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. Total official development assistance (ODA) (USD 394.1 million, preliminary data) increased in 2021, representing 0.08% of gross national income (GNI).

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 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 Programmes, 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 standards.

Israel provided USD 394.1 million (preliminary data) as ODA in 2021,1 representing 0.08% of GNI. This was an increase of 32.3% in real terms in volume and an increase in the share of GNI from 2020. Israel provided all of its ODA as grants in 2020.2

Israel provided a higher share of its ODA bilaterally in 2020. Gross bilateral ODA was 83% of total ODA. Israel allocated 17% of total ODA as core contributions to multilateral organisations.

In 2020, Israel provided USD 49.5 million of gross ODA to the multilateral system, an increase of 13.1% in real terms from 2019, provided as core multilateral ODA.

Eighty-six per cent of Israel’s total contribution to multilateral organisations in 2020 was allocated to United Nations (UN) entities, regional development banks and the World Bank Group.

The UN system received 52.3% of Israel’s gross ODA to the multilateral system, mainly through core contributions. Out of a total volume of USD 25.9 million to the UN system, the top three UN recipients of Israel’s support (core and earmarked contributions) were: the UN Secretariat (USD 7.5 million), the UNDPO-UN Peacekeeping operations (USD 5.6 million) and the WFP (USD 5 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 2020, Israel’s bilateral spending declined compared to the previous year. It provided USD 241.6 million of gross bilateral ODA (which includes earmarked contributions to multilateral organisations). This represented a decrease of 3.4% in real terms from 2019.

In 2020, country programmable aid was 62.1% of Israel’s gross bilateral ODA, compared to the reporting countries’ average of 47.8%.

Figure 7. Bilateral ODA by type of expenditure 2020

In 2020, Israel’s bilateral ODA was primarily focused on the Middle East and Asia. USD 80 million was allocated to the Middle East and USD 39.8 million to Asia, accounting respectively for 33.1% and 16.5% of gross bilateral ODA. USD 14.2 million was allocated to ODA-eligible countries in Europe and USD 5.6 million to Africa, accounting respectively for 5.9% and 2.3% of gross bilateral ODA.

In 2020, 57.2% of gross bilateral ODA went to Israel’s top 10 recipients. Its top 10 recipients are in the Middle East, Asia and Europe, in line with its focus on its immediate neighbourhood and its policy priorities. The share of gross bilateral ODA that was not allocated by country was 37.9%.

In 2020, least developed countries received 1.4% of Israel’s gross bilateral ODA (USD 3.3 million). Israel allocated the highest share of gross bilateral ODA (50.4%) to lower middle-income countries in 2020, noting that 37.9% was unallocated by income group.

Israel did not provide details on the sectoral distribution of its ODA in 2020.

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 that 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).

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 2018 data as a more accurate way to count the donor effort in development loans. See the methodological notes for further details.

← 2. Other providers also provide non-grants, which include sovereign loans, multilateral loans, equity investment and loans to the private sector.

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