OVERVIEW
Providers and recipients are paying increased attention to whether development finance is e ff ectively tackling development challenges where support is most needed around the world. Now the OPEC Fund is following suit – with significant results By Ulrike Haarsager, OPEC Fund, Head of Development E ff ectiveness BECAUSE EVERY DOLLAR COUNTS DEVELOPMENT EFFECTIVENESS:
I n a world where resources are limited, development finance is no di ff erent. Despite the growing amount of multilateral development resources committed to developing countries every year, the latest available data showed that these commitments 1 represented a mere 0.7 percent of the developing world’s GDP, 2 which is considered insu ffi cient to meet the needs of developing countries. 3
Given the scarcity of resources, ensuring that these are well spent is all the more important. Particularly since the early 2000s, development finance providers and recipients have paid increasing attention to whether development finance is e ff ectively tackling development challenges where support is most needed around the world. The need to better understand whether, where and how
development impacts are in fact materializing, and why or why not, led to the formulation of the Paris Declaration on Aid E ff ectiveness in 2005 4 . This agreement reflects an unprecedented consensus among donor and aid recipient countries about what needs to be done to substantially improve the impact of development cooperation.
1 The multilateral development system committed a record US$230 billion in financing to developing countries in 2020. OECD, 2022. Multilateral Development Finance 2022 report. 2 Calculation based on multilateral development finance from the OECD report, and GDP data for developing countries taken from the World Bank data portal. 3 https://www.oecd.org/development/multilateral-development-finance- 2022-9fea4cf2-en.htm
4 In March 2005, senior o ffi cials from over 100 aid-receiving countries and donor agencies met in Paris to take concrete steps to increase the e ff ectiveness of aid. The concrete steps they agreed on are set out in the Paris Declaration on Aid E ff ectiveness, which o ff ers a blueprint for e ff ective aid that maximizes impact from investments, synchronizes donor e ff orts and integrates the full spectrum of development challenges. 5 OECD Glossary of Key Terms in Evaluation and Results Based Management
8
Powered by FlippingBook