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Aid reform: the OECD is saving face but losing legitimacy

Fejerskov, Adam Moe / Niels Keijzer
External Publications (2015)

published on DIIS Impact March 2015

The members of OECD’s Development Assistance Committee (DAC) neglect the one key reform that its development assistance needs: a systematic involvement of developing countries to ensure that Official Development Assistance (ODA) reflects what these countries consider relevant support for development.
In December, the DAC convened in Paris. Although several important decisions were made at the meeting, the question of ODA reform remains unresolved. By agreeing only to a partial reform the DAC has saved face, but will ultimately lose legitimacy, this DIIS Impact by Adam Moe Fejerskov and Niels Keijzer argues.

Three recommendations for ODA reform are given:
  1. The DAC needs to reform the governance of ODA and its reporting system by giving developing country representatives a direct say, and by impro­ving transparency of its decision-making.
  2. The DAC should present its reforms to the UN, so as to seek wide endorsement of their reforms and establish a permanent dialogue with the UN on ODA and relevant development finance   statistics.
  3. Only expenses that meet the DAC’s own require­ments for ODA should be allowed to be reported as ODA.

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