U.S. spent 0.24% of its national income on foreign aid

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Context : U.S. Foreign Aid Spending vs. Public Perception

In 2023, the U.S. spent 0.24% of its Gross National Income (GNI) on foreign aid.
However, public perception is vastly different – surveys show Americans believe it to be as high as 31% of the national budget.
The disparity suggests a lack of awareness about actual foreign aid expenditures.

Relevance : GS 2(International Relations)

In the 1980s, polio paralyzed nearly 500,000 children annually. By 2023, polio cases were as low as two days’ worth of cases from 1981.
Foreign aid programs, particularly government funding and private donations, were crucial in the eradication of polio.
Similar success stories:
- PEPFAR (U.S. initiative): Saved 25 million lives from HIV.
- Bednets and antimalarial treatments: Reduced malaria mortality.
- Global Fund and USAID: Helped curb tuberculosis deaths.

Total global foreign aid in 2023: $240 billion (a tiny fraction of rich countries’ economies).
Norway is the only country spending more than 1% of its GNI on foreign aid.
The UN target for developed nations: 0.7% of GNI to foreign aid.
- Only five countries met this in 2023:
  - Norway
  - Luxembourg
  - Sweden
  - Germany
  - Denmark

More than 95% of global foreign aid came from national governments.
Private donations accounted for just 4.5% ($11 billion) of the total.
Implications:
- If governments reduce foreign aid budgets, it can have a huge impact on global aid.
- If the U.S. had cut its aid by just 20%, global aid would have dropped by $13 billion, wiping out private philanthropic contributions.

Public support influences government spending.
If all developed nations met the UN’s 0.7% target, global foreign aid would nearly double (+$216 billion).
However, most citizens drastically overestimate aid spending:
- A 2015 U.S. survey found Americans believed foreign aid made up 31% of the federal budget (actual: under 1%).
- When asked how much should be spent, the average response was 10%, 10 times the actual figure.