19/03/2002 - Final figures show that Net Official Development Assistance (ODA) to developing countries by DAC Members in 2000 was USD 53.7 billion. In real terms the flow was little changed from 1999: down 0.4%. There would have been a slight rise if some countries had not been removed from the list of countries eligible to receive ODA. Robust economic growth of 3.7% in DAC members: dates of membership and websites during 2000 boosted GNI and pushed the ODA/GNI ratio down from 0.24% to 0.22%. Luxembourg joined Denmark, the Netherlands, Norway and Sweden as the only countries meeting the long-standing UN target for ODA of 0.7% of national income. Fourteen of the 22 Member countries of the DAC reported a rise in ODA in real terms in 2000, and the average effort of DAC countries (the unweighted average of their ODA/GNI ratios) remained at 0.39%.
As a contribution to the discussion on the need for increased ODA, the Development Co-operation Report provides an analysis of the future demand and supply of aid, including the call for a doubling of ODA to meet the Millennium Development Goals. It examines the various estimates of the cost of meeting the MDGs and presents some of the basic arithmetic involved in a doubling of aid. It shows that a gradual rise in the ODA/GNI ratio from the present level of 0.22% to 0.32% by 2010 would, assuming real annual GNI growth of 2.5% in DAC Member countries, raise real ODA levels by some USD 46 billion annually to USD 100 billion compared with USD 54 billion in 2000. ODA would double by 2012, at an ODA/GNI ratio of 0.34%.
The Chairman of the DAC members: dates of membership and websites notes that the agendas emerging from Doha, Monterrey and Johannesburg offer the opportunity to construct a consistent and interconnected roadmap for the global partnership. Jean-Claude Faure predicts that, "The image of the future is necessarily one of sustainable world development - sustainable development for all and in all its dimensions, as part of a process of globalisation that is gathering pace and diversity."
The report responds to the current international debate on aid effectiveness and says that to effectively manage a doubling of ODA volume could take as much as ten years. Without a very much higher level of mutual accountability in donor-recipient relations than ever achieved in the past, aid increases will be neither justified nor realised. Effective performance monitoring based on quality data is essential. Proposals for large increases in aid are conditional on good governance, sound economic management and high quality national sector strategies, especially for health and education, in developing countries. But such improvements also depend on donors' commitment to the medium-term aid which will allow recipients to develop effective sector strategies and macroeconomic management. Hence effective demand for and effective supply of significant increases in aid are fundamentally interdependent.
The report outlines DAC's contributions to ensuring more effective aid. These include the agreement on untying of aid to least developed countries and the adoption of four new sets of guidelines - on poverty reduction and policy coherence; on sustainable development strategies; on conflict prevention; and on trade capacity development. The report also includes special chapters on how donors can assist countries in conflict, and on the way in which the knowledge economy and digital opportunities can bring a new development impulse.
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"The DAC Journal: Development Co-operation Report 2001", OECD, Paris 2002
Electronic version available (PDF)
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ISBN 92-64-19187-9 (43 02 31 1)