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How do geographic and economic factors (GDP) correlate to the international aid donated or received by a country?

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Analysis of International Aid

How do geographic and economic factors (GDP) correlate with the international aid (ODA) donated or received by a country?

According to the United Nations, Sustainable Development Goals (SDG) are the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including those related to poverty, inequality, climate, environmental degradation, prosperity, and peace and justice. There are 17 different goals, which are designed in such a manner that they are interconnected.

Official development assistance (ODA) plays an important role in reaching sustainable development goals. ODA is defined as government aid designed to promote the economic development and welfare of developing countries.

In this project, we aimed to analyze the correlation between GDP and ODA.

Results:

In this project we have looked at the financing of ODA. Several patterns have been identified by analysing and visualizing the data:

  1. The biggest donors were the US, Japan, World Bank and European countries, whereas the biggest receivers were Asian and African countries.
  2. Sustainable Development Goal 16 “Peace, Justice and Strong Institutions” received the most funding.
  3. Different donors focused on different goals.
  4. In general, the donation amount increased gradually from 2000 to 2013.
  5. In terms of geographical region, Europe & Central Asia donated the most while Sub-Saharan Africa received the most funding.
  6. Nearly 100% of funding came from High Income group, and flowed to the other 3 groups: Upper middle, Lower middle and Low Income.
  7. For High Income countries, the donated amount is positively correlated to both GDP and GDP/capita, with GDP showing a stronger correlation.
  8. For Middle and Low Income countries, the received amount is negatively related to GDP/capita but positively related to GDP.

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