rural-urban dynamics_report.pdf - Khazar University

GLOBAL MONITORING REPORT 2013 MACROECONOMIC, TRADE, AND AID DEVELOPMENTS 69
Aid and international financial
institutions
Over the past decade, official development
assistance (ODA) steadily increased, reaching
its peak in 2010. The general trend of
rising annual flows during the 2000s slowed
only after the global financial crisis at the
end of 2008, with a 1 percent deceleration
in growth in 2009. Official development
assistance continued to be a stable source of
development financing even after the global
financial crisis, helping to alleviate the immediate
impact of previous financial crises. In
2011 and 2012, however, as the effects of the
recession hit donors’ aid budgets, the recipients
of ODA suffered the first two consecutive
years of lower aid disbursements since
1997 (excluding fluctuations affected by
exceptional debt relief).
Bilateral and multilateral aid
Members of the Development Assistance
Committee (DAC) of the Organisation for
Economic Co-operation and Development
(OECD) disbursed $128.3 billion (in constant
2011 dollars and exchange rates) in
2012, compared with $133.7 billion the previous
year, a decrease in real terms of 4 percent.
In current prices, ODA in 2012 equaled
$125.5 billion, down from $133.7 billion in
2011 a decline of 6 percent. As a percentage
of donors’ combined gross national income
(GNI), ODA continued to slip from 0.32 percent
in 2010 to 0.31 percent in 2011, to end
up at 0.29 in 2012 (figure 1.22). The current
situation represents some concern, because
developing countries have also been affected
by the crisis. Within total net ODA, the bilateral
share of net ODA decreased from 70 percent
in 2011 to 65 percent in 2012, indicating
an increase in the share of multilateral aid to
close to 35 percent. One of the broad trends
in the recent international aid architecture is
the rapid increase of “multi-bilateral” ODA,
which is defined as bilateral ODA earmarked
for a specific purpose and channeled through
the multilateral system. According to OECD
FIGURE 1.22
2012 current US$, millions
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
DAC, multi-bilateral ODA increased from
$9 billion to $16.7 billion between 2007 and
2010, representing 12 percent of gross ODA
excluding debt relief. The World Bank channels
over a quarter of such multi-bilateral
ODA, becoming the single largest multilateral
channel for trust funds.
Gleneagles
DAC members’ net ODA disbursements
2000 2003 2006 2009 2012
Total ODA (left axis)
Total ODA to low-income countries (left axis)
ODA as % of donors’ GNI (right axis)
Sources: OECD DAC and World Bank.
Note: GNI = gross national income; ODA = official development assistance.
At the Group of Eight (G-8) summit in Gleneagles,
Scotland, in 2005, important commitments
related to ODA and external debt forgiveness
were made. Indeed, the international
agreement on debt relief (Multilateral Debt
Relief Initiative, or MDRI) canceled $56.5
billion in loans owed to the World Bank, the
African Development Bank, and the IMF.
In addition, DAC donors agreed to increase
ODA by $50 billion between 2004 and 2010,
at least half of which would be designated for
Sub-Saharan and North Africa. This promised
increase was made in 2004 prices and
exchange rates, and the targeted level of ODA
in 2010 prices was estimated to be $152.2
billion. Given the actual amount of $128.5
billion available, a gap of more than $25 billion
remains. The DAC’s 2012 annual ODA
report shows that only a little more than $1.2
billion of the shortfall can be attributed to
lower than expected GNI levels stemming
0.35
0.30
0.25
0.20
0.15
0.10
0.5
0
Percent