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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Austrian development co-operation (ADC) has been challenged by the AAA and the DAC 2009 peer review (Box 8.2) to set the right priorities for its Aid Effectiveness Action Plan up to 2011 and beyond. This forthcoming action plan will adapt the mix of aid instruments to capacities in partner countries, make better use of local systems and encourage more joint approaches with other donors. For example, besides participating in Uganda’s Joint Assistance Strategy, ADC successfully increased the use of country systems and contributed to their strengthening in that country. Budget support is likely to become a preferred financing instrument for Austria in the long run so long as conditions in partner countries allow. ADC will concentrate on its comparative advantage as a small donor. Austria promotes country ownership: one of the guiding principles of its programmable aid.

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