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. The overall volume of Israel’s development co-operation declined in 2020 due to cuts across government programmes. Most of Israel’s aid is allocated through government channels to priority countries in the Middle East and Asia. Israel is currently looking at introducing new instruments and modalities for its development co-operation, including through increasing partnerships with the private sector and non-governmental associations.

Please note that 2020 preliminary and 2019 data in the text are provided in current prices whereas the charts reflect all data in constant 2018 USD, in order for the data to be comparable over time. Find the methodological notes behind the profile here.

Israel’s development policy is closely linked to and strongly aligned with its foreign policy, including through 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 in the process of 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 and the OECD Recommendation of the Council on Policy Coherence for Sustainable Development.

Israel provided USD 287.6 million (preliminary data) in 2020.1 This was a decrease of 1.9% in real terms in volume and a decrease in per cent of GNI from 2019. Total official development assistance (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.2

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In 2019, Israel provided more of its ODA bilaterally. Gross bilateral ODA was 85.1% of total ODA. Israel allocated 14.9% of total ODA as core contributions to multilateral organisations.

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In 2019, Israel decreased its total support to multilateral organisations, a fall of 19% in real terms from 2018. It provided USD 41.9 million of core multilateral ODA in 2019.

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In 2019, Israel’s total contribution to multilateral organisations was mainly allocated to the United Nations (UN), regional development banks and the World Bank Group. These contributions together accounted for more than 93.7% of Israel’s total support to the multilateral system. The UN system received 44.7%. Out of a total volume of USD 18.7 million to the UN system, the top three UN recipients of Israel’s support (core and earmarked contributions) were the UN Secretariat (USD 7.2 million), the UN Department of Peace Operations (USD 5.2 million) and the World Health Organization (USD 1.5 million).

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See the section on Geographic and thematic focus of ODA for the geographical and thematic breakdown of bilateral allocations earmarked through the multilateral development system. Learn more about multilateral development finance.

In 2019, Israel’s bilateral spending declined compared to the previous year. It provided USD 233.5 million of gross bilateral ODA (which includes earmarked contributions to multilateral organisations). This represented a decrease of 28.1% in real terms from 2018.

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Note: NGO: non-governmental organisation.

In 2019, Israel’s bilateral ODA was primarily focused on the Middle East and Asia. USD 62.4 million was allocated to the Middle East and USD 35.9 million to Asia, accounting respectively for 26.7% and 15.4% of gross bilateral ODA. USD 13.9 million was allocated to ODA-eligible countries in Europe. Forty-five per cent of gross bilateral ODA was unspecified by region in 2019.

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Bilateral ODA by recipient country

In 2019, 50.6% of gross bilateral ODA went to Israel’s top 10 recipients. Its top 5 recipients are in the Middle East, Asia and Europe, in line with its focus on fragile contexts and trade priorities. The share of gross bilateral ODA that was not allocated by country was 45.1%.

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In 2019, least developed countries received 1% of Israel’s gross bilateral ODA (USD 2.4 million). Israel allocated the highest share of gross bilateral ODA (44.3%) to lower middle-income countries in 2019, noting that 44.0% was unallocated by income group.

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Note: LDC: least developed country; LIC: low-income country; LMIC: lower middle-income country; UMIC: upper middle-income country; MADCTs: more advanced developing countries and territories.

Support to fragile contexts reached USD 31.4 million in gross bilateral ODA in 2019, representing 13.4% of Israel’s gross bilateral ODA.

Learn more about support to fragile contexts on the States of Fragility platform.

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Note: The chart represents only gross bilateral official development assistance that is allocated by country.

The sectoral focus of Israel’s development assistance are sharing of technologies, water, agriculture, health and emergency response.

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 that is 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 who can contribute 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).

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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.

Notes

← 1. DAC members adopted the grant-equivalent methodology starting from their reporting of 2019 data as a more accurate way to count the donor effort in development loans. See the methodological notes for further details.

← 2. Non-grants include sovereign loans, multilateral loans, equity investment and loans to the private sector.

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