Development Co-operation Report 2009

image of Development Co-operation Report 2009

This edition of OECD's annual Development Co-operation Report provides key statistics and analysis on the latest trends in international aid. Eckhard Deutscher, who recently took over as Chairman of the Development Assistance Committee, reports back on the Accra High Level Forum on Aid Effectiveness and the need to step up our efforts to make aid work better for developing countries in this time of economic crisis. The report also addresses fragmentation, a major problem when aid comes in too many small slices from too many directions and - drawing on case studies from number of countries - offers five lessons on how the Paris Declaration on Aid Effectiveness can be used to make the link between development policy and human rights, environmental sustainability and gender equality.


The title of the Development Co-operation Report has traditionally carried the date of the year preceding its publication. We would like to alert readers to the fact that, as of this issue, the title will reflect the actual year of publication. This issue will, therefore, be entitled Development Co-operation Report 2009. Please note that this Report incorporates data submitted to the OECD up to 15 November 2008; these data correspond to flows in 2007.

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Efforts and Policies of Bilateral Donors

Aid continued to increase in 2007, once exceptional debt relief is excluded from the figures. But the increase was only 2% on 2006. This is much too slow if donors are to meet their commitments to increase aid by 2010.

Poverty reduction continues to drive the donor community and donors include achieving the MDGs among their key objectives. Donors focus on creating an enabling environment, on building growth, governance and stability needed to achieve the MDGs, and many build their programmes around achieving specific targets. Donors are beginning to reform their systems to implement the aid effectiveness principles and to meet the targets set in the Accra Agenda for Action. They have developed action plans, set up monitoring measures, and pay increased attention to results. They emphasise partner country ownership, and are employing new ways of working: some are trying delegated co-operation, joint programs, and especially direct budget and sector budget support. Donors are meeting their obligations to support the implementation of the Rio Conventions through the Global Environment Facility and the convention secretariats as well as through bilateral environment programmes. While most donors have an environment policy, applied in principle to all their aid, some have also established funds to address climate change and deforestation. In 2008, the DAC conducted four peer reviews – Australia, France, Norway and Luxembourg – as well as a special review of the Republic of Korea.

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