Development Co-operation Report

2074-7721 (en ligne)
2074-773X (imprimé)
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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 2011

Development Co-operation Report 2011

50th Anniversary Edition You or your institution have access to this content

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14 oct 2011
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9789264083936 (PDF) ;9789264094376(imprimé)

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The Development Co-operation Report is the key annual reference document for statistics and analysis on trends in international aid. In addition to the usual statistics and analysis, this special OECD 50th Anniversary edition includes articles by prominent persons in the field.
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  • Foreword
    The year 2011 is a landmark for the Organisation for Economic Co-operation and Development (OECD) and its Development Assistance Committee (DAC), marking their 50th anniversary. The DAC is indeed one of the first committees to have been established at the OECD, attesting to the importance that our member countries have always attached to supporting development.
  • Credits
  • Acronyms and abbreviations
  • Preface
    After World War II, far-sighted leaders like George Marshall and Harry Truman realised that building a more peaceful and prosperous Europe would take more than laying down railroad tracks and putting up factories – it would take fashioning a community of shared economic values that fostered open, free, transparent and fair competition. Along with their international partners, they helped lay the foundations for what became the Organisation for Economic Co-operation and Development (OECD).
  • Executive summary
    The world of development has changed radically since the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) was established in 1961. At that time, most of the world’s providers of development assistance were represented in this committee. Today, there is an ever-growing number of financing instruments and entities, contributing to an increasingly complex architecture of development co-operation. At the same time, the complexity of issues that impinge upon – and are influenced by – patterns of development across the globe is more evident than ever before. As J. Brian Atwood, Chair of the DAC, states in his introduction, "More than ever, national political leaders are fully aware that many of our pressing global challenges can only be solved with enhanced development solutions and therefore with better development co-operation."
  • Fuelling the future of development
    Fifty years of experience in any field bring with them an array of knowledge, often learned through trial and error in adapting to change. Development cooperation is no different. Over the 50 years since the creation of the Development Assistance Committee (DAC) at the Organisation for Economic Co-operation and Development (OECD), our members and partners – donor governments, developing nations, multilateral organisations, philanthropic institutions and civil society organisations – have learned from their individual experiences and, above all, from their interaction with one another.
  • The OECD at 50
    The Millennium Development Goals (MDGs) have become the high-profile framework for world debates around development. What’s less known is the story behind the goals and their origins in the work of the Organisation for Economic Co-operation and Development (OECD) and its Development Assistance Committee (DAC). The MDGs are only one example of how the DAC has helped shape development thinking and practices since the 1960s. As the OECD celebrates its 50th anniversary, this special article reviews five decades of development co-operation and assistance, examines the role played by the OECD and the DAC, and looks at the challenges that lie ahead as the OECD enters its second half-century.
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  • Ouvrir / Fermer Cacher / Voir les résumés Fifty years of development co-operation: What have we learned?

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    • The OECD Development Assistance Committee at 50 and the challenges of a changing world
      For the past half century, the OECD Development Assistance Committee (DAC) has monitored development assistance finance and advised on appropriate development policies with the objective of ensuring better lives for people in developing countries. As James Wolfensohn writes in this chapter, the DAC has provided the necessary information and analysis, and has helped other institutions to set objectives and programmes to meet development challenges. The decades to come will see profound changes: by 2050, the world’s population will grow to just over nine billion people – most of whom will be in developing countries; and by mid-century, ours will be a significantly Asian world in terms of both population and economic strength. The DAC must continue its tradition of providing monitoring, analysis and guidance that will help facilitate a peaceful adjustment to these changes and promote a more equal and stable world.
    • The real wealth of nations
      Helen Clark takes the opportunity of the 50th anniversary of the OECD Development Assistance Committee (DAC) to explore the human development progress over the past decade, as well as challenges of the 21st century. She bases her analysis on a rich source of insights, the annual Human Development Report, produced by the United Nations Development Programme (UNDP) on issues as diverse as gender, water, human rights, climate change and migration. She notes that people today are, on average, healthier, more educated and wealthier than ever before. While the income divide has generally worsened, gaps in health and education outcomes between developed and developing countries have narrowed. Looking ahead, it remains vital that all partners in development work together to nurture resilient, accountable institutions and systems that are capable of meeting sustainable development objectives, responding to citizens’ needs, dealing with shocks, promoting social cohesion and peacefully mediating tensions and disputes.
    • Development and aid in Africa
      Donald Kaberuka acknowledges that over the past 50 years, development policy has come a long way and that it continues to evolve – with diverse goals, players and instruments. This chapter looks at the development aid experience in Africa to draw out some of the lessons, and suggests ways forward. In many ways, Africa has been a test-bed over the past five decades, reflecting shifts in donor policies and practices as well as changes in the geopolitical climate. Looking forward, Kaberuka stresses that development is about much more than aid: development co-operation – true partnership – requires dialogue and participation among recipients, traditional and non-traditional donors, and the private sector. He concludes that development aid – and the OECD Development Assistance Committee (DAC) - still have a key role to play in Africa.
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  • Ouvrir / Fermer Cacher / Voir les résumés Gender equality, empowerment, human rights and the environment: What’s stopping progress?

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    • Gender and development
      In this chapter, Michelle Bachelet emphasises that to be effective, development must embrace the goals of gender equality, social justice, peace and prosperity. She highlights the contribution that official development assistance (ODA) has made to empowering women and girls to exercise their rights fully, as equal citizens. Partnerships on gender equality between the United Nations (UN) and the Organisation for Economic Co-operation and Development (OECD) have also played a fundamental role in ensuring enhanced support to and impact on gender equality goals, particularly as the deadline for achieving the Millennium Development Goals (MDGs) approaches. Nonetheless, pervasive under-investment by donors, among other reasons, has led countries to lag behind on gender equality commitments. This chapter makes recommendations on how to remove the barriers that prevent women from realising their full potential, and enable the achievement of gender-equitable development results.
    • The Amazon is not Avatar
      Hernando de Soto argues that a series of myths and misconceptions continue to marginalise indigenous people and exclude them from integrating into the world economy. Yet in the Amazon, much like in the rest of the developing world and unlike in the fictional blockbuster Avatar, the story is much more complex. Millions of people living off natural resources face obstacles such as lack of property rights and legal recognition when seeking to participate in and benefit from the global economy. And while the concept of empowerment – giving excluded people the right to control their resources through the same property and business tools that wealthy people have – has guided discussions among international donors, they have found it difficult to put into practice. De Soto challenges a series of myths that form the basis for disempowering attitudes towards indigenous populations, concluding with recommendations for governments and donors to enhance the ability of poor people to protect themselves from the drawbacks of globalisation, and benefit from its advantages.
    • Inclusive development
      Sadako Ogata reviews her experience as a development actor on behalf of vulnerable people who are exposed to political, social and economic tensions that arise globally as well as internally. She argues that globalisation, combined with advanced technical and economic development, is widening the gaps among diverse groups of people. Do humanitarian and/or development organisations have the answers they need to meet these challenges in a rapidly globalising world? Are they ready to intervene or become involved? Ogata underlines the need for policies and programmes that will benefit all constituents. Truly inclusive development, she says, emphasising the security and well-being of all peoples in all situations, should guide the way towards a better future for all.
    • Striking the balance
      R. K. Pachauri points to two important reference points for continuing discussions on development: the concept of sustainable development as a process that integrates political, social, economic and environmental dimensions; and the acceptance of the evidence that the world’s climate is changing. These two highly interrelated issues are at the root of mitigation and adaptation approaches that, applied together, can reduce risks – for instance, in human health and crop productivity – while enhancing people’s capacity to deal with the consequences of climate change. Addressing climate change means simultaneously addressing several challenges at once: for example, macroeconomic and other nonclimate policies, including development policies can significantly affect emissions, adaptive capacity and vulnerability. A wide variety of policies and instruments are available today to help governments create incentives to tackle climate change, such as integrating climate policies into wider development plans, defining regulations and standards, introducing taxes and charges, setting financial incentives and supporting research and development.
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  • Ouvrir / Fermer Cacher / Voir les résumés New challenges, new goals: Is there a future for official development assistance?

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    • The future of international concessional flows
      Richard Manning notes that despite much progress over the past half-century, great inequalities persist. While this means that international concessional flows will still be necessary for several decades to come, he argues that future aid programmes should be more responsible, accountable and transparent. Better delivery of aid also continues to be an important issue, especially for aid-dependent countries. The OECD’s Development Assistance Committee (DAC) can continue to take a leading role, providing collective self-discipline. This includes, however, taking a fresh look at how official development assistance (ODA) is defined to ensure that all reported ODA is truly concessional. Broader agreement among all providers of development co-operation on how to measure development flows will also be essential. As the Millennium Development Goals (MDGs) reach their due date in 2015, new targets are needed – maintaining a poverty focus while bringing in new concerns such as transport, energy, human rights and empowerment.
    • The resurrection of aid
      Because of the numerous changes in the motivations and objectives of aid policy over the past decades, Jean-Michel Severino compares official development assistance (ODA) to a Hydra. Yet while today’s global "macro-social" complexities create new ground for international solidarity, he argues that a profound reconsideration of the objectives, measurements, policy content and financing modes of development assistance is not only necessary and welcome, but also inevitable. A new generation of shared, long-term goals is needed to set the pace for collective mobilisation by reconciling social concerns with concepts of public goods and global macroeconomic management, shifting the focus from finance only to more inclusive policy approaches. Yet the challenge, he sustains, is not only to define objectives, but to measure results against them. To this end, a new international measurement system is needed. Severino foresees a gradual shift in financing of public welfare, with the rich in all countries bearing the burden of financing for the poor, for instance through international taxation.
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  • Ouvrir / Fermer Cacher / Voir les résumés Notes on DAC members

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    • DAC members' aid performance in 2010
      In 2010, net official development assistance (ODA) flows from DAC members reached USD 128.7 billion, representing an increase of +6.5 % over 2009. This is the highest real ODA level ever, surpassing even the volume provided in 2005 that was boosted by exceptional debt relief. Net ODA as a share of gross national income (GNI) was 0.32%, equal to 2005 and higher than any other year since 1992.
    • Australia
      In 2010, Australia aimed to reach AUD 4 billion in ODA and achieved this. Australia delivered USD 3.85 billion in ODA in 2010, a 12.1% increase in real terms over 2009. This volume of ODA is equivalent to 0.32% of Australia’s gross national income (GNI), up from 0.29% in 2009. The increase was due to an increase in grants to least developed countries. Australia is committed to raising its ODA to GNI ratio to 0.5% by 2015-16.
    • Austria
      Austria’s ODA volume reached USD 1.20 billion in 2010, which was the equivalent of 0.32% of GNI and an 8.8% increase in real terms over 2009. The increase is due mainly to grants for debt forgiveness.
    • Belgium
      Belgian ODA grew by 19.1% in real terms between 2009 and 2010, and reached USD 3.0 billion in 2010. The volume of Belgian ODA in 2010 is equivalent to 0.64% of its GNI, up from 0.55% in 2009. The growth in volume of Belgium’s ODA in 2010 was mainly due to an increase in debt forgiveness and bilateral grants.
    • Canada
      Canada increased its ODA between 2009 and 2010 by almost 13% due to an increase in bilateral grants (especially emergency funding provided in response to the Haiti earthquake) and larger contributions to the World Bank. Canada’s ODA in 2010 was USD 5.13 billion (0.33 % ODA/GNI).
    • Denmark
      Denmark is one of the five most generous donors in terms of the proportion of its GNI allocated to aid. At 0.90% of GNI in 2010, Denmark’s ODA volume was USD 2.87 billion, a 4.3% increase in real terms over 2009. Denmark is committed to keeping its own target of 0.8% ODA/ GNI. Nevertheless, it will freeze its aid commitments at the 2010 nominal level for 2011-13 as part of measures to reduce its budget deficit for 2011 to 2013.
    • European Union

      EU institutions – funded through sub-Saharan Africa (37%), followed by Europe (15%), and the Middle East and North Africa (13%). both the European Development Fund and other ODA-eligible budgetary contributions – account for around 18% of EU members’ ODA. The key figures for EU institutions in 2010 are as follows:

      • ODA disbursed through EU institutions was USD 12.99 billion.
      • The apparent decline on 2009 in ODA figures largely relates to exchange rate fluctuation. In real terms, there was a slight increase of 0.8%.

    • Finland
      In 2010, Finland’s ODA amounted to USD 1.34 billion, equivalent to 0.55% of its GNI. The volume of Finnish ODA has grown over the past decade and between 2009 and 2010, the increase in real terms was 6.9%, mainly due to an increase in bilateral grants.
    • France
      France’s ODA volume reached USD 12.9 billion in 2010, an increase of 7.3% in real terms compared to 2009. France’s ODA as a proportion of GNI reached a 0.5%.
    • Germany
      In 2010, Germany was the fourth largest donor in the world, supplying almost 10% of DAC members’ total ODA. Germany’s net ODA was USD 12.72 billion, an increase of 9.9% in real terms compared to 2009. German ODA as a proportion of GNI increased from 0.35% in 2009 to 0.38% in 2010, largely as a result of increased bilateral lending.
    • Greece
      In 2010, Greece delivered USD 500 million of ODA, representing a 16% decrease in real terms compared to 2009. Its aid volume in 2010 is equivalent to 0.17% of Greece’s GNI. The outlook for Greece’s aid volume up to 2013 is pessimistic in light of its severe recession and the economic adjustment plan being implemented with support from the International Monetary Fund (IMF), the European Union and the European Central Bank.
    • Ireland
      Ireland’s aid volume was USD 895 million in 2010, the equivalent of 0.53% of its GNI. Its development assistance decreased by 4.9% over 2009 due to fiscal constraints. This represented a smaller decrease than in 2009. The new government programme (2011) confirms Ireland’s commitment to achieve the target of giving 0.7% of national income as aid by 2015.
    • Italy
      Italy delivered USD 3.1 billion in ODA in 2010, a 1.5% decrease in real terms over 2009. The 2010 aid volume was equivalent to 0.15% of gross national income.
    • Japan
      In 2010, Japan provided over USD 11 billion net ODA, up significantly from USD 9.46 billion in the previous year and in real terms an 11.8% increase. Japan’s ODA to GNI ratio in 2010 was 0.20%.
    • Korea
      In 2010, Korea’s net ODA stood at USD 1.17 billion, an increase of 25.7% in real terms on its 2009 ODA level of USD 816 million. Its gross ODA was slightly higher at just over USD 1.2 billion in 2010. Although Korea’s ODA to GNI ratio of 0.12% is the lowest among DAC members, this is an increase on the 0.10% of GNI it achieved in 2009.
    • Luxembourg
      Luxembourg is one of the most generous DAC donors in terms of share of its GNI allocated to ODA. In 2010, Luxembourg net ODA amounted to USD 399 million, corresponding to 1.09% of its GNI.
    • The Netherlands
      In 2010, the Netherlands was the sixth largest donor, supplying 4.9% of DAC members’ total ODA (all of which is provided in the form of grants). The Netherlands’ net ODA was USD 6.35 billion, an increase of 2.2% in real terms over 2009. Dutch ODA as a proportion of GNI contracted slightly from 0.82% in 2009 to 0.81% in 2010.
    • New Zealand
      New Zealand delivered USD 353 million in net ODA in 2010, a -3.9% change in real terms over 2009. The ODA to GNI ratio slightly diminished, from 0.28% in 2009 to 0.26 in 2010. Despite strong pressure on public spending, New Zealand plans to continue to increase ODA following a medium-term expenditure plan, raising the level to USD 416 million by 2012-13.
    • Norway
      In 2010, Norway achieved 1.1% in ODA/GNI, an outstanding achievement. Norway was the ninth largest donor in the world in 2010, supplying 3.5% of DAC members’ total ODA. In 2010, Norway’s net ODA was USD 4.58 billion, an increase of 3.6% in real terms over 2009. The increase is mainly due to increasing efforts to promote clean energy and reduce deforestation.
    • Portugal
      In 2010, Portugal’s net ODA was USD 648 million, a 31.5% increase in real terms over the 2009 ODA level. Portugal’s ODA to GNI ratio in 2010 was 0.29%.
    • Spain
      After steady ODA increases until 2009, the strong impact of the global economic crisis forced the Spanish government to make cuts in its development budget in 2010. Development assistance reached USD 5.9 billion, which meant that Spain’s aid dropped by 5.9% between 2009 and 2010. Spain’s ODA/GNI ratio dropped to 0.43%. Nonetheless, Spain maintains its commitment to the international target to reach 0.7% by 2015.
    • Sweden
      In all years between 2005 and 2010, Sweden has allocated more than 0.9% of GNI to ODA. In 2010 Sweden’s ODA to GNI ratio was 0.97%. Swedish ODA stood at USD 4.5 billion net, a slight decline from 2009, but in real terms a decline of around 7% from 2009.
    • Switzerland
    • United Kingdom
      The United Kingdom (UK) delivered USD 13.8 billion in net ODA in 2010. In real terms, UK net ODA increased by 14.5% in 2008-09, and by 19.4% in 2009-10. The UK’s ODA was equivalent to 0.56% of GNI in 2010.
    • United States
      The United States (US) provides about a quarter of global development assistance and remains by far the largest DAC donor, reaching record levels of USD 30 billion in 2010, up from USD 28.8 billion in 2009. ODA as a percentage of GNI was 0.21% in 2010.
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