This final section of Chapter 1 broadens the perspective by situating the UNDS within the wider multilateral development funding landscape. In 2023, ODA provided by OECD-DAC members reached a record high of US$ 223.5 billion. In addition, non-DAC members and philanthropic foundations that voluntarily reported their aid flows to the OECD contributed a further US$ 17.4 billion and US$ 8 billion respectively. Altogether, ODA and other aid flows reported to the OECD in 2023 approached US$ 250 billion.⁴⁴ However, preliminary OECD data for 2024 indicates that, following five consecutive years of growth, international aid from official donors declined by 7.1% in real terms compared to 2023 – the first decrease following five consecutive years of growth (see also Chapter 3).

Since 2019, the growth in ODA has largely been driven by funding earmarked for crisis responses, initially the COVID-19 pandemic and, from 2022 onward, for Ukraine and other humanitarian emergencies. In-donor refugee costs (ie eligible categories of assistance provided to refugees inside a donor country’s own territory for up to 12 months) have also contributed to the upward trend, although this type of ODA decreased by 6.2% (to US$ 31 billion) in 2023 compared to the previous year.45 Ukraine received US$ 38.9 billion in ODA in 2023, equivalent to 15% of all ODA disbursed globally. The EU contributed US$ 20.5 billion of this, representing 54% of total ODA for Ukraine, mainly through highly concessional loans.⁴⁶

Figure 25 illustrates the volume of ODA from OECD-DAC members channelled to/through multilateral organisations – both core and earmarked resources – for the period 2011–2023. The values are in real terms, expressed in constant 2022 US dollars, and grouped by category of multilateral institution: the UNDS, the EU, global vertical funds, the World Bank Group, other multilateral development banks,⁴⁷ and other multilateral institutions.

The UNDS has consistently received the highest volume of contributions, peaking at US$ 31.5 billion in 2021 before declining to US$ 29.6 billion in 2023. Meanwhile, the World Bank Group experienced a rapid expansion in its role as a funding provider after 2019, with contributions rising from US$ 10.8 billion in 2021 to US$ 27.9 billion in 2023. A significant part of this can be attributed to heightened support for Ukraine and large contributions associated with the World Bank’s International Development Association (IDA) in 2023.⁴⁸

For this edition of the report, global vertical funds have been disaggregated from the broader ‘other multilateral institutions’ category.⁴⁹ ODA from OECD-DAC members channelled through global vertical funds more than doubled between 2011 and 2023, from US$ 4.7 billion to US$ 10.7 billion. The peak occurred in 2021, when ODA to/through global vertical funds reached US$ 17.2 billion, primarily due to a US$ 12.8 billion surge in funding to Gavi arising from the COVID-19 pandemic.

Figure 26 builds on the previous figure by applying the same categorisation of multilateral institutions to the distribution between core and earmarked ODA funding from OECD-DAC countries in 2011 and 2023. As can be seen, the modest growth in the UNDS’s core funding between these years has been significantly outpaced by the rise in earmarked contributions, which as of 2023 are nearly three times the volume of core funding. Earmarked funding accounted for 60% of OECD-DAC countries’ funding to the UNDS in 2011, increasing to 75% in 2023. By comparison, the earmarked shares seen in 2023 were notably lower for other multilateral channels: 10% for global vertical funds; 30% for other multilateral development banks; and 51% for the World Bank Group (this relatively high share was mainly due to funding earmarked for crisis response in Ukraine).

Overall, the multilateral development system continues to play a central role in mobilising and coordinating ODA. In this respect, the surge in funding seen over recent years, particularly earmarked contributions, underscores the system’s capacity to respond to urgent priorities and crises. On the other hand, the growing reliance on earmarked funding, especially within the UNDS, raises serious concerns about long-term financing quality and flexibility.