Development Co-operation Report 2010

image of Development Co-operation Report 2010

The Development Co-operation Report, issued by the OECD Development Assistance Committee (DAC), is the key annual reference for statistics and analysis on the latest trends in international aid.

With only five years left to achieve the Millennium Development Goals (MDGs), much remains to be done. The task has become even more challenging given the economic, food and climate change crises of recent years. This report describes how the DAC has responded swiftly, putting the development dimension of these crises firmly on the political agenda and keeping the development community focused on providing more aid, and delivering it more effectively.

In times of economic uncertainty, it is particularly important for aid to provide value for money, and to ensure that it is not misused. The development community has responded by sharpening its focus on corruption; targeting and communicating clear development impacts; working increasingly through developing countries’ own systems to build capacity; and intensifying efforts in the poorest 30% of developing countries – a critical step toward achieving the MDGs. The report also describes how the DAC member countries intend to make their aid truly effective in the decades to come, by ensuring that climate change is addressed in each of their policy choices and by developing a broader, more inclusive approach.

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A 2009 policy statement on Australia’s international development assistance recognises the importance of aid effectiveness in making genuine improvements to people’s lives. In August 2009, participants of the Pacific Island Forum, chaired by Australia, endorsed the Cairns Compact on Strengthening Development Coordination in the Pacific. The compact aims to accelerate progress on the Millennium Development Goals by improving co-ordination among all development partners in the Pacific. Australia has now signed up to eight Pacific Partnerships for Development to increase mutual accountability for results and promote partner-led development. Where government systems are strong and accountability processes are in place, Australia, in collaboration with other donors, has made good progress in aligning and harmonising its programmes with partner countries’ development objectives. For example, in Viet Nam in 2009 Australia channelled around 50% of its bilateral aid through programme-based approaches (using Viet Nam’s own management systems). The Australian Agency for International Development is developing an Operational Policy and Management Framework for an effective and scaled-up aid programme in line with the Accra Agenda for Action (AAA).

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