Analysis of Spanish ODA from income and public expenditure by income groups

Abstract

The aim of the study is to understand the contributions of official development assistance (ODA) made by different income groups (the poorest 50 %, the richest 10 %, and 1 %; by quintiles, quartiles and deciles). Using data from multiple sources (OECD, Eurostat, INE, United Nations, etc.) and literature on Spanish taxation and inequality, a study is conducted for the first time on the contributions that each income group would make in the form of ODA, if the tax structure is assumed. Comparisons are also made with social public expenditure to test the hypothesis of whether, after the economic crisis, public policies prioritized the fight against domestic poverty and social exclusion at the expense of a 70 % cut in ODA between 2008 and 2014. The main findings are: (i) the contribution per person within the poorest decile of income in 2022 would be €3.88, that of the intermediate decile €13.25, and that of the richest decile €37.81; (ii) the cut in ODA between 2008 and 2015 was the largest of all donors and, in 2021, it was still 60 % lower than in 2008, only above the reduction in social housing expenditure (50 % compared to 2008) and a 62 % increase in social protection expenditure; (iii) if Spain fulfills its promise to allocate 0.7 % of its gross national income to ODA in 2030, which will be more than €12,000 million, each person in the poorest decile will have to contribute €11, €38 for those in the fifth decile, and €109 for those in the richest decile.