Israel
Israel launched its official international development co-operation programme in 1957 with the aim of sharing the expertise and technologies employed in its own rapid development with other developing countries. Development co-operation is managed by the Agency for International Development Co-operation (MASHAV), a division within the Ministry of Foreign Affairs. Most of Israel’s aid is allocated through government channels to priority countries in the Middle East and Asia. Israel’s total official development assistance (ODA) (USD 569 million, preliminary data) increased in 2022, representing 0.1% of gross national income (GNI). This was mostly due to an increase in its bilateral ODA, mainly to lower middle-income countries.
Israel’s development policy is closely linked to and strongly aligned with its foreign policy, including its commitment to the 2030 Agenda for Sustainable Development. In its development co-operation programming, Israel prioritises grant-based funding to priority sectors where it considers its expertise can add the greatest value – such as agriculture, water and health – mainly in the Middle East and Asia. To date, Israeli development co-operation is delivered mainly through bilateral channels in the form of grants. However, following Cabinet Resolution No. 4021 in 2018, Israel has created an inter-ministerial committee for international development and is defining a new multi-stakeholder architecture approach, including by considering the creation of a development finance institution.
Israel is an Adherent to the OECD Recommendation of the Council for Development Co-operation Actors on Managing the Risk of Corruption, the OECD Recommendation of the Council on Policy Coherence for Sustainable Development, the OECD Recommendation of the Council on Environmental Assessment of Development Assistance Projects and Programs, and the OECD Recommendation of the Council on Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Learn more about DAC recommendations.
Israel provided USD 569 million (preliminary data) of ODA in 2022 (USD 532.3 million in constant terms), representing 0.1% of GNI. This was an increase of 30.2% in real terms in volume and an increase in share of GNI from 2021. Despite some decreases in ODA volume between 2018-2020, Israel’s ODA volume has consistently increased over the past ten years. Israel is in line with its international commitment to achieve a 0.7% ODA/GNI ratio by 2030. Total ODA on a grant-equivalent basis has the same value as net ODA under the cash-flow methodology used in the past, as Israel provides only grants.1
Israel provided a higher share of its ODA bilaterally in 2021. Gross bilateral ODA was 78.0% of total ODA. Israel allocated 22.0% of total ODA as core contributions to multilateral organisations.
In 2021, Israel provided USD 90.0 million of gross ODA to the multilateral system, an increase of 78.1% in real terms from 2020, all of this provided as core multilateral ODA. Israel’s annual core and non-core contributions to multilateral development organisations increased by 79.7%, from USD 50.1 million to USD 90.0 million between 2019 and 2021, due to the impact of COVID-19.
Ninety-nine per cent of Israel’s total contributions to multilateral organisations in 2021 was allocated to the World Bank, other UN, and regional development banks (in descending order).
The UN system received 28.0% of Israel’s multilateral contributions, all in the form of core contributions. Out of a total volume of USD 25.2 million to the UN system, the top three UN recipients of Israel’s support were the UN Secretariat (USD 12.7 million), UNDPO-UN Peacekeeping operations (USD 4.5 million) and FAO (USD 2.0 million).
See the section on Geographic and sectoral focus of ODA for the breakdown of bilateral allocations, including ODA earmarked through the multilateral development system. Learn more about multilateral development finance.
In 2021, Israel’s bilateral spending increased compared to the previous year. It provided USD 319.0 million of gross bilateral ODA (which includes earmarked contributions to multilateral organisations). This represented an increase of 21.3% in real terms from 2020.
In 2021, country programmable aid was 63.2% of Israel’s gross bilateral ODA, compared to a non-DAC country average of 46.4%.
In 2021, Israel’s bilateral ODA was primarily focused on the Middle East. USD 119.9 million was allocated to the Middle East and USD 48.6 million to Asia (excluding the Middle East), accounting respectively for 37.6% and 15.2% of gross bilateral ODA. USD 13.2 million (4.1%) was allocated to America.
In 2021, 57.3% of gross bilateral ODA went to Israel’s top 10 recipients. Its top 10 recipients are in the Middle East, Asia, Europe, and American regions. The share of gross bilateral ODA that was not allocated by country was 36.8%.
In 2021, the least developed countries (LDCs) received 1.3% of Israel’s gross bilateral ODA (USD 4.3 million). This is lower than the non-DAC country average of 13.7%. Israel allocated the highest share of gross bilateral ODA (32.7%) to lower middle-income countries in 2021, noting that 36.8% was unallocated by income group. Israel allocated 2.0% of gross bilateral ODA to land-locked developing countries in 2021, equal to USD 6.3 million.
Fragile contexts
Support to fragile contexts reached USD 63.0 million in 2021, representing 19.7% of Israel’s gross bilateral ODA.
Learn more about support to fragile contexts on the States of Fragility platform.
MASHAV, a division of the Ministry of Foreign Affairs, is in charge of planning, implementing and co-ordinating Israel’s development co-operation. On 23 July 2018, Israel approved Cabinet Resolution No. 4021 “Advancing Israeli Activity in the Field of International Development”. The aim of the resolution is to reform Israel’s development strategy and to create an inter-ministerial committee dedicated to international development. The director general in the Prime Minister’s Office was appointed as the head of the newly created inter-ministerial committee. The committee includes ministries that can contribute to and are involved in Israel’s global development initiatives. The committee also examines ways to involve the private sector and link innovative Israeli activities to development co-operation (e.g. in the areas of fintech, start-ups and health tech).
Israel’s Agency for International Development Cooperation (MASHAV): https://mfa.gov.il/MFA/mashav/Pages/default.aspx
Member of the OECD since 2010. Not a member of the OECD Development Assistance Committee (DAC). Reporting to the OECD since 1997. It reports at the aggregate level.
The methodological notes provide further details on the definitions and statistical methodologies applied, including the grant-equivalent methodology, core and earmarked contributions to multilateral organisations, country programmable aid, channels of delivery, bilateral ODA unspecified/unallocated, bilateral allocable aid, the gender equality policy marker, and the environment markers.
Note
← 1. Non-grants include sovereign loans, multilateral loans, equity investment and loans to the private sector.