Development Assistance Committee

The Organisation for Economic Cooperation and Development (OECD) was originally created after the Second World War to manage the Marshall Plan for aid to Europe. In 1960, the Development Assistance Committee (DAC) was formed within the OECD to provide a forum for donor governments and multilateral organisations to coordinate their efforts and increase the effectiveness of their development assistance. The DAC is currently comprised of 24 members, including former aid recipients such as Portugal, Greece, Ireland, Spain and its newest member, South Korea. Combined, current DAC members account for approximately 90% of estimated global development assistance flows.
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Because all members have agreed to a standard definition of ‘official development assistance’ (ODA) that allows for equal comparison across donors, the DAC is the most reliable source of internationally comparable ODA data. In addition to development assistance volumes, the DAC also monitors ODA effectiveness and provides guidance on how donors can better coordinate their efforts and implement the principles of the Paris Declaration.

DAC members are required to report their ODA flows to the DAC each year. Reporting is released in two stages. Preliminary top-line figures are usually released between late March and early April. All 2009 figures in this report are taken from the DAC’s 2010 preliminary release. Final figures are released by the DAC in December, including details on the allocation of development assistance to specific recipient countries and sectors and the mechanisms through which it is delivered. All 2008 and earlier data used in this report use the DAC’s final data release from December 2009. There is normally a slight difference between the preliminary and final figures.

As the global development landscape evolves to include new donors and innovative ways to raise resources for development, reliable statistics are becoming even more critical. In 2010, the DAC commemorates its 50th anniversary, a perfect time to re-imagine its role in global efforts to meet aid targets and deliver sustainable results in poverty reduction.

The DAC should take steps to engage more with both the public and developing countries. As a members-only club, the DAC sets its own rules, which can often result in limited transparency and accountability in decisionmaking. With its potential to advance the release of donor information early and to improve forward-looking data, the DAC should embrace the International Aid Transparency Initiative (IATI) to ensure that statistics are available to developing country governments to ensure optimal delivery of aid that is received.

The DAC’s lack of engagement with developing countries has meant that the wealth of statistics it gathers and reports is not fully utilised or tailored to the needs of governments and civil society in developing countries. The DAC should broaden representation within its working groups to ensure that discussions reflect the interests of developing countries as well as donor governments.

In the years ahead, the DAC should widen its strategic vision beyond a narrow focus on ODA to better evaluate its members’ efforts to eliminate poverty more broadly. The DAC’s Working Party on Aid Effectiveness, which includes partner countries as well as donors, is a step in the right direction.

As new forums such as the United Nations Development Cooperation Forum emerge, there will be multiple sources of development data that are increasingly inclusive, and which place greater emphasis on mutual accountability and transparency, both fundamental issues for ensuring effective assistance. The DAC should build on its expertise in ODA monitoring and reporting to embrace these issues and maintain its leadership in the evolving global development landscape.

GLOBAL ODA NET OF BILATERAL DEBT RELIEF
ODA TO SUB-SAHARAN AFRICA NET OF BILATERAL DEBT RELIEF