Luxembourg

Introduction

Luxembourg’s development co-operation strategy, The Road to 2030, prioritises four themes: 1) access to quality basic social services; 2) socio-economic integration of women and youth; 3) inclusive and sustainable growth; and 4) inclusive governance. The strategy also aims to leverage Luxembourg’s comparative advantage as a leading international financial centre and in the information and communication technology sector.

The development co-operation programme is focused on seven partner countries, five of which are in sub-Saharan Africa. As evidenced in the 2017 DAC Peer Review, co-operation with these countries is characterised by an acute sense of partnership with the national authorities and communities.

Official development assistance

Luxembourg is one of the few DAC members to contribute 1% or more of its gross national income (GNI) to official development assistance (ODA), well over the 0.7% target set by the United Nations, which it has exceeded every year since 2000. This generous budget does not include the cost of hosting refugees within its own borders or funding dedicated to combating climate change. With a ratio of 0.4% of ODA to national income committed to least developed countries (LDCs) in these categories, Luxembourg is one of the few DAC members to adhere to and surpass the 0.2% target in the Istanbul Programme of Action.

In 2018, Luxembourg provided USD 473 million in total ODA (preliminary data, current prices), using the new “grant-equivalent” methodology (see the methodological notes for further details) adopted by DAC members on their reporting of 2018 data as a more accurate way to count the donor effort in development loans. This represented 0.98% of GNI. Under the “cash-flow basis” methodology used in the past, 2018 net ODA was also USD 473 million, which represented an increase of 3.7% in real terms from 2017.

Luxembourg chose not to report expenditure on in-donor refugee costs as ODA in 2017 and in the previous years.

Luxembourg’s share of untied bilateral ODA (excluding administrative costs and in-donor refugee costs) was 98.8% in 2017 (slightly up from 98.5% in 2016), while the DAC country average was 82.1%. The grant element of total ODA was 100% in 2017.

Share

Embed code for this view

Copy code
Code copied!
Share

Embed code for this view

Copy code
Code copied!

In 2017, 72% of gross ODA was provided bilaterally, of which 25% was channelled through multilateral organisations (multi-bi/non-core contributions). Luxembourg allocated 28% of total ODA as core contributions to multilateral organisations. Learn more about multilateral development finance.

Share

Embed code for this view

Copy code
Code copied!
Share

Embed code for this view

Copy code
Code copied!

In 2017, country programmable aid was 57% of Luxembourg’s bilateral ODA, compared to the DAC country average of 48% (see the methodological notes for further details on country programmable aid). Project-type interventions accounted for 66% of this aid.

Share

Embed code for this view

Copy code
Code copied!
Share

Embed code for this view

Copy code
Code copied!

In 2017, Luxembourg channelled 41.3% of gross bilateral ODA through the public sector (up from 40.4% in 2016), 28% to and through civil society organisations (CSOs), and 25% through multilateral organisations. See the methodological notes for further details on channels of delivery.

Share

Embed code for this view

Copy code
Code copied!

In 2017, USD 86 million of bilateral ODA was channelled to and through CSOs. Between 2016 and 2017, ODA channelled to and through CSOs decreased as a share of bilateral aid (from 30% to 28%). Learn more about ODA allocations to and through CSOs and the Civil Society Days.

Share

Embed code for this view

Copy code
Code copied!

In 2017, bilateral ODA was primarily focused on Africa, with USD 130 million allocated to sub-Saharan Africa. Asia is the second main beneficiary region with USD 32 million allocated to Far East Asia and USD 17 million allocated to South and Central Asia.

Share

Embed code for this view

Copy code
Code copied!

In 2017, 50.6% of gross bilateral ODA went to Luxembourg’s top 10 recipients. Luxembourg’s seven priority partner countries are its top recipients. Support to fragile contexts reached USD 144 million in 2017 (46.9% of gross bilateral ODA). Learn more about support to fragile contexts.

Share

Embed code for this view

Copy code
Code copied!
Share

Embed code for this view

Copy code
Code copied!

In 2017, 46.1% of Luxembourg’s gross bilateral ODA (USD 141 million) was allocated to the LDCs, compared to the DAC country average of 23.5%. This is up from 45.9% in 2016. Lower middle-income countries received 22.7% of bilateral ODA in 2017, noting that 28.3% was unallocated by income group.

At 0.43% of total ODA/GNI in 2017 to the LDCs, Luxembourg is one of the few DAC members to reach and even surpass the UN target of 0.15-0.20% of GNI.

Share

Embed code for this view

Copy code
Code copied!

In 2017, 43% of bilateral ODA commitments (USD 132 million) was allocated to social infrastructure and services, mainly supporting education (USD 41 million) and health (USD 30 million). Humanitarian aid amounted to USD 54.5 million. Luxembourg also committed USD 55 million (19.3% of bilateral allocable aid) to promote aid for trade and improve developing countries’ trade performance and integration into the world economy in 2017.

Share

Embed code for this view

Copy code
Code copied!

USD 81 million of gross bilateral allocable ODA supported gender equality. In 2017, 29% of Luxembourg’s bilateral sector-allocable aid had gender equality and women’s empowerment as a principal or significant objective (down from 34% in 2016), compared with the DAC country average of 36%. Luxembourg’s aid to water and sanitation focuses on gender. Learn more about ODA focused on gender equality and the DAC Network on Gender Equality.

Share

Embed code for this view

Copy code
Code copied!

USD 60 million of bilateral ODA commitments supported the environment. In 2017, 21% of Luxembourg’s gross bilateral allocable aid supported the environment and 9% (USD 24 million) focused on climate change, compared with the respective DAC country averages of 33% and 25%. The relatively low proportion of aid allocated to combating climate change is partly due to Luxembourg’s decision to exclude climate finance managed by the Ministry of Sustainable Development and Infrastructures from ODA. Learn more about climate-related development finance.

Share

Embed code for this view

Copy code
Code copied!

Other financial flows and amounts mobilised from the private sector

Share

Embed code for this view

Copy code
Code copied!

In 2017, the Ministry of Foreign and European Affairs (MAEE) mobilised USD 1.5 million from the private sector through simple co-financing arrangements with the private sector. In previous years, Luxembourg also mobilised private finance through shares in collective investment vehicles (CIVs).

Share

Embed code for this view

Copy code
Code copied!

Of the country-allocable private finance mobilised in 2012-17, 79% targeted middle-income countries and 21% the LDCs.

Share

Embed code for this view

Copy code
Code copied!

Luxembourg’s private finance mobilised in 2012-17 mainly related to activities in the banking and financial services (90%) and energy (8%) sectors. Learn more about the amounts mobilised from private sector for development.

Institutional set-up

Luxembourg’s development co-operation is straightforward, comprising the MAEE, the executive agency Lux-Development (LuxDev) and the Ministry of Finance. The Directorate for Development Cooperation (DCD) at the MAEE is responsible for designing and implementing Luxembourg’s development co-operation policy while the development co-operation agency, LuxDev, executes around one-third of Luxembourg’s bilateral ODA on behalf of the state. The Ministry of Finance is responsible for multilateral initiatives with international financial institutions.

Share

Embed code for this view

Copy code
Code copied!

Evaluation system

The 2015 Evaluation Policy sets out the distribution of evaluation tasks between the MAEE and LuxDev. The ministry handles external independent evaluations while LuxDev delivers internal, independent evaluations. Both evaluation departments are institutionally separate from the operations teams. Learn more about evaluation in Luxembourg.

Multi-annual evaluation plans are developed and co-ordinated by the Quality Control Division within the MAEE and are subject to approval by the minister.

Visit the DAC Evaluation Resource Centre website for evaluations of Luxembourg development co-operation.

Performance against the commitments for effective development co-operation

Share

Embed code for this view

Copy code
Code copied!

Explore the Monitoring Dashboard of the Global Partnership for Effective Development Co-operation.

Government of the Grand Duchy of Luxembourg, Directorate for Development Cooperation and Humanitarian Affairs: https://cooperation.gouvernement.lu/fr/cooperation-au-developpement.html

Luxembourg Development Agency (LuxDev): https://luxdev.lu/en/home

Member of the OECD Development Assistance Committee (DAC) since 1992.

Luxembourg