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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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How Fragmented Is Aid?

Fragmentation is a serious obstacle to making aid more effective. In essence, fragmentation describes aid that comes in too many small slices from too many donors, creating high transaction costs and making it difficult for partner countries to effectively manage their own development. This chapter examines the extent to which aid is fragmented or concentrated, drawing on findings from the Report of the 2008 Survey of Aid Allocation Policies and Indicative Forward Spending Plans by the OECD-DAC. Flows are analysed using an innovative new aid measure, country programmable aid (CPA). As well as looking at the scale of the problem, this chapter also looks at some approaches to reducing aid fragmentation through a more effective “division of labour” among donor countries.

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