OECD DAC Recommendation of Untying ODA to Least Developed Countries, 2001

Sectors : Quality of aid
Organisation : OECD
Date made: 

Commitments in: Financing for Development - Quality of aid

“1. Members of the OECD's Development Assistance Committee (DAC) agree to the objective of untying their bilateral official development assistance (ODA) to the Least Developed Countries…

2. This Recommendation reflects the results of discussions in the DAC to respond to the Mandate provided at its 1998 High Level Meeting (see Annex III) and the shared intentions of DAC Members to:
• untie their ODA to the Least Developed Countries to the greatest extent possible;
• promote and sustain adequate flows of ODA in terms of quality, volume and direction, in particular to the Least Developed Countries, and ensure that ODA to the Least Developed Countries will not decline over time as a result of the implementation of this Recommendation;
• achieve balanced efforts among DAC Members...

...7. i) DAC Members agree to untie, by 1 January 2002, ODA to the Least Developed Countries in the following areas: balance of payments and structural adjustment support; debt forgiveness; sector and multi-sector programme assistance; investment project aid; import and commodity support; commercial services contracts, and ODA to Non-Governmental Organisations for procurement related activities...

8. Promoting a more balanced effort-sharing among Members is a necessary process. Pursuant to paragraphs 2, 5, and 6 of this Recommendation, Members agree to undertake their best endeavours to identify and implement supplementary effort-sharing actions in accordance with the mechanism set out below...

...11. Members will prepare annual country profiles setting out their positions in respect of the reference indicators matrix and, on that basis, identify initial and medium term supplementary actions to promote effort-sharing. Peer review of these profiles by the DAC will be used to help Members identify and undertake supplementary actions in furtherance of a more balanced effort-sharing in respect of the reference indicators matrix.

12. The implementation of this part of the Recommendation will be assessed as part of the annual reports covering all aspects of this Recommendation. These reports will be considered by the DAC High Level Meeting, which may recommend further actions, as well as in the peer reviews of individual Member's development co-operation policies. An overall review of the effort-sharing mechanism and procedures will be conducted in 2009...

...14. In conducting procurement of aid-supported goods and services, and in partnership with developing countries, DAC Members should apply relevant commitments and guidance such as:
• The 1996 DAC Recommendation on Anti-Corruption Proposals for Aid-Funded Procurement;
• The 1997 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.”