Christoph Trebesch Profile picture
Feb 21, 2023 13 tweets 8 min read Read on X
📢Is Western aid to Ukraine large or small? Our new Ukraine Tracker release takes a "big picture view" over 100 years. Main insight: It's comparatively small. US expenses in previous wars were far higher &the EU mobilized 10x more for other crises (Euro, Covid19, energy crisis)🧵
Let us first look at UKR support over the course of 2022. We see a repeating pattern: the US leads, Europe follows. As of Jan 15, 2023, the US (€73bn) is again clearly ahead of the EU (€55bn, members + EU Commission)
Another clear pattern in 2022: The US gives large military aid to UKR, the EU focuses on financial aid (much of this aid remains undisbursed, however).
In percent of donor country GDP, bilateral support to Ukraine is at around 1% for the Baltics, 0,37% for the US, 0.17% for GER, 0.07% for FRA, 0.06% for ITA and 0.03% for Spain. If we reassign EU commitments, each EU countries gets approx. 0.2% of GDP more.
How does the support to Ukraine compare to previous wars? Data is scarce, but we know a lot about WW2 (Lend-Lease 1941-45)👇The nr of heavy weapons sent by the US alone is staggering: >30,000 tanks, >25,000 airplanes. In 2022, UKR was promised ca. 500 tanks & 500 howitzers total
We next compare costs relative to GDP and account for war duration. Data exists for WW2 (see paper) as well as for main US-wars👇Main result: The average yearly military expenditures were far greater in Korea, Vietnam, or Iraq. Total aid to Ukraine is considerably lower in % GDP
The biggest surprise was the data on the Gulf War 1990/91. I was not aware how much Germany or Japan did to help liberate Kuwait. Germany alone gave 16.9 billion D-Marks in military and financial aid to its allies (0.55% of GDP). That is 3x its bilateral aid to Ukraine in 2022.
Beyond wars, how does aid to UKR compare to other big crises? EU countries mobilized much more support during the Euro crisis 2010-12 and during the Covid-19 crisis. The EU's pandemic recovery fund NGEU alone is 10x larger than total EU aid to UKR thus far
In 2022, European governments mobilized large-scale support, but the large bulk of this emergency fundung was for their own population, not for Ukraine. @Bruegel_org data show the massive scale of Europe's energy subsidy packages. They are 10- 20x larger than the aid for UKR
Also Germany showed a stark priority for domestic rescue packages in 2022. Total bilateral aid to UKR is comparable to the transport subsidies of mid-22 (9-Euro ticket + “Tankrabatt”). The energy shield ("Doppelwumms") and the Uniper rescue are many times larger
As always, kudos to the @kielinstitute team: Katelyn Bushnell, André Frank, Lukas Franz, Ivan Kharitonov and Stefan Schramm. Feedback very welcome ukrainetracker@ifw-kiel.de. More details and results can be found in our expanded paper and dataset here: ifw-kiel.de/ukrainetracker

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More from @Ch_Trebesch

Apr 25
📢Ukraine Tracker update: The new US aid package is large, but no game changer. It will help to bring Western support back to the level of early 2023, but only for about 6 months. Europe remains in lead on overall support, but did NOT fill the gap left by the US. What else? 1/8 Image
Western support to UKR has collapsed since mid-2023, with US aid falling to zero and Europe providing "aid as usual." Our data show that total aid flows to UKR have fallen by 50% compared to last year. Europe has clearly not made up for the decline in US aid👇 2/8 Image
Europe and US are now on par regarding military aid: Since Oct. 23, Europe allocated EUR 15bn of mil aid. In comparison: the new US package contains approx EUR 23bn for weapon delivery to UKR, as of our preliminary assessment (excl. funds to replenish US stocks, for US army, etc) Image
Read 9 tweets
Feb 16
📢Big Ukraine Tracker Update: We started to track “aid allocation” (for delivery in near term), not just “commitments”. This reveals big differences in effective aid across Europe. Nordics & GER have moved far ahead in their allocated military aid (not just in their promises) 1/8 Image
The picture changes with military aid allocations in % of donor GDP. Scandinavian countries again stand out, but also the Baltics. Germany with its large GDP now ranks much lower, comparable to Czechia, Slovakia, POL, NL or UK. Caveat: FRA, IT, POL not fully transparent. 2/8 Image
The new allocation data allows us to visualize how US military aid has run out. The bars show new "commitments" through the various acts in US Congress. The President/Pentagon then gradually draws down ("allocates"), military packages to be sent to Ukraine 👇3/8 Image
Read 9 tweets
Sep 7, 2023
📢 New update of our Ukraine Support Tracker. The big news: Europe overtakes the US by a large margin (total EU now 2x US). If we add UK, NOR, CH, then US commitments are only 45% of Europe’s (€70 bn vs €156 bn). This is a major shift compared to first year of war. A thread 1/7 Image
The key development is a shift to multi-year packages in Europe. The EU Commission announced a €50 bn “Ukraine Facility” in its budget (2024-27), making it the single largest donor👇. Norway promised €6.6 bn over 5 years. Additional multi-year packages came from 🇩🇰🇸🇪🇵🇹🇱🇹🇨🇭🇩🇪 🇬🇧 Image
The EU also caught up with the US in military aid commitments. If we add Norway and the UK, then Europe's total military pledges now clearly exceed those of the US. This is the first time we see that in our data since early 2022 Image
Read 8 tweets
Jul 6, 2023
📢New Update of our Ukraine Support Tracker. Due to Ukraine's counteroffensive, I had expected to see a big new wave of support. Once data collection was done, I was surprised how small total new commitments were March-May 👇 Plus: only ~50% of promised weapons have arrived. A 🧵 Image
The biggest new military packages came from Germany (€3.6 bn, in the form of “Ertüchtigungshilfe” to pay for industry deliveries + BW stocks), as well as Denmark (€765 m). Poland and Slovakia delivered MiG jets. Below is the new ranking by military commitments. However.... Image
There is a big gap between committments and deliveries. We find that only 50% of heavy weapons promised by Western countries arrived in Ukraine. Eastern European delivered 85% of their promises, on avg. Here is one of our new rankings of heavy weapon deliveries (here: tanks): Image
Read 7 tweets
Mar 28, 2023
📢New paper on China's role in global finance and the difficulties of the Belt and Road. Sebastian Horn, @carmenmreinhart, Brad Parks and I show that China has created a new global system of rescue lending to countries in debt distress (large bailouts) 👇This is what we find, a🧵
We know that China’s BRI went from boom to bust. Fresh lending is down; debt distress & restructurings are up. This papers now shows that Chinese creditors also reacted by extending large bailouts to crisis countries (new hand-coded dataset 2000-21). The system has 2 pillars
The first pillar is the global swap line network created by the People’s Bank of China. Officially, the purpose is to foster trade and investment in RMB. We code the actual drawings (for the first time) and find that this money is actually going to crisis countries in distress
Read 15 tweets
Dec 7, 2022
📢8th update of the Ukraine Tracker. 3 insights: 1) for the first time, the EU surpassed the US in total commitments for UKR👇, 2) GER now ranks 2nd, above the UK (counting bilateral+ EU aid); 3) A new ranking quantifies how transparent countries are on their UKR support. A🧵 Image
Total EU aid was boosted by a new €18 bn financial package (MFA program). The commitment was just vetoed by Hungary, but this setback will likely be resolved. Recall that the €9 bn EU MFA of May also involved lots of haggling (>6 months to be paid out) reuters.com/world/europe/e…
Total US commitments decreased by €3.7 bn, because the US budget year 2022 ended with large amounts of Ukraine aid not having been disbursed. Specifically, we subtract unused (i.e. expired) aid from the so called FMF und USAI funds (of course, all funds for 23 still counted)
Read 12 tweets

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