Bosman Business World

News and Research => Investment => Topic started by: bosman on 2025-01-30 09:52

Title: Countries That Receive the Most Foreign Aid  from the U.S.
Post by: bosman on 2025-01-30 09:52
Countries That Receive the Most Foreign Aid  from the U.S.
images (71).jpeg
The United States  provides billions of dollars in foreign  aid to other countries  each year.
U.S. airmen use a forklift to move supplies  destined for Ukraine, April 29, 2022, at Dover Air Force Base,  Del.
The United States spent less on foreign aid in 2023 than the year  before — but it  also allocated more  money, adjusted for inflation, than at any time since the 1950s, according to data compiled by the federal government. The high price tag for 2023, the most recent year for which complete data is available, is largely  due to continued financial support  from Israel and  Ukraine.
The total for 2023  was about $68 billion, down from a  postwar record of more than $76 billion  last year, according to data from a federal  tracking tool. This recent  increase is not the result of a slow  recovery, nor is it due to inflation. Spending  increased by more than 35% between 2021 and 2022,  led by increased aid to Ukraine. There are only three years  in which the  United States has spent even close to that amount  in foreign aid: 1947,  1949, and 1951, when the global landscape  was very different  after World War II and the  creation of the United  Nations.
But as President Donald  Trump enters his second term, the future of U.S. foreign funding is unclear. Trump issued an executive order in January 2025  directing Secretary of State Marco Rubio to  suspend all foreign  aid payments, pending a review to ensure they are  "effective and consistent with U.S. policy under the America First  program." The order sent  "chills down the throats of officials," CNN reported,  because it would  freeze billions of dollars in funding, including humanitarian aid from the  United States, the  world's largest humanitarian donor. The order  provides exceptions for emergency food  aid programs and military  funding for Israel and  Egypt.
In 2023, Ukraine, Israel,  Jordan, and Egypt topped the list of nearly 180 countries receiving funds from the  United States.
What is foreign aid? A website run by the State Department and the U.S. Agency for International Development, ForeignAssistance.gov, lists international  assistance from more than 20 U.S. government agencies. The site defines foreign  aid as "activities funded from appropriations accounts available for assistance  to foreign countries, international organizations, and other foreign entities, which may include funds,  property, services, and technical assistance."
A key point  made elsewhere:  the tracker figures do not  reflect everything that could be considered foreign aid, including  the significant amounts of funding for Ukraine provided through mechanisms such as  Ukrainian security assistance.
U.S. foreign aid  commitments on the federal tracker include both economic  support—which includes humanitarian  spending—and military support. The  assistance can range from counterterrorism initiatives funded by the  State Department to  HIV/AIDS programs funded by the Department of Health and Human  Services.
The latest tracker data shows that the share of  U.S. military aid  has fallen from 23% in 2020 to just 12% in 2023,  the lowest percentage since 1949.  Before 2021, military spending for decades  accounted for at least 20% of foreign aid obligations. In contrast, the  weight of aid in the form of economic assistance  has been greater in recent years than in decades,  accounting for about 88% of  the liabilities listed in  2023.
What assistance does the  United States offer to Israel?  In 2023, U.S. agencies  allocated about $3.3 billion in  aid to Israel, almost all of which  went to military aid. The country received a similar amount in  2022.
Over the  past decade, Israel has typically  received between  8 and  10 percent of all country-specific foreign aid obligations  each year, but that share  has fallen to  about 5 percent by 2023, while Ukraine  continues to  receive the lion's  share.
Meanwhile, the Palestinian territories  of the West Bank and Gaza  account for about $294 million in foreign aid obligations in 2023, up from $160 million in  2022.
What assistance is the U.S.  offering to Ukraine?  In 2023, Ukraine received about $17  billion, more than  a quarter of all aid  earmarked for specific countries, the data  show. Ukraine surpassed Israel  for the first time as the top  recipient of U.S. aid in 2022, after Russia  began its invasion in February of that year. In 2021,  before Russia's invasion, Ukraine was not among the top 20 recipients of U.S. foreign aid, ranking  21st with about $597 million in inflation-adjusted  dollars.
Aid payments are made  for a specific  purpose. The money  can be spent  on humanitarian  aid, healthcare, infrastructure, education, military aid and more. Countries involved in ongoing conflicts typically receive  a large amount of military aid, while countries  facing humanitarian  crises may receive  assistance in  this area  — whether in health or  infrastructure.
The federal tracking site  notes, among other things, that foreign aid  bonds can be distributed  immediately or  at a later date, but the funds must be available before  a bond is  issued.
Which country spends the  most on  foreign aid?
Several countries, including the  United States, are members  of the Development Assistance Committee of the Organization for Economic Cooperation and  Development, which means they  provide "official development assistance" to developing countries.  Although the  United States is the  OECD's largest donor of development assistance worldwide  in terms of dollar  amounts, it is surpassed when this aid is measured as a percentage of gross national  income (GNI), which measures a  country's gross domestic product  minus the income it receives from its  businesses or citizens  abroad. Thanks to this measure, Norway  spent 1.1% of its GNI and  stood out in 2023, followed by Luxembourg (1%), Sweden (0.9%), Germany (0.8%) and Denmark (0.7%). The  United States dedicated 0.24% of its GNI  to official development assistance, ranking  26th in the  ranking.
Countries  receiving the  most foreign aid from the  United States in 2023:
Screenshot_20250130-061820.png
Ukraine  ($17.2 billion) Israel  ($3.3 billion) Jordan  ($1.7 billion) Egypt  ($1.5 billion) Ethiopia  ($1.5 billion) Somalia  ($1.2 billion) Nigeria  ($1 billion) Congo (Kinshasa)  ($990 million) Afghanistan  ($886.5 million) Kenya  ($846 Countries  receiving the  least foreign aid from the  United States in 2023: Curacao  ($3,000) Portugal  ($6,500) Kuwait  ($73,000) ($80,000) Dominica  ($80,00) $93,000) Russia  ($108,000) Spain  ($133,000) Netherlands  ($144,000) Singapore  ($304,000) Most Aid Killed in 2024  than in  any other year, says Fatima  Shbair's report for the  United States Spending Too  Much, according to opinion  polls, most Americans believe  the portion of the federal budget  devoted to foreign aid is  too large. A  previous Kaiser Family Foundation  study found that respondents estimated  that foreign aid  accounts for an average of 26 percent of the federal  budget. In reality, foreign  aid generally accounts for less than  1 percent of the trillions of dollars  spent by the federal  government. However, the  United States has historically given more money in foreign aid in total dollars than any other country in the world, distributing more than $640 billion  worldwide between 2012  and 2022. To put the $68 billion for 2023  in context, if all foreign aid were  distributed through a single U.S.  government agency, that agency would have spent more than the Department of Labor ($54  billion), but  far less than the Department of Homeland Security ($123 billion) in fiscal year 2023.

[attachment deleted by admin]