Development Co-operation Report

2074-7721 (online)
2074-773X (print)
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The annual report of the Chairman of the OECD Development Assistance Committee (DAC). It provides detailed statistics on and analysis of each member’s foreign aid programmes (offical development assistance - ODA) as well as an overview of trends and issues currently being discussed in the development community.

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Development Co-operation Report 2012

Development Co-operation Report 2012

Lessons in Linking Sustainability and Development You or your institution have access to this content

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13 Nov 2012
9789264179189 (PDF) ;9789264178083(print)

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The Development Co-operation Report is the key annual reference document for statistics and analysis on trends in international aid. This year, the Development Co-operation Report 2012 seeks to provide insights into how to address today’s sustainable development challenges, with a focus on inclusiveness and good governance to ensure that our finite resources are equitably distributed, now and in the future.

Sharing finite resources among a growing number people – and consumers – is a critical challenge. It is in this spirit that J. Brian Atwood, Chair of the OECD Development Assistance Committee (DAC), invited several intellectual leaders on the challenges of inclusive, sustainable development to contribute to this year’s report.

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  • Foreword

    The global economic crisis has left many countries struggling with slow growth, stretched public finances and high levels of unemployment. In this economic context, it is not easy to keep environmental protection and the conservation of natural resources at the top of government policy priorities. Yet, we know that we simply cannot afford to relegate these challenges to a level of secondary importance. The planet’s ability to support sustainable lives for a fast-growing population is decreasing, while our demands on the planet are increasing at a rapid pace. We are on a collision course with nature!

  • Credits

    Report by J. Brian Atwood, DAC Chair

  • Author biographies

    J. Brian Atwood was unanimously elected Chair of the OECD’s Development Assistance Committee in January 2011. From 1993 to 1999, during the administration of President William Clinton, Mr. Atwood served as Administrator of the United States Agency for International Development (USAID). Prior to this, he led the Transition Team at the State Department and was Under-Secretary of State for Management. During the administration of President Jimmy Carter, he served as Assistant Secretary of State for Congressional Relations. In 1981-82, he was Dean of Professional Studies and Academic Affairs at the Foreign Service Institute. From 2002 until 2010, Mr. Atwood was Dean of the Hubert Humphrey School of Public Affairs at the University of Minnesota. Other prior positions include President and Chief Executive Officer of Citizens International (1999-2002) and founding President of the National Democratic Institute of International Affairs (1985-93). In 2001, he served on United Nations Secretary-General Kofi Annan’s Panel on Peace Operations. Mr. Atwood joined the Foreign Service in 1966 and served in the American Embassies in Ivory Coast and Spain. He served as legislative advisor for foreign and defense policy to Senator Thomas F. Eagleton (Democrat, Missouri) from 1972 to 1977. Mr. Atwood received the United States Secretary of State’s Distinguished Service Award in 1999 and the President’s Award for Outstanding Service from the University of Minnesota in 2011.

  • Acronyms and abbreviations
  • Preface

    by Mary Robinson President, Mary Robinson Foundation – Climate Justice

  • Executive summary

    The Development Co-operation Report 2012 comes at a critical moment for the planet. 2012 was the year that world leaders, along with thousands of participants from governments, the private sector, NGOs and other groups, came together in Rio de Janeiro to shape how we can reduce poverty, advance social equity and ensure environmental protection. Twenty years after the 1992 Earth Summit, the Rio +20 UN Conference on Sustainable Development renewed the urgency of addressing pressing economic and environmental challenges – moving towards greener growth, and helping advance countries’ common aspirations towards sustainable development and poverty reduction.

  • Editorial: Integrating policy options to galvanise actions for sustainable development

    The 20th century American environmentalist John Muir said, Everything is connected to everything else. Yet while this is true in the natural world, it is sadly still not true in the policy world, which is subject to a diversity of views, objectives and competing agendas – particularly when it comes to environmental issues. If we are to achieve the common goal of sustainable development, more policy convergence is essential. This year’s Development Co-operation Report (DCR) explores the ideas and orientations of leaders, thinkers and pioneers in diverse public policy areas and disciplines who are contributing to connecting everything to everything else in this sphere as well.

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  • Expand / Collapse Hide / Show all Abstracts Challenges and progress since the Rio Earth Summit in 1992

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    • Brazil's journey from the Earth Summit to Rio +20

      The 1992 Rio Earth Summit brought about a cultural shift as citizens and governments alike became increasingly aware of the need to protect the environment as economies progress. The summit led to the formulation of legal and institutional frameworks to protect the environment, and we have seen improvements in many environmental indicators, such as the banning of lead in gasoline and a significant increase in natural protected areas. Nonetheless, we are still failing to mainstream environmental issues across sectoral policies and programmes and environmental quality is worsening in many areas. The lack of a coherent approach has had clearly negative impacts, one of the most obvious examples being the persistence of subsidies for fossil-fuel-based energy in many countries. The author of this introductory chapter draws on lessons from her own country, Brazil, which has made significant strides towards sustainable development. She calls for a green economy focus that: links the environment and the economy; considers medium and long-term needs and challenges; and recognises the diversity of countries, their differing levels of development and the inequalities of wealth distribution among nations. Such an approach, however, is not a natural market tendency – specific public policies will be needed if we are to green our economies.

    • The DAC's work to integrate environment and development

      This chapter traces the Development Assistance Committee’s (DAC) role in shaping policies for sustainable development. This has been a major priority for the Committee’s member countries since the early 1990s. The DAC has produced a range of guidance that has helped providers of development co-operation to integrate environmental considerations into their policies and practices. Notable examples include introducing environmental impact assessment requirements into development projects and integrating the objectives of the three Rio conventions into development co-operation. Over the past 20 years, these efforts have built increasingly on co-operation between the OECD’s Development Assistance and Environmental Policy Committees, to integrate sustainable development into development co-operation and to ensure that policies are coherent, and that they are informed by the comparative advantage of each policy community. Policy guidance has been the DAC’s main tool for promoting sustainable development among its members, as well as among policy makers and development actors in partner countries. As a result, many development agencies have made progress in integrating environment into their operations based on the DAC’s guidance. However, resource availability and partner country ownership are increasingly becoming critical issues.

    • Trends in aid to environment, a component of sustainable development finance (1991-2011)

      With the fresh impetus for sustainable development and green growth highlighted in this Development Co-operation Report, it is essential that we have robust and credible methods for measuring the financial resources pledged and allocated to achieve these goals. This chapter, contributed by the statistics team in the OECD’s Development Assistance Committee, explains how aid to sustainable development is measured, how it has grown over the years and what challenges remain. The current marker system has already helped to raise awareness in donor agencies of the importance of mainstreaming environment in all development co-operation as demonstrated in the statistics presented elsewhere in this report. Future efforts are called upon to facilitate tracking international official and private flows in support of the Rio conventions and environmental objectives more generally.

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  • Expand / Collapse Hide / Show all Abstracts High stakes for people and natural resources

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    • Factoring population dynamics into sustainable development

      Although population growth has decelerated in most countries, the world’s population is still growing at a high rate. Without a significant and rapid drop in fertility rates it could reach 16 billion by 2100, according to the latest projections of the United Nations Population Division. Population growth, coupled with higher consumption, raises the stakes in our efforts to reduce poverty, create employment, provide food, water and energy security, while safeguarding the natural environment. These facts were well-known nearly 20 years ago when, shortly after the 1992 Rio Declaration, the 1994 International Conference on Population and Development Programme of Action outlined a two-pronged approach to promote sustainable development. This approach called for a shift towards sustainable production and consumption, together with appropriate policies to address demographic change. Yet action is long overdue. To promote sustainable development pathways, developing countries and their partners will need to ensure: i) universal access to sexual and reproductive health care and family planning; ii) investment in education with a particular focus on gender parity; iii) empowerment of women; and iv) systematic integration of population projections in development strategies and policies.

    • Delivering sustainable energy for all

      The developing world needs sustainable energy to support its growth and to move people out of poverty. Worldwide, 1.3 billion people still have no access to electricity, and up to a billion more have to cope with unreliable access at best. In particular, rural Sub-Saharan Africa has an electrification rate of only 12% and the total number of people without access to electricity continues to rise steadily. The UN, under its Sustainable Energy for All initiative, is seeking to ensure universal access to modern energy services by 2030. In this chapter, the author describes how the European Union, which provides more than half of all global official development assistance (ODA), is contributing to the UN initiative, placing the emphasis on access to modern energy services; regional integration, focusing on projects with a regional reach; and broad-based renewable power generation. Nonetheless, he notes that official development assistance will not be able to meet the challenge alone. The private sector will need to engage much more actively, both through investment and through financing. The rewards will be substantial: new markets, new productive partnerships, new innovative technologies for developing countries, and more income and jobs.

    • Tackling air pollutants for long-lasting climate benefits

      Short-lived climate pollutants (SLCPs) are chemicals that remain in the atmosphere for only a few days or a few decades at the most. They include black carbon particles (or soot, emitted from wood fires, for example); methane (from oil and gas production and municipal waste); and tropospheric ozone (from motor vehicles). In addition to being powerful greenhouse gases, these are dangerous air pollutants, with various detrimental impacts on human health, agriculture and ecosystems. Yet, there is little public awareness of the threat these chemicals pose. Actions to reduce SLCPs might be the only way to slow down global and regional warming in the short term (10-30 years) and, at the same time, provide immediate air quality benefits. In this chapter, the author provides examples of initiatives underway to tackle these pollutants and, at the same time, bring benefits to developing countries. Many of these measures are low-cost, with initial investments offset by subsequent cost savings, for example, from reduced fuel use or harnessing of recovered methane. Global action is needed to raise awareness, enable and encourage national and regional initiatives, and support the widespread implementation of SLCP control measures. In March 2012, Sweden, Bangladesh, Canada, Ghana, Mexico and the United States launched the Climate and Clean Air Coalition, a global partnership to help developing countries scale up their efforts to combat SLCPs.

    • Building awareness of water's vital role

      The world is waking up to the fact that water is key to sustainable development. Previously seen as the Cinderella among the United Nations’ many preoccupations, 2010 finally saw access to clean water and sanitation recognised by the UN as a human right. Not a moment too soon – OECD modelling suggests that if we continue current trends, by 2050, 2.3 billion additional people will be living in river basins that are under extreme water stress. Despite some good progress driven by the Millennium Development Goals, water statistics continue to alarm: every year, for instance, dirty water causes the death of more than 2.2 million children under the age of 14. This chapter, written by three senior water policy makers, calls for a profound rethink of how we tackle the water crisis, including:seeing water as one of the key elements of future growth;using innovative methods to fund the water challenge to the tune of 1-2% of individual countries’ GDP over the next 20 years;taking an integrated approach to water resources management;bringing together multiple partners and stakeholders to manage water in the context of decentralised and transparent governance; andincluding such innovative water policy in the overall context of other development.

    • Managing watersheds for resilient livelihoods in Ethiopia

      The concept and principles of sustainable development have been accepted for several decades as being central to societal progress. Yet, we are still trying to shift to a truly sustainable development model. This chapter illustrates sustainable development in action through the story of an integrated watershed management project in Ethiopia in which the authors were involved. The project has regenerated and enhanced natural resources, improved incomes and food security, and provided a range of social benefits. It has also improved people’s resilience in the face of climate change, while contributing to carbon sequestration. The success of this approach to watershed management lies in the fact that it is not solely a technical approach. Full participation of local resource users has been fundamental, as has social capital and a supportive institutional environment. The project’s approach has now been scaled up to the national level, influencing key areas of national policy, including the Productive Safety Net Programme and Ethiopia’s Green Economy Strategy. Too many sustainable development approaches never go beyond the pilot project. An important lesson from this experience is that while a successful local approach can and should be applied at the national level, doing so requires institutional and policy commitment from governments and from civil society, as well as the investment of enough funds to enable scaling-up. As the initial project was inspired by similar work in India, it also demonstrates the value of sharing experiences.

    • Breaking the mineral and fuel resource curse in Ghana

      In many countries, wealth in oil, gas, diamonds, gold and other minerals can be a curse rather than a blessing. When poorly managed, such natural resource wealth can result in poor economic performance, weak and unbalanced growth, poverty, conflict, environmental damage, and ineffective or authoritarian rule. In this chapter, the authors argue that the resource curse is not, however, inevitable. They provide a detailed account of how co-operation between Norway (a country with four decades’ experience of managing large oil reserves) and Ghana has helped the African country to manage its oil for the benefit of the population as a whole. Drawing on the experience of Norway’s Oil for Development programme and its principles of good governance, Ghana is striving to ensure economically, environmentally and socially responsible management of its petroleum resources. The Ghanaian government has focused on developing and improving relevant legislation, establishing and developing institutions, and building competence. Twinning arrangements between public sector institutions in Ghana and their sister institutions in Norway have ensured continuity, sustainability and a holistic approach. Placing emphasis on the principles of transparency, accountability and anti-corruption, the experience offers practical lessons that can prove useful for other countries.

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  • Expand / Collapse Hide / Show all Abstracts Green growth for sustainable development

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    • A green growth business model

      Green growth strategies are logical and natural ways of dealing with many of the major challenges we face: higher prices for goods, joblessness, scarcity of resources, food shortages, high risk of diseases and rising instability. In this chapter, the author outlines a sound business model for greening growth. He stresses the need to ensure: 1) sufficient and timely returns/benefits (financial, political and social) to make the investment worthwhile and sustainable; 2) inclusiveness, involving beneficiaries in the conception of green growth initiatives in order to make sure they are suitable culturally, technically and socially, as well as to ensure long-term buy-in; and 3) partnerships, not just public-private partnerships, but any that provide the necessary financial leverage, risk-sharing, technical expertise and stakeholder empowerment. The supply side of the green growth equation should include the stimulation of new markets, innovation (often adapting knowledge acquired by local populations), and the use of locally-available resources. These fundamental elements, required to generate and sustain green growth, are illustrated in this chapter by numerous examples of successful projects funded by the Global Environment Facility.

    • Green growth as a national project in China, Kenya and Korea

      This chapter reports on three countries that are integrating crucial elements of green growth into national policies and sectoral plans to achieve concrete results: China, Kenya and Korea.Co-authors: Shen Xiaoyue, Division Director of Environmental Policy, Policy Research Center for Environment and Economy, Ministry of Environmental Protection (MEP); Jia Lei, Research Assistant, Policy Research Center for Environment and Economy, MEP, China.China is applying green economic policy to reduce poverty and promote social advances. For example, it aims to create at least 5.3 million green jobs within two or three years through energy savings, pollution reduction, adjustments to the industrial structure, technical innovation and biogas projects.Kenya has replaced GDP-based traditional economic development models with a new model incorporating social dimensions of development progress. With a focus on sectoral implementation overseen by an inter-agency National Steering Committee, the country aims to reach long-term sustainable development through a broad, participatory green economy approach.Korea aims to create growth engines and jobs out of green technology and clean energies. Korea’s targets include reducing CO2 emissions by 30% and quadrupling renewable energy supplies by 2030. Korea is also providing green aid to support developing country partners.

    • The private sector driving green growth

      A revolution is occurring in the business arena: for many leading companies worldwide, social and environmental action is no longer solely about compliance or resource efficiency; it is about garnering competitive advantage. In this chapter, the author outlines a vision for the future in which business, government and civil society all work together, each doing what they do best, to create what none of them could achieve alone. He draws on many examples of such partnerships, such as the Water and Development Alliance (WADA) between The Coca-Cola Company and the United States Agency for International Development (USAID), which is benefiting over half a million people globally. Green paths that the business sector can follow include: mainstreaming resource efficiency into operations; valuing natural capital; and leveraging the resources of the private sector against those of the public sector to multiply the impact. The free flow of creative knowledge and expertise through partnerships is essential to drive the social and environmental changes needed to ensure a vibrant and prosperous future.

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  • Expand / Collapse Hide / Show all Abstracts Towards the future we want

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    • Right-sizing ODA and greening the global economy

      A true and lasting response to the challenges raised in this 2012 Development Co-operation Report 2012 can only come about by transitioning to economic development that is more efficient in resource use, limits environmental degradation and puts a premium on equity. In this chapter, the author argues that economic progress without environmental and social progress cannot lead to a progressive, equitable, poverty-free future. He stresses the importance, on the one hand, of ensuring that aid strategically and coherently promotes the three dimensions of sustainable development equally. He also argues that the global economy should be recalibrated in many ways: removing damaging subsidies; reforming fiscal systems to provide long-term incentives for sustainable production, consumption and investment; establishing appropriate price signals to capture the critical role played by environmental resources and services; and using new measurements to gauge progress that take into account human well-being, equity, natural capital and the environment.

    • Challenging development co-operation post-Rio +20

      This final chapter examines the implications of the Rio +20 Conference for development co-operation. The outcome document of Rio +20 – The Future We Want – outlines a plan to set global sustainable development goals (SDGs) and other measures to strengthen the management of environmental and natural resources, combat poverty, and promote a green economy paradigm for all. The statement reiterates the importance of natural capital and its value in achieving sustainable development. It advocates a more encompassing approach to promote development, while recognising poverty reduction as a continuing major challenge. Furthermore, it calls for a financing strategy, accompanied by technical assistance and capacity development, to ensure adequate support to developing countries. Achieving the sustainable development mission requires actions from the public and private sectors and civil society alike. More voluntary commitments, like those launched at Rio +20, are necessary and welcome.For development co-operation actors, these outcomes imply new ways of thinking and operating. Among other things, development co-operation will need to:help establish SDGs as part of the post-2015 development framework and use them to guide future official development assistance (ODA) and other flows;mainstream green growth thinking into all areas of development co-operation and provide more timely and targeted support to meet the needs of different types of developing countries – from the poorest to those that are medium income and rapidly developing;inspired by the many voluntary commitments made at Rio, speed up more effective use of ODA and use it to partner with and to leverage other sources of finance for sustainable development;improve and accelerate the sharing of information, skills and technology to strengthen capacity and resilience in partner countries;support the adoption of natural capital accounting by developing countries in their decision-making processes, as well as its use by development co-operation agencies in their own aid investments.

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  • Expand / Collapse Hide / Show all Abstracts Profiles and policies of bilateral donors

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    • Development Assistance Committee members' aid performance in 2011

      According to preliminary data, in 2011 net official development assistance (ODA) from Development Assistance Committee (DAC) members decreased by 2.7% in real terms compared to 2010. This represents the first drop in net ODA since 1997 and an important reversal of the upward trend observed from 2000-10. The decrease reflects fiscal constraints that have affected the budgets of several DAC countries. ODA has long served as an important cushion for the immediate impact of financial crises in developing countries, but there is growing recognition of the importance of non-ODA financing for development. While total net private flows from DAC members sharply decreased in 2008, they have been on the rise since 2009. Country programmable aid – the subset of total ODA that is generally included in multi-year forward expenditure plans, represents 57% of DAC members' gross bilateral ODA (USD 66 billion in 2010). This chapter also presents data on: components of net ODA, composition of bilateral ODA, untied aid status, ODA commitments for gender equality and women’s empowerment, and ODA commitments targeted at the objectives of the Rio conventions.

    • Australia

      Australia is among the few DAC members to increase ODA in 2011, having escaped the global economic and financial crises without a recession, and being relatively unaffected by the current euro area turmoil. In 2011, Australia’s net ODA was USD 4.8 billion, a 5.7% increase in real terms over 2010. This funded larger bilateral grants in 2010 and 2011 and has kept the annual growth rate of Australia’s ODA at 6% since 2006.

    • Austria

      In 2011, Austria’s net ODA amounted to USD 1.11 billion. Compared to 2010 – the year when Austrian ODA recovered after dipping significantly in 2008 and 2009 – the 2011 ODA level represents a drop in real terms of 14.3%.

    • Belgium

      In 2011, Belgium’s net ODA amounted to USD 2.80 billion. This is a decrease of 13.3% in real terms, after sustained increases – of 15% annually on average – between 2008 and 2010.

    • Canada

      Canada’s net ODA was USD 5.29 billion in 2011. After increasing by 14% in 2010, Canada’s ODA decreased in real terms (by a little over 5%) in 2011 due to Canada’s decision to cap its development co-operation budget at 2010 levels.

    • Denmark

      In 2011, Denmark’s net ODA amounted to USD 2.98 billion. Compared to 2010, this figure is a nominal increase of 3.8%, but a drop in real terms of 2.4%. This follows a period when Denmark’s ODA grew at an average annual real growth rate of 2% (between 2007 and 2010). In the context of a freeze in Danish public spending for the period 2011-13, Denmark planned to sustain ODA at the 2010 nominal level (in DKK) until 2013, but fell short of this by 1% in 2011.

    • European Union institutions

      In 2011, ODA grants managed by European Union (EU) institutions amounted to USD 12.63 billion, a 6.4% decrease in real terms compared to 2010 (USD 12.68 billion). The level of ODA managed by EU institutions is determined within the EU multi-year financial framework. The multi-year financial framework for 2014-20 currently being prepared by the European Commission proposes a substantial budget increase for external action (up to 25% in 2011 prices from the previous financial framework). Once agreed, this will confirm the strengthened priority of external activities for the EU and should lead to an increase in EU development co-operation funding levels. In 2012 the EU underwent a DAC peer review of its development co-operation (see page 244 and following for a summary of the findings).

    • Finland

      In 2011, Finland’s net ODA amounted to USD 1.41 billion. In nominal terms, this figure represents an increase of 3% from 2010, although in real terms Finland’s ODA has dropped by 4%. As for several other DAC members, this is the first decrease after many years of ODA growth. Finnish ODA grew quickly between 2008 and 2009 – at an average annual rate of 12% in real terms – but started to slow down in 2010. The ODA growth rate is expected to reach zero in 2013-14 as ODA for those years will be frozen at the nominal 2012 level.

    • France

      In 2011, France’s ODA amounted to USD 12.99 billion, down by 5.6% compared to 2010. This is the first decrease in real terms since 2007, after which ODA increased by an average of 13% each year between 2008 and 2010.

    • Germany

      In 2011, Germany’s ODA was USD 14.5 billion. Germany increased its ODA by 5.9% between 2010 and 2011, reflecting an increase in its bilateral grants. This increase brought Germany’s ODA above the 2008 level, the highest reached in the past five years.

    • Greece

      In 2011, Greece’s net ODA amounted to USD 331 million, down from USD 508 million in 2010. This decrease of 39.3% is a direct consequence of the country’s severe economic crisis. Greek ODA did increase in 2007 (+5%) and 2008 (+27%), before starting to decline in 2009 (–13%).

    • Ireland

      Ireland’s ODA in 2011 was USD 904 million, a reduction from 2010 levels of a little over 3% in real terms. After increasing its ODA in 2007 and 2008 (by 6% and 8% respectively), Ireland started to cut ODA in 2009 (by 18%) and continued to do so in 2010 (by 4%).

    • Italy

      In 2011, Italy’s net ODA grew by 33% in real terms, reaching USD 4.24 billion. This remarkable upsurge is due to increases in debt forgiveness grants and to the large amounts provided for refugee assistance following the arrival in Italy of refugees from North Africa. This increase follows a period of strong fluctuations in Italy’s ODA levels between 2006 and 2010.

    • Japan

      In 2011, Japan’s net ODA amounted to USD 10.6 billion. This was a fall of nearly 11% in real terms from 2010 (although 2010 levels were 12% higher than the previous year). This fall was largely due to the decline in government loans. Japan’s ODA has been suffering from an extended period of stagnation, fluctuating around the USD 10 billion mark between 2006 and 2011.

    • Korea

      In 2011, Korea’s ODA was USD 1.32 billion. This figure is an increase of almost 6% from 2010 when Korea’s aid surpassed USD 1 billion for the first time. Korea increased its ODA at an average annual rate of 29% a year between 2006 and 2010. Moreover, Korea’s ODA volume was the 17th largest in the DAC in 2011, up one place from 2010; its commitment to increase ODA could bring it up to 15th position by 2015.

    • Luxembourg

      In 2011, Luxembourg’s net ODA amounted to USD 413 million, a 5.4% decrease from 2010. Like other DAC members, this is the first drop after several years of increase. Luxembourg’s net ODA grew at an average annual rate of 4% between 2006 and 2010.

    • The Netherlands

      In 2011, the Netherlands’s net ODA stood at USD 6.32 billion, a 6.4% decrease in real terms from 2010. After growing at rates of 3% and 4% annually in 2007 and 2008, the Netherlands’ ODA fell by 4% in 2009 before recovering in 2010, when it increased by 3%.

    • New Zealand

      In 2011, New Zealand’s net ODA amounted to USD 429 million. This figure represents a 10.7% increase over 2010, placing New Zealand among the few DAC members that increased – in real terms – their ODA in 2011. This is also the first increase in net ODA recorded by New Zealand after a 2% decrease in 2009 and a 6% drop in 2010. New Zealand is committed to reaching an ODA level of NZD 600 million, and will continue to increase ODA according to its medium-term expenditure plan.

    • Norway

      In 2011, Norway’s ODA was USD 4.94 billion, a 8.3% decrease in real terms from 2010. This is the first decrease following steady growth in Norway’s ODA (an average annual rate of 7% in real terms) between 2006 and 2010.

    • Portugal

      In 2011, Portugal’s net ODA reached USD 669 million. In comparison to 2010, this figure represents an increase in nominal terms of 3.1%, but a decrease in real terms of 3%. This reduction in net ODA is comparable to the average drop for all DAC members: 2.7% in real terms. Portugal’s ODA remained relatively stable in 2011; there were much greater variations in 2008 (+23%), 2009 (–15%) and 2010 (+32%) (all rates in real terms).

    • Spain

      In 2011, Spain’s net ODA amounted to USD 4.26 billion. Spain’s ODA grew considerably between 2006 and 2008, with average annual increases of nearly 22% in real terms during these years. However, the global economic crisis and its aftermath has resulted in cuts in Spain’s ODA budget since 2009 that are now becoming more significant (the drop in ODA in 2011 represents a decrease of 32.7% in real terms from 2010). ODA levels are expected to continue to decrease as the new Spanish government is planning more budget cuts to respond to its difficult financial situation.

    • Sweden

      In 2011, Swedish net official development assistance stood at USD 5.61 billion. The budget for Swedish ODA is linked to the country’s gross national income (GNI) and has, therefore, fluctuated in recent years. The 2011 ODA level is an increase of 10.5% in real terms over 2010 levels, well above the average annual growth rate of 1% that Swedish ODA recorded during the period 2006 to 2010.

    • Switzerland

      In 2011, Switzerland’s net ODA amounted to USD 3.09 billion, a 13.2% increase in real terms compared to 2010. This followed a net drop in ODA of 4% in 2010 after steady growth of 8% in 2008 and 12% in 2009.

    • United Kingdom

      In 2011, the United Kingdom’s net ODA amounted to USD 13.74 billion; a decrease of a little under 1% in real terms compared to 2010. The United Kingdom’s net ODA dipped by almost 30% in 2007 but increased at an average annual rate of 13% between 2008 and 2010.

    • United States

      With net ODA standing at USD 30.75 billion in 2011, the United States is the largest provider of development co-operation. Compared to 2010, this ODA level is a decrease of just under 1% in real terms. After falling by 10% in 2007, the United States’ net ODA recovered quickly in 2008, when it increased by 19%, and continued to grow at an average rate of 6% yearly in 2009 and 2010.

    • OECD DAC peer reviews

      Over the last six decades Canada has gained a strong reputation for its contributions to international development, multilateral organisations and the promotion of human rights. The strengths of Canada’s development co-operation include its well-respected field presence in its partner countries; its dedicated support for research for development via the International Development Research Centre (IDRC); its significant and strategic support for the multilateral system; its effective whole-of-government approach for disaster response and fragile states, particularly Afghanistan and Haiti; and its good track record as a constructive partner within the development co-operation and humanitarian communities.

    • Notes on other OECD donors

      The OECD currently has 34 member countries, 23 of which are members of the DAC, as is the European Commission. This section highlights the ODA flows from the 11 OECD countries that are not DAC members: Chile, the Czech Republic, Estonia, Hungary, Iceland, Israel, Mexico, Poland, the Slovak Republic, Slovenia and Turkey.

    • Notes on non-OECD providers of development co-operation

      This section contains information on the volumes and key features of the development co-operation programmes of 16 countries that are not members of the OECD; 12 of these report their ODA flows to the OECD-DAC. Although Brazil, China, India and South Africa do not report their data to the OECD-DAC, they have been making important contributions to international development co-operation for many years; the figures presented in this chapter are based on official government reports. The Bill and Melinda Gates Foundation is the only private funding entity reporting to the OECD-DAC.

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