As the world progresses towards agreeing a new and hopefully ambitious development framework and goals post-2015, the donor community has a particular responsibility to live up to their commitments on Official Development Assistance.
This means not just delivering credible recommitment to and action on globally agreed aid targets, but also living up to the spirit of that commitment. While the quantity of aid available to finance a post 2015 framework will be crucial to its achievement, the quality and modality of that aid will be equally important and must remain in keeping with the spirit of that commitment – that is genuine aid to developing countries that has poverty reduction and sustainable development as its primary goal.
- The DAC SLM should provide clear recommendations to the HLM to ensure that any decisions and changes:
- Protect the development focus and nature of ODA including a transparent and accountable reporting system.
- Ensure that no one is left behind – regardless of where poverty persists.
- Revise the definition of concessionality and only count the grant element calculated at a more favourable discount rate than the current 10%. Interest repayments should also be deducted from net loan figures.
- Maintain a clear divide between ODA and climate finance while encouraging the mobilisation of sufficient resources to meet sustainable development needs.
- Private flows mobilised by public resources should be fully transparent, fully untied and able to demonstrate clear financial and development additionality. Donors should only report public resources used to mobilise these funds.
- Ensure that only genuine aid to developing countries is counted as ODA – including providing evidence to support the development additionality of any permitted in donor costs.