ABSTRACT
The target for developed countries to allocate 0.7% of their GNP to ODA was recommended by the Pearson Commission in 1969 and adopted by the UN General Assembly in 1970. 1 Only five DAC donors have ever met the target. Norway, Sweden, the Netherlands and Denmark exceeded it between 1980and 1994. Finland reached it for one year, achieving 0.80 in 1991. https://www.niso.org/standards/z39-96/ns/oasis-exchange/table">
Country
ODA as a % of GNP in 1994 *
Target for aid (%) of GNP
Most recent affirmation of the target
Timetable for achieving target
Change in aid volume 1993–94 (US$ million) **
% change 1993–94 real terms ***
Prospects for achieving the target
Australia
0.35
0.7
In the 1994/95 Budget Paper No 2 9 May 1995 by the Minister for Devlopment Cooperation and Pacific Island Affairs
No timetable. The pledge made in 1994 that aid would not fall below 0.34% has been broken
+5%
+48
Not optimistic. The previous government announced that aid would increase by AUS$83 million in 1995/6 but this means the ODA/GNP ratio has fallen to an all time low of 0.33%, breaking the pledge made in 1994 that aid would not fall below 0.34%. The incoming government promised 8% cuts in their election platform and have confirmed that these cuts will proceed and further cuts may be considered.
Austria
0.33
0.7
1995 in the Government Three-Year Programme
+81
+15%
The incoming Government in 1995 cut bilateral technical aid by nearly one-third, but due to NGO pressure this cut was reversed later in the year. Overall the Government projects aid to increase to 0.34% in 1995 and 1996, to fall to 0.33% in 1997 and rise again in 1998 to 0.36%.
Belgium
0.32
0.7
October 1995
0.7% by 2000 or as soon as possible thereafter
−122
−15%
From 1996 on the new State Secretary aims to halt the downward trend in aid volume. Early figures for 1995 put aid expenditure at 0.38% of GNP compared with 0.32% in 1994.
Canada
0.43
0.7
Government statement on Foreign Policy February 1995
There is no timetable and the trend is in the opposite direction
−6
−0.25%
Very bleak. ODA ratios have fallen from 0.49% in 1991–2 to a projected 0.24% in 1998–9 (excluding refugee costs in Canada) – the worst performance since 1965–6.
Denmark
1.03
1
Reconfirmed in the 1995–98 budget
The target has been exceeded since 1992
+29
+2%
The target remains 1% of GNP with an additional 0.5% for environment and emergencies. The Government plans cash increases of around 4% a year through to 1999.
Finland
0.31
0.7
1995 in the proposal for the State Budget for 1996 by Parliament
Achieving the target by 2007 is under discussion
−96
−27%
The 1996 budget has been frozen at the 1995 leveL The government is considering two alternative timetables to reach the 0,7% target by 2007. Both would mean withdrawing the decision to freeze aid volume. A decision will be made In 1996.
France
0.64
0.7
Reaffirmed by President Mitterand at the Rio Summit in June 1992 and is regularly mentioned
By year 2000
+271
+3%
After years of steady growth, French aid is projected to fall in 1995 and 1996, reaching 0.56% of GNP As a result, the achievement of the 0.7% target by the year 2000 is likely to be delayed.
Germany
0.34
0.7
At the 1995 World Summit on Social Development
No timetable
−414
−6%
There is no prospect of achieving 0,7%. The ratio will soon dip below 0.3% of GNP as aid disbursements stagnate while nominal GNP grows by a rate of around 5%. 1996 saw a real terms cut in the budget of the BMZ which controls around 70% of German
Ireland
0.25
0.7
In September 1995 at the Fourth World Conference on Women the Government reaffirmed its commitment to continually increasing ODA each year to reach the 0.7% target
0.4% by 1997 in incremental steps of 0.5% per annum and a commitment to ‘rapid progress’ to 0.7%
+24
+29%
Irish aid is rising rapidly in real terms but it is not meeting the 0.05% annual increase in ODA/GNP growth to which the Government had committed itself.
Italy
0.27
1
By Foreign Minister De Michelis in 1991
No timetable
−357
−12%
The situation is best described as paralysis. Aid dropped by 12% In real terms in 1994, reaching 0.27%, and again in 1995, reaching an all-time low in terms of ODA activity.
Japan
0.29
0.7
At the 1992 Rio Summit by the Japanese Delegation
No timetable
+890
+8%
Despite massive real terms growth in aid, making Japan the largest donor for the last four years, the 0.7% target will be difficult to achieve. Aid will grow in 1995 but will decrease by 14% in 1996, the first fall in nine years. Cyclical factors may in part explain the fall – though aid is no longer seen as immune from cuts as Japan struggles with the worst budget amongst DAC donors. Achievement of the five-year target of US$70–75 billion is seen as a near impossibility.
Luxembourg
0.4
0.7
Interim targets of 0.42% in 1996, 0.49% in 1997, 0.56% in 1998 and 0.63% in 1999
+6
+13%
The target of 0.7% will definitely be achieved and the Minister talks about the achievement of higher ratios of ODA as a percentage of GNP being appropriate for a wealthy country like Luxembourg.
The Netherlands
0.76
0.9
September 1995 in Review of Dutch Policy
−105
−4%
The new Government has set the target for ODA volume at 0.8%. The spending can vary between 0.75% and 0.85%.
New Zealand
0.24
0.7
Reaffirmed by the New Zealand Government delegation at the Fourth World Conference on Women in September 1995
No timetable
no change
+0.5%
Small annual increases are being made to bring New Zealand closer to the OECD average. 0.25% of GNP is anticipated in 1997/8.
Norway
1.05
0.7
Recent government statements have said only that aid will continue at a high level and that Norway will remain as one of the top donors
The target was reached in 1976
+114
+11%
A reasonable guess is that aid will be kept at not less than 1% of GNP The aid budget for 1996 is estimated to reach the level of 1%, implying an 8% increase over the budget which Parliament adopted for 1995
Portugal
0.35
0.7
By the Prime Minister at the Earth Summit in Rio in 1992
0.7% by 2000, in increments of 0.15% per annum
+56
+23%
The Government is more concerned about Portugal’s position in relation to the DAC average than the 0.7%.
Spain
0.28
0.7
At the World Summit for Social Development in May 1995 by the President
The official commitment is to reach 0.7% before 2000
+12
+1%
The Government had promised to reach 0.35% in 1995 but that now looks unlikely. A National Agreement is being sought which would commit political parties to the 0.7% target
Sweden
0.96
1
From the mid-1970s Sweden was committed to giving 1% of GNP in aid. This principle was abandoned in 1992, supposedly as a temporary measure. Now 0.7% has been confirmed as the target.
−17
−1%
In Aprif 1996 the incoming government announced that Swedish development cooperation would be fixed at 0.7% from 1997. Aid volume will fall by . around 10%, and Sweden will no longer retain its 20-year commitment to aid at 1% of GNP
Switzerland
0.36
0.4
1994
0.4% by the year 2000
+101
+13%
The outlook is dim. Administration and Government representatives regularly remark that, while the objective of 0.4% remains valid, it may not be fulfilled by the year 2000 due to financial difficulties.
UK
0.31
0.7
Parliamentary reply by Baroness Chalker, Overseas Development Minister March 1995
No timetable as such, but ‘as soon as possible’
+152
+5%
Aid is set to fall as a percentage of national wealth and in real terms. UK aid is expected to hit its lowest-ever level of 0.26% of GNP in 1997/8.
USA
0.15
None
No commitment made
−400
−4%
The outlook is bleak, as further spending reductions are likely in 1996–7 following the deep Guts of 1995–6. Continued US leadership on international development policy in particular, and global issues in general, is in serious doubt.
NotesDAC Report 1995, Table 4
Based on DAC 1994 Table 8 figures
DAC Report 1995, Table 6a
Donors who cut aid in 1994
