(Brussels, 16/12/2014) The way international development aid is reported is set to change, following a decision today in Paris by the OECD Development Assistance Committee (DAC) High level meeting.
The main decisions include:
- Reforming how loans are reported in aid
- Reporting of private sector contributions to development
- Stronger commitment to least developed countries (LDC’s)
CONCORD, the European confederation of Relief and Development NGO, has contributed to this process over the years but is concerned that the final discussion leading to the decisions did not include equal representation from partner countries. While the OECD DAC has made significant efforts in scaling up engagement with southern governments and civil society organisations much more needs to be done to ensure the decisions made are as inclusive and transparent as possible.
Commenting on the news were:
Jeroen Kwakkenbos, Eurodad’s Policy and Advocacy Manager – member of CONCORD AidWatch, said: “The decision by the OECD DAC to reform how loans are reported as aid is a critical step in restoring its credibility and ensuring that it is better adapted to a changing economic environment. The proposed changes are far from perfect but ensure a degree of predictability in the short term. It remains to be seen if they will be relevant and fit for purpose for the next 40 years. Development aid given as loans will need to be monitored closely so that issues of debt sustainability are carefully assessed and that the terms and conditions of these loans do not incentivise profit seeking behavior.”
Luca De Fraia, deputy director of ActionAid Italy – member of CONCORD AidWatch, said: “Any contribution by the business private sector to sustainable development is welcomed. This is already happening in many different guises across the globe, especially at the hands of many small and medium enterprises in local communities. The role of big companies and of donor country business is an entirely different story which needs to be framed through the effectiveness principles. The stated intention by DAC to use ODA to mobilize the private business for sustainable development is not new and rather sounds like wishful thinking at this stage as evidence is rather scant on this front. Also, it still has to be understood in whose interest resources that can be best used to meet fundamental needs should be diverted to so called catalytic tools whose accountability is weak”.
Amy Dodd, Coordinator of the UK Aid Network, and Chair of CONCORD AidWatch, said: “The DAC today took important steps to address some concerning trends including in particular the decline of aid to the poorest countries by recommitting to the UN goal of 0.15-0.20% of ODA to LDCs.”
Notes to editors
1. For the latest EU aid data read CONCORD’s AidWatch 2014 report: http://www.concordeurope.org/news-room/item/375-aidwatch-report-eu-will-miss-historic-aid-pledge-in-2015
2. CONCORD policy paper ‘Aid reform must pass the development effectiveness test’ on the OECD DAC HLM 2014 meeting http://www.oecd.org/dac/CONCORD%20AidWatch%20on%20ODA%20definition-FINAL.pdf
3. OECD DAC definition of Official Development Assistance available http://www.oecd.org/dac/stats/34086975.pdf
4. The 2014 High Level Meeting of the OECD Development Assistance Committee DAC (15 to 16 December 2014 in Paris) will have as its principal objective the modernisation of the OECD DAC development finance measurement framework to ensure that it is credible and fit-for-purpose in today’s global context. The decisions and actions taken as a result of the meeting will enable the OECD and its members to make an important contribution to future monitoring of the financing framework underpinning the forthcoming Sustainable Development Goals. http://www.oecd.org/dac/dac-hlm.htm