The quality of aid In 2005, all DAC members met the 1978 DAC Terms Recommendation, by giving at least 86% of their aid to LDCs (or 90% of their aid to each LDC over the preceding three years) as grants. In 2001, the DAC agreed a Recommendation on Untying Aid to the Least Developed Countries, which is being carefully monitored. In 2005, indicators of effort show progress compared to the baseline 1999-2001. ODA volume has not been affected by the recommendation. Paris Declaration represents the first time donors and partner countries are committed to targets for monitoring aid effectiveness. The 2006 baseline survey on Monitoring the Paris declaration (19 LDCs participated) shows that progress is to be done on the three basic conditions required to make aid effective: aid has to be predictable, accountable and cost-effective. More info on this survey: www.oecd.org/dac/effectiveness/monitoringwww.oecd.org/dac/effectiveness/monitoring
Warning signs for aid to LDCs Several major aid donors still well short of meeting aid targets, and likely to miss them for 2006. G8 and Millennium Summit pledges to double aid to Africa – where most LDCs are located – by 2010 are still a challenge. Governance and security concerns impeding aid to many LDCs.
Positive signs for aid to LDCs Non-DAC Donors Three major initiatives, all health related: IFFIm, AMC and air tickets levies Relatively modest, but significant addition to health-related ODA flows Although non-DAC donors have increased their ODA contributions, DAC countries still account for 99% of ODA to LDCs. Innovative Finance Global fund targeting HIV/AIDS, tuberculosis and malaria
End remarks More efforts need to be made if DAC countries want to meet 0.15 % of GNI target. These efforts need to target real problems of developing countries (hunger, disease and lack of freedom and opportunity) Results on the improvement of life conditions in these countries will be the real test of the effectiveness of aid.
Thank you for your attention. For more information on aid flows, visit the DAC website at www.oecd.org/dac/stats