Financial Flows to Food Systems

Country Window

Bangladesh
Domestic Public Financing External Development Financing Flows

Key Data: Domestic Public Financing

from F.Y. 2018/2019 to 2023/2024

Government spending on food systems increased by 25%

51.2% of government spending was allocated to Agricultural Development and Value Chains

96.6% of total food systems spending came from Domestic Public Financing

USD constant base year 2023/2024
Source: National budget analyzed with the support from IFAD and the World Bank.

Key Data: External Development Financial Flows

from 2018 to 2023

Bangladesh’s external development financing to food systems is composed of 88.2% of ODA ( Official Development Assistance), 9.9% of OOF (Other Official Flows ), and 1.9% of Philanthropic contributions.

OOF to food system in Bangladesh experienced exponential growth (a 1,435% increase) in the 6-year period.

58% of OOF for food system was allocated to Infrastructure for food system.

USD constant base year 2020
Source: Data accredited to OECD

01.

DOMESTIC

PUBLIC

FINANCING

The 3FS data source to measure domestic public financing to food systems is the country national budget reported by central governments annually.

To determine which funds to consider in the national budget, the 3FS aligns with the IMF’s definition of the public sector and levels of government.

The 3FS primarily measures expenditures for food systems from the general/central government, depending on the availability of data. It also considers expenditures from state and local governments (not all countries will have all three levels) and public corporations (non-financial) as reflected in the national budget.

How much is the government spending on food systems?

Government allocation to Bangladesh’s food systems has achieved a substantial net growth of 25% compared to the 2018/19 baseline. Following a peak of USD $5.3 billion during the COVID-19 pandemic (2020/21), annual financing has recently settled back at USD $4.5 billion in 2023/24, aligning more closely with pre-pandemic trends.

USD constant base year 2023/2024
Source: National budget analyzed with the support from IFAD, AKADEMIYA2063 and GAIN..

What is the primary focus of government spending on food systems?

The government directs most of its food system budget into agricultural development and value chains (51.2%) and social assistance (40.9%). Despite Bangladesh’s high vulnerability to climate shocks, less than 1% of total spending is allocated to climate change and natural resources.

Average 2018/2019-2023/2024
Source: National budget analyzed with the support from IFAD, AKADEMIYA2063 and GAIN.

What is the breakdown of government spending across food systems components?

The largest share of spending — 51.2% — was allocated to agricultural development and value chains, of which 75.5% went to agricultural subsidies alone, while livestock and dairy development and sustainable coastal and marine fisheries accounted for smaller shares.

Average 2018/2019-2023/2024
* includes the total remaining projects
Source: National budget analyzed with the support from IFAD, AKADEMIYA2063 and GAIN.

What is the source of government spending to food systems?

The food system in Bangladesh is almost exclusively financed domestically. The highest percentage for international source is in 2021/2022, accounting for only 6% of total food expenditures.

USD constant base year 2023/2024
Source: National budget analyzed with the support from IFAD, AKADEMIYA2063 and GAIN..

What is the source of government spending by food systems components?

Bangladesh demonstrates exceptional financial self-reliance, funding 99.9% of social assistance and approximately 96% of agricultural development through domestic resources. On the other hand, the country utilizes a notable share of international development financing for climate change initiatives (23.2%) and nutrition and health programmes (20.1%).

Average 2018/2019-2023/2024
Source: National budget analyzed with the support from IFAD and the World Bank.

02.

EXTERNAL

DEVELOPMENT

FINANCIAL

FLOWS

For international developing financial flows, the 3FS methodology leverages the OECD Creditor Reporting System database, which distinguishes between three types of financing:

ODA Official Development Assistance

Government aid aimed at fostering economic development and improving the welfare of developing countries on the DAC list of ODA recipient countries. ODA is provided by official agencies, including state and local governments or their executive agencies. Each ODA transaction is concessional, including grants or loans with favorable terms to support development efforts.

OOF Other Official Flows

Official sector transactions that do not meet ODA criteria. These encompass grants to developing countries for representational or commercial purposes, official bilateral transactions intended to promote development but having a grant element of less than 25%, and any official bilateral transactions primarily facilitating exports.

Philanthropy

Includes aid from private philanthropic foundations engaged in development work.

Read more about the Methodology →

What is the share of ODA, OOF and Philanthropic financing in Bangladesh?

Bangladesh’s external development financing to food systems is composed of 88.2% of ODA, 9.9% of OOF, and 1.9% of philanthropic contributions.

USD constant base year 2020
Source: Data accredited to OECD

How much external development financing does Bangladesh receive for food systems?

Total inflows increased from USD $942.1 million in 2018 to USD $1,384.8 million in 2023, representing a 47% increase.

USD constant base year 2020
Source: Data accredited to OECD

What is the primary focus of ODA OOF Philanthropic financing for food systems

ODA to food systems is heavily concentrated on boosting production capacity and market enablers, with 32% allocated to agricultural development and value chains and 30% to infrastructure for food systems.

58% of OOF to food systems was allocated to infrastructure for food systems, with the remaining 42% going to agricultural development and value chains.

42.9% of philanthropic financing to food systems between 2018 and 2023 was allocated to nutrition and health, followed by 40.1% to agricultural development and value chains.

Average 2018-2023
Source: Data accredited to OECD

Who are the top donors of ODA OOF Philanthropic financing to food systems in Bangladesh?

Philanthropic donors: The Bill & Melinda Gates Foundation was by far the largest philanthropic donor with USD $119.5 million in total disbursements.

Bilateral

The United States was the leading partner, providing USD $753.9 million of total bilateral support; followed closely by Japan at USD $704.5 million.

Multilateral

The World bank ( WB, IBRD, IDA ) was the largest contributor, providing USD $1,870.7 million of total multilateral flows.

Average 2018-2023
Source: Data accredited to OECD

RESOURCE

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Bangladesh COUNTRY REPORT