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13/05/2002 - Net official development assistance (ODA) remained stable in 2001, in both constant dollars and as a share of gross national income (GNI), as increases in the United States and many EU Member States compensated for a decline in Japan's ODA. As a proportion of DAC Members' combined gross national income the ratio remained unchanged, at 0.22 per cent, as compared to 0.33 per cent in 1990 to 1992. In current dollars, ODA from DAC Member countries to developing countries was $51.4 billion in 2001.
The fall in current dollar terms from $53.7 billion in 2000 to $51.4 billion in 2001 (see Table 1 and Chart 1), results in part from falls in the exchange rates of some currencies against the United States dollar. In real terms, ODA remained relatively stable, with a slight fall of 1.4 per cent.
ODA rises in EU Member States and United States, outweighing Japan's decline
The United States increased its ODA to $10.9 billion and became the world's largest aid donor for the first time since 1992, when it was overtaken by Japan's ODA boom. Its overall aid effort improved from 0.10 to 0.11 per cent of GNI. The next largest donors in 2001 were Japan ($9.7 billion), and then Germany, the United Kingdom, France and the Netherlands within an EU total of $26 billion.
Denmark, Norway, the Netherlands, Luxembourg and Sweden continued to be the only countries to meet the United Nations ODA target of 0.7 per cent of gross national income.
Other notable features include:
- Thirteen of the twenty-two DAC Member countries reported a rise in ODA in real terms, including 9 EU Member states. Spain, Ireland and Luxembourg showed the most significant increases in real terms.
- Most of the United States' increase in 2001 was due to a $600 million disbursement to Pakistan for economic support in the September 11 aftermath.
- Japan's ODA fell by nearly $4 billion. A key factor accounting for this was a 12.7 per cent depreciation of the Yen, which fell from 108 yen to the dollar in 2000 to 122 in 2001. Other factors included the timing of Japan's disbursements to multilateral organisations and loan repayments from Asian countries that have recovered from the Asian financial crisis. In real terms, Japan's ODA fell by 18 per cent.
DAC Member countries account for at least 95 per cent of worldwide ODA. Among non-DAC OECD Members, Korea's ODA expenditures rose in current dollar terms from $212 million in 2000 to $ 266 million in 2001, a 41 per cent increase in real terms.
ODA Outlook after Monterrey Conference
At the DAC High Level Meeting in Paris (Thursday 16 May), ministers and aid agency heads responsible for development will discuss plans that Members announced at the Conference on Financing for International Development at Monterrrey in March 2002. If these plans are fully realised, the DAC total ODA/GNI ratio is estimated to rise to 0.24 per cent in 2006 (assuming an average real growth in GNI of
2.5 per cent per annum).
- At the European Union Council Meeting in Barcelona, just before the Monterrey Conference, EU Members committed to increase their collective ODA to 0.39 per cent of GNI by 2006 as a step towards reaching the 0.7 per cent target. Within this, all Members would strive to attain at least 0.33 per cent by 2006, with other Members above that level maintaining or improving their levels of aid. France has recently announced that its ODA will rise again in 2002 to reach 0.36 per cent of GNI.
- In the Monterrey Consensus, developed countries stated their commitment to increase their ODA to developing countries to contribute towards achieving the Millennium Development Goals and other international targets. In addition, a number of donors announced or reaffirmed their intentions to increase ODA. In particular, the United States announced plans to raise its core development assistance by $5 billion annually (almost a 50 per cent increase) by 2006. These additional US funds would be placed in a new Millennium Challenge Account to be distributed to developing countries showing a strong commitment towards good governance, health and education, as well as sound economic policies to encourage enterprise development and enterpreneurship.
For further information, journalists are invited to contact Helen Fisher, OECD's Media Relations Division (tel. [33] 1 45 24 80 97).
See table and charts
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