$2,448.73$152.20
Spain$2,414.69$381.70
Slovenia$2,227.77$254.80
Portugal$1,906.23$431.00
South Korea$1,848.76$841.70
Israel$1,828.40$2,357.50
Estonia$1,744.57$458.60
Lithuania$1,599.15$377.10
Croatia$1,553.67$232.50
Poland$1,511.18$317.50
Hungary$1,493.01$184.60
Romania$1,344.34$223.50
Greece$1,331.19$547.10
Chile$1,282.59$296.10
Latvia$1,111.67$375.20
Cyprus$1,103.03$374.30
Bulgaria$1,042.85$136.30
Turkey$946.83$238.60
Russia$873.00$421.20
Colombia$864.16$204.10
Mexico$582.05$46.30
Brazil$388.98$134.50
South Africa$267.85$63.50
China$249.83$177.60
Indonesia$55.62$28.20
India$18.80$49.00
Source: OECDSource: SIPRI

Note: There are minor discrepancies in comparing table data to original sources due to recent estimate updates. Figures for Brazil, South Africa, China, Indonesia, and India come from the World Bank (2017).

The Top 10 Healthcare Spenders

The U.S. leads the world in government healthcare spending at $9,008 per capita – over 1.5 times that of Norway, the next-highest country examined.

CountryPer capita health spending% of GDP% of health spending
U.S.$9,008.7714.3%84.7%
Norway$5,361.008.6%85.3%
Germany$5,262.839.7%84.6%
Switzerland$4,687.267.6%64.4%
Sweden$4,623.689.3%85.1%
Netherlands$4,461.308.2%82.1%
Denmark$4,441.078.5%83.9%
Luxembourg$4,385.664.4%84.1%
France$4,310.559.4%83.6%
Austria$4,137.257.7%74.7%

While per-capita government spending on healthcare in the U.S. is the highest in the world, this has not necessarily brought about better outcomes (such as longer life expectancy) compared to other developed nations.

It’s also worth mentioning that the above figures do not cover all healthcare costs incurred by citizens, as they do not account for private insurance spending or out-of-pocket expenses. According to OECD data, these additional costs tend to be the highest in places like Switzerland and the United States.

The Top 10 Military Spenders

Israel has the highest rate of military spending per capita, and has the distinction of being the only country on this list to invest more in defense than in healthcare.

CountryPer capita military spending% of GDPTotal expenditure, US$M
Israel$2,357.505.3%$19,759M
U.S.$2,086.50 3.3%$682,491M
Norway$1,323.90 1.6%$7,067M
Australia$1,078.00 1.9%$26,840M
South Korea$841.70 2.5%$43,070M
Denmark$792.50 1.3%$4,559M
France$791.00 1.3%$51,410M
UK$743.101.8%$49,892M
Finland$680.30 1.4%$3,757M
Netherlands$651.501.2%$11,115M

Although the United States comes in second place here as well, in absolute terms, the U.S. puts more money into military expenditures than many other countries combined, at almost $700 billion per year.

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