Between values and interests: drivers of EU aid

EU aid is still more poverty-focused than peers, but external policy drivers are growing and reshaping development cooperation after Global Gateway.

This paper examines whether Official Development Assistance provided by the European Union aligns with its primary objective of poverty reduction. Using OECD data from 2005-2024, we distinguish between three categories of aid allocation determinants: recipient need, recipient merit and donor interests. 

Our results show that EU aid remains poverty-targeted. Yet, strategic drivers such as migration flows, geopolitical alignment and access to critical raw materials are gaining ground, while the importance of democratic governance has declined. Several additional findings stand out. First, migration partnerships are associated with higher aid flows. Second, geopolitical competition with China has not been a major determinant of EU aid allocation, though this may have changed post-Global Gateway. Third, compared to major bilateral donors, EU aid is more linked to poverty alleviation and democratic governance. Fourth, the importance of different drivers evolves over time, especially after the launch of Global Gateway. 

These findings point to a tension between the EU’s normative commitments and the use of aid as an instrument of external policy, raising questions about the future direction and effectiveness of EU development cooperation. 

Source : Bruegel