Peer reviews of DAC members

Luxembourg - DAC Peer Review of Development Co-operation

 

 

Luxembourg: a generous aid donor.

Luxembourg allocated 0.97% of its gross national income, or USD 413 million, to official development assistance in 2011.“Luxembourg is the Development Assistance Committee’ s third most generous donor as a portion of its economy – after Sweden and Norway – and it has a high quality programme” says Brian Atwood, Chair of the DAC. “We commend Luxembourg’s commitment to keeping its ODA at 1% of GNI until 2014”.

The OECD’s review of Luxembourg’s development policies and programmes notes the country’s strong stand on reducing poverty, humanitarian assistance and its effective work with 9 developing country partners. Luxembourg plans to end its aid programme to Vietnam and Salvador, and the review encourages Luxembourg to ensure that this exit is predictable and transparent.

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About
this review

  • Examiners: Greece, Spain
  • Field visit: Laos (Annex C)
  • Next peer review due: 2017

Luxembourg's
peer review history

 

Implementation of
peer review recommendations

Lux_PR_recommendation_ENG

Partner countries appreciate the predictability and flexibility of Luxembourg’s support. In many respects it takes an exemplary stance vis-à-vis multilateral players, and it also has a solid track record in humanitarian partnership. In response to the recommendations from the 2008 peer review, Luxembourg has reinforced its strategic framework and has introduced tools for improving the management and implementation of development co-operation. It is making increasing use of programme-based approaches, taking greater advantage of partner country systems.

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Luxembourg: a model player in multilateral aid

Multilateral co-operation represents an important share – 35% – of Luxembourg's total ODA in 2010. That share has increased significantly in the last 10 years, rising from an average of 25% over the period 2001-2005. This trend reflects the clearly stated intent of the Government of Luxembourg to support international institutions: "The Government of Luxembourg considers that the search for common solutions is the very essence of multilateralism, the kind of effective multilateralism that Luxembourg has with conviction made the centre of its international action" (MAE, 2007b).

Multilateral agencies are selected in a strategic manner in light of the sectors and countries in which they are involved, so as to preserve consistency with Luxembourg's concentration policy and ensure alignment with its priorities.

Luxembourg's multilateral co-operation has great operational flexibility, giving partner organisations an important degree of freedom in identifying programmes and in organising their reporting. Luxembourg adheres closely to the procedures of international organisations, thereby avoiding the hazards of "micromanagement" and reducing the administrative workload. This flexibility is likely to appear shortly in Mali: there, bilateral aid is bound to be cut back sharply because of the political situation, whereas multilateral aid should increase in response to the alarming humanitarian situation in the north of the country. Lastly, Luxembourg is considering the possibility of joining the Multilateral Organisations Performance Assessment Network (MOPAN), a move that would improve its approach to multilateral aid.

 

 

 

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