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Development Co-operation Report 2006

Efforts and Policies of the Members of the Development Assistance Committee

image of Development Co-operation Report 2006

The OECD Development Assistance Committee's annual report on international aid. This year's edition includes an overview reviewing recent trends in aid volume, allocation, and effectiveness. A special chapter looks at how aid for trade can be made more effective.  Preliminary findings from the 2006 Baseline Survey on Monitoring the Paris Declaration are also presented.  Individual chapters for each donor country summarize key features of each country's programme including data on total flows, breakdowns by income group, geographical region and sector, and listing of the top ten recipients. Country chapters also include commentary on the donor's commitment to the MDGs, aid effectiveness, and policy coherence. The comprehensive statistical annex provides graphs and tables showing the evolution of aid flows.

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Aid for Trade

Making it Effective

Aid for Trade is not a new concept but concerted efforts are needed to ensure that multilateral trade liberalisation has an effective impact on pro-poor growth. For too many WTO members, market access improvement – without support to strengthen trade capacity – brings little benefit. Money, however, is not the central issue. The problem seems to lie in the poor value for money of Aid for Trade programmes, as highlighted by most Aid for Trade evaluations. In fact, the Paris Declaration on Aid Effectiveness is far from being systematically applied in these programmes, particularly in regards to country ownership and results-based management. The key value added the WTO can bring to Aid for Trade is a step change in its effectiveness. Consequently, based on its coherence mandate, the WTO should play a key role in providing the necessary political incentives to increase effectiveness. It should strengthen the scrutiny, monitoring and surveillance at a global level and thus encourage better local accountability mechanisms. The DAC has an important contribution to make to these mechanisms.

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