How Much Money Does The Us Give To Italy

At a glance

Funding trends

• Italia is the tenth-largest Organisation for Economic Cooperation and Development (OECD) Evolution Assistance Commission (DAC) donor, spending The states$4.ii billion (in current prices; U.s.a.$four.1 billion in abiding 2019 prices) on official evolution assistance (ODA) in 2020.
• Italy'southward ODA decreased by 31% from 2017 to 2020, largely due to a decrease in the costs associated with hosting refugees. All the same, bilateral funding also declined in some sectors.
• Italy'south regime previously committed to gradually increasing ODA to 0.7% of its gross national income (GNI) with an intermediate goal of reaching 0.33% in 2019. All the same, Italia's ODA has steadily decreased since 2017, setting Italian republic'southward ODA to GNI ratio back to 0.22% in 2019 and 2020.

Strategic priorities

• Italian republic's current 3-yr 'Programming and Policy Planning Document' sets out the strategic focus of development cooperation for 2019-2021. The certificate confirms Italian republic'due south focus on the African continent, mitigating the root causes of migration and displacement, and the sectors of health, teaching, agronomics, food security, nutrition, and environmental protection.
• Italian republic is a strong supporter of multilateralism and wellness multilaterals in detail. In contempo years, Italy has increased its contributions to health multilaterals such as Gavi, the Vaccine Brotherhood (Gavi), and the Global Fund to Fight AIDS, Tuberculosis and Malaria.
• Italy is a strong supporter of the Access to COVID-xix Tools Accelerator (ACT-A) with contributions to Gavi'southward COVAX Advanced Market Commitment (AMC) also as to the Coalition for Epidemic Preparedness Innovations (CEPI).

Outlook

• Despite a prior commitment to increase ODA to 0.4% of GNI in 2021 and 0.7% by 2030, projections by Openpolis propose that Italy's ODA to GNI ratio will only reach 0.24% in 2021 and decline thereafter to 0.22% in 2022 and 0.21% in 2023.
• Italian republic'southward Parliament voted to corroborate a budget for 2022 - 2026, which guarantees an increasing ODA trajectory from US$vi.0 billion in 2021 to U.s.a.$7.4 billion in 2026.
• Draghi is prioritizing ending the COVID-xix pandemic, improving economies, and building back better in both domestic and international agendas.
• Italian republic organized the Global Health Summit (GHS) with the EU in 2021, exhibiting leadership with COVAX contributions. Italy likewise fabricated its showtime pledge to the Coalition for Epidemic Preparedness Innovations (CEPI) in 2021.
• Under Italian leadership, G20 countries pledged to return US$100 billion in Special Drawing Rights (SDRs) to vulnerable countries. Italy and other G20 countries allocated 20% of their SDRs to vulnerable countries.
• Italy maintains a crucial role in food security and climate change. Italy co-hosted COP26 and the pre-UN F ood Systems Summit coming together in 2021. Italia pledged to triple its contribution to fighting climate change by US $1.4 b illio northward per year for the next 5 years at COP26.

ODA Trends

Italia'southward Parliament voted to corroborate a budget for 2022 - 2026 which includes an increment in the international cooperation budget by €99 1000000 (U.s.a.$113 one thousand thousand) for 2022, €199 million (Us$227 one thousand thousand) for 2023, €249 million (U.s.a.$ 284million) for 2024, €299 million (Usa$341 million) for 2025, and €349 million (United states$398 million) per year starting from 2026.

NGOs are optimistic near the increased international cooperation budget for the next five years. AOI due east CINI announced that the members of ' Campaign 070 ' volition present a neb to Parliament in 2022 to integrate the ambitious goal of reaching a 0.5% official development assistance (ODA) / gross national income (GNI) target in 2027 and a 0.7% ODA/GNI target in 2030.

AOI e CINI noted that the 2022 budget will permit Italian ODA to count towards hosting refugees and asylum seekers in their first 12 months in Italy. The unspent office of these funds intended for the reception of refugees and aviary seekers volition exist redirected from the Ministry building of Interior to the Ministry of Foreign Affairs and International Cooperation.

Italia'southward ODA decreased significantly since 2017, largely due to a reduction in in-country refugee costs. In 2020, Italy spent a total of US$4.two billion (current prices; United states$iv.i billion in constant 2019 prices) on official development assistance (ODA), making information technology the tenth-largest donor state among members of the System for Economic Co-operation and Development's (OECD) Development Aid Committee (DAC). In 2020, Italy'southward ODA merely represented 0.22% of the country's gross national income (GNI), putting it below the United nations target of 0.7% and the DAC boilerplate of 0.32%.

Following sharp decreases between 2008 and 2012 resulting from the economic crisis, Italy's ODA steadily increased, reaching a peak of US$five.9 billion in 2017 (or 0.3% of GNI). In 2018, ODA growth was reversed for the first time since 2012. Since 2017 ODA fell by 31% through 2020. The drop gear up back the overall ratio of ODA to GNI from 0.3% in 2017 to 0.22% in both 2019 and 2020. In its '2018 Update to the Economic and Financial Document', Italia committed to gradually increasing its ODA to GNI ratio to 0.36% in 2020, to 0.iv% in 2021, and 0.vii% past 2030; a target Italy has still to arroyo meeting. Since 2019, the 'Economical and Financial Documents' no longer mention such targets.

For 2021, Italian republic budgeted €v.4 billion (United states of america$6.0 billion) for ODA, which constitutes a thirteen% increase compared with 2020. The Italian Think Tank Openpolis and the international NGO Oxfam note that Italy's ODA projections were significantly overestimated compared with the official OECD figures in previous years, largely due to an over-estimation in the ODA-eligibility regarding spending on the hosting of refugees channeled through the Ministry building of the Interior. In 2019, only €397 one thousand thousand (US$444 meg) of the €1.seven billion (US$1.ix billion) declared every bit ODA-eligible in the 2019 budget for the Ministry of the Interior was counted equally ODA by the OECD. Though the previous years' over-interpretation of ODA eligibility in Italy's budget law will likely exist repeated and the IMF predicts a slight recovery of 4.2% in GDP growth for Italy in 2021, this budget increase in 2021 may ultimately heave the ODA to GNI ratio to 0.24%. Beyond 2021, ODA is projected to subtract to US$5.9 billion in 2022 and United states of america$5.viii billion in 2023, according to the 2021 upkeep police force. This would interpret into an ODA to GNI ratio of 0.22% in 2022 and 0.21% in 2023 co-ordinate to Call up Tank Openpolis and Oxfam.

Due to its geographic location, Italia is the first port-of-telephone call for many refugees reaching Europe by sea. As a effect, ODA-reportable costs of hosting refugees in Italy rose significantly within the last decade: In 2012, Italia spent only U.s.$229 million (9% of full ODA) on in-state refugees. In 2017 that number reached US$1.eight billion (31% of full ODA). Starting in 2018, refugee costs began to decrease for the first time since 2012, falling to U.s.a.$one.1 billion (22%) in 2018 and US$445 million (10%) in 2019. This subtract was the primary driver of Italian republic's overall ODA pass up, yet, fifty-fifty excluding refugee costs, Italian republic'south ODA decreased by 4% (from U.s.a.$four.1 billion to United states of america$three.9 billion) between 2017 and 2019.

Unless otherwise indicated, all data in this department is based on the grant-equivalent measurement organisation. For more data, run into our Donor Tracker Codebook.

Policy Priorities

Italy focuses on tackling root causes of migration, specially on the African continent

Italy's strategic priorities for development cooperation are spelled out in the three-year 'Programming and Policy Document and Directions for Italian Development Cooperation' ('Documento Triennale di Programmazione due east di Indirizzo'), developed by the Ministry building of Foreign Affairs and International Cooperation (MAECI). The most recent document for 2019-2021 confirms Italian republic'southward focus on the African continent and on mitigating the root causes of migration and displacement as well as health, education, agronomics, food security, diet, and environmental protection. The priority intervention areas center effectually five strategic pillars, of which three pillars (people, planet, and prosperity) overlap with the global framework of Italy's G20 presidency:

• 'People — human development and nobility',which includesnutrient security; sustainable agriculture; health; educational activity; cultural and natural heritage; promoting sustainable tourism; social, economic, and political inclusion; and migration

• 'Planet —protection of the environment, management of natural resource and the fight against climate change', which too includes ensuring access to reliable and sustainable free energy
• 'Prosperity —inclusive and sustainable economic growth and decent work'
• 'Peace —peaceful and inclusive societies, commonwealth, effective and responsible institutions, rule of law and human rights for all'
• 'Partnerships for sustainable evolution', supporting themobilization of domestic resource; debt relief and restructuring; promoting triangular cooperation and public-individual partnerships; engaging ceremonious society actors; and strengthening statistical skills.

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Italian republic's evolution priorities

• Migration : Tackling root causes of displacement, peculiarly on the African continent, is a key priority of Italy's evolution assistance. The latest strategic guidelines outline Cote d'ivoire, Eritrea, Republic of ghana and Nigeria every bit priority countries.
• Health: Italy has recently shown leadership in the health sector and increased its contributions to health multilaterals such as Gavi, the Vaccine Brotherhood, the Global Fund to Fight AIDS, Tuberculosis and Malaria, and the Coalition for Epidemic Preparedness Innovations (CEPI). It further co-convened the Coronavirus Global Response Conference in May 2020, put Global Health on top of its G20 agenda and co-hosts the G20 Global Health Summit in May 2021.

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The Italian Agency for Evolution Cooperation (AICS), which manages Italy'southward bilateral development cooperation, focuses development cooperation in five thematic areas:

1. Economic development and opportunities;
2. Human evolution (including health and education, gender equality and disabilities);
3. Environment and apply of natural resources;
4. Rural evolution and food security; and ,
5. Disharmonize-affected and fragile states.

Due to Italian republic'south geographic location as the starting time port-of-phone call for many refugees entering Europe, the country'southward development priorities include a strong emphasis on tackling the root causes of migration, particularly on the African continent. Former Italian Prime Minister, Giuseppe Conte, has chosen for greater European cooperation and investment to address the 'mass migration crisis' and to reduce migrant deaths in the Mediterranean Body of water. Withal, Italy has so far not adopted the Global Compact on Migration, an intergovernmentally negotiated agreement that lays out objectives to facilitate legal migration prepared by the Un.

Food security is another priority for Italy in calorie-free of the COVID-19 crisis; Italy is at present promoting the 'One Health' approach, which puts forth that human and animal wellness are interdependent and linked to the health of entire ecosystems.

ODA Breakdown

Italy traditionally disburses most of its ODA multilaterally

On average Italy directed 62% of its official evolution assistance (ODA) to multilateral institutions between 2010 and 2019; however, between 2012 and 2017 Italy'south share of bilateral contributions increased due to the high costs associated with hosting refugees. While this had brought Italy's bilateral and multilateral contributions more in line, the trend has reverted to greater multilateral spending in recent years; in 2019, Italy channeled 68% of its ODA multilaterally, well above the average of all members of the Organisation for Economic Development and Cooperation (OECD) Development Assistance Committee (DAC) of 41%.

Bilateral contributions significantly decreased in 2018 and 2019; didactics is the largest sector of bilateral spending away

Italy's bilateral contributions increased by 382% between 2012 and 2017, reaching a top of U.s.a.$3.2 billion in 2017 but decreased significantly thereafter to The states$ii.1 billion in 2018 and US$i.4 billion in 2019. These substantial changes were primarily driven past the changing costs of hosting refugees. In-land refugee costs barbarous past 76% from US$i.8 billion in 2017 to US$455 million in 2019. Despite this significant decrease the costs associated with the hosting of refugees however made up the largest share of Italy's bilateral ODA in 2019 (31%). All the same, fifty-fifty excluding such costs, Italia's bilateral ODA to other sectors still decreased by thirty% betwixt 2017 and 2019.

The recent cuts in bilateral ODA affected various sectors. Bilateral contributions to humanitarian assistance — traditionally Italia's nigh highly funded sector — declined by 57% from US$268 million in 2017 to US$116 million in 2019. Contributions to regime and civil society dropped by 37% from Usa$156 1000000 in 2017 to US$98 one thousand thousand in 2019 and contributions to agriculture went downward past xxx% from The states$103 meg in 2017 to US$72 one thousand thousand in 2019.

Despite the overall decrease in bilateral ODA, funding to education increased by 36% from 2017 to 2019, overtaking humanitarian assistance as the biggest sector for bilateral ODA abroad with US$137 meg in 2019. Health, education, and agriculture — the key priority areas defined in the Italian Agency for Development Cooperation (AICS) guidelines (for the 2019 to 2021 period) — together represent 23% of Italy'due south bilateral spending in 2019. Excluding the cost of hosting refugees, they make up 33% of Italy's bilateral spending in 2019.

Italy currently provides almost all bilateral ODA in the class of grants (92%) in line with the DAC average. The share of ODA provided as loans and equity investments is expected to rise as Italian republic's evolution bank is increasingly engaging in innovative financing mechanisms.

The majority of Italian republic'south bilateral ODA is disbursed through the public sector (57% in 2019) although this figure stood at 75% in 2017. Bilateral funding through multilateral organizations also declined in accented terms from US$538 1000000 in 2017 to United states of america$347 million in 2019, although its share of total bilateral ODA slightly increased from 17% in 2017 to 24% in 2019. Bilateral funding through NGOs grew both in absolute terms (from U.s.a.$221 million in 2017 to U.s.$237 million in 2019) and as a pct of total bilateral ODA (from 7% in 2017 to 17% in 2019).

Italy's ODA recipients are primarily in 'sub-Saharan Africa' and the MENA region

'Sub-Saharan Africa' ( SSA; meaning the countries of Eastern, Western, Central, and Southern Africa, according to the African Spousal relationship's designations ) and the Centre E and North Africa (MENA) region (receiving United states of america$279 million and Usa$237 one thousand thousand in 2019, respectively) are priority regions for Italy's bilateral evolution cooperation. A big share of Italia's bilateral funding is unallocated by state and region. When excluding these funds, Italy provided 36% of its bilateral ODA to SSA and 31% to the MENA region in 2019. These regions are expected to remain Italian republic's main focus in the coming years.

Italian republic provided 18% of its bilateral ODA to low-income countries (LICs) in 2019, in line with the DAC boilerplate. However, nigh of Italian republic's bilateral ODA is not allocated past income (52% in 2019; DAC average xl%): when excluding unallocated funding, LICs received 37% of Italy'southward bilateral ODA in 2019. In 2019, the West Bank and the Gaza Strip (The states$49 million), Tunisia (US$45 million), Transitional islamic state of afghanistan (United states of america$39 meg), Ethiopia (Usa$36 1000000), and Lebanon (US$32 meg) were the largest recipients of bilateral ODA.

Multilateral contributions primarily become to European union institutions

Core contributions to multilateral organizations made up 68% of Italian republic's ODA in 2019 (DAC boilerplate: 41%). A large proportion is channeled to European Wedlock (EU) Institutions, which received United states of america$1.ix billion of Italy'due south ODA in 2019, amounting to 63% of the land's full contributions to the multilateral system. Virtually of the ODA Italian republic channels through the European union has been used to fund the European union'south response to the unprecedented number of asylum seekers reaching Europe in recent years.

Other recipients of Italian republic's multilateral ODA in 2019 included the World Banking concern Group (US$423 million or 14% of multilateral ODA), regional development banks (US$271 million or ix%), and Un agencies (U.s.a.$194 million or 7%).

Unless otherwise indicated, all information in this department is based on the cash-flow basis measurement system. For more than information, run into our Donor Tracker Codebook.

For more granular and upward-to-date development finance data on Italy, including data on where and in which sectors it is spending both ODA and non-ODA funds, please consult the IATI d-portal. IATI is a reporting standard and platform on which organizations and governments voluntarily publish information on their development cooperation.

Main Actors

MAECI leads on strategy; AICS, implements bilateral programs; embassies play a central role in partner countries

MAECI leads on strategy; AICS, implements bilateral programs; embassies play a fundamental role in partner countries

Prime Minister Mario Draghi, the former caput of the European Central Bank, has led the Italian government since February of 2021 later on Giuseppe Conte's centre-left coalition complanate. Draghi'due south authorities is supported by a large, multi-partisan bulk in the Italian Parliament. The Prime Minister plays a office in determining the focus of Italy's development cooperation.

Evolution cooperation is defined equally an 'integral and qualifying part' of Italian strange policy and builds on the following architecture:

• The Ministry building of Foreign Affairs and International Cooperation (MAECI), headed by Luigi Di Maio (M5S) since September of 2019, is responsible for defining the strategic management of Italy'south development policy. Marina Sereni is the Vice Minister of Foreign Affairs and International Cooperation holding the cooperation portfolio. Within MAECI, the Vice-Minister of Foreign Diplomacy and International Cooperation plays a cardinal role, overseeing the development of the official evolution aid (ODA) budget as well as the development of the three-annual programming guidelines, which define the land'southward overarching evolution objectives and priorities. The Advisers-General for Development Cooperation (DGCS), supports the Vice-Government minister in defining the strategic direction of development programs. Leonardo Bencini and Eugenia Palagi are the Head and the Deputy Caput of the Unit 'Strategy, Global Processes and International Organizations'.
• The Ministry of Economy and Finance (MEF) , led past Daniele Franco, has articulation control over the cooperation with and contributions to development banks and funds together with MAECI. MEF collaborates with MAECI on the ODA upkeep. The Directorate Three on International Fiscal Relations is an important part of MEF, which consists of x specific offices that participate in informal government groups (including the G7 and the G20) and bargain with development-related initiatives. The Director-Full general of Directorate Three is Gelsomina Vigliotti, whose team coordinates the partnership with MAECI as well as the arrangement of the G20's Evolution Minister meeting.

• The Interministerial Committee for Development Cooperation (CICS) usually meets twice a twelvemonth to approve the three-year Programming Guidelines and ODA budget. CICS is chaired by the Prime Minister and is composed of the Minister and Deputy Minister of Foreign Diplomacy, as well equally representatives from other ministries, including finance and the environment.
• The Articulation Development Cooperation Committee decides on operational issues, including all projects worth over €2 one thousand thousand (The states$two.two 1000000). It is chaired past MAECI and equanimous of the heads of MAECI'south DGCS and AICS.
• The Italian Agency for Development Cooperation (AICS) is led by Luca Maestripieri. AICS develops, supervises, and implements Italy's development programs. Post-obit criticism from civil society organizations (CSOs) about inadequate staffing —echoed in the OECD Development Co-operation Peer Review of Italia published in November of 2019 —the Italian Parliament agreed in 2020 to increase the number of AICS staff past more than fifty%.
• The Ministry of Health plays a crucial role in preparing Italy's positioning around health in the G7 and G20. The development finance institution, Cassa Depositi e Prestiti (CDP) , is a joint-stock company nether public control, which provides technical and financial back up to MAECI and AICS. It acts as the administrative manager of development financing, past signing agreements with the governments of partner countries or by managing Italian, European, international, and private sector funds. CDP itself can also finance development projects, using its own resource or private/public blending instruments. Giovanni Gorno Tempini is the Chairman of CDP and Dario Scannapieco the CEO. Embassies play a key role in programming bilateral funds on the ground. Allocations to partner countries are based on multi-year state programs adult by DGCS in consultation with Local Technical Units and embassies. At a state level, regional departments at DGCS' headquarters then develop and approve projects after consultation with the embassies.

Budget Structure

Foreign Ministry manages main ODA budget line; Ministry of Interior covers costs of hosting refugees

Italia's budget documents betoken that the land will spend €five.4 billion (US$half-dozen billion) on ODA in 2021. This marks an overall increase of 13% compared to the ODA component in the 2020 upkeep (€4.8 billion or The states$5.iv billion).

The Ministry building of Economic system and Finance (MEF) manages the largest part of Italy'south ODA budget (45%) in 2021: €2.iv billion (US$2.vii billion). The MEF mainly contributes to Italy's development funding through contributions to the Eu'southward full general budget, which includes the Development Cooperation Instrument (DCI).

The Ministry of Interior controls the portion of the ODA upkeep allocated for spending on refugees and migration-related problems. In 2021, €1.vi billion (The states$1.8 billion, 29%) is budgeted for the Ministry of the Interior. According to OECD data, in 2019, refugee costs accounted for 10% of overall ODA, down from 31% in 2017 and 22% in 2018. In 2021, Italian republic approaching €1.6 billion (US$1.eight billion) for the Ministry of Interior associated with the toll of hosting refugees. This represents 29% of the total budgeted ODA in 2021 compared with 33% in 2020. However, according to Italian CSOs, this figure is non hands comparable with the official ODA numbers of the Organization for Economic Co-operation and Evolution (OECD). Openpolis and Oxfam note that a pregnant share of ODA that Italy budgeted for the Ministry building of Interior has traditionally not been counted equally ODA by the OECD.

The Ministry of Foreign Diplomacy and International Cooperation (MAECI) manages €1.two billion (United states of america$1.4, 23%) of the ODA budget in 2021. The main ODA-related upkeep envelope within the MAECI's budget is the program four.two 'Development Cooperation'. It comprises 'chapters' of funding to Italian republic's evolution agency, AICS (€527 million or United states$590 million in 2021), and contributions to the European Development Fund. It also includes several 'chapters' of contributions to the United nations and other multilaterals.

Overview: Italy's 2021 monetary sources

millions €

millions US$

Ministry of Economy and Finance (MEF)	ii,397	2,683

Ministry of Foreign Affairs (MAECI)	1,242	1,390
Transfers to AICS	527	590
Multilateral and European cooperation	556	622
Staff+ monitoring evaluation	nine	10
Cooperation on migration	52	58
Other	98	110

Ministry building of Interior	1,563	1,750
Other ministries	153	171

Ministry of Health	15	17
Ministry of Environment	50	56
Ministry building of Education an Research	19	21
Ministry of Economic Development	1	ane
Ministry building of Infrastructure and Send	68	76

Total	v,355	v,994

Budget Procedure

Parliamentary upkeep discussions run from October to December; Overall ODA levels are fix in March and April

• Ministry of Economic system and Finance (MEF) develops three-year budgetary guidelines: From Feb to Apr each year, the government develops the Economic and Financial Document (DEF), which sets a three-year framework for economic and budgetary planning. Fundamental decision-makers in this process are the Prime Minister, the Minister of Finance, the Government minister of Foreign Affairs and International Cooperation, and the Vice Minister of Foreign Affairs. The DEF is presented to the parliament by April x each year for approval from both houses.
• Government develops the budget typhoon: From July to September, the Chiffonier develops the budget draft. The draft budget is presented to Parliament in mid-Oct. Key stakeholders include the Vice Government minister of Foreign Affairs, the Minister of Foreign Affairs, the Minister of Finance, and the Prime Minister. As budget negotiations between the authorities and Parliament start earlier the presentation of the typhoon upkeep, Members of Parliament and Ministry building of Foreign Affairs and Development Cooperation (MAECI) staff are frequently consulted past interest groups during that period.
• Parliament examines, amends, and votes on budget draft: Parliamentary budget discussions run from October to December. The Budget committees of the Sleeping accommodation of Deputies and the Senate set the final upkeep levels, and the Foreign Affairs committees of both houses requite recommendations on amendments to the bill. Members of these committees are key stakeholders in the budget resource allotment. The full parliament votes on the budget by the finish of December.

In addition to the regular budget process, the government ordinarily issues a prescript known equally the 'one m extension prescript' ('milleproroghe') at the cease of December. Information technology uses this decree to finance additional measures in the side by side budget twelvemonth, relating to any budgetary outcome. Parliament examines and may improve the prescript from January to February. This usually provides an additional opportunity for interest groups to influence the ODA upkeep.

Source: https://donortracker.org/country/italy

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