Ever wondered what is the most charity giving country? Before beginning with which countries give the most foreign aid, it is important to understand what is foreign aid. Foreign aid, currency or assistance is that money or form of support which is given to the developing or underdeveloped countries by the rich ones for countless reasons. Foreign aid can be anything; food, shelter, money, water, medical supplies, defense supplies, infrastructure materials, volunteers and other resources. Foreign aid is a significant tool for promoting welfare and economic development that forms an important part of the government’s foreign strategy.
Countries giving most Foreign Aid
Let’s find out which countries are generous enough to support and help countries with lower standards of wealth.
Most of the foreign aid given by Swedish Development Official Assistance goes to the developing countries like Middle East and Africa. The Swedish Development Cooperation Agency determines how much should be given out as foreign aid; hence, allocates the budget with the Swedish government. The largest portion of the country’s foreign aid budget goes to Afghanistan, Mozambique and Somalia.
2. United States
Considering the US foreign aid by country, the aid provided is divided into two broad categories; economic assistance and military aid. Other large amounts are given to non – government agencies in different countries by churches, American foundations and other related organizations. The government of US channels half of its economic assistance via a specialized agency known as the USAID. US spend over more than 1% of the federal budget as foreign aid to other countries.
3. United Kingdom
The government of United Kingdom believes that by providing foreign aid to the needy countries will help in building a safer, healthier and more prosperous world for the people in developing countries and the UK itself (BBC). The aid given by the British goes towards helping people work their way out of poverty, vaccinating children to protect them from diseases, enabling them to go to school, providing medical care, nutrition and food. According to the UN, all the donor countries should at least provide 0.7% of their GNI to the receiving countries and so is met by the UK too.
Even after Germany has reinvented itself thrice (after WW1, WW2 and reunification with East Germany), the country is still said to be one of the largest foreign assistance providing nation. Even though recently, Germany had decided to increase its budget for giving out as foreign help, it still is short to maintain the 0.7% fixed target but plans on increasing the German development assistance in the upcoming years. According to the federal finance ministry of the country, Germany has spent its major chunk of aid on global poverty eradication and the remaining on refugees.
France provides a decent proportion of its GNI to the countries around the world as external aid. Their official development aids are divided into six sectors; economic growth, agriculture, health, food security, education and sustainable growth (worldatlas). The target countries for France to give out this relief to are mostly in the Sub – Saharan Africa and Mediterranean Basin. Although, a good portion of the budget as aid also goes to Middle East and Afghanistan.
A new approach to Japans current Development Cooperation Charter has been released in 2015 which covers human security, health, poverty alleviation and women’s welfare as some of the key aspects to be covered by the overseas aid. Japan has also started offering educational opportunities for military personnel from South East Asian countries through its educational institutions using its aid budget. Despite providing foreign support to different countries, the main agenda of Japan is not to contribute in global peace but prosperity of the Japanese people and its national interest (eastasiaforum).
Norway proves it self to be one of the generous nations by providing a substantial part of its gross national income as foreign aid. The foreign assistance budget of the country covers environment, education, and good governance programs in countries like Middle East and Africa. Not only Norway is supporting these countries but it also dedicates its aid support to European refugees. More than 1 percent of the country’s GNI is given out as foreign support to help out the underdeveloped and developing countries.
From the last so many decades, Netherlands has continued to maintain more than 0.7% of the target rate of national income as foreign aid. Despite tough economic times and budget cuts, the nation has still remained dedicated to look after the needy struggling nations. The main aim of the country is to promote sustainable economic growth in the developing and underdeveloped countries. Netherlands wants to work towards security, global stability and to foster human rights.
Denmark is also regarded as a generous donor as it also gives out more than 0.7% of its national income in foreign assistance. Denmark’s also plans to focus its efforts on nations with an increasing number of refugees such as Palestine, Burkina Faso, Bangladesh and Somalia (OECD). Currently, Denmark has cut down its budget of the development aid which is why it is now a challenge for them to maintain their excellent record of providing foreign assistance with smaller budget and fast rising refugee costs.
Despite being a small country with a population of 580,000, Luxembourg is also pretty generous when it comes to supporting the developing countries as foreign aid. Luxembourg is well ahead of the 0.7% of the target set by the UN as foreign aid by giving out 0.93% of its national income.
|Countries||Contribution as Foreign Aid (in billion $)||% of GNI as Foreign Aid|
The purpose of providing foreign support to developing and underdeveloped nations by the developed countries is according to their own benefits. Some rich countries really want prosperity in the world while some of them provide this foreign relief for the national interest of their own country. The above mentioned countries are the most generous donors who give out a substantial percentage of their national income as foreign aid to help other nations.