Germany is one of the world's major aid donors

from E Gov Monitor

Source: OECD

Germany is one of the world' major donors of development assistance, ranking second only to the USA. This marks excellent progress according to Federal Development Minister, Heidemarie Wieczorek-Zeul, but there is still a lot to be done if Germany is to meet the ambitious goals it has set itself.

According to the calculations of the Organisation for Economic Co-operation and Development (OECD), German Official Development Assistance (ODA) totalled some 12.3 billion US dollars (or 8.96 billion euros) in 2007, up from 10.4 billion US dollars (or 8.31 billion euros) in 2006. Adjusted to take into account foreign exchange fluctuations and inflation, Germany's contribution rose by 5.9%.

ODA (Official Development Assistance) is the term used to describe the funds provided by members of the OECD's Development Assistance Committee (commonly known as DAC) to developing countries, either directly or through international organisations, for the purpose of implementing development projects and programmes. The EU Council decided in June 2005 to raise the ODA provided by the European Union to 0.7% of the Union's gross national income by 2015.

In absolute terms, Germany is the world's second largest donor of ODA, behind the USA and in front of France, the United Kingdom and Japan. In 2006 Germany ranked fifth. ODA in 2007 was equivalent to 0.37% of Germany's gross national income.

Still much to do

Federal Development Minister, Heidemarie Wieczorek-Zeul declared, "I am very happy with the excellent figures published by the OECD with respect to German development policy. But we still have a long way to go."

Germany is still a long way from reaching its international pledge of raising ODA to 0.51% of gross national income by 2010, she continued. And international development inputs are stagnating. Additional funding and innovative financing instruments are needed if the international community is to meet the goals it has set itself.

"In spite of major efforts, the industrialised countries are still not doing enough to achieve the Millennium Development Goals by 2015," declared the minister. The targeted use of revenue from emissions trading, for instance, could be used to tackle worldwide poverty and help mitigate the consequences of climate change, she suggested.

The issue of innovative financing instruments must then be the central topic of the 2008 Financing for Development Conference to be held in Doha, Qatar.

Development policy is security policy

Worldwide military spending is still about ten times greater than the sum spent on reducing poverty. "It is still the ongoing duty of the international community to redress this imbalance," declared the minister. "It is always cheaper to avoid conflicts that to have to resort to military solutions."

The Organisation for Economic Co-operation and Development brings together 30 member states. Its mandate covers stepping up economic cooperation and development, as well as coordinating and intensifying development cooperation. Its aim is to promote an appropriate level of economic growth in developing countries.

On 5 and 6 April, Heidemarie Wieczorek-Zeul will be attending a meeting of the G8 development ministers in Tokyo. In the Japanese capital, the industrialised nations will be preparing the development-policy topics for this year's G8 summit, which will be held from 7 to 9 July in Hokkaido Toyako.