Hungary
Hungary’s growing development co-operation programme focuses on economic development, support to crisis situations and scholarships. Its bilateral portfolio includes select partner countries in Europe, the Middle East, Asia and Africa. Much of Hungary’s official development assistance (ODA) is channelled multilaterally through European Union (EU) institutions. Hungary’s total ODA (USD 395.6 million, preliminary data) decreased in 2022 due to reduced contributions to international organisations. It represented 0.28% of gross national income (GNI).
Find the methodological notes behind the profile here.
The International Development Cooperation Strategy for the period 2020-2025 (IDC2025) affirms Hungary’s ambition to enhance its international role and increase ODA while pursuing mutually prosperous economic partnerships. The strategy sets thematic priorities in access to water and sanitation, healthcare, education, agriculture, and information technology. Its main partner countries are in the European neighbourhood, as well as the Lao People’s Democratic Republic and Uganda. Hungary is also deepening its engagement with countries in the Middle East and Africa.
Sustainable water management is a priority for Hungary’s diplomacy, as are protecting minorities and cultural heritage. In its engagement with the EU, Hungary focuses, among others, on support to the European neighbourhood and migration. Hosting arrangements help foster Budapest’s role as a regional hub for United Nations (UN) organisations. Hungary co-operates closely with neighbouring countries, including the Visegrád 4 states. The IDC2025 commits Hungary to strengthen inter-ministerial co-ordination.
Findings from OECD-DAC reviews
The first OECD-DAC peer review of Hungary took place in 2023. It praised impressive ODA growth and international efforts for sustainable water management. It also highlighted partnerships with local civil society organisations (CSOs) in fragile contexts. The peer review encouraged Hungary to increase the impact of its engagement in partner countries, notably through strategic partnerships, and balance tensions between domestic and global objectives. It also underlined the opportunities for institutional reform to deepen collaboration across institutions and with stakeholders and to strengthen internal systems. Learn more about Hungary’s 2023 peer review.
Hungary provided USD 395.6 million (preliminary data) of ODA in 2022 (USD 427.8 million in constant terms), representing 0.28% of GNI.1 This was a decrease of 1.7% in real terms in volume, while the share of GNI was stable compared to 2021 at 0.28%. Since 2015, Hungary has more than doubled the volume of its ODA and since 2020, Hungary has surpassed the 0.25% ODA/GNI target it had set itself to reach by 2025. It remains committed to achieving a 0.33% ODA/GNI ratio by 2030 and collectively at the EU level to achieve a 0.7% ODA/GNI ratio by 2030. Hungary provided all of its ODA as grants in 2021.2
Hungary ranked 22nd among Development Assistance Committee (DAC) members for ODA/GNI ratio in 2022. Scholarships constitute a very large share of Hungary’s bilateral ODA (45% in 2021), leading to a strong sectoral focus on education. Among DAC members, it had the highest share of country programmable aid in 2021 (92%). Funding for CSOs based in developing countries constituted 14.9% of Hungary’s total funding for CSOs in 2021. In 2020-21, Hungary committed 47% of its screened bilateral allocable aid to gender equality and women’s empowerment, but only 0.1% with a principal objective.
Hungary is committed to several international targets, Development Assistance Committee standards and recommendations. Learn more about DAC recommendations.
Hungary provided a higher share of its ODA bilaterally in 2021. Gross bilateral ODA was 58.2% of total ODA. Four per cent of gross bilateral ODA was channelled through multilateral organisations (earmarked contributions). Hungary allocated 41.8% of total ODA as core contributions to multilateral organisations.
In 2022, Hungary provided USD 14.8 million of gross bilateral ODA to Ukraine to respond to the impacts of Russia’s war of aggression, of which USD 0.9 million was humanitarian assistance (preliminary data). In 2021, it provided USD 20.8 million.
In 2022, Hungary provided USD 31.4 million in ODA for the COVID-19 response. Regarding COVID-19 vaccines, donations of excess doses to developing countries accounted for USD 11.9 million of ODA. In 2020 and 2021, Hungary’s total bilateral support for COVID-19 response was USD 23.9 million and USD 48.4 million, respectively.
In 2021, Hungary provided USD 192.9 million of gross ODA to the multilateral system, a fall of 15.2% in real terms from 2020. Of this, USD 181.8 million was core multilateral ODA, while non-core contributions were earmarked for a specific country, region, theme or purpose. Project-type funding earmarked for a specific theme and/or country accounted for 0.9% of Hungary’s non-core contributions, and 99.1% was programmatic funding (to pooled funds and specific-purpose programmes and funds).
Seventy-seven per cent of Hungary’s total contributions to multilateral organisations in 2021 was allocated to EU Institutions.
The UN system received 5.2% of Hungary’s multilateral contributions, mainly in the form of core contributions. Out of a total volume of USD 10 million to the UN system, the top three UN recipients of Hungary’s support (core and earmarked contributions) were FAO (USD 4.6 million), IFAD (USD 1.1 million) and WHO (USD 0.9 million).
See the section on Geographic and sectoral focus of ODA for the breakdown of bilateral allocations, including ODA earmarked through the multilateral development system. Learn more about multilateral development finance.
In 2021, Hungary’s bilateral spending increased compared to the previous year. It provided USD 253.2 million of gross bilateral ODA (which includes earmarked contributions to multilateral organisations). This represented an increase of 3.8% in real terms from 2020. In 2021, Hungary focused most of its bilateral ODA on the education and health goals of the UN 2030 Agenda.
In 2021, country programmable aid was 92% of Hungary’s gross bilateral ODA, compared to a DAC country average of 45.2%. Hungary reports less than 5% of ODA as in-donor refugee costs.
In 2021, Hungary channelled bilateral ODA mainly through the public sector. Technical co-operation made up 26.3% of gross ODA in 2021.
Civil society organisations
In 2021, CSOs received USD 16.9 million of gross bilateral ODA. USD 600,000 or 0.2% of gross bilateral ODA was allocated to CSOs as core contributions and 6.4% was channelled through CSOs to implement projects initiated by the donor (earmarked funding). From 2020 to 2021, the combined core and earmarked contributions for CSOs decreased as a share of bilateral ODA, from 23.6% to 6.7%. Learn more about ODA allocations to and through CSOs, civil society engagement in development co-operation, and the DAC Recommendation on Enabling Civil Society in Development Co-operation and Humanitarian Aid.
In 2021, Hungary’s bilateral ODA focused mainly on Asia (excluding the Middle East). USD 64.7 million was allocated to Asia (excluding the Middle East) and USD 62 million to Africa, accounting respectively for 25.5% and 24.5% of gross bilateral ODA. USD 55.9 million (22.1%) was allocated to Europe. Europe was the main regional recipient of Hungary’s earmarked contributions to multilateral organisations.
In 2021, 44.4% of gross bilateral ODA went to Hungary’s top 10 recipients. Top 10 recipients are spread across Europe, the Middle East, Africa and Asia, and vary from year to year, as Hungary does not have a list of key partner countries. The share of gross bilateral ODA that was not allocated by country was 5.9%.
In 2021, the least developed countries (LDCs) received 14.1% of Hungary’s gross bilateral ODA (USD 35.6 million). This is lower than the DAC average of 22.9%. Hungary allocated the highest share of gross bilateral ODA (50.2%) to lower middle-income countries in 2021, noting that 5.9% was unallocated by income group. Hungary allocated 16.4% of gross bilateral ODA to land-locked developing countries in 2021, equal to USD 41.6 million. Hungary allocated 4% of gross bilateral ODA to small island developing states (SIDS) in 2021, equal to USD 10.1 million.
Fragile contexts
Support to fragile contexts reached USD 73.9 million in 2021, representing 29.2% of Hungary’s gross bilateral ODA. Three per cent of this ODA was provided in the form of humanitarian assistance, increasing from 0.4% in 2020, while 0.4% was allocated to peace, decreasing from 1.1% in 2020.
Learn more about support to fragile contexts on the States of Fragility platform.
Sectors
In 2021, two-fifths of Hungary’s bilateral ODA was allocated to social infrastructure and services. Investments in this area accounted for 80.2% of bilateral ODA commitments (USD 203.1 million), with a strong focus on support to education (USD 127.6 million), health (USD 62.2 million) and other social infrastructure (USD 9.2 million). ODA for production sectors totalled 9.4% (USD 23.9 million, focusing on agriculture (USD 22.3 million). Bilateral humanitarian assistance amounted to USD 4.8 million (1.9% of bilateral ODA). In 2021, earmarked contributions to multilateral organisations focused on agriculture, forestry and fishing.
Gender equality
In 2020-21, Hungary committed 47% of its screened bilateral allocable aid to gender equality and women’s empowerment, as either a principal or significant objective (down from 52% in 2018-19, compared with the 2020-21 DAC average of 44.4%). This is equal to USD 115.2 million of bilateral ODA in support of gender equality. The share of screened bilateral allocable aid committed to gender equality and women’s empowerment as a principal objective was 0.1% in 2020-21, compared with the DAC average of 4.5%. Hungary includes gender equality objectives in 8.9% of its ODA for humanitarian aid, compared with the 2020-21 DAC average of 17.5%. Hungary screens all activities against the DAC gender equality policy marker (100% in 2020-21). Learn more about ODA focused on gender equality, the DAC Network on Gender Equality and the DAC Recommendation on Ending Sexual Exploitation in Development Co-operation.
Environment
In 2020-21, Hungary committed 10.1% of its total bilateral allocable aid (USD 24.8 million) in support of the environment and the Rio Conventions (DAC average of 34.3%), down from 22.2% in 2018-19. Unpacking the environmental data further:
Nine per cent of screened bilateral allocable aid focused on environmental issues as a principal objective, compared with the DAC average of 11.3%.
Nine per cent of total bilateral allocable aid (USD 21.8 million) focused on climate change overall (the DAC average was 29%), up from 0.8% in 2018-19. Hungary had a similar focus on mitigation (8.9%) as on adaptation (8.9%) in 2020-21.
Six per cent of total bilateral allocable aid (USD 14 million) focused on biodiversity (compared with the DAC average of 6.5%), up from 0.2% in 2018-19.
Learn more about climate-related development finance and the DAC Declaration on Aligning Development Co-operation with the Goals of the Paris Agreement on Climate Change.
Committed USD 35 million (14% of its bilateral allocable aid) to promote aid for trade and improve developing countries’ trade performance and integration into the world economy in 2021.
Committed USD 0.1 million to address the immediate or underlying determinants of malnutrition in developing countries across a variety of sectors, such as maternal health, water, sanitation and hygiene (WASH) or agriculture.
Regarding the payment of local tax and custom duties for ODA-funded goods and services, Hungary does not have a policy on exemptions for its ODA-funded goods and services in partner countries and territories. It makes the information available on the OECD Digital Transparency Hub on the Tax Treatment of ODA.
The Ministry of Foreign Affairs and Trade (MFAT), and within it the Department for International Development, is responsible for the planning, co-ordination and implementation of Hungary’s development co-operation policy. Following a reform in 2022, the ministry also oversees humanitarian assistance. The Hungary Helps Agency is the main implementing agency. The Export-Import Bank Plc. and the Hungarian Export Credit Insurance Plc. (MEHIB) are responsible for tied aid loans, while the Tempus Foundation runs the Stipendium Hungaricum scholarship programme. Other line ministries and government entities also engage in development co-operation activities as implementing and/or financing agencies. An inter-ministerial platform supports co-ordination and facilitates the exchange of information. Around 150 staff work at MFAT headquarters and the different agencies on development co-operation programmes, while economic diplomates in embassies are responsible for links with partner countries.
There is no particular mechanism for consulting stakeholders, but Hungary held consultations with stakeholders on its development co-operation strategy. CSOs active in development co-operation, humanitarian assistance and global citizenship education co-ordinate through the umbrella body the Hungarian Association of NGOs for Development and Humanitarian Aid.
The Global Partnership for Effective Development Co-operation monitoring exercise tracks the implementation of the effectiveness commitments. Following a reform of the exercise during 2020-22, the 4th global monitoring round (2023-26) has resumed.
Ministry of Foreign Affairs and Trade: https://nefe.kormany.hu/en
Summary of Hungary’s International Development Cooperation Strategy for the period 2020-2025: https://nefe.kormany.hu/download/5/a8/a2000/NEFE2025_summary_en.pdf
CSO umbrella organisation HAND – Hungarian Association of NGOs for Development and Humanitarian Aid: http://hand.org.hu/en
Hungary’s practices on the Development Co-operation TIPs: Tools Insights Practices learning platform: https://www.oecd.org/development-cooperation-learning?tag-key+partner=hungary#search.
Member of the OECD Development Assistance Committee (DAC) since 2016.
The methodological notes provide further details on the definitions and statistical methodologies applied, including the grant-equivalent methodology, core and earmarked contributions to multilateral organisations, country programmable aid, channels of delivery, bilateral ODA unspecified/unallocated, bilateral allocable aid, the gender equality policy marker, and the environment markers.
Notes
← 1. DAC members adopted the grant-equivalent methodology starting from their reporting of 2019 data as a more accurate way to count the donor effort in development loans. See the methodological notes for further details.
← 2. Hungary provides tied loans, but only reports the interest rate subsidy to the DAC.