Ending poverty and the achievement of the Sustainable Development Goals (SDGs) need dedicated resources to support economic, environmental, and social investments that benefit the poorest people. Current narratives and trends in ODA, however, risk undermining the unique contribution that ODA can make to the elimination of poverty and inequality in developing countries.The idea that ODA must be used to ‘’leverage’’ private finance and investment for development is gaining increasing traction among many bilateral donors and multilateral bodies. Recent trends have also demonstrated increasing diversion and use of aid resources to promote security interests of donor states, while undermining the democratic interests of people in conflict and fragile states.
Donors are also increasingly promoting as ODA spending on a range of activities that do not involve transfer of resources to developing countries, or do not contribute to poverty reduction efforts in the South.
The Development Assistance Committee of the donor states’ Organisation for Economic Cooperation and Development (OECD-DAC) is one of the primary arenas of engagement for The Reality of Aid Network, particularly as the OECD-DAC plays a critical role in defining bilateral aid and shaping the practices of traditional donors. The network carried on with its work in coordinating Southern CSO engagement in the OECD-DAC.
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