Draft International Development (Official Development Assistance Target) Bill - International Development Committee Contents


Written evidence submitted by Karen Jorgensen, Head, Review and Evaluation Division, Development Co-operation Directorate, OECD, Paris

  Delivering on its commitment to providing 0.7% of GNI as ODA by 2013 will add to the UK's credibility. Enshrining this target in legislation will deepen the UK's commitment to international development, further enhance aid predictability, and encourage other donors to deliver on their commitments.

    — It is crucial that the UK delivers on its ODA/GNI commitment to achieve the 0.7% target by 2013. The G20 has reaffirmed, in London and in Pittsburg, the international aid commitments so that they form an intrinsic part of the broader global governance agenda and arrangements emerging in the wake of the financial crisis and beyond. A rising and more predictable flow of ODA is a key part of the overall effort by all countries—developed, emerging, and less developed—to foster achievement of the MDGs. More immediately, budgets of many developing countries were hit hard by the rises in food and oil prices in the last two years. Their fiscal space is becoming very limited. Whilst the full effects and duration of the financial crisis are still to be seen, and some low-income countries are resuming moderate growth paths, it is important for aid to play a countercyclical role to help balance the sharp reversal in overall flows to developing countries and counter the long-term development impact of the global economic crisis.

    — Reaching the 0.7% target would send a significant signal to the international community, underlining the UK's leadership role. Only five countries (Denmark, Luxembourg, the Netherlands, Norway and Sweden) have consistently met this target, which was formally adopted by the UN General Assembly, albeit with reservations by some DAC members, in 1968.[20] Six other countries have committed themselves to a timeline to reach this target before 2015: Belgium, Finland, France, Ireland, Spain and the United Kingdom. In 2008, total net ODA from members of the OECD's Development Assistance Committee (DAC) rose by 11.7% in real terms to USD 121.5 billion. This represents 0.31% of members' combined gross national income (and a DAC average country effort of 0.48%). This is the highest dollar figure ever recorded, but it is still a considerable way from the aggregate commitments made, at a time when the UN Secretary General is calling on world leaders to attend a summit in September 2010 to boost efforts to achieve the MDGs. (http://www.un.org/millenniumgoals/summitstroy.shtml)

    — The recognized global leadership role of the UK in the area of development co-operation means that the international community looks at how the UK delivers on its commitments. This is all the more the case since the UK has strongly urged other donors to announce and meet increased aid volume commitments since 2004—when the UK was the first G8 country to announce this ODA/GNI commitment. A legal act establishing 0.7% of GNI as the UK ODA target to be achieved by 2013 would put the UK ahead of the EU commitment (binding for EU members) of achieving 0.7% by 2015. This would send a powerful message to EU members who are struggling to meet their obligation, and would add to the UK's credibility as a global leader on development.

    — On the domestic side, this Act would also serve to reinforce the value the UK is placing on development vis-à-vis other priorities, recognizing that in a interdependent world, prosperity, security and health in the UK are increasingly inseparable from events far beyond its borders. The Act would reinforce this message and will make it more difficult for a government to renege on a commitment enshrined in law. This would also be instrumental in budget discussions.

    — The UK would thereby be one of the first DAC members to have the ODA/GNI commitment enshrined in law. Just over half the DAC member countries have passed legislation that establishes the priorities and objectives of their development co-operation. So far, only Belgium has a law that permanently prescribes an ODA/GNI target (since 2002[21]). Meanwhile other DAC members (Switzerland,[22] Spain) are considering introducing legal commitments on an ODA/GNI target; and others have long-standing government commitments to do so.

5 February 2010







20   History of the 0.7% ODA Target, published in the 2002 OECD/DAC Journal (Vol. 3, No. 4) Back

21   Belgium: The law of 31/12/2002 (Chapter 3 on development cooperation, art 458) commits the government to present in a note on solidarity the measures taken to ensure that 0.7% of GNI will be allocated to Official Development Assistance (as defined by the OECD/DAC) from 2010 at the latest.

http://www.dgci.be/fr/dgcd/documents_politiques/moniteur_loi_021231.pdf  Back

22   Switzerland: Parliament asked in 2009 the Federal Council to outline a growth path to reach a 0.5% ODA/GNI ratio by 2015. The Federal Council is preparing to put this proposal to parliament through an additional bill. However, given the current financial constraints the Federal Council will ask for additional means from parliament for the Multilateral Development Banks as from 2013 only. Back


 
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