Ref. :  000029193
Date :  2008-04-04
Language :  English
Home Page / The whole website
fr / es / de / po / en

Debt Relief is down: other ODA rises slightly

Author :  OCDE / OECD

The 22 member countries of the OECD Development Assistance Committee, the world’s major donors, provided USD 103.7 billion in aid in 2007. The 2007 outturn reflects: the end of exceptionally high levels of debt relief (notably for Iraq and Nigeria) as well as a small increase in other official development assistance. Overall, most donors are not on track to meet their stated commitments to scale up aid and will need to make unprecedented increases to meet the targets they have set for 2010.

Total ODA in 2007

With the end of exceptionally high debt relief, total official development assistance (ODA) from members of the Development Assistance Committee (DAC) fell by 8.4% in real terms in 2007 to USD 103.7 billion, according to provisional data reported by members. This represents a drop from 0.31% of members’ combined gross national income in 2006 to 0.28% in 2007 (see Table 1 and Chart 1).

The fall was expected. ODA had been exceptionally high in 2005 (USD 107.1 billion) and 2006 (USD 104.4 billion), due to large Paris Club debt relief operations for Iraq and Nigeria. Debt relief grants diminished in 2007 to USD 8.7 billion as the Paris Club operations tapered off (see Table 2).

Excluding debt relief grants, DAC members’ net ODA rose by 2.4%.

Bilateral aid to sub-Saharan Africa, excluding debt relief, increased by 10% in real terms. This represents an improvement on the recent rate of increase. But it is clear that donors still face a real challenge to meet the Gleneagles G-8 summit projection to double aid to Africa by 2010.

Donor performance

The largest donors in 2007, by volume, were the United States, followed by Germany, France, the United Kingdom and Japan. The only countries to exceed the United Nations target of 0.7% of GNI were Denmark, Luxembourg, the Netherlands, Norway and Sweden.

In 2007, net ODA by the United States was USD 21.8 billion, representing a fall of 9.9 % in real terms. Its ODA/GNI ratio fell to 0.16%. This fall was mostly due to debt relief, which was high in 2006, and a reduction in ODA to Iraq. Excluding debt relief, there was an increase in ODA to sub-Saharan Africa (+4.4% in real terms to USD 4.5 billion) and the Least Developed Countries (+4.0% to USD 4.8 billion). ODA to Afghanistan increased (+11.7% to USD 1.6 billion) and remained important to Iraq (-25.5% to USD 3.7 billion). The United States’ ODA to fight HIV/AIDS increased by 26.1% to USD 3.4 billion.

Japan’s net ODA was USD 7.7 billion, representing 0.17% of GNI. The 30.1% fall in real terms was in part due to a decrease in debt relief operations, which were exceptionally high in 2005 and 2006, and to a decrease in contributions to international financial institutions. Japan’s ODA has been on a downward trend since 2000, except for an increase in 2005 and 2006 due to debt relief.

The combined ODA of the fifteen members of the DAC that are EU members – which represents 60% of all DAC ODA - fell by 5.8% in real terms to USD 62.1 billion, representing 0.40% of their combined GNI. The fall was mainly due to a decrease in debt relief grants. Excluding these, net ODA from DAC EU members rose by 8.8%.

Aid rose in real terms in nine DAC EU countries as follows:

Germany (+5.9%), reflecting an increase in bilateral aid and contributions to international organisations;
Ireland (+4.6%), maintaining its ODA/GNI ratio at 0.54% despite the strong increase in Irish GNI;
Luxembourg (+11.7%), due to the general scaling up of its aid;
Spain (+33.8%), mainly due to a rise in its multilateral contributions, within a planned process of sustained scaling-up of its aid;
Austria (+7.6%), Denmark (+2.9%), Finland (+5.5%), Greece (+5.3%) and the Netherlands (+3.1%) also increased their aid.

Aid from many DAC EU countries fell in real terms, due mainly to decreased debt relief: Belgium ( 11.2%), France (-15.9%), Italy (-3.6%), Portugal (-9.4%), Sweden (-2.6%) and the United Kingdom ( 29.1%). Excluding debt relief (see Table 2), aid rose in these countries with the exception of Portugal and the United Kingdom (where net ODA decreased slightly due to sales of equity investments).

Net ODA by the European Commission rose by 3% to USD 11.8 billion mainly due to increased programme and project aid. Humanitarian aid also increased, and the EC’s disbursement capacity continued to improve.

ODA from other DAC countries rose or fell from 2006 to 2007 as follows:

Australia (+1.0%) as increased bilateral ODA offset the return to normal levels of debt relief;
Canada (-2.7%), due to a fall in contributions to multilateral organisations as well as reduced debt relief;
New Zealand (+3.7%);
Norway (+13.4%), in large part due to increased equity investment;
Switzerland (-3.0%), due to a lower volume of debt relief.

The following non-DAC economies also reported changes in net ODA as follows:

Chinese Taipei (-7.6%);
Czech Republic (-3.6%);
Hungary (-49.9%);
Iceland (-6.5%);
Korea (+42.8%), as contributions to international organisations rose;
Latvia (+23.4%);
Lithuania (+74.8%), due to increased assistance to Afghanistan and contributions to the EC;
Poland (+3.2%);
Slovak Republic (+0.6%).

On a gross basis (i.e. without deducting loan repayments), ODA was USD 116.5 billion, with the United States (USD 22.6 billion), Germany (USD 13.8 billion), Japan (USD 13.6 billion), the United Kingdom (USD 11.8 billion) and France (USD 11.6 billion) accounting for 63% of the total (see Table 3).

Future ODA prospects

At the Gleneagles G8 and UN Millennium +5 summits in 2005, donors committed to increase their aid. The pledges made at these summits, combined with other commitments, implied lifting aid from USD 80 billion in 2004 to USD 130 billion in 2010 (at constant 2004 prices). While a few countries have slightly reduced their targets since 2005, the majority of these commitments remain in force. Chart 2 shows the history of ODA levels since 1990 and the steep increase still required for donors’ current, somewhat reduced, commitments to be met. Chart 3 gives a simplified view of progress since 2004, compared with the original 2005 targets for ODA in 2010. This chart shows that ODA has only risen at half the rate required to meet the original targets.

Overall, most donors are not on track to meet their stated commitments to scale up aid; they will need to make unprecedented increases to meet their 2010 targets. The OECD has completed the first comprehensive survey of donors’ future spending plans to 2010 and the results will be published early in May. While the findings are still to be finalised, the preliminary conclusions that emerge are that donors have programmed around an additional USD 11 billion so far into their planned annual spending by 2010, on top of the extra USD 5 billion for country programmes that they delivered in 2005. This shows that efforts to increase aid are being factored into some donors’ forward plans, but it still leaves about USD 34 billion in 2004 dollars – about USD 38 billion in 2007 dollars – to be programmed into donor budgets if the commitments made in 2005 to substantially increase aid by 2010 are to be fully met.

See tables and charts.

Related documents:

* “We must do better” Trends in Development Assistance (English)
* OECD Development Assistance Committee Figures on 2007 ODA - Remarks by Eckhard Deutscher, DAC Chair (English)

For more information journalists are invited to contact Simon Scott in the Development Co-operation Directorate (tel: + 33 1 45 24 15 60).

Rate this content
Average of 79 ratings 
Rating 2.43 / 4 MoyenMoyenMoyenMoyen
Same author:
 flecheObesity Update 2017
 flecheHow’s life?
 flecheBetter international co-ordination could lead to more worldwide benefits from migration
 flecheSingapore tops latest OECD PISA global education survey
 flecheCities will become inequality traps without better housing, transport policies
 flecheGrowing risk of social exclusion among early school leavers
 flecheThe Economic Consequences of Outdoor Air Pollution
 flecheCompare your country: International Migration
 flecheOECD International Migration Outlook 2016
 flecheGovernments must address anti-immigration backlash
 flecheAfrican Economic Outlook 2016
 flecheEnvironmental performance review of France 2016: France will need further effort to meet environmental goals
 flecheOECD Economic outlook
 flecheGlobal economy stuck in low-growth trap: Policymakers need to act to keep promises, OECD says in latest Economic Outlook
 flecheLending to SMEs and entrepreneurs is improving, but more diverse forms of financing are needed
 flecheWorld imports of fake goods worth nearly half a trillion USD a year
 flecheOECD study finds Britons will be paying a heavy “Brexit tax” for many years if UK leaves EU
 flecheDevelopment aid rises again in 2015, spending on refugees doubles
 flecheOECD countries confirm their drive to improve gender equality in public leadership
 flecheFlux de cocaïne
 flecheNew data show importance of quality as well as quantity of jobs and how both evolved during crisis
 flechePolitical finance needs tighter regulation and enforcement
 flecheA boost to transparency in international tax matters: 31 countries sign tax co-operation agreement to enable automatic sharing of country by country information
 flecheFurther reforms needed to tackle growing risk of pensioner poverty
 flecheSpain’s future prosperity depends on raising skill levels and removing barriers to employment
 flecheCountries should address disruptive effects of the digital economy
 flecheDiscrimination and poor job prospects hit children of immigrants
 flecheMore than 3 million German emigrants in OECD countries
 flecheAction is needed to secure future livelihoods in developed and emerging economies, says the OECD Development Centre
 flecheLow oil prices and monetary easing triggering modest acceleration of global recovery
 flecheEarly gender gaps drive career choices and employment opportunities
 flecheShifts in migration underline need for policy reform, says OECD
 flecheAsia/Pacific countries need to improve affordable access to healthcare, says OECD
 flecheComprehensive action needed to shift the global economy into higher gear, says OECD in latest Economic Outlook
 flechePoorer regions struggling to catch up in advanced economies, says OECD
 flecheOECD releases first BEPS recommendations to G20 for international approach to combat tax avoidance by multinationals
 flecheProgress made but Chile should better detect and thoroughly investigate foreign bribery, says OECD
 flecheAmbitious structural reforms can pave the return to strong and sustainable growth, OECD says
 flecheEmployment situation, third quarter 2013, OECD
 flecheLatin America: Tax revenues continue to rise, but are low and varied among countries, according to new OECD-ECLAC-CIAT report
 flecheAsian countries top OECD’s latest PISA survey on state of global education
 flecheOECD Employment Outlook
 flecheGlobal economy advancing but pace of recovery varies, says OECD Economic Outlook
 flecheGlobal economy is improving but Europe lags behind, says OECD
 flecheGlobal portal on product recalls
 flecheInternet firms driving information technology industry growth, says OECD
 flecheInternational Economic Forum on Africa (4 October 2012, Paris - France)
 flecheAgriculture: Increased productivity and a more sustainable food system will improve global food security OECD and FAO publish new Agricultural Outlook
 flecheEconomy: migration starting to rebound, says OECD
 flecheCreate Your Better Life Index
 flecheGrowth in health spending grinds to a halt
 flecheTowards Green Growth: Monitoring Progress - OECD Indicators
 flecheWater: Balancing demand
 flecheReducing inequality while boosting economic growth is possible, says OECD
 flecheEconomy: Global shocks to become more frequent, says OECD
 flecheEnvironment: Green and growth go together
 flecheKorea and Finland top OECD’s latest PISA survey of education performance
 flecheEnvironmental taxation can spur innovation, says OECD
 flecheHealth: OECD says governments must fight fat
 flecheOECD iLibrary: New platform delivers integrated access to OECD’s knowledge base
 flecheEconomy: Recovery slowing amid increased uncertainty, says interim economic assessment
 flecheDeveloping countries set to account for nearly 60% of world GDP by 2030, according to new estimates
 flecheEconomy : G20 keeps investment flows open, but continued vigilance needed, say OECD, UNCTAD
 flecheDevelopment aid rose in 2009 and most donors will meet 2010 aid targets
 flecheWater: The right price can encourage efficiency and investment
 flecheDonors’ mixed aid performance for 2010 sparks concern
 flecheSqueeze on public budgets boosting e-government, says OECD
 flecheGurría calls for ‘new generation’ of statistics to reinforce public confidence in government
 flecheOECD welcomes experts’ call on need for new measures of social progress
 flecheOECD Global Forum consolidates tax evasion revolution in advance of Pittsburgh
 flecheKeep doors open to migrant workers to meet long-term labour needs, says OECD
 flecheOECD Teaching and Learning International Survey (TALIS)
 flecheDevelopment Aid at its highest level ever in 2008
 fleche10th OECD forum (23-24 june 2009, Paris)
 flecheCrisis is an opportunity to revive trade reforms, says OECD report
 flecheRebalancing the world Economy: OECD development co-operation report 2009
 flecheOECD composite leading indicators fall to lowest levels since 1970s
 flecheIncome inequality and poverty rising in most OECD countries
 flecheFinancial centres become more transparent, but information exchange remains a problem for some
 flecheTailor immigration policies to future needs, says OECD
 flecheBiofuel policies in OECD countries costly and ineffective, says report
 flecheLabour market discrimination still a big problem in OECD countries
 flecheFarm policy reform urgent amid rising world food prices
 flecheOECD-FAO Agricultural Outlook 2008-2017 - Highlights
 flecheOECD countries stay open to commercial investments by sovereign wealth funds
 flecheOECD Environmental Outlook to 2030 - Summary
 fleche2008 OECD Environmental Outlook - How much will it cost to address today's key environmental problems?
 flecheHelping immigrants integrate better into society must become a priority, says OECD Secretary-General
 flecheGovernments must do more to help workers adapt to new global economy, says OECD
 flecheOECD Employment Outlook - 2007 Edition - Summary
 flecheOECD Employment Outlook 2007 - Statistical Annex
 flecheIntergenerational Transmission of Disadvantage: Mobility or Immobility across Generations? A Review of the Evidence for OECD Countries
 flecheInternational migration to OECD countries continues to grow in response to labour needs
 flecheReport "Giving Knowledge for Free: The Emergence of Open Educational Resources"
 flecheOpen Educational Resources bring new opportunities, challenges
 flecheOECD annual ministerial meeting to discuss globalisation, innovation and trade (Paris on 15-16 May 2007)
 flecheOECD warns against reform complacency as new report highlights priorities for action
 flecheThe Euro area - will the recovery last?
 flecheOECD Global Forum on International Investment “Enhancing the investment climate: the case of infrastructure”
 flecheMore OECD countries focusing on early childhood as key to education success
 flecheThe Gender, Institutions and Development Data Base
 flecheOECD-FAO Agricultural Outlook - 2006-2015
 flecheAfrican Economic Outlook 2005/2006: Economic prospects improve in much of Africa, though transportation remains a problem
 flecheOECD Forum 2006 : "Balacing Globalisation" (Paris, 22-23 May 2006)
 flecheL’OCDE incite les pouvoirs publics et l’industrie à intensifier la lutte contre le spam
 flecheMinisters look to integrate environment protection with development aid 3 - 5 April at OECD headquarters
 flecheLes élèves qui maîtrisent l’informatique obtiennent de meilleurs scores à l'école
 flecheOECD Handbook on Economic Globalisation Indicators
 flecheConference on the future digital economy: digital content creation, distribution and access (30-31 January 2006, Rome - Italy)
 flecheOECD and the WTO Hong Kong Ministerial Conference
 flecheLess robust than meets the eye?
 flecheOECD urges freer trade combined with structural adjustment to reap benefits from globalisation
 flecheGlobal scientific research project launched to improve understanding of the human brain
 flecheEconomic Survey of the Euro Area 2005
 flecheOECD countries warn of continuing shortfalls in insurance coverage against terrorism
 flecheOECD urges governments to work with social partners on teacher policy
 flecheOECD urges more dynamic employment policies as response to globalisation
 flecheAgriculture export competition will intensify, with rising share of trade by developing countries
 flecheHigh-Level Meeting of the OECD Committee for Agriculture, 14-15 June 2005 - Chair Franz Fischler's Summary
 flecheBrazil, China, India and South Africa to tackle food and agriculture challenges with OECD
 flecheOECD Ministerial Council Meeting, 3-4 May 2005, Chair’s Summary
 flecheOECD environmental performance review of France - A positive but demanding assessment
 flecheCentral Asia since 1991 - The Experience of the New Independent States
 flecheLand, Violent Conflict and Development
 flecheThe Impact of Social Institutions on the Economic Role of Women in Developing Countries
 flecheLa condition des femmes en Inde, Kenya, Soudan et Tunisie
 flecheDecentralisation and Poverty in Developing Countries: Exploring the Impact
 flecheData base on immigrants and expatriates
 flecheDonnées environnementales
 flecheStructure and Trends in International Trade in Services
 flecheWorld trade / 2002- 2004
 flecheOECD Releases New GDP Comparisons Based on 2002 Purchasing Power Parities
 flecheJohnston, Donald J.
 flecheOECD Governments, Insurers Clarify the Definition of Terrorism for Insurance Purposes
 flecheCT Access now Widespread but Laggard Users Risk New Digital Divide, Warns OECD
 flechePISA 2003
 flecheTop-performer Finland improves further in PISA survey as gap between countries widens
 flecheBhagwati, Jagdish
 flecheTruly global
 flecheOECD's Environmental Performance Review of Sweden
 flecheOECD International Trade Statistics - Trends in Second Quarter 2004
 flecheEducation Levels Rising in OECD Countries but Low Attainment Still Hampers Some
 flecheOECD Economic Outlook - may 2004
 flecheAnalyse des politiques d'éducation
 flecheOECD Task Force to Coordinate Fight against Spam
 flecheFrance Needs More Regulatory Reform to Strengthen its Economy, Says OECD
 flecheOECD Countries are not on Track to Meet their Environmental Commitments
 flecheEnvironment Ministers to Meet at OECD 19-21 April 2004
 flecheOECD Backs Broadband for Economic and Social Development
 flecheActivites de lutte contre la corruption en Europe de l'Est et central
 flecheScience, Technology and Innovation for the 21st Century. Meeting of the OECD Committee for Scientific and Technological Policy at Ministerial Level, 29-30 January 2004
 flecheDeclaration by the Heads of the IMF, OECD and World Bank
 flecheOECD Report Warns of Growing Risk of Teacher Shortages in OECD Countries
 flecheCompetition in the spotlight
 flecheL'OCDE incite les gouvernements à rendre leurs systèmes fiscaux plus efficaces
Keywords   go
Translate this page Traduire par Google Translate

Share on Facebook
Partager sur Twitter
Share on Google+Google + Share on LinkedInLinkedIn
Partager sur MessengerMessenger Partager sur BloggerBlogger