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Information note on the revision of the DAC List
In September 2008, the Development Assistance Committee approved the List of Recipients of Official Development Assistance (ODA). It will govern ODA reporting for three years, starting with 2008.
The DAC list is reviewed every three years, but the new List involves a major simplification of earlier arrangements. Reporting on aid flows to countries not eligible for official development assistance will cease. This will sharpen the policy focus on ODA, for which there is a long-standing UN target of 0.7 per cent of national income, and which is also the subject of specific national goals, including those agreed collectively by members of the European Union.
The new List is organised on more objective needs-based criteria than its predecessors. It includes all low and middle income countries, except those that are members of the G8 or the European Union (including countries with a firm date for EU admission).
Application of this principle entailed only minor adjustments to countries eligible for ODA. Bahrain, now a high income country, has been removed from the list, while Belarus, Libya and Ukraine, which are middle income countries, have joined it. The net effect of these changes is minor: they are likely to raise ODA by about 0.5% in 2005 compared with the old method. This would normally not affect the DAC average ODA/GNI ratio.
Aid is increasingly concentrated on the poorest countries. In recent years, only 2-3% of net ODA has gone to countries with per capita incomes above $3000. A political level discussion of country eligibility for ODA will take place at the DAC High Level Meeting in April 2006. The List will be reviewed again in 2008 and all countries that have been in the high income group for the previous three consecutive years will be removed.
For the history of the DAC List of Aid Recipients click here.
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