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The OECD Development Assistance Committee in the New World Order: five challenges for the future of global development policy

in: Mark Furness / Niels Keijzer (eds.), International development cooperation and the emerging global order, Bonn: German Institute of Development and Sustainability (IDOS), 19-22

ISBN: 978-3-96021-288-1
DOI: https://doi.org/10.23661/idp4.2026

The year 1961 can be seen as the “Big Bang” of international development policy. First, in that year, the Development Assistance Committee (DAC) of the OECD was established. In the context of the Cold War, the United States pushed for an international system to support developing countries. In 1961, US President John F. Kennedy consolidated existing efforts to assist developing nations into USAID. Last but not least, in the same year, Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) was established in what was then West Germany as a dedicated ministry to support developing regions (Bracho, Carey, Hynes, Klingebiel, & Trzeciak-Duval, 2021). The DAC has long been both a symbol of, and a “norm entrepreneur” in, development cooperation (Esteves & Klingebiel, 2021; Janus, 2022; Sumner & Klingebiel, 2025). It is often seen as synonymous with the form of development cooperation practised by “traditional donors”, that is, a club of high-income countries. Linked to this has been the criticism that the governance of ODA reflects persistent global power inequalities. At the same time, the DAC has served as the central forum in which key norms and quality standards of development cooperation have been negotiated over more than 60 years. It was within the DAC that the concept of “official development assistance” (ODA) was developed. ODA refers to public resources provided on concessional terms to promote economic and social development in developing countries. DAC members are also regularly assessed through peer review processes that assess their adherence to agreed standards (Ashoff, 2013). Like the role of the Programme for International Student Assessment (PISA) in education policy, these reviews in theory serve both disciplinary and supportive functions. In practice, no DAC member country has wished to be publicly criticised for failing to comply with jointly adopted DAC standards and relevant international agreements. Last but not least, the DAC members also issue statements of good practice and position papers on the international development agenda. These documents have been influential and have, for instance, influenced the 2000 UN Millennium Declaration and the eight Millennium Development Goals adopted – which in turn evolved into the current 2030 Agenda and its Sustainable Development Goals (SDGs). DAC membership has expanded considerably since its creation, growing to 33 members today. Several nations once classified as developing countries, such as Spain, South Korea and a number of states that joined the EU in and after 2004, later sought and obtained DAC membership. At the same time, a growing number of OECD members, including Turkey, Mexico and Chile, have decided not to join the DAC. This reflects differing approaches to development cooperation and varying degrees of commitment to ODA-based norms. Countries that do not see themselves as part of a collective commitment around the ODA target of 0.7 per cent – such as Mexico, which historically identified with the Global South and was a founding member of the G77 before joining the OECD in 1994 – have so far remained outside the committee. Despite these variations, the United States played a decisive role in establishing the DAC as a rule-setting and coordinating body. US influence extended beyond institutional design. For decades, the United States also dominated personnel decisions and held the DAC chair until a rotating system was introduced (Bracho et al., 2021).