International aid to developing countries fell for the second year in a row, as the European debt crisis continued to weigh heavily on the wealthiest nations. Grants and loans intended to benefit developing nations declined by 4% in 2012, after falling 2% in 2011.

The United States gave just over $30 billion in aid last year, roughly 1% less than the previous year. Nevertheless, it was still more than double the second largest contributor. While significant, the amount accounted for less than 0.2% of the country’s gross national income (GNI), far less than most contributing countries.

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Developed countries measured by the Organization for Economic Cooperation and Development (OECD) gave an average of 0.31% of gross national income to developing countries in aid. Some countries, generally the ones able to afford it, contributed much more to foreign aid. Eleven countries spent at least 0.45% of their GNI in aid to developing nations, with Luxembourg spending a full 1%. Based on a recent OECD report, 24/7 Wall St. reviewed the world’s most generous countries.

As European economies continue to struggle, the majority of the 11 nations also gave less money in 2012 than they did the prior year, both as a percentage of GNI and in absolute dollars. Spending in the Netherlands, which had the biggest drop among the countries giving the most, declined by nearly 13%. OECD Secretary-General Angel Gurría described the general decline in aid as “worrying” and said that the trend would hopefully reverse as the OECD’s 2015 development goals nears.

As might be expected, many of the countries that give more relative to the size of their economies have the financial means to do so. These nations include four Scandinavian countries, as well as Luxembourg and Switzerland. All of them have a perfect Aaa currency rating, according to Moody’s Investors Service. They also have relatively low debt. In 2011, debt represented less than half of gross domestic product (GDP) in these six countries. In the United States, debt accounted for 102.9% of GDP that year.

Not all the countries that are giving more to developing nations are free of financial strain. Countries such as Ireland, France and the United Kingdom have been hurt by the European debt crisis and economic slowdown. These countries have rising debt and less-than-perfect credit ratings.

Ireland, in particular, could stand to keep the $1.3 billion it sent to developing nations last year. The country has a poor credit rating, the 10th-highest debt as a percentage of GDP among countries measured by the International Monetary Fund (IMF), and an unemployment rate of 14.8% in 2012. Because of its continuing budgetary constraints, Ireland cut aid in 2012 by 5.8%.

For many of these countries, the trend of generosity can be seen within their own borders. Many also spend a great deal on social programs domestically. Of the 11 nations, 10 spent more than the OECD average of 21.7% of national GDP on social programs. These include Finland, Belgium, Denmark and France, the four countries spending the most on social programs. The French government spent 32.1% of its GDP in 2012 on social programs, the most among all countries measured by the OECD.

Based on the latest OECD data, 24/7 Wall St. reviewed the 11 countries that gave the most in foreign aid to developing countries, listed by the OECD as official development assistance as a percent of gross national income. 24/7 Wall St. looked at additional data provided by the OECD, including previous years of development assistance, gross national income, unemployment rates for 2012, net financial liabilities as a percentage of GDP, and social spending as a percentage of real GDP, which includes pensions and health care as well as public assistance programs like unemployment benefits and welfare. From the IMF, we reviewed government debt as a percentage of GDP for 2011. Moody’s provided foreign currency ratings as of April 4, 2013. All data are for the most recent available full years.

These are the most generous countries in the world.

11. Switzerland
> International aid as a pct. of GNI: 0.45% (tied for 10th highest)
> Total international aid: $3.02 billion (12th highest)
> Social spending as pct. of GDP: 20.3% (9th lowest)
> Government debt as a pct. of GDP: 46.8% (75th highest)

Switzerland gave more than $3 billion, or approximately 0.45% of its GNI, to developing countries last year. The aid amount has risen consistently since it gave $1.3 billion, or 0.36% of its GNI, in 2003. Switzerland is one of the wealthiest and most sound economies in the world with a perfect Aaa, stable currency rating, and in 2012 it was estimated to have more assets than liabilities. While Switzerland gives a great deal to developing countries, its spending on its own population is much lower. As a percentage of GDP, the Swiss government spent relatively little on social programs.

10. France
> International aid as a pct. of GNI: 0.45% (tied for 10th highest)
> Total international aid: $12 billion (4th highest)
> Social spending as pct. of GDP: 32.1% (the highest)
> Government debt as a pct. of GDP: 86% (18th highest)

Like Switzerland, France also gave 0.45% of its GNI to developing countries. However, the aid amount has fallen in the past two years from 0.5% of its GDP in 2010 and 0.46% of its GDP in 2011. The drop coincided with an increase in France’s liabilities as a percentage of the country’s GDP in recent years. In 2007, net liabilities were 35.7% of GDP. By 2012, its liabilities accounted for 68.8% of GDP. The country has done a good job taking care of its own citizens. More than 32% of the country’s GDP went to social spending by the government, a higher percentage than any other country in the OECD.

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9. Belgium
> International aid as a pct. of GNI: 0.47%
> Total international aid: $2.30 billion (17th highest)
> Social spending as pct. of GDP: 30% (3rd highest)
> Government debt as a pct. of GDP: 97.8% (14th highest)

Belgium’s grants and loans to developing countries have dropped considerably in the past three years, from more than $3 billion in 2010 to $2.38 billion in 2012. In that time, the country has fallen from sixth to ninth in developmental assistance as a percentage of its GNI. This decline in aid has come at the same time as the country’s finances have become shakier. Belgium’s debt as a percentage of GDP has risen every year between 2007 and 2011. The country spends a great deal on its population as well. The country spent 30% of its GDP on social programs, the third-highest proportion of the countries measured by the OECD.

8. Ireland
> International aid as a pct. of GNI: 0.48%
> Total international aid: $809 million (14th lowest)
> Social spending as pct. of GDP: 23.1% (15th highest)
> Government debt as a pct. of GDP: 106.5% (10th highest)

Development aid as a percentage of Ireland’s GNI has fallen every year since 2008, when it was 0.59% of GNI. During that time, the country’s debt has skyrocketed, reaching more than 106% of GDP in 2011, among the highest in the world. The unemployment rate in Ireland was 14.8% in 2012, among the higher rates of OECD countries. Unfortunately, not all of Ireland’s foreign aid has been going to good use. An investigation by the Irish Independent earlier this year found that some of the assistance has been going to projects such as a new pool pump for the ambassador to Uganda, new uniforms for drivers in Malawi and a new dishwasher for the head of mission’s resident in Zambia.

7. Finland
> International aid as a pct. of GNI: 0.53%
> Total international aid: $1.32 billion (17th lowest)
> Social spending as pct. of GDP: 29.0% (4th highest)
> Government debt as a pct. of GDP: 49.1.% (70th highest)

In each of the past four years, Finland has spent more than 0.50% of its GNI on aid, placing it among the best donors measured by the OECD. However, the country’s debt is growing, and the government has run a deficit for the past four years. Between 2011 to 2012, Finland cut aid from $1.41 billion to $1.32 billion. Finland also has a strong record of spending on its own citizens. The OECD estimates that Finland has spent 29% of GDP on social programs last year, more than all but three other countries measured by the OECD.

6. United Kingdom
> International aid as a pct. of GNI: 0.56%
> Total international aid: $13.66 billion (2nd highest)
> Social spending as pct. of GDP: 23.9% (12th highest)
> Government debt as a pct. of GDP: 81.8% (21st highest)

Despite cutting aid slightly from $13.83 billion in 2011 to just under $13.66 billion in 2012, the United Kingdom ranked as the world’s second largest provider of development aid, behind only the United States. But unlike the U.S., Britain gives a much larger proportion of its GNI to encourage development abroad, at 0.56% of GNI versus 0.19% of GNI for the U.S. Despite concerns about a slowing domestic economy and plans to limit government spending, Britain’s government also plans to increase spending on development aid from 0.56% of GNI in 2012 to 0.7% of GNI in 2013.

5. The Netherlands
> International aid as a pct. of GNI: 0.71%
> Total international aid: $5.52 billion (8th highest)
> Social spending as pct. of GDP: 24.3% (11th highest)
> Government debt as a pct. of GDP: 65.2% (48th highest)

Between 2011 and 2012, Dutch foreign aid fell from $6.3 billion to $5.5 billion. The country has faced increasing debt loads as a percentage of GDP. The Netherlands has announced it will cut approximately a billion euros from its foreign aid budget beginning in 2017 in an effort to implement austerity measures and focus on profiting from trade in emerging economies. Spending on social programs comprised 24.3% of the country’s GDP in 2012, a figure that has risen since 2008, when it was just 20.9% of GDP.

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4. Denmark
> International aid as a pct. of GNI: 0.84%
> Total international aid: $2.72 billion (13th highest)
> Social spending as pct. of GDP: 30.5% (2nd highest)
> Government debt as a pct. of GDP: 44.1% (82nd highest)

In 2012, Denmark was one of just five countries that met or exceeded the United Nations’ official development assistance target of 0.7% of GNI. The Danish government spends a great deal on social programs within the country. In 2012, government social spending reached an estimated 30.5% of GDP, the highest of any nation measured by the OECD except for France. Like other Scandinavian countries, Denmark gives a relatively large proportion of its GNI to international aid and has the financial means to do so. The country’s net liability as a percentage of its GDP in 2012 was estimated at just 7.3%, compared to the United States’ 86.5%. The country also currently has a perfect Aaa credit rating.

3. Norway
> International aid as a pct. of GNI: 0.93%
> Total international aid: $4.75 billion (11th highest)
> Social spending as pct. of GDP: 22.1% (14th lowest)
> Government debt as a pct. of GDP: 49.6% (68th highest)

Despite being a mid-sized European nation, Norway gave $4.75 billion in aid in 2012, the 11th most of any country. Likely helping Norway is its limited financial liabilities, totalling just an estimated 44.7% of 2012 GDP. Additionally, after accounting for the assets owned by the Norwegian government, its net liabilities are actually negative. At an estimated -165% of its 2012 GDP, Norway had less government liabilities than any other country studied by the OECD. Currently, Moody’s has assigned Norway a Aaa government debt rating, the highest possible.

2. Sweden
> International aid as a pct. of GNI: 0.99%
> Total international aid: $5.24 billion (10th highest)
> Social spending as pct. of GDP: 28.2% (6th highest)
> Government debt as a pct. of GDP: 37.9% (72nd lowest)

In 2011, Sweden gave 1.02% of its GNI to aid, which was the highest of all countries. In fact, in the past 10 years, Sweden gave a higher percentage of GNI to aid than any other country in five of the years. In addition to providing generous aid, Sweden’s government used 28.2% of its GDP on social spending in 2012, more than all but five countries. Sweden has a Aaa credit rating with a stable outlook by Moody’s, the best rating the agency gives out.

1. Luxembourg
> International aid as a pct. of GNI: 1.00%
> Total international aid: $432 million (9th lowest)
> Social spending as pct. of GDP: 23.3% (14th highest)
> Government debt as a pct. of GDP: 18.2% (26th lowest)

Last year, no country gave more, relative to GNI, than Luxembourg. Between 2011 and 2012, the country increased its official development assistance from $409 million to $432 million, even as development aid fell by 4% among nations on the OECD’s Development Assistance Committee. The small nation plans to continue giving at an annual rate equal to 1% of GNI through 2014, according to the OECD, which called Luxembourg’s commitment to aid “commendable.” With very few financial liabilities, Luxembourg should be able to easily reach its goal. Its gross liabilities were estimated at less than 30% of GDP in 2012. After accounting for assets it owned, Luxembourg had negative net liabilities, totalling an estimated 40.8% of GDP.

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