OECD Development Co‑operation Peer Reviews: Luxembourg 2025

Annex A. Progress since the 2017 DAC peer review recommendations

 

2017 Peer Review Recommendations	Progress
1. Ensure that analyses of policy coherence for development always lead to opinions, including conflicting ones where appropriate, in order to foster policy discussion and resolve any problems of inconsistency.	Recommendation partially implemented The sustainability check introduced in 2023 helps to identify bills that contribute to sustainable development, which is a good start. The next step is to address and resolve any inconsistencies. Current discussions within the two interdepartmental bodies focus on exchanging information rather than identifying (and resolving) potential inconsistencies, and there has been no discussion by the Government Council about possible inconsistencies.
2. Rethink the roles of the various ministries and NGOs in the financing of awareness-raising activities on world citizenship in order to strengthen Luxembourg’s contribution to the 2030 Agenda.	Recommendation not implemented Luxembourg continues to allocate 1% of its ODA to providing its population with awareness-raising and education on development, but has not updated its 2011 and 2012 strategies. It is currently reflecting on the content and on partners that will enable it to pursue these efforts (having renewed current partnerships for only one year).
3. Clarify the global strategy of its partnerships with multilateral organisations in order to make the most of the value they add, inform decision-making and increase the concentration of the portfolio.	Recommendation partially implemented Having framework agreements for strategic partnership with 11 multilateral agencies, Luxembourg has succeeded in channelling its voluntary contributions to agencies where it has strong influence. It is respecting its commitments under the UN Funding Compact. On the other hand, there is no sign of a strategy being developed to cover all relations with multilateral organisations beyond those that have a partnership with the MAE, to also include financial institutions.
4. Making the most of its experience in green finance, Luxembourg should continue to explore the possibilities offered by its financial sector to develop innovative partnerships to mobilise additional funds, including for its humanitarian assistance.	Recommendation implemented The 2021 Inclusive and Innovative Finance Strategy seeks to leverage the comparative advantage of Luxembourg's financial sector in areas such as innovative and sustainable finance, and refers to LuxDev's role as a provider to this end. Numerous activitieshave taken place , and funds and partnerships (e.g. with LGX) have been set up to mobilise additional funding. Luxembourg should strive to systematically associate its development co-operation with such efforts, particularly in its partner countries.
5. Strengthen country-level strategic steering, by: setting out comprehensive country strategies integrating into the results frameworks of indicative co-operation programmes appropriate monitoring and evaluation mechanisms that reflect the Sustainable Development Goals (SDGs).	Recommendation implemented In 2019, the Government Council decided to gradually introduce a whole-of-government approach in partner countries. Two partner countries (Cabo Verde and Senegal) have ICPs covering virtually all of Luxembourg's activities, including the Development Fund and the Climate and Energy Fund (co-operation with Luxembourg NGDOs in Cabo Verde and Senegal, additional funds for micro-projects benefiting institutions or associations in the two countries, multilateral channel). The new generation of ICPs will provide an opportunity to introduce whole-of-government steering in the other partner countries. The ICPs are now supported by a theory of change and a results framework linked to the SDGs and the national objectives of partner countries.
6. Continue efforts to put in place strategic planning of evaluations according to risk-based and knowledge-based assessments.	Recommendation partially implemented A first step towards more strategic planning was to support MAE-LuxDev to conduct evaluations of the ICP and of several NGOs together in Senegal, as well as studies into the potential for evaluating various programmes. However, risk-based and knowledge-based assessments are not prioritised. Mid-term and final evaluations are carried out fairly systematically, according to a schedule drawn up at the project design stage.
7. Adapt strategy for fragile states to take into account the different dimensions of fragility in partner countries in order to better anticipate crises, including by making continued use of analyses conducted jointly with other donors.	Recommendation partially implemented The difficulties encountered in the central Sahel countries have led Luxembourg to identify options for remaining engaged in the most fragile countries. This work now needs to be formalised, in line with the components of Recommendation 13.
8. Draw on experience of using budgeted aid to build on its progress on the Busan commitments.	Recommendation implemented The new ICP for Senegal refers to lessons learned from budgeted aid in terms of procedures to be streamlined and support required. Luxembourg's sector budget support represented 6% of its bilateral ODA portfolio in 2021-22, and up to 33% of its ODA to Cabo Verde.
9. Adapt instruments to build staff capacity to meet the changing needs arising from an evolving portfolio.	Recommendation partially implemented Various training courses, for example on the gender-environment-climate nexus, on theories of change and on Hostile Environment Awareness Training (HEAT), do address changing needs. Other proposals for specific training with LuxDev and other external partners are being considered.
10. Finalise its approach to reaching the most vulnerable populations, including in the least developed countries – the main recipients of Luxembourg's ODA.	Recommendation partially implemented The Road to 2030 strategy is committed to leaving no one behind, and Luxembourg is focusing its co-operation on the least developed and other low-income countries. Work is underway to improve targeting and reporting for Luxembourg's co-operation initiatives with the most vulnerable populations.
11. Revise processes for mainstreaming cross-cutting themes for greater consistency with strategic guidance and in order to make use of all opportunities.	Recommendation implemented Luxembourg is making serious efforts to mainstream cross-cutting themes into its strategy, through the gender-climate-environment nexus – based on the 2021 Gender Strategy and Environment and Climate Change Strategy – and the use of specialists.
12. Develop the MAE's information and management system with a view to facilitating real-time monitoring of the entire co-operation portfolio.	Recommendation partially implemented Over the past four years, Luxembourg has transformed its information system, setting up a partner portal and an activity management tool. The MAE's IT tool (TRON) provides a good overview of the various projects and proxy agents involved in Luxembourg's co-operation (NGOs, LuxDev, multilateral agencies). Each project entry will be accompanied by a monitoring and evaluation section by the end of 2024.
13. Strengthen its analysis of risks to the co-operation programme, beyond operational risks, in order to guide the new conditions for partnerships and interventions in fragile contexts.	Recommendation partially implemented Risk and conflict sensitivity analysis have been introduced into programming processes. Within ICPs, the analysis of the various dimensions of fragility can be applied to all partner countries in line with Recommendation 7, as they all present signs of fragility that need to be taken into account.