Spain  Net ODA: US$1.9 billion in 2012, 15th largest DAC donor FDI is the largest resource flow to developing countries from Spain, followed by remittances. Aid levels have fallen since the global economic crisis, as has ODA as a share of national income. About half of bilateral aid goes to countries with relatively large numbers of poor people, but 40% goes to countries with below-average poverty rates. • Sub-Saharan Africa and the Americas each receive a quarter of overall aid from Spain; 40% of aid from Spain goes to multilateral organisations. • The share of bilateral ODA given as cash grants is double the DAC average, but the share given as mixed project aid is around a third of the average. • Governance and security is the largest identifiable sector for bilateral aid.

Resource flows from Spain to developing countries Though volatile, FDI flows have been the largest flow to developing countries since 2000

FDI accounts for over half of outflows, remittances over a quarter

US$ billions, 2000–2011

US$ billions, 2011

50

Private development assistance

40

0.5

Remittances

0.004

9.7

30 20

FDI

10

Remittances ODA Other official flows

0

ODA Other official 4.2 flows

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Development finance institutions

Official 4.4 Private 10.1 Commercial 19.7

0.2

Note: Data on remittances before 2010 is unavailable. Data on private development assistance is available only for 2011.

FDI 19.7

How much ODA does Spain give? ODA volumes have dropped markedly since 2009

ODA per capita was US$90 in 2011; ODA was 0.29% of GNI

US$ billions, 1960–2012 8

Debt relief

6

GNI per capita per day: US$86.41

4 2 0

Net ODA excluding debt relief 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

ODA per capita per day: US$0.25

2012

Aid as a share of national income has fallen sharply since 2009

Falling ODA levels make Spain’s 2015 targets very difficult to attain

% of GNI, 1960–2012

Net ODA, US$ billions, 2000–2015

0.5

10.0

0.4

TARGET

7.5

Global

0.3 5.0

TARGET

0.2

Net ODA disbursements

0.1 0.0

2.5

Africa 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2012

0.0

2000

2005

2010

2015

Note: EU member state ODA commitments agreed at May 2005 European Council.

202

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Where does aid from Spain go? Sub-Saharan Africa is the largest regional recipient of aid from Spain

Over a quarter of overall ODA goes to sub-Saharan Africa, and another quarter goes to the Americas. Almost 41% of aid goes to multilateral organisations, the fourth highest share among DAC donors. Bilaterally, Spain is the largest donor to 3 of its 116 partner countries. Almost 40% of aid goes to countries with below-average poverty rates and fewer than 1 million people in extreme poverty. The ten largest recipients of aid from Spain, which include six Latin American and two North African countries, account for just a quarter of bilateral aid. Technical cooperation and cash grants are considerable in some countries. More than half of bilateral ODA to Afghanistan is debt relief.

Gross ODA, US$ billions, 2011 3 South America North Africa

2

Loans and equity are prominent for Haiti and Peru, and technical cooperation is important for most major recipients

North & Central America Middle East East Asia Unspecified Europe

% of gross bilateral ODA, 2011

Cash Non-transferred, Loans & equity including investments debt relief Grants

1

South & Central Asia

Technical Mixed Commodities GPGs & NNGOs cooperation project aid & food

Sub-Saharan Africa

Aid to the ten largest recipients

Bilateral Multilateral

Tunisia

0.1

Peru

0.1 US$0.7 billion (25.6%)

0

Haiti

0.1

Nicaragua

0.1

West Bank & Gaza

0.1

Morocco

Almost 41% of ODA from Spain is given multilaterally, the fourth highest share among the DAC

Afghanistan Colombia

Other recipients US$1.9 billion (74.4%)

Dominican Rep. Bolivia What does the aid bundle look like for each recipient?

38% of aid goes to countries with below-average poverty rates or fewer than 1 million people in extreme poverty Number of people living on less than $1.25 a day, millions (log scale), 2011

PHILIPPINES 1.5%

1,000

East Asia

PHILIPPINES 1.5% SUDAN 1.7%

100

COLOMBIA 3.1% GUATEMALA 2.5%

MOZAMBIQUE 2.2%

COLOMBIA 3.1%

SUDAN 1.7%

Europe Middle East

10 North & Central America

PERU 3.5%

GUATEMALA 2.5%

1 million MOROCCO 3.3%

HAITI 5.0%

North Africa NICARAGUA 3.5%

NICARAGUA 3.5%

0.1

South & Central Asia South America

TUNISIA 4.7%

0.01 0

Sub-Saharan Africa

All developing countries 21

25 50 75 Share of population living on less than $1.25 a day, %

100

Note: Bubble size indicates the share of bilateral ODA allocated to the country in 2011.

C hap t e r 8   DAC p r o v i d e r s o f o f f i ci a l d e v e lo p m e n t a s s i s ta n ce 203

What is in the ODA bundle from Spain? Spain gives a larger share of aid as cash grants and transfers a larger share of aid to recipients than the DAC average. The largest identifiable sector is governance and security, but aid is spread quite evenly across a number of major sectors.

The share of bilateral ODA given as cash grants is nearly double the DAC average

Across the aid bundle as a whole, the grants/loans and equity mix is similar to the DAC average

Disbursements lag commitments to projects in 2007 slightly: 88% had been realised by 2011

% of gross bilateral ODA, 2011

% of gross bilateral ODA, 2011

US$ billions, 2011

100

75

7.4 4.5 4.5 22.0

100

4

3

6.4

GPGs & NNGOs Commodities & food 3.3 Mixed project aid

19.3

Technical cooperation

75

30.5

Cash (grants)

50

17.6

Cash (loans & equity investments)

25

9.0

16.0 50 15.8 25

14.3 20.0

0

DAC

85.1

14.0

Non-transferred, including debt relief

0

Spain

81.5

Grants 2

3.7

3.3

Commitments

Disbursements

1

14.9

18.5

DAC

Spain

Loans & equity investments 0

Note: Where small amounts of aid in kind or aid to GPGs and NNGOs is funded by loan instruments, that ODA is recorded as in-kind transfer or aid to GPG and NNGOs rather than a cash loan. This explains small discrepancies between the totals for cash loans in the aid bundle and overall ODA loans.

Only aid to the industry and trade sector has increased since 2008 – aid to all other sectors has declined 6

In 2007

Note: This chart takes data from all projects for which commitments were recorded in 2007. It compares the commitments to these same projects, including any additional commitments made in 2008–2011, against the total disbursements made to these projects between 2007 and 2011.

Governance and security is the largest identifiable sector

Gross bilateral ODA by sector, US$ billions, 2002–2011

Gross bilateral ODA by sector, % of total, 2011 Governance & security

5

Other

4

13.4

20.7

Agriculture & food security

3 Other Governance & security Education Humanitarian Industry & trade Health

2 1

Sectors labelled in figure at right

0 2002

2003

2004

2005

2006

2007

2008

2009

2010

The aid bundle varies across sectors, but cash grants and technical cooperation are substantial for most Gross bilateral ODA by aid type, % of total, 2011

US$2.6 billion

2011

Cash Non-transferred, Loans & equity including investments debt relief Grants

6.5

Infrastructure

Other social services

Health Industry & trade 8.4 9.6

Humanitarian

10.4 Education

Water & sanitation Banking & business Environment Debt relief General budget support

Technical Mixed Commodities GPGs & NNGOs cooperation project aid & food

Total aid by sector 0.5

Other

0.3

Governance & security

0.3 0.2 0.2 0.2 Banking & business Environment Debt relief General budget support

0.2 0.2 0.2

Aid from Spain is diffuse across several sectors; all but industry and trade have been cut over 2010–2011

Education Humanitarian Industry & trade Health Agriculture & food security Infrastructure Other social services Water & sanitation What does the aid bundle look like for each sector?

204

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Spain is the fourth largest DAC donor to the industry and trade sector DAC donors ranked in descending order of ODA funding to each sector, US$ billions, 2011

Education

Water & sanitation

Health Each bar segment represents 1 donor

9 8 7

Governance & security 13

12

10

0

8

6

1.5

6

2 4

4

10th (rank among 23 donors)

3

5

8th 12th 0

Banking & business

2 1

0

1.0

3

1

2

Industry & trade

2

6th

1

11th

0

0.0

Environment

9th

General budget support

Humanitarian

9

8

3.0

2.0

2.5

7

6

2

6

1.5

5

3

2.0

5

1.5

4

4th

4 1

1.0

2

0.0

Excellent/committed 0.5

2

12th 0

Key 1.0

3

1.0 0.5

12th

1.5

7

8

0.0

12th

1

OGP Member EITI Supportive government

9

3.5

3

10

What is Spain’s commitment to transparency? IATI Publishing signatory

0

2.0

11

0

4

7

Infrastructure

1

5

2.0

9

3

1

6

11

8 3

4

2

Agriculture & food security

2.5

12

4

6 5

Other social services

Good/moving forward

10th

0

0

13th

Poor/no action

The majority of bilateral aid comes from one agency; similar shares are channelled through recipient governments and NGOs Gross ODA and other official flows by source, type of flow and channel of delivery, US$ billions, 2011 SPANISH GOVERNMENT

Spanish Agency for International Development Co-operation 1.2 Ministry of Foreign Affairs and Co-operation 0.5 Autonomous governments 0.3 Ministry of Industry and Energy 0.2 Municipalities 0.1 Ministry of Economy and Competitiveness 0.1 Core multilateral from governmenta 1.9 Other 0.1

TYPE OF FLOW

CHANNEL OF DELIVERY

MULTILATERALS

TOTAL GROSS ODA 4.5 Core contributions to multilateral ODA 1.9

CORE 1.2 EARMARKED 0.2

European Union 1.3

CORE 0.3 EARMARKED 0.1

World Bank/IMF 0.4

CORE 0.2 EARMARKED 0.1

Regional development banks 0.3

CORE 0.2 EARMARKED 0.3

UN agencies 0.5

CORE 0.04 EARMARKED 0.1

Other multilateral 0.1

Gross bilateral ODA

2.6

RECIPIENTS

GOVERNMENTS 0.7 PUBLIC–PRIVATE PARTNERSHIPS 0.01

Other official flows 0.004

NGOs 0.7 OTHER 0.4

a. Captures contributions to multilateral institutions that cannot be attributed to a particular ministry or institution in the country.

Note: Data is from the DAC (ODA and other official flows data), the World Bank (remittances, GNI and poverty), the United Nations Conference on Trade and Development (FDI) and Development Initiatives (private development assistance and development finance institutions). All data in US$ is in 2011 prices except the 2012 figure in the title area, which is in current (2012) prices. Some overlaps of international flows have been taken into account; see Methodology. ‘Other’ aid includes multisector ODA, administrative costs, support for refugees in the donor country and unallocated or unspecified ODA. DAC is the Development Assistance Committee of the Organisation for Economic Co-operation and Development. EITI is the Extractive Industries Transparency Initiative. FDI is foreign direct investment. GNI is gross national income. GPGs are global public goods. IATI is the International Aid Transparency Initiative. IMF is the International Monetary Fund. NNGOs are Northern non-governmental organisations. ODA is official development assistance (aid). OGP is the Open Government Partnership.

C hap t e r 8   DAC p r o v i d e r s o f o f f i ci a l d e v e lo p m e n t a s s i s ta n ce 205