Development Co-operation Profiles

Liechtenstein

Introduction

Liechtenstein’s development co-operation is geared towards the sustainable and comprehensive development of disadvantaged and marginalised regions of the world, especially rural regions in Africa, Latin America and Europe. This is in line with the 2030 Agenda for Sustainable Development and carried out through long-term relationships based on trust, responsibility and reliability. Almost all of its development co-operation is channelled bilaterally and is primarily implemented through the Liechtenstein Development Service (LED) – a publicly owned foundation established in 1965. Liechtenstein’s total official development assistance (ODA) increased in 2023 to USD 40.1 million (preliminary data).

Find the methodological notes behind the profile here.

Policy

• The LED Strategy 2023-2026, adopted in 2023, aims to deliver on the ambitions of the 2030 Agenda through more effective development co-operation. The strategy defines food security (sustainable food systems with a focus on agroecology) and vocational training and employability as key priority themes of Liechtenstein’s co-operation. The LED’s activities are guided by the principles of leaving no one behind, gender equality, cultural diversity and ecological sustainability. Its approach is shifting from being project-based to programmatic with a focus on one priority theme and local activities in each of its current nine priority countries: the Plurinational State of Bolivia, Burkina Faso, Cambodia, Mali, Moldova, Mozambique, Senegal, the United Republic of Tanzania and Zambia. The strategy emphasises dialogue with partner country governments; partnerships, including with non-governmental organisations and the private sector; donor co-ordination; and physical presence in all partner countries as key tools. Liechtenstein’s multilateral co-operation is focused on fostering good governance, including advocacy for human rights; strengthening the rule of law and democracy; and fighting corruption and international crime.

• The basis for Liechtenstein’s commitment in the area of development co-operation and humanitarian assistance remains its 2007 Act on International Humanitarian Co-operation and Development (IHZEG).

ODA allocation overview

Liechtenstein provided USD 40.1 million (preliminary data) of ODA in 2023 (USD 38.4 million in constant terms). This was an increase of 23.2% in real terms from 2022. Total ODA on a grant-equivalent basis has the same value as net ODA under the cash-flow methodology used in the past, as Liechtenstein provides only grants.1

 

Note: Data on 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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Liechtenstein provided its ODA almost entirely through bilateral channels in 2022. Gross bilateral ODA was 96.5% of total ODA disbursements. A share of twelve per cent of gross bilateral ODA was channelled through multilateral organisations (earmarked contributions). Liechtenstein allocated 3.5% of total ODA as core contributions to multilateral organisations.

 

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ODA for Ukraine

In 2023, Liechtenstein provided USD 1.4 million of net bilateral ODA to Ukraine to respond to the impacts of Russia's war of aggression, a 17.1% decrease from 2022 in real terms. USD 1 million of the amount was humanitarian assistance in 2023, a 33.7% 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, Liechtenstein provided USD 4.6 million of gross ODA to the multilateral system, an increase of 31.4% in real terms from 2021. Of this, USD 1.1 million was core multilateral ODA, while USD 3.5 million were 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 72.4% of Liechtenstein's non-core contributions and 27.6% was programmatic funding (to pooled funds and specific-purpose programmes and funds).

 

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Liechtenstein's contributions to multilateral organisations in 2022 were allocated to United Nations entities and other multilateral organisations, notably the Organisation for Security and Co-operation in Europe (OSCE), Gavi, the Vaccine Alliance and Council of Europe.

 

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The UN system received 79.7% of Liechtenstein's multilateral contributions, of which USD 2.7 million (74.2%) represented earmarked contributions. Out of a total volume of USD 3.6 million to the UN system, the top four UN recipients of Liechtenstein's support (core and earmarked contributions) were UNHCR (USD 628 thousand), UNICEF (USD 556 thousand), WFP (USD 524 thousand) and OHCHR (USD 413 thousand).

 

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See the section on 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, Liechtenstein's bilateral spending increased compared to the previous year. It provided USD 30.1 million of gross bilateral ODA (which includes earmarked contributions to multilateral organisations). This represented an increase of 23.5% in real terms from 2021.

In 2022, country programmable aid was 52.2% of Liechtenstein's gross bilateral ODA, compared to a non-DAC country average of 47%. In-donor refugee costs were USD 4.7 million in 2022, an increase of 210.5% in real terms over 2021, and represented 15.5% of Liechtenstein's total gross ODA.

 

Note: NGO: non-governmental organisation.

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In 2022, Liechtenstein channelled their bilateral ODA mainly through non-governmental organisations (NGOs) and the public sector. Technical co-operation made up 2.4% of gross bilateral ODA in 2022.

 

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Civil society organisations

In 2022, civil society organisations (CSOs) received USD 19.5 million of gross bilateral ODA, of which 27.9% was directed for developing-country based CSOs. Overall, 1.4% of gross bilateral ODA was allocated to CSOs as core support and 63.4% 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 decreased as a share of bilateral ODA, from 79.7% to 64.8%. 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, Liechtenstein's bilateral ODA was primarily focused on Africa and Europe. USD 9.6 million was allocated to Africa and USD 5.3 million to ODA-eligible countries in Europe (of which 30.7% for Ukraine), accounting respectively for 32% and 17.5% of gross bilateral ODA. USD 3.4 million was allocated to Latin America and the Caribbean. Europe was also the main regional recipient of Liechtenstein's earmarked contributions to multilateral organisations.

Bilateral ODA by recipient country

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In 2022, 45.1% of gross bilateral ODA went to Liechtenstein's top 10 recipients. These recipients are in Sub-Saharan Africa, Europe and South America. The share of gross bilateral ODA not allocated by country was 40.4%, of which 38.3% consisted of expenditures for processing and hosting refugees in provider countries.

 

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In 2022, Liechtenstein allocated 27.3% of its gross bilateral ODA to the least developed countries (LDCs). Middle-income countries were allocated 31.3% of Liechtenstein's gross bilateral ODA, with USD 4.8 million provided to lower-middle income countries (LMICs) and USD 4.7 million to upper-middle income countries (UMICs), noting that 40.4% was unallocated by income group. Additionally, Liechtenstein allocated 31.2% of gross bilateral ODA to land-locked developing countries (LLDCs) in 2022, equal to USD 9.4 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 reached USD 9.5 million in 2022, representing 31.5% of Liechtenstein's gross bilateral ODA. A share of 20.4% of this ODA was provided in the form of humanitarian assistance, increasing from 12.4% in 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, the largest focus of Liechtenstein's bilateral ODA was social infrastructure and services. Investments in this area accounted for 35.4% of bilateral ODA commitments (USD 10.6 million) with a strong focus on support to education (USD 5 million), government & civil society (USD 2.9 million) and health & population (USD 1.8 million or 6% of gross bilateral ODA). ODA for production sectors totalled USD 7.8 million (25.8%), focusing on agriculture, forestry and fishing. Humanitarian assistance amounted to USD 4.7 million (15.5%). Other macro sectors amounted to USD 7 million (23.3% of bilateral ODA). Earmarked contributions to multilateral organisations also focused on social and production sectors in 2022.

 

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ODA for COVID-19

In 2022, Liechtenstein disbursed USD 314 thousand in ODA for the COVID-19 response, similarly to 2021.

Gender equality

In the period 2021-22, Liechtenstein committed 9.4% of its screened bilateral allocable aid to gender equality and women's empowerment, as either a principal or significant objective. This is equal to USD 2.3 million of bilateral ODA in support of gender equality. Furthermore, the share of screened bilateral allocable aid committed to gender equality and women's empowerment as a principal objective was 3.9% 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, Liechtenstein committed 19.1% of its total bilateral allocable aid (USD 4.6 million) in support of the environment and the Rio Conventions. Furthermore, 18.3% of total bilateral allocable aid (USD 4.6 million) focused on climate change overall. Liechtenstein had a far greater focus on adaptation (17.8%) than on mitigation (1%) in 2021-22. Moreover, 5.5% of total bilateral allocable aid (USD 0.7 million) focused on biodiversity overall.

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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Other cross-cutting sectors and themes

In 2022, Liechtenstein also committed USD 8.8 million (34.6% of its bilateral allocable aid) to promote aid for trade and improve developing countries' trade performance and integration into the world economy in 2022.

Total official support for sustainable development

Total official support for sustainable development is an international statistical standard that monitors all official and officially supported resources for financing the SDGs in developing countries, as well as for addressing global challenges. It provides a broader 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 Liechtenstein as TOSSD totalled USD 32.6 million, up from USD 27.9 million in 2021, and Liechtenstein's TOSSD activities in support of sustainable development mostly targeted SDG 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels, and SDG 17 Strengthen the means of implementation and revitalise the global partnership for sustainable development. Activity-level data on TOSSD by recipient are available at: https://tossd.online.

Institutional set-up

• The LED is Liechtenstein’s official bilateral development co-operation organisation. It follows a bottom-up approach and relies on the insights of its implementing partners and stakeholders. It discusses the needs and appropriateness of interventions with representatives of its beneficiaries.

• International humanitarian co-operation and development is co-ordinated by the Office for Foreign Affairs (OFA) and implemented in co-operation with the LED in four categories and under the responsibility of three institutions: Emergency and Reconstruction Assistance (OFA), International Refugee and Migration Assistance (OFA and Immigration and Passport Office), Bilateral Development Co-operation (LED), and Multilateral Development Co-operation (OFA). The largest pillar of international humanitarian co-operation and development is bilateral development co-operation.

 

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Additional resources

Principality of Liechtenstein, Office for Foreign Affairs: https://www.llv.li/en/national-administration/office-for-foreign-affairs/topics/international-humanitarian-cooperation-and-development

Liechtenstein Development Service: https://www.led.li/DE/Default.asp

International Humanitarian Cooperation and Development: https://www.llv.li/en/national-administration/office-for-foreign-affairs/topics/international-humanitarian-cooperation-and-developmentAct on International Humanitarian Co-operation and Development (IHZEG): https://www.gesetze.li/konso/2007149000

LED Strategy 2023-2026: https://www.led.li/Portal/UserFiles/files/Strategy%202023-2026%20short%20version%20English.pdf

Liechtenstein has been an Invitee to the OECD Development Assistance Committee (DAC) since 2023.

Liechtenstein has been reporting to the OECD since 2009.

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.