The chapter analyzes the Spanish experience in addressing the financial crisis of 2008–2014, which entailed a drastic reduction in official development assistance (ODA). It questions the coherence of cutting the external aid budget by over 70% while public debt increased by 153% and the public deficit by 13%. Despite the crisis caused by COVID-19 in 2020–2021, Spain has slightly increased its external aid budget. However, as of 2022, public debt levels remain above 110%, and the deficit stands at 4.7%. The chapter examines the modalities, instruments, agents, sectors, and countries targeted by Spanish ODA, identifying changes and regularities. The insights from the analysis of the Spanish case may be applicable to other countries facing reduced support in foreign aid and poverty alleviation policies in countries different from where taxes are collected.
Part of the book: Economic Recessions - Navigating Economies in a Volatile World and the Path for Economic Resilience and Development [Working title]