in real terms after the 2005 peak and is still way below target.
(total ODA, billion dollars, 2004 prices)
Sources: Organization for Economic Cooperation and Development (OECD)/Development Assistance Committee (DAC); World Bank estimates.
Note: Other donors include non-DACdonors reporting to the OECD/DAC; this category does not include such countries as Brazil, China, India, Russia, and South Africa, which are becoming important aid providers.
Exacerbating matters, of the aid that was given, debt-relief grants totaled one-fifth of total ODA during
. Global problems will mostly be solved locally, country by country.
In this complex world, there is no right level for official development assistance. Yet, in the DAC, we do not doubt that faster progress could be made toward the world we seek if donors could increase their aid levels significantly.
Given the important role of ODA, it is useful to review how the donors have responded to the development challenge. The DACdonors in 1962 provided about $27 billion (measured at 1987 prices and exchange rates). In 1988, they provided $44.3 billion, an increase in real
Committee (DAC) fell 5 percent in 2006. Most of the increase in ODA in 2005 reflected exceptional debt relief operations to two countries; less than a quarter represented net transfers of new resources. A winding down of debt relief operations and a decline in other forms of aid pulled ODA lower in 2006, and official assistance is projected to fall in 2007.
At the Group of Eight summit in 2005, DACdonors pledged to scale up their aid to Sub-Saharan Africa. Nearly two years later, there is little indication of actual increases. In fact, official assistance to the region
The latest aid numbers point to mixed progress on aid volumes from traditional Development Assistance Committee (DAC) donors. Aid declined in 2006 and 2007 as major debt relief operations tapered off. To meet the commitment of the Group of Eight and other donors to increase aid by $50 billion (from 2004 levels) by 2010, donors will need to sharply accelerate the expansion of core development aid to an estimated 12 percent annual growth rate. However, preliminary evidence from the forward survey of donors’ aid allocations suggests that these rates are not yet