Development Co-operation Report 2018

Hungary

Leaving no one behind: Hungary’s approach and priorities

Hungary’s development co-operation aims to support sustainable development while promoting human rights, social justice, democracy, equal opportunities, non-discrimination, gender equality, environmental sustainability and support for vulnerable groups. When determining its geographical priorities, Hungary takes into account the specific needs of least developed countries, low-income countries, fragile states and countries in post-conflict situations.

Hungary believes that a leave no one behind approach to development co-operation is a fresh opportunity to draw increased attention to vulnerable people and groups such as women, children, people with disabilities, people living in rural areas and ethnic groups. For Hungary, one of the greatest challenges to success is creating the right financial mechanisms to mobilise enough funds in order to really leave no one behind

Financial flows from Hungary to developing countries

At present, data on other official flows, private grants (funds raised by non-governmental organisations and foundations) and private flows at market terms from Hungary to developing countries are not available. The grant element of total official development assistance (ODA) was 100% in 2016.

Figure 25.1. Net ODA: Trends in volume and as a share of GNI, 2006-17, Hungary

P: preliminary data.

Statlink

Hungary’s official development assistance

In 2017, Hungary provided USD 149 million in net ODA (preliminary data), which represented 0.11% of gross national income (GNI) and a 29.7% decrease in real terms from 2016 due to significant cuts in its overall aid programme. As all member states that have joined the European Union since 2002, Hungary has committed to attain a 0.33% ODA/GNI ratio by 2030. In 2017, in-donor refugee costs were USD 3 million and represented 2.2% of Hungary’s total net ODA, compared to 4.9% in 2016.

In 2016, 27.5% of Hungary’s ODA was provided bilaterally. Hungary channelled 72.5% of its ODA, or USD 144.3 million, as core contributions to multilateral organisations in 2016. Its multilateral aid consisted mainly of mandatory assessed contributions to the European Union and other international organisations. In addition, Hungary channelled 23% of its bilateral ODA for specific projects implemented by multilateral organisations (multi-bi/non-core) in 2016.

Figure 25.2. ODA composition in 2010-16 and distribution of multilateral ODA in 2016, Hungary

Statlink

In 2016, 78.1% of bilateral ODA was programmed with partner countries. Hungary’s share of country programmable aid was higher than the Development Assistance Committee (DAC) country average (46.8%) in 2016. Scholarships/training in donor country made up 55% of this aid.

Figure 25.3. Composition of bilateral ODA, 2016, gross disbursements, Hungary

Statlink

In 2016, USD 1.3 million of bilateral ODA was channelled to and through civil society organisations (CSOs), amounting to 2.4 % of bilateral aid, compared with 3.4% in 2015.

Figure 25.4. Gross bilateral ODA disbursements to and through CSOs by type of CSO, 2014-16, Hungary

Statlink

In 2016, bilateral ODA primarily focused on Europe and Asia. USD 16.9 million was allocated to Eastern Europe, USD 8.9 million to Far East Asia, and USD 5.8 million to south and central Asia.

Figure 25.5. Share of bilateral ODA by region, 2016, gross disbursements, Hungary

Note: Twenty-two per cent of bilateral ODA allocated was unspecified by region in 2016. This share is not represented on the map.

Statlink

In 2016, 54.4% of bilateral ODA went to Hungary’s top 10 recipients. Hungary focuses on 17 partner countries but plans to focus on a narrow range of countries (maximum of 10) located in Africa, the Middle East, Asia/Southeast Asia, Eastern Europe and the Western Balkans. Four of its priority partners were among its top 10 recipients in 2016. Its support to fragile contexts reached USD 8.6 million in 2016 (16% of gross bilateral ODA). Support to fragile contexts consisted mainly of scholarships (56%) and project-type interventions (42%).

Figure 25.6. Bilateral ODA to top recipients, 2016, gross disbursements, Hungary

Statlink

In 2016, 8.9% of bilateral ODA was allocated to least developed countries (LDCs), amounting to USD 4.9 million. The DAC country average share of bilateral ODA allocated to the LDCs was 21.9% in 2016. Upper middle-income countries received the highest share of bilateral ODA in 2016, representing 46.5% of bilateral ODA, noting that 22.4% was unallocated by income.

At 0.03% of GNI in 2016, total ODA to the LDCs was below the UN target of 0.15% of GNI.

Figure 25.7. Bilateral ODA by income group, 2010-16, gross disbursements, Hungary

Statlink

In 2016, 50% of bilateral ODA was allocated to social infrastructure and services, reaching USD 27.4 million, with a strong focus on education, which amounted to USD 24 million. A high share (41.5%) of bilateral ODA was unspecified by sector in 2016. Hungary committed USD 3.7 million (8.5% of bilateral allocable aid) to promote aid for trade and to improve developing countries’ trade performance and integration into the world economy in 2016.

Figure 25.8. Share of gross bilateral ODA by sector, 2015-16, commitments, Hungary

Statlink

Environmental protection is among the priority areas of Hungary’s bilateral development co-operation. Cross-cutting principles, notably gender equality and environmental sustainability, are still to be incorporated into Hungary’s development co-operation strategy and activities in a systematic way.

USD 0.7 billion of bilateral ODA supported the environment in 2016. In 2016, the share of Hungarian bilateral allocable aid focusing on the environment reached 1.6%, compared to the DAC country average of 33%.

Figure 25.9. Bilateral allocable ODA in support of global and local environment objectives, 2016, commitments, Hungary

Statlink

Note to reader: Annex B provides “Methodological notes on the profiles of Development Assistance Committee members”.