In this article, we will list the leading aid-giving nations that generously contribute to humanitarian and social causes. If you want to skip our overview of the global foreign aid situation, read 10 Countries that Give the Most Foreign Aid Per Capita.
Countries that give the most foreign aid per capita are Luxembourg, Norway, Sweden, and Denmark, along with the US, Japan, Germany, and the UK. Some countries that have recently started giving hefty amounts of aid include the UAE, Saudi Arabia, and Turkey. Foreign aid is a bridge between developed and developing nations that provides the latter with the resources needed to overcome their troubles.
But not all countries contribute equally, and the measurement of foreign aid per capita offers insight into a country’s commitment to international development relative to its population size. Countries that give the most foreign aid per capita are not necessarily the largest donors in absolute terms, but they allocate a more generous portion of their resources, relative to the size of their population, to aid.
Humanitarian aid given by donor countries addresses immediate needs arising from natural disasters or conflicts to ensure the provision of food, water, and shelter to the affectees. Likewise, developmental aid aims at long-term economic growth and sustainability in weaker economies as it focuses on aid-receiving countries’ education, healthcare, and infrastructure. Help from developed countries is also crucial for combating infectious diseases, rebuilding nations after war, climate change, and food insecurity. For instance, health initiatives that have received considerable foreign aid include polio, malaria, and HIV/AIDS.
We have already discussed 30 Countries That Receive the Most Foreign Aid From the US and what causes make them need foreign aid; read our article to know more about them.
Role of the 0.7% GNI Target as Foreign Aid
Countries that give the most foreign aid per capita draft their assistance budget to allocate a certain percentage of their Gross National Income (GNI) to help other nations. Mostly, the target is 0.7% of the total GNI, which was initially set by the World Council Of Churches and later adopted by the United Nations. Countries in OECD’s Development Assistance Committee (DAC) agree to aim for giving 0.7% of gross national income (GNI) as foreign aid.
The idea was that economically advanced nations should aim to allocate 0.7% of their GNI to Official Development Assistance (ODA) to support developing countries. Notably, the 0.7% figure is a target, not a mandatory requirement. Therefore, while many countries have endorsed it and use it as a guideline, they don’t always achieve it. Countries that have historically met (or exceeded) the 0.7% target include Sweden, Norway, Luxembourg, and Denmark. Other countries, like the Netherlands and the United Kingdom, have also met the target in certain years.
Many other DAC members that are leading aid-giving nations have endorsed the target but haven’t regularly met it. These include larger economies like the United States, Germany, France, and Japan. For instance, if we talk about which country gives the most foreign aid, it is the United States, which regularly disburses over $30 billion per year to support other nations. But in terms of the GNI percentage, the US’s contribution stays less than 0.2% of its multi-trillion-dollar economy. Contrarily, advanced nations like Luxembourg, Norway, and Sweden have regularly delegated up to 1.2% of their annual gross national income between 2018 and 2022. But since these economies are smaller than the US’s, their lump sum foreign aid is significantly lower.
Multi-Billion Companies That Help Other Countries
Microsoft (NASDAQ:MSFT) and Google Alphabet Inc (NASDAQ:GOOG) engage in multiple initiatives and projects to assist less developed countries. For instance, Microsoft (NASDAQ:MSFT) has channeled resources into its philanthropic arm to provide technology access to underserved communities. Microsoft Corporation (NASDAQ:MSFT) often delegates software, nonprofit grants, and technological skills training to empower those who don’t have equal educational opportunities.
Similarly, Alphabet Inc (NASDAQ:GOOG) has aimed to bring fast, free Wi-Fi to places with limited internet access through its Google Station program. The program was initially launched in India but has now expanded to Nigeria, Thailand, and Vietnam, among others. Notably, Google Alphabet Inc (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT) are among the largest donor companies.
Besides governments, some private organizations also take part in overcoming the world’s crises; read 26 Companies that Donate to Nonprofits to know more.
25 Countries that Give the Most Foreign Aid Per Capita
Our Methodology
To find which countries give the most foreign aid, we calculated their GNI for the past 5 years (2018-2022). We translated this GNI percentage to aid figures by running individual searches on the said countries’ gross national income in these years, as some countries only state the percentage of their GNI they disburse as foreign aid and don’t give actual figures (for the nations that have clearly stated their disbursed foreign aid, we took the stated figures). Later, to find the per capita foreign aid given by these countries, we divided the total foreign aid disbursed by these countries with their populations in the said years. This gave us per capita foreign aid spending of the top 25 donor countries between 2018 and 2022. We averaged these countries’ per capita aid spending for 5 consecutive years to get composite rankings and ranked the highest per capita ODA contributing countries accordingly.
Our sources for this study were OECD’s Net ODA Database, OECD Stat, the World Bank’s Open Databases on Population and World Bank’s data on countries’ GNIs.
Based on our findings, here are the countries that give the most foreign aid per capita:
25. Portugal
Average Foreign Aid Given Per Capita Between 2018-2022: $44
Portugal is an active player in international aid and commits 0.1%-0.2% of its Gross National Income (GNI) towards developmental assistance and focuses mostly on Portuguese-speaking countries in Africa and Asia. The country’s commitment stems from a stable economy that gives it enough leg space to help other nations.
24. Spain
Average Foreign Aid Given Per Capita Between 2018-2022: $74
Spain usually dedicates 0.25% of its GNI to foreign aid to target regions in Latin America and Africa. The country’s motive with foreign aid is to help the health, education, and water sanitation sectors.
23. Italy
Average Foreign Aid Given Per Capita Between 2018-2022: $92
Italy has a tradition of extending foreign assistance to numerous countries and gives up to 0.3% of its GNI as aid. The country’s GDP is $2.04 trillion, and the government expects the GDP to grow 1.2% this year, which is above the initial target of 1%. Italy prioritizes its aid to go to agriculture, health, and education.
22. Turkey
Average Foreign Aid Given Per Capita Between 2018-2022: $112
Although Turkey is dealing with a huge load of refugees and the recent earthquake has badly hit it, it’s still among Non-DAC countries that have high foreign aid per capita. The nation’s strategic location enables it to assist neighboring countries, where infrastructure and health-related projects need monetary help. The country’s per capita GDP is $10,616 as of current.
21. Australia
Average Foreign Aid Given Per Capita Between 2018-2022: $118
Australia’s foreign aid policy is driven by regional concerns and global responsibilities. The country allocates 0.15%-0.2% of its GNI to help less developed countries. Australia emphasizes the Pacific region to improve education, health, and governance in these areas.
20. New Zealand
Average Foreign Aid Given Per Capita Between 2018-2022: $125
Just like the neighbor, NZ is also a kind-hearted nation. New Zealand channels 0.25% of its GNI towards foreign aid, which translates to $550-$600 million. The nation seeks to improve sectors such as renewable energy and health through its initiatives.
19. Japan
Average Foreign Aid Given Per Capita Between 2018-2022: $133
Japan is the 3rd biggest economy in the world, so naturally, it has enough resources to lend others a helping hand. However, in terms of the disburses foreign aid per capita, the Asian titan falls in the middle. Japan’s foreign aid efforts concentrate on health and disaster risk reduction in Asian countries.
18. Saudi Arabia
Average Foreign Aid Given Per Capita Between 2018-2022: $136
Another non-DAC nation among the highest per capita ODA contributing countries is Saudi Arabia, the biggest oil economy. The country earmarks a part of its income, derived mainly from oil wealth, to assist nations whose resources are stretched thin.
17. Canada
Average Foreign Aid Given Per Capita Between 2018-2022: $148
Along with hosting millions of people from other countries, Canada also helps them with foreign aid. Canada has a longstanding tradition of international assistance geared towards sub-Saharan Africa. Major causes that Canada contributes to are women’s rights and skill development. While we’re on the subject of housing millions from other nations, read Top 30 Countries With The Most Immigrants to know which number Canada is at.
16. United States Of America
Average Foreign Aid Given Per Capita Between 2018-2022: $156
The United States is surely the most generous in terms of helping other countries, as it can disburse upwards of $61 billion each year as foreign aid (no other country is even close to this mark). But if we break down the US’s foreign aid between 2018-2022 in per capita figures, it stands at $156. The nation’s economic capabilities and commitment to global development enable this generous outreach. However, the per capita measure reflects the balance between its large population and total aid volume.
15. Austria
Average Foreign Aid Given Per Capita Between 2018-2022: $165
Austria also consistently dedicates around 0.25% of its GNI to global development efforts. The country’s strong economy enables this commitment and helps it prioritize humanitarian projects.
14. Iceland
Average Foreign Aid Given Per Capita Between 2018-2022: $200
Iceland’s small population makes it a generous per capita contributor to foreign aid because of its impressive economy and societal values. The country gives away almost 0.3% of its GNI as foreign aid to help with causes like sustainable development, gender equality, and renewable energy projects in developing countries.
13. Belgium
Average Foreign Aid Given Per Capita Between 2018-2022: $210
Belgium showcases a strong commitment to global solidarity through its foreign aid policy. As almost 0.45% of its GNI goes to foreign aid, the country’s per capita contribution stands at $210. The nation emphasizes humanitarian aid and helps other countries’ agricultural projects.
12. France
Average Foreign Aid Given Per Capita Between 2018-2022: $217
France’s average per capita foreign aid has been $217 in the last five years because of its prosperous economy. The nation emphasizes Africa to bolster the region’s health, education, and infrastructure sectors.
11. Finland
Average Foreign Aid Given Per Capita Between 2018-2022: $235
Finland is anchored in its values of equality, sustainability, and human rights. The country’s thriving and innovation-driven economy empowers it to allocate a noteworthy segment of its GNI to global welfare initiatives.
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Disclosure: None. 25 Countries that Give the Most Foreign Aid Per Capita is originally published at Insider Monkey.