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CDP Secretariat organises workshop in Brussels on capacity development experiences

On 6 April 2016, the CDP Secretariat is organising a workshop on its capacity development experiences in LDCs. The workshop is part of the DCF Belgium High-level Symposium on “Rethinking development cooperation for the SDGs: country-level perspectives and lessons“, to be held in Brussels from 6-8 April 2016. In line with the Symposium themes, an overview of the rationale for capacity building activities in LDCs will be provided. The presentation will highlight approaches, results achieved and impediments encountered. It will also summarize the main lessons learned in project implementation, in particular in enhancing collaboration between and among development partners and pilot...

ODA to LDCs dropped by 9.3 per cent in 2014

In 2014, LDCs received $43.7 million ODA, 9.3 per cent less than the year before. The drop can partly be explained by the lower levels of debt relieve, but when excluding debt relieve figures, ODA to LDCs still fell by 4.6 per cent. For the first time since 2005, less than 30 per cent of ODA went to LDCs. In general, however, ODA levels have been rising over the past 15 years. In 2014, an increase of 1.2 per cent was noted. The additional ODA did not flow to the LDCs, instead, more money was spent in particular on addressing humanitarian crises, fragile states and offering help to refugees arriving in ODA/DAC countries and transit countries. These numbers are in stark contrast...

Using the LDC criteria to allocate ODA: is it possible?

by Matthias Bruckner* Frequently, LDCs express concerns that graduation from the LDC category would lead to a sudden decline in ODA. While currently graduated countries have not experienced an ODA decline, the concerns are still real. If LDC status confers benefits, graduation implies a loss. Development progress is gradual, whereas change in status is abrupt. However, revising ODA allocation mechanisms could alleviate such concerns. The United Nations General Assembly agreed already to "invite development partners to consider [LDC indicators and criteria] as part of their criteria for allocation [ODA]".  This proposal is based on a suggestion made by the CDP, which noted that...

ONE proposes strategy to increase ODA flows to LDCs

ONE, the international campaigning and advocacy organization, released a new report on the recent trend of declining ODA flows to LDCs. ONE makes a series of recommendations to reverse this trend. Based on OECD data, ONE reports that in 2014, ODA to LDCs dropped by two per cent compared with 2013. Compared with 2010 levels, flows fell by six per cent. The trend is more pronounced when one looks at bilateral ODA flows which dropped by 15 per cent between 2013 and 2014. ONE advocates a twofold strategy to reverse the negative trend. DAC Donors should commit to allocating 0.7 per cent of their GNI to ODA, ideally by 2020, and 50 per cent of ODA should go to LDCs, also by 2020. ...

Korea provides favorable loan conditions to LDCs

The Economic Development Cooperation Fund of Korea, administered by the Export-Import Bank of Korea and the Ministry of Strategy and Finance, provides concessional loans to LDCs to facilitate their industrial development and economic stability. The Fund offers five types of loans: (i) development project loans, (ii) equipment loans, (iii) public-private partnership loans, (iv) two-step loans and, (v) commodity loans. The Bank also provides compact loans, co-financing loans and mixed credit loans. The concessional loan mechanism identifies five groups of countries for which different interest rates and repayment periods apply. The LDCs are the group receiving the most favourable...

When should concessional loans be reported as ODA?

Members of the Development Assistance Committee of the Organization for Economic Cooperation and Development (DAC-OECD) met in Paris on 15-16 December 2014.  The main objectives of the meeting were to agree on how the measurement of official development assistance (ODA) could be revised to ensure greater transparency and comparability of data as well as to make the concept of ODA better adjusted and fit to today's global context and the needs of the upcoming United Nations sustainable development agenda.  In particular, members agreed to revise how concessional loans should be reported as ODA. Under the current system, concessional loans are reported as ODA only if they meet...

Targeting ODA towards LDCs: larger flows or smaller commitments?

The donor community has been increasingly interested in addressing shortcomings in the access to concessional development finance that LDCs are granted. Accordingly, the Secretariat of OECD/DAC has been asked to explore additional targets and incentives that would direct ODA towards this group of countries. One recent proposal is centered on the idea of having an LDC target determined by  a given share of OECD/DAC members' volume of ODA flows to developing countries. Currently, ODA targets to LDCs are based on a share of the donors' GNI. As specified in the Istanbul Plan of Action adopted at the IV UN Conference on the LDCs in May 2011, donors are to provide 0.15 to 0.20 per cent...

Bilateral aid from DAC members to LDCs fell by 16 per cent in 2014

Member countries of OECD-DAC spent over US$135 billion on development assistance in 2014. When compared to 2013, ODA flows declined by 0.5 per cent in real terms in 2014. The decline was disproportionately large in the case of ODA flows allocated to the LDCs. Bilateral aid to LDCs fell by 16 per cent in 2014. The drop in assistance to LDCs can partly be explained by the debt relief for Myanmar in 2013, which had pushed the flows to a historic high. However, even after controlling for debt relief, flows to LDCs dropped by 8 per cent in real terms. A survey on aid spending plans indicates that country-level aid to LDCs will recover in the coming years. Source: Public Finance...

UNCDF expenditures in LDCs

The UNCDF programme expenditures reached around $53.4 million in 2014, of which LDCs received $52.7 million. See also UNCDF support measure information. Programme expenditures and regional distribution, 2012-2014   2012 2013 2014 Programme expenditures (millions of dollars)   Total 42.2 47.1 53.4   of which: LDCs 41.3 46.1 52.7 Regional distribution of total programme expenditures (per cent)   Africa 69.0 60.0 59.0   Asia and the Pacific 28.0 40.0 41.0   Arab States 2.0 0.0 0.0 ...

UN Capital Development Fund (UNCDF)

UNCDF is the UN's capital investment agency for the LDCs. It creates new opportunities for poor people and their small businesses by increasing access to microfinance and investment capital. UNCDF programmes help to empower women, and are designed to catalyze larger capital flows from the private sector, national governments and development partners, for maximum impact toward the MDGs. To date UNCDF does not have smooth transition procedures in place for countries graduating from the LDC category. Available Smooth Transition Procedures -- Utilization by LDCs See Facts and Figures data on expenditures below. Resources UNCDF website

50 percent of Irish ODA will go to LDCs in 2015

Ireland promises to contribute half of its development assistance to LDCs in 2015. A target that the country also reached last year. 600 million Euro was granted to LDCs such as Ethiopia, Sierra Leone and Zimbabwe. Like most other OECD DAC members, Ireland's allocation of development aid did not reach 0.7 % of its GNI. In 2014, 0.39 % of the Irish GNI was spent on ODA. The LDC specific target, allocating at least 0.15 to 0.20 percent of the GNI as ODA to LDCs, was met. Source: Utv Ireland

Japanese Concessional ODA Loans

    Japan International Cooperation Agency (JICA)  is one of the major providers of Japan's bilateral development assistance in the form of technical cooperation, ODA loans and grant aid.   The Ministry of Foreign Affairs of Japan is the other major actor in this field.  JICA has concessional terms for developing countries, based on the LDC category and the World Bank income groups.  There are four groups of developing countries (as of 1 October 2014);  LDCs with per-capita income less than $1.035; Non-LDCs with per-capita income less than $1,035; LDCs with per-capita income equal to or greater than $1,035, and; Non-LDCs with...

Data on bilateral ODA flows

Data on bilateral ODA flows and targets gives users the possibility to view bilateral ODA flows to LDCs and corresponding targets established by the international community. The data includes information on targets for voluntary contributions from donor countries allocating 0.15% to 0.20% of their GNI as ODA to LDCs.  

GCCA Programmes on Climate Change

The Global Climate Change Alliance (GCCA) is an initiative of the EU, launched in 2007. It aims at strengthening dialogue and cooperation with developing countries most vulnerable to climate change and supporting their efforts to develop and implement adaptation and mitigation responses. It focuses on the LDCs and the SIDS. The GCCA rests on two pillars: 1. A platform for dialogue and cooperation between the EU and developing countries on climate policy. It also supports exchange of experience on practical approaches to integrate climate change into development policies and budgets; 2. Technical and financial support to developing countries, with priority on LDCs and SIDS, to...

Special ODA terms for LDCs: the average grant element

In the 1978 Recommendation on the Terms and Conditions of Aid, DAC members agreed on a series of measures designed to improve the overall financial terms of aid, either by increasing the share of grants (transfers made in cash, goods or services for which no repayment is required), or by reducing the interest rate or lengthening the repayment period of loans.  According to the recommendation, the average grant element in the ODA to LDCs  should be either 90 per cent of a given donnor's annual commitment to all LDCs or at least 86 per cent of the donor's commitments to each individual LDCs over a period of three years. For other developing countries, the norm is that 86 per...

Implementation of NAPA; October 2014 update

The GEF has recently  reported  on the implementation of the LDCF programmes, including the implementation of NAPAs. According to the Facility, as of 8 October 2014, 51 countries (former and current LDCs) received funding for the preparation of their NAPAs, with grants amounting to $12.2 million.  Of these, 50 countries have completed and submitted their NAPAs, while South Sudan was in the process of preparing its NAPA. As of 26 September 2014, funding for the implementation of NAPA projects under LDCF was approved for 48 countries, totalling $875.1 million among 158 projects.  Equatorial Guinea and Eritrea remained the only two countries that have completed...

The ODA flows to LDCs recovered in 2013

According to data released by the OECD, gross ODA flows to LDCs recovered in 2013 after the decline to $47.6 billion in 2012. Data for 2013 indicates that LDCs regained its share in total ODA. Gross flows reached $54.5 billion, a 16 per cent increase from the 2012 level.   

LDCF Fund

Funding available under the LDCF has increased recently. In October 2008, the fund counted with 19 contributing participants, which had pledged contributions equivalent to US$172.8 million. In March 2014, the Fund had 25 contributing participants with pledges amounting to US$880 million in contributions, of which US$832 had been paid.  See also Least Developed Countries Fund support measure information.   Least Developed Countries Fund: Status of Pledges and Contributions (As of 31 March 2014, Millions of dollars) Contributing participant Contributions pledged Contributions paid Australia 42.97 42.97 Austria 2.67 2.67 ...

LDCF contributions to NAPA projects

As of 19 March 2014,  the  LDCF supported  the implementation of NAPA  projects in 45 LDCs and 2 former LDCs (Maldives and Samoa), totalling $794 million and leveraging some $3.9 billion in co-financing as specified in the table below: NAPA funding per beneficiary country as of 19 March 2014 (Millions of dollars) Country LDCF funding Total project cost Country LDCF funding Total project cost Afghanistan 23.45 75.46 Mali 13.30 52.73 Angola 15.84 78.53 Mauritania 16.31 47.64 Bangladesh 16.00 79.96 Mozambique 14.83 53.81 Benin 24.88 ...

Progress in Untying ODA

In 2012, 85.9 per cent of DAC/OECD's bilateral aid to the LDCs was untied , excluding administrative costs. In the same year, 82.6 per cent of aid to all developing countries was untied.         Source:   United Nations MDG Gap Task Force Report 2012