FRANCE'S PROGRESS 2004-10

Between 2004 and 2010, France increased its development assistance to sub-Saharan Africa by $1.09 billion (€820 million), delivering a total of $4.21 billion (€3.18 billion) in 2010 and meeting 44% of its promised increases. It was the fourth largest provider of global development assistance in 2010 and the second largest among the G7 in terms of ODA/GNI (after the UK). Of France's global increases between 2004 and 2010, 30% were directed to sub-Saharan Africa.

France has been a champion of the Global Fund since its inception, providing the second largest amount among donors; its contributions and pledges have totalled $4.00 billion (€2.91 billion) since 2000. It has taken steps to improve the effectiveness of its development assistance, specifically through enhanced predictability (thanks to the adoption of a three-year budget cycle), although the growing proportion of loans within its bilateral development assistance is a worrying trend.

LOOKING AHEAD: 2010–15

France's 2005 development assistance commitment was one of the most ambitious within the G8, with a pledge to reach 0.5% ODA/GNI by 2007 and to direct 66% of total development assistance towards Africa (a proportion higher than the other EU donors). However, this commitment has been eroded in subsequent years. In 2008, the target year to reach 0.7% of GNI was changed from 2012 to 2015, reducing France's 2010 indicative target by more than $2 billion. Then in 2009 France decided that 60%of its bilateral financial efforts would be directed to sub-Saharan Africa2 and that 14 priority countries (all in the region) would receive at least 50% of its bilateral grants during the 2011–2013 budget period.

The 2011–2013 French budget includes a three-year freeze on credits from the ODA mission, which will make it very difficult for the country to reach its targets by 2015. As a result, its relationship with Africa is at a crossroads this year – as President of the G8 and the G20, it has the opportunity to regain its global leadership on development. President Sarkozy's efforts to forge a G20 agreement on innovative financing for development could, if successful, leverage substantial new resources for development and help fill the resource gap faced by countries striving to reach the MDGs. Because development assistance commitments fall far short of the amount required to meet the MDGs, it is critical that any new resources from innovative mechanisms are additional to existing and promised ODA.

Inclusive, sustainable economic growth is another area in which France can assert a leadership role in 2011. President Sarkozy has already taken steps on this agenda by asking Tidjane Thiam, a former Ivorian minister and successful businessman, to convene representatives from the public and private sectors within the framework of the French G20 to explore new ways to boost infrastructure in Africa. There were fears that France would resort to supporting national companies through its ODA, but recent statements underline the government's commitment to untying aid, France's recognition of the role of the private sector is critical, and should be leveraged to forge new partnerships for development.

Although France has taken steps to improve the quality of its development assistance in recent years, certain trends are worrying. France is increasingly relying on loans, rather than grants, to drive increases in its development assistance. Subsidised loans, which can be effective development tools in some cases, also provide a low-cost way for it to count large amounts of resources as ODA. As debt sustainability rules do not allow the poorest countries to benefit from loans for fear of exacerbating their debt burden, recent increases in French ODA have disproportionately benefited more developed countries.

In addition, the ODA France reports to the DAC is boosted by large amounts of debt relief, costs of receiving refugees, tuition fees for foreign students studying in France and assistance to French Overseas Territories. While the OECD/DAC authorises countries to count these contributions as development assistance, in France's case the amounts are very large, exceeding $3.3 billion (€2.5 billion) in 2010.

Following the Interministerial Committee for International Cooperation and Development (CICID)'s decision in 2009 to establish a French development strategy, in 2011 the government released a framework document, 'Cooperation and Development: A French Vision'. This document is an important step towards a more transparent and predictable development agenda for France.

To build on the G8's efforts to improve their accountability, France can also clarify its own development committments (for example, President Sarkozy's 2008 commitment of €10 billion to sub-Saharan Africa) and can urge the G8 and G20 to endorse the TRACK principles to ensure clarity on future promises.

The development outcomes of the 2011 G8 and G20 summits will be a testament to France's global leadership. The summits provide an opportunity for France to clarify its development agenda, solidify its historic partnership with sub-Saharan Africa and position itself as a global development champion for the years to come.