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Development aid increased in 2010 but set to slow over the next three years

Aid flows from OECD Development Assistance Committee (DAC) donor countries totalled $129 billion in 2010, the highest level ever, and an increase of 6.5% over 2009. This represents about 0.32% of the combined gross national income (GNI) of DAC member countries. This means that some countries are still not meeting the targets set by the Gleneagles agreement, as can be seen in the chart below.

Source: OECD

In 2010, the United States, the United Kingdom, France, Germany and Japan were the largest donors of official development assistance (ODA) in terms of volume. EU countries that are members of the DAC provided a combined total of $70.2 billion, representing 54% of total net ODA provided by DAC donors.  Denmark, Luxembourg, the Netherlands, Norway and Sweden continued to exceed the United Nations ODA target of 0.7% of GNI. The largest increases in real terms in ODA between 2009 and 2010 were recorded by Australia, Belgium, Canada, Japan, Korea, Portugal and the United Kingdom.

However, a recent OECD survey shows that most donors plan to increase aid over the coming 3 years, though at a sharply reduced pace.  Aid will grow at 2% per year between 2011 and 2013, compared to the average 8% per year over the past three years. Aid to Africa is likely to rise by just 1% per year in real terms, compared to the average 13% over the past three years. At this rate, any additional aid to the African countries will be outpaced by population growth.

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Posted in aid, OECD

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