Tag Archives: Lester B. Pearson

Official Development Assistance 2014 (OECD report)

Four years ago, when I first wrote a blog post about the different NGOs that I supported, I briefly discussed the dire situation of Official Development Assistance (ODA) based on the OECD report from 2005.

OECD 2005 Development Aid

OECD 2005 Development Aid

Just 5 countries were then above the 0.7% threshold, that I recall was first suggested by:

[…] Lester B. Pearson (PDF, 40KB), former Prime Minister of Canada, who in 1969 recommended that resources equivalent to a minimum of 1% of the GNP of developed nations should flow to developing countries.

This 1%  would be made up of official development assistance, other official flows from the government, and private sector flows; the official development assistance component of the 1% commitment would be equivalent to 0.7% of GNP.

In this post I wanted to take a look at the latest data from the OECD which was released in a note published a few days ago, “Development aid stable in 2014 but flows to poorest countries still falling“. Together with the note you can download a file with all the statistics [XLS, 329KB] and a brief report explaining the figures [PDF, 349KB]. In my opinion the best way to understand the situation is to play with tool, of which I give a screenshot below:

OECD Official Development Assistance, 2014 data.

OECD Official Development Assistance, 2014 data.

In the graphic you can see that still today, as it was the case 10 years ago, only 5 countries (Denmark, Luxembourg, Norway, Sweden and the UK) exceeded the United Nations target of keeping ODA at 0.7% of GNI (the UK has taken the place of The Netherlands). In absolute terms, the bigger donors are the USA, the UK, Germany, France and Japan. The total net ODA from member countries of the Development Assistance Committee (DAC) was 135.2bn$ (practically the same as in 2013) or a 0.29% of the gross national income (GNI) of those countries.

OECD ODA 2014, target, average country effort and total DAC.

OECD ODA 2014, target, average country effort and total DAC.

In the graphic below you can see the evolution of the total ODA in the past years, which with the crisis has suffered from continuous up and downs.

OECD ODA 2014 evolution

 

Finally, using the tool, I dived into the case of Spain (my country of origin). You can see that Spain’s official development assistance contributions peaked in 2008-2009, when it reached 0.46% and 6.41bn$. The crisis then took its particular toll in Spain and priorities were redefined by the political class, almost completely forgetting about ODA. In the 2014 it contributed 1.89bn$ which represented 0.14% of the GNI, or a fifth of the UN target.

Spain's ODA evolution in relative (% of GNI) and absolute ($bn) terms.

Spain’s ODA evolution in relative (% of GNI) and absolute ($bn) terms.

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My 0.7%

“0.7%” refers to the repeated commitment of the world’s governments to commit 0.7% of rich-countries’ gross national product (GNP) to Official Development Assistance. This figure was first pledged 35 years ago in a 1970 UN General Assembly Resolution.

Where does the figure “0.7%” come from?

I didn’t know, so I researched a bit and it seems that comes from Lester B. Pearson (PDF, 40KB), former Prime Minister of Canada, who in 1969 recommended that resources equivalent to a minimum of 1% of the GNP of developed nations should flow to developing countries.

This 1%  would be made up of official development assistance, other official flows from the government, and private sector flows; the official development assistance component of the 1% commitment would be equivalent to 0.7% of GNP.

By 2005 only 5 countries of the OECD were meeting or exceeding the target: Denmark, Luxembourg, Netherlands, Norway and Sweden, not a surprise. The rest of them were well below, some even decreasing the assistance.

OECD 2005 Official Development Aid

What can we do?

Since some years ago, I dedicate 0.7% of my personal net income to development aid. I make the calculation every year in January, when I have an idea of how much I pocketed the previous year.

I took sometime last weekend to make the calculation, research a little bit and direct the funds to the selected NGOs, which this year have been:

  • Kiva: a micro lending portal, that I have talked about in the blog sometimes. I added some more funds.
  • Médecins sans Frontières. Last year, I already donated some cash to the Spanish branch after the earthquake in Haiti; this year I’ve become member of the French one: as a friend who works in development assistance explained to me, this helps the NGO to plan their activities, rather than relying on occasional donations.
  • Vittana: a micro lending portal specialized on credits for education purposes, very similar to Kiva in its conception. I learnt about it last year already and twitted about it, but it has been now the first time I used it.
  • Ofxam: a well-known NGO working “to find lasting solutions to poverty and injustice”.
  • Anti-Slavery: an NGO which works to eliminate all forms of slavery around the world… incredible, “slavery” :-(.

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