Future of development aid hangs in the balance

Added 31 Oct 2017
At a high-level OECD meeting in Paris, governments of the world’s richest countries set out their vision for future development cooperation. Reacting to the communiqué issued by the OECD Development Assistance Committee (DAC) after the meeting, Polly Meeks, Senior Policy and Advocacy Officer at Eurodad (the European Network on Debt and Development) said:

“The DAC has placed a strong emphasis on the role of Official Development Assistance in mobilising private sector resources for the Sustainable Development Goals. Yet we are concerned that - neither in the blended finance principles that the meeting adopted, nor in the communiqué’s language on Private Sector Instruments (PSI), are there adequate safeguards to ensure this delivers the best outcomes for eradicating poverty and delivering human-rights based sustainable development.”

“The communiqué is ambiguous on private sector instruments – at best, it may be empty rhetoric, but at worst, it could be very damaging to hopes of ever finding a solution that maximises aid quality and mitigates risks such as tied aid. In any case, it seems safe to say that the DAC risks leaving it open for donors to make more use of PSIs, before sufficient safeguards are in place to ensure this doesn’t work against the interests of the poorest.”