Development Co-operation Profiles

Hungary

Introduction

Hungary’s growing development co-operation programme focuses on economic development, support for crisis situations and scholarships. Its bilateral portfolio includes select partner countries in Europe, the Middle East, Asia and Africa. Much of Hungary’s official development assistance (ODA) is channelled multilaterally through European Union (EU) institutions. Hungary’s total ODA (USD 304.3 million, preliminary data) decreased in 2023, representing 0.15% of gross national income (GNI).

Find the methodological notes behind the profile here.

Policy

The International Development Cooperation Strategy for the period 2020-2025 affirms Hungary’s ambition to enhance its international role and increase ODA while pursuing mutually prosperous economic partnerships. The strategy sets thematic priorities in access to water and sanitation, healthcare, education, agriculture, and information technology. A new law on the Hungary Helps Program defines objectives and procedures for development co-operation and humanitarian assistance. Hungary’s main partner countries are in the European neighbourhood. Hungary is also deepening its engagement with countries in the Middle East and Africa.

Sustainable water management is a priority for Hungary’s diplomacy, as is protecting minorities and cultural heritage. In its engagement with the European Union, Hungary focuses, among others, on support for the European neighbourhood and migration. Hungary holds the presidency of the Council of the European Union in the second half of 2024. Hosting arrangements help foster Budapest’s role as a regional hub for United Nations (UN) organisations. Hungary co-operates closely with neighbouring countries, including the Visegrád 4 states. The development co-operation strategy commits Hungary to strengthen inter-ministerial co‑ordination.

Poverty and inequality reduction focus

Hungary’s 2020-25 development strategy states that its five goal-oriented pillars will be delivered following the aims of the 2030 Agenda and the overarching guidelines of the OECD Development Assistance Committee (DAC) on eradicating poverty. It seeks to mainstream these principles and guidelines across its thematic priorities, as the policy section outlines.

Findings from OECD-DAC reviews

The first OECD-DAC peer review of Hungary took place in 2023. It praised impressive ODA growth and international efforts for sustainable water management. It also highlighted partnerships with local civil society organisations (CSOs) in fragile contexts. The peer review encouraged Hungary to increase the impact of its engagement in partner countries, notably through strategic partnerships, and to balance tensions between domestic and global objectives. It also underlined opportunities for institutional reform to deepen collaboration across institutions and with stakeholders and to strengthen internal systems. Hungary has not yet submitted a management response to the review. Learn more about Hungary’s 2023 peer review.

ODA allocation overview

Hungary provided USD 304.3 million (preliminary data) of ODA in 2023 (USD 255 million in constant terms), representing 0.15% of GNI.1 This was a decrease of 31.3% in real terms in volume and a decrease in the share of GNI from 2022. Hungary's ODA has decreased since 2020. While Hungary had surpassed the 0.25% ODA/GNI target it had set itself to reach by 2025, the sharp drop in 2023 means that Hungary is currently not in line with its commitment. It remains committed to achieving a 0.33% ODA/GNI ratio by 2030 and collectively at the EU level to achieve a 0.7% ODA/GNI ratio by 2030. Hungary provided all of its ODA as grants in 2022.2

In 2023, Hungary ranked 29th among Development Assistance Committee (DAC) member countries when ODA is taken as a share of GNI. In 2022, scholarships constitute a large share of Hungary's bilateral ODA (47.7%), leading to a strong sectoral focus on education. Among DAC members, it had the second-highest share of country-programmable aid in 2022 (78.4%). Funding for CSOs based in developing countries constituted 51.9% of Hungary's total funding for CSOs in 2022, the highest share of all DAC members.

 

Notes: Data on official development assistance (ODA) volumes (figure above) are in constant 2022 prices. Data for 2023 are preliminary. See the methodological notes for further details.

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Hungary is committed to several international targets and Development Assistance Committee standards and recommendations. Learn more about DAC recommendations.

Performance against commitments and DAC recommendations

Description	Target	2021	2022	2023, preliminary
ODA as a share of GNI (%)	0.33	0.28	0.26	0.15
Total ODA to least developed countries as a share of GNI (%)	0.15-0.20	0.04	0.02
Share of untied ODA covered by the DAC Recommendation	100	100	100
Share of untied ODA (All sectors and countries beyond the scope of the Untying Recommendation) (%)		54.3	47.7
Grant element of total ODA (%)	>86	100	100

Note: ODA: official development assistance; GNI: gross national income; DAC: Development Assistance Committee. This table only includes information about ODA data-related DAC recommendations.

Hungary provided a higher share of its ODA bilaterally in 2022. Gross bilateral ODA was 79.3% of total ODA disbursements. Two per cent of gross bilateral ODA was channelled through multilateral organisations (earmarked contributions). Hungary allocated 20.7% of total ODA as core contributions to multilateral organisations.

 

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ODA for Ukraine

In 2023, Hungary provided USD 2 million (preliminary data) of net bilateral ODA to Ukraine to respond to the impacts of Russia's war of aggression, a 97.7% decrease from 2022 in real terms. USD 0.2 million of the amount was allocated to humanitarian assistance in 2023, a 99.6% decrease from 2022.

 

Note: The amount reported in 2023 is an estimate, based on preliminary figures reported to the OECD and published in April 2024.

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ODA to and through the multilateral system

In 2022, Hungary provided USD 82 million of gross ODA to the multilateral system, a fall of 54% in real terms from 2021, due to lower reporting of contributions to EU institutions. Of this, USD 77 million was core multilateral ODA, while USD 5 million was non-core contributions earmarked for a specific country, region, theme or purpose. Project-type funding earmarked for a specific theme and/or country accounted for 61.1% of Hungary's non-core contributions and 38.9% was programmatic funding (to pooled funds and specific-purpose programmes and funds).

 

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Ninety-eight per cent of Hungary's total contributions to multilateral organisations in 2022 were allocated to the World Bank, EU Institutions, and other UN organisations.

 

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The UN system received 21.3% of Hungary's multilateral contributions, of which USD 400 thousand (2.2%) represented earmarked contributions. Out of a total volume of USD 17.5 million to the UN system, the top three UN recipients of Hungary's support (core and earmarked contributions) were the UN Secretariat (USD 7.6 million), UNDPO-UN Peacekeeping operations (USD 4.9 million) and UNEP (USD 1.4 million).

 

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

Bilateral ODA

In 2022, Hungary's bilateral spending increased compared to the previous year. It provided USD 294.3 million of gross bilateral ODA (which includes earmarked contributions to multilateral organisations). This represented an increase of 24.8% in real terms from 2021.

In 2022, country programmable aid was 78.4% of Hungary's gross bilateral ODA, compared to a DAC country average of 42%. Hungary did not report in-donor refugee costs in 2022.

 

Note: NGO: non-governmental organisation.

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In 2022, Hungary channelled its bilateral ODA mainly through the public sector. Technical co-operation made up 37.9% of gross ODA in 2022.

 

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Civil society organisations

In 2022, CSOs received USD 89.6 million of gross bilateral ODA, of which 51.9% was directed to developing country-based CSOs. Overall, 1.9% of gross bilateral ODA was allocated to CSOs as core contributions and 28.6% was channelled through CSOs to implement projects initiated by the donor (earmarked funding). From 2021 to 2022, the combined core and earmarked contributions for CSOs increased as a share of bilateral ODA, from 6.7% to 30.5%. Learn more about the DAC Recommendation on Enabling Civil Society in Development Co-operation and Humanitarian Aid.

 

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Geographic, sectoral and thematic focus of ODA

In 2022, Hungary's bilateral ODA was primarily focused on ODA-eligible countries in Europe. USD 127.9 million was allocated to ODA-eligible countries in Europe (of which 57.4% for Ukraine) and USD 68.2 million to Asia, accounting respectively for 43.4% and 23.2% of gross bilateral ODA. USD 39.7 million was allocated to Middle East. Europe was also the main regional recipient of Hungary's earmarked contributions to multilateral organisations, in line with its regional focus.

Bilateral ODA by recipient country

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In 2022, 59.9% of gross bilateral ODA went to Hungary's top 10 recipients. The top 10 recipients are spread across Europe, Asia and the Middle East, and vary from year to year, as Hungary does not have a list of key partner countries. The share of gross bilateral ODA not allocated by country was 1.8%.

 

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In 2022, Hungary allocated 0.02% of its GNI to the least developed countries (LDCs). Hungary allocated the highest share of gross bilateral ODA (46.7%) to lower middle income countries in 2022, noting that 1.8% was unallocated by income group. Least developed countries (LDCs) received 7.5% of Hungary's gross bilateral ODA (USD 22.2 million). Additionally, Hungary allocated 13.6% of gross bilateral ODA to land-locked developing countries in 2022, equal to USD 39.9 million.

 

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.

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Fragile contexts

Support to fragile contexts was USD 53.7 million in 2022, representing 18.2% of Hungary's gross bilateral ODA. One per cent of this ODA was provided in the form of humanitarian assistance, decreasing from 3.2% in 2021, while 0.1% was allocated to peace, decreasing from 0.4% in 2021. No ODA went to conflict prevention, a subset of contributions to peace, similar to 2021. Learn more about support to fragile contexts on the States of Fragility platform.

 

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

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Sectors

In 2022, more than half of Hungary's bilateral ODA was allocated to social infrastructure and services. Investments in this area accounted for 64.8% of bilateral ODA commitments (USD 190.7 million) with a strong focus on support to education (USD 142.6 million) and health & population (USD 46.8 million), Hungary committed USD 46.8 million for health and population in 2022, which accounted for 15.9% of gross bilateral ODA, and an increase of 572.3% from 2019 in real terms. ODA for humanitarian assistance totalled USD 53 million, focusing on emergency response (USD 48.4 million). Production sectors amounted to USD 39.7 million (13.5% of bilateral ODA). Earmarked contributions to multilateral organisations focused on humanitarian assistance and economic sectors in 2022.

 

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ODA for COVID-19

In 2022, Hungary disbursed USD 42.5 million in ODA for the COVID-19 response, down from USD 45.1 million in 2021. Regarding COVID-19 vaccines, Hungary provided USD 15.2 million in ODA for donations of doses to developing countries in 2022, down 54.9% from USD 33.7 million in 2021. All COVID-19 vaccines accounted for donations of doses from domestic supply in 2022.

Gender equality

In the period 2021-22, Hungary committed 25.5% of its screened bilateral allocable aid to gender equality and women's empowerment as either a principal or significant objective (down from 48% in 2019-20), compared with the 2021-22 DAC average of 43.3%. This is equal to USD 72 million of bilateral ODA in support of gender equality. Unpacking the gender equality data further:

• The share of screened bilateral allocable aid committed to gender equality and women's empowerment as a principal objective was 0.1% in 2021-22, compared with the DAC average of 3.9%.

• Hungary includes gender equality objectives in 12.2% of its ODA for humanitarian aid, below the 2021-22 DAC average of 17%.

• Hungary screens all its bilateral allocable aid activities against the DAC gender equality policy marker (100% in 2021-22).

• Hungary committed USD 50 thousand of ODA to end violence against women and girls and USD 5 thousand to support women's rights organisations and movements and government institutions in 2021-22.

Learn more about Gender Equality and the Empowerment of Women and Girls: DAC Guidance for Development Partners and the DAC Recommendation on Ending Sexual Exploitation in Development Co-operation.

 

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Environment

In 2021-22, Hungary committed 4.3% of its total bilateral allocable aid (USD 11.4 million) in support of the environment and the Rio Conventions (the DAC average was 35.1%), down from 14.7% in 2019-20. Unpacking the environmental data further:

• Three per cent of screened bilateral allocable aid focused on environmental issues as a principal objective, compared with the DAC average of 11%.

• Three per cent of total bilateral allocable aid (USD 6.5 million) focused on climate change overall, down from 8% in 2019-20 (the DAC average was 30.5%). Hungary had a greater focus on mitigation (2.4%) than on adaptation (2.4%) in 2021-22.

• Little more than zero per cent of screened bilateral allocable aid (USD 0.1 million) focused on biodiversity overall, down from 6.9% in 2019-20 (the DAC average was 7.2%).

Learn more about the DAC Declaration on Aligning Development Co-operation with the Goals of the Paris Agreement on Climate Change [DAC/CHAIR(2021)1/FINAL].

 

Note: In this figure, the category climate includes climate change mitigation and climate change adaptation efforts.

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Performance against environment and Rio Markers, 2021-2022

Marker	Constant 2022 USD million	% of bilateral allocable
Environment	11.4	4.3
Rio markers:
Biodiversity	0.1	0.1
Desertification	4.6	1.8
Climate change mitigation only	0.1	0
Climate change adaptation only	0.2	0.1
Both climate change mitigation and adaptation	6.2	2.3

Note: Individual Rio Markers should not be added up as this can result in double counting.

Other cross-cutting sectors and themes

In 2022, Hungary also:

• Did not have a general policy regarding the payment of local tax and customs duties for ODA-funded goods and services. It makes information available on the OECD Digital Transparency Hub on the Tax Treatment of ODA.

• Committed USD 41.4 million (14.2% of its bilateral allocable aid) to promote aid for trade and improve developing countries' trade performance and integration into the world economy.

Effectiveness of development co-operation

The Global Partnership for Effective Development Co-operation monitoring exercise tracks the implementation of the effectiveness commitments. Following the reform of the exercise over 2020-22, the 4th global monitoring round (2023-26) is underway. Information on partner countries' participation in the exercise as well as their progress is available at the Global Dashboard.

To help improve the transparency of development co-operation, the OECD provides regular feedback to members on the overall quality of their statistical reporting and works with each member to ensure the data meet high-quality standards before they are published. Regarding DAC/CRS reporting to the OECD, Hungary's reporting in 2022 was on time, with room to improve in terms of the completeness and the accuracy of the data.

Total official support for sustainable development

Total official support for sustainable development (TOSSD) is an international statistical standard that monitors all official and officially supported resources for financing the Sustainable Development Goals (SDGs) in developing countries, as well as for addressing global challenges. It provides a broad measure of development finance with the objective of increasing transparency and accountability of all external support that developing countries receive. In 2022, activities reported by Hungary as TOSSD totalled USD 664.4 million, up from USD 472.3 million in 2021, and Hungary's TOSSD activities mostly targeted SDG 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all and SDG 3 Ensure healthy lives and promote well-being for all at all ages. Activity-level data on TOSSD by recipient are available at https://tossd.online.

Institutional set-up

Reforms in 2022 and 2023 have streamlined institutional responsibilities: The Ministry of Foreign Affairs and Trade (MFAT) is responsible for the planning, co-ordination and implementation of Hungary’s development co-operation and humanitarian assistance policy, while the Hungary Helps Agency is the main implementing agency. The Export-Import Bank Plc. and the Hungarian Export Credit Insurance Plc. (MEHIB) are responsible for tied aid loans. The Tempus Foundation runs the Stipendium Hungaricum scholarship programme. Other line ministries and government entities also engage in development co-operation activities as implementing and/or financing agencies. An inter-ministerial platform supports co-ordination and facilitates the exchange of information.

Around 150 staff members work at the MFAT headquarters and the different agencies on development co-operation programmes, while economic diplomates in embassies are responsible for links with partner countries.

 

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There is no particular mechanism for consulting stakeholders, but Hungary held consultations with stakeholders on its development co-operation strategy. CSOs active in development co-operation, humanitarian assistance and global citizenship education co-ordinate under the umbrella body, the Hungarian Association of NGOs for Development and Humanitarian Aid.

Quality and oversight

Internal systems and processes help ensure the effective delivery of Hungary’s development co-operation. Select features are shown in the table below.

Features of Hungary’s systems for quality and oversight

Quality assurance	A 2020 handbook requires projects to be assessed against policy objectives, feasibility, financing and sustainability criteria. Quality assurance could benefit from deeper analysis and expert advice to reflect fragility, complex challenges and cross-cutting issues in project design, according to the 2023 DAC peer review.
Risk management	The Ministry of Foreign Affairs and Trade’s (MFAT) risk management system and integrity guidelines require identifying and documenting risks and mitigation measures, project proposals to assess the operational risk, and screening applicants. The ministry also provides risk training.
Innovation and adaptation	Hungary uses technology transfer, notably in collaboration with the Hungarian private sector, to promote innovation in partner countries.
Results management	Hungary aligns its development co-operation with the Sustainable Development Goals and produces an annual report against the objectives of its development co-operation strategy. Project progress is monitored at activity and output levels, while the focus on outcomes could be strengthened
Evaluation	MFAT developed evaluation guidelines in 2020 but has not yet introduced independent evaluations. There is no dedicated evaluation function or budget for evaluations. A comprehensive review of Hungary’s development co‑operation is foreseen for 2024.
Knowledge management and learning	There are no formal mechanisms to share operational knowledge among all teams and institutions working on development co-operation. Hungary engages in peer learning with other DAC members on ways of working.
Communication and transparency	A website of MFAT and map platform on official development assistance funding provide information on development co-operation. A regular newsletter informs stakeholders of recent developments.

Additional resources

2022 OECD-DAC peer review of Hungary: https://doi.org/10.1787/ec7d67f1-en

Ministry of Foreign Affairs and Trade: https://nefe.kormany.hu/en

Hungary Helps Agency: https://hungaryhelps.gov.hu/hungary-helps-program-main-page/

Summary of Hungary's International Development Cooperation Strategy for the period 2020-2025: https://nefe.kormany.hu/download/5/a8/a2000/NEFE2025_summary_en.pdf

CSO umbrella organisation HAND – Hungarian Association of NGOs for Development and Humanitarian Aid: http://hand.org.hu

Hungary's practices on the Development Co-operation TIPs: Tools Insights Practices learning platform: https://www.oecd.org/development-cooperation-learning?tag-key+partner=hungary#search.

Member of the OECD Development Assistance Committee (DAC) since 2016.

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. Hungary provides tied loans, but only reports the interest rate subsidy to the DAC.