Development Assistance

Description

Development Assistance (D.A.) focuses on poverty reduction and promotes the development of self-reliant, resilient, and democratic societies. D.A. promotes activities that help countries and communities address chronic poverty; fight hunger and malnutrition; prepare for and adapt to climate change; invest in renewable energy sources; conserve natural resources; and support sustainable landscapes and food systems—mitigating the effects of climate change.

Use of Funds

Funds support need-based and long-term development programming, including food security, water and sanitation, climate programming, livelihoods, peacebuilding, and basic education.

Justification

• According to the World Bank, “nearly half the world—over 3 billion people—lives on less than US$6.85 per day, which is the average of the national poverty lines of upper-middle income countries.”
• The COVID-19 pandemic delivered a historic shock to global poverty. The poorest 40% of the global population lost twice as much income as the richest 20%. The World Bank found that “the poorest also suffered disproportionate setbacks in education and health, with massive learning losses and shortened lifespans.”
• Approximately 660 million people could face hunger in 2030 partially due to the lasting effects of the COVID-19 pandemic.
• According to the IMF, “poorer countries face greater risks from climate change and are less able to adapt to them,” estimating that in approximately 50 low-income and developing economies the annual needs could exceed 1% of GDP for the next 10 years.