According to preliminary data, in 2012 members of the Development Assistance Committee provided USD 125.9 billion in net official development assistance (ODA), representing 0.29% of their combined gross national income (GNI). This was a drop of 3.9% in real terms compared to 2011. Since 2010, the year it reached its peak, ODA has fallen by 6.0% in real terms. Disregarding 2007, which saw the end of exceptional debt relief operations, the fall in 2012 is the largest since 1997. This is also the first time since 1996-97 that ODA has fallen in two successive years. The financial crisis and euro zone turmoil led many governments to implement austerity measures and reduce their ODA budgets. Despite the current fiscal pressures, however, some countries have maintained or increased their ODA budgets in order to reach their set targets.

Australia is among the few DAC members to increase ODA in 2012, having escaped the global economic and financial crises without a recession and being relatively unaffected by the current euro area turmoil. In 2012, Australia’s net ODA was USD 5.44 billion, a 10.4% increase in real terms over 2011 due to larger bilateral grants. Australia has kept the annual growth rate of its ODA at 9% since 2006.

In 2012, Austria’s net ODA amounted to USD 1.11 billion. Compared to 2011, when Austrian ODA dropped in real terms by 14%, the 2012 ODA volume represents a 6.1% increase. This increase is mainly due to debt relief operations within sub-Saharan Africa.

In 2012, Belgium’s net ODA amounted to USD 2.30 billion. After sustained increases – of 15% annually on average – between 2008 and 2010, Belgium’s net ODA decreased in 2011 and continued to fall – by 13% in real terms – in 2012.

Canada’s net ODA was USD 5.68 billion in 2012, making it the 6th largest DAC member in terms of volume. Following a 5% drop in 2011, Canada’s ODA increased in real terms by 4.1% in 2012 due to an increase in debt relief and its continued commitment to major regional initiatives.

In 2012, the Czech Republic’s ODA totalled USD 219 million, representing 0.12% of its GNI. While ODA increased in real terms by 2.7% between 2010 and 2011 – predominantly due to a rise in contributions to multilateral organisations – the Czech Republic’s ODA fell by 4.2% in 2012. All assistance was provided in the form of grants. The Czech Republic’s Ministry of Foreign Affairs (MFA) stands by its EU commitment to meet the ODA/GNI target of 0.33%, but acknowledges that it will take longer than 2015.

In 2012, Denmark’s net ODA amounted to USD 2.72 billion. Compared to 2011, this figure is a real decrease of 1.8% and follows the 3% drop in 2010. The decrease in 2012 was mainly due to unforeseen events that affected disbursements of funds for specific development programmes. As for many DAC members, these are the first decreases after steady ODA increases – in the case of Denmark, by an average real annual rate of 2% between 2007 and 10.

In 2012, net disbursements by EU Institutions to partner countries and multilateral organisations were USD 17.57 billion, a 8% increase in real terms from the 2011 total of USD 17.39 billion, due essentially to an increase in loans.

In 2012, Finland’s net ODA amounted to USD 1.32 billion. In real terms, this figure represents a slight decrease from 2011 (0.4%), making 2011 the second consecutive year that ODA decreased. Finnish ODA grew quickly between 2008 and 2009 at an average annual rate of 12% in real terms, but it started to slow down in 2010.

In 2012, France’s net official development assistance (ODA) amounted to USD 12.1 billion, a 0.8% decrease from 2011. The ratio of ODA to gross national income was unchanged at 0.46% in 2011 and 2012, but below the level reached in 2010 (0.50%). France projects that ODA will rise to EUR 10.9 billion, or 0.48% of GNI, in 2015. The government has announced that the upward trend towards 0.7% of GNI would resume as soon as growth was restored in France.

In 2011, Germany’s ODA was USD 13.11 billion, making it the third largest DAC member in terms of volume. This 0.7% decrease in real terms from 2010 is due to reduced contributions to multilateral institutions.

In 2012, Greece’s net ODA amounted to USD 324 million, down from USD 425 million in 2011. This 17% decrease in real terms is a direct consequence of the country’s severe economic crisis. Greek ODA did increase in 2007 (+5%) and 2008 (+27%) before starting to decline in 2009 (–13%).

In 2012, Iceland’s net ODA was USD 26 million, representing 0.22% of its GNI or a 5.7% increase in real terms from 2011. This was the first increase after three consecutive years of decreasing net ODA.

Ireland’s ODA in 2012 was USD 809 million, a 5.8% decrease in real terms from 2011. Although Ireland increased its ODA in 2007 and 2008 (by 6% and 8% respectively), it had to cut ODA by 18% in 2009 due to the onset of the economic crisis in 2008; ODA has continued to decrease since then.

In 2012, Italy’s net ODA amounted to USD 2.64 billion. This 34.7% decrease in real terms from 2011 is mostly due to lower levels of ODA to refugees arriving from North Africa and reduced debt relief grants, which temporarily increased Italian ODA by 36% between 2010 and 2011. Overall, Italian ODA has fluctuated between 2006 and 2012.

In 2012, Japan’s net ODA amounted to USD 10.49 billion, a 2.1% decrease in real terms from 2011, largely due to a fall in bilateral grants and reduced contributions to international organisations. This reduction was, however, kept at a low level thanks to a 7% increase in bilateral ODA.

In 2012, Korea’s net ODA amounted to USD 1.55 billion, a 17.6% increase in real terms from 2011. This is due to the overall scaling up of its development co-operation to achieve an ODA/GNI ratio of 0.25% by 2015.

In 2012, Luxembourg’s net ODA amounted to USD 432 million at current prices, a 9.8% increase in real terms from USD 409 million in 2011. This was due to an increase in bilateral grants, and follows two years of decrease in real terms. Luxembourg’s ODA volume is now nearly back at 2009 levels.

In 2012, the Netherlands’s net ODA stood at USD 5.5 billion, a 6.6% decrease in real terms from 2011 due to overall budget cuts. This is the second successive year of cuts to the Netherlands’ ODA budget; ODA also decreased by 6.4% between 2010 and 2011.

After the ODA decreases of 2009-10, in 2012 New Zealand continued the ODA growth trend initiated in 2011, reaching a net ODA volume of USD 455 million, up from USD 424 million in the previous year. In real terms, New Zealand’s ODA increased by 3% between 2011 and 2012, reflecting the commitment to reach the ODA target of USD 600 million.

In 2012, Norway’s net ODA amounted to USD 4.75 billion, placing it as the tenth largest DAC donor. After two years of declining net ODA, Norway’s ODA saw a 0.4% growth in real terms between 2011 and 2012.

In 2012, Portugal’s net ODA totalled USD 567 million, a 13.1% decrease compared to 2011 and a deepening of the 3% decline recorded in 2011. Between 2008 and 2010, net ODA fluctuated from +23% in 2008 to –15% in 2009 to +32% in 2010 (all of which are year-on-year variations).

In 2012, Spain’s net ODA amounted to USD 1.95 billion, a 50% decrease in real terms from 2011 and the largest percentage decrease in ODA of any DAC member for that year. The global economic crisis and its aftermath have caused severe cuts in Spain’s ODA budget. Spain’s ODA has been in decline since 2009, averaging at an annual rate of –23% between 2009 and 2012. Spain had significantly scaled up its ODA between 2006 and 2008, with average annual increases of nearly 22% in real terms.

In 2012, Sweden’s net ODA amounted to USD 5.24 billion, a 3.4% decrease in real terms since 2011. This was due to reduced capital subscriptions to international organisations, although cash disbursements to these organisations increased. The budget for Swedish ODA is linked to the country’s gross national income (GNI) – in line with its commitment to provide 1% of its GNI to ODA – and has fluctuated in recent years as a result of this linkage.

In 2012, Switzerland’s net ODA amounted to USD 3.02 billion, a 4.5% increase in real terms compared to 2011. Switzerland is one of the few DAC members that have not recorded a contraction of ODA in both 2011 and 2012. These increases reflect Switzerland’s efforts to scale up its development co-operation in order to reach the target of 0.5% of GNI by 2015.

In 2012, the United Kingdom’s net ODA amounted to USD 13.66 billion, a 2.2% drop in real terms from the 2011 level. This followed the 1% decrease recorded in 2011. Firm budget allocations were put into place, however, to ensure that the ODA to GNI ratio reached 0.56% in 2012 and 0.7% from 2013 onwards.

In 2012, the United States’ net ODA amounted to USD 30.46 billion at current prices, a 2.8% drop in real terms that followed the 1% decrease recorded in 2011. The 2012 fall is mainly due to a reduction in bilateral net debt relief compared to 2011. As a result, ODA as a share of GNI also fell from 0.20% in 2011 to 0.19% in 2012.

In 2012, Finland adopted a new development policy that built on Finnish expertise and emphasised a human rights-based approach to development. The strengths of Finland’s development co-operation include longstanding priorities, openness to dialogue with a broad range of stakeholders, and good co-operation and division of labour with other donors. Finland is also a strong international advocate of human rights, the environment, policy coherence for development and aid effectiveness. It is seen as a constructive partner within the development co-operation and humanitarian communities, and in its partner countries.

The OECD currently has 34 member countries, 25 of which are members of the DAC, as is the European Union. This section highlights the ODA flows from the nine OECD countries that are not DAC members: Chile, Estonia, Hungary, Israel, Mexico, Poland, the Slovak Republic, Slovenia and Turkey.

This section provides information on the volumes and key features of the development co-operation of 18 countries that are not members of the OECD; 13 of these report their ODA flows to the OECD. Brazil, People’s Republic of China, India, Indonesia and South Africa – the OECD’s Key Partners – have been making important contributions to international development co-operation for many years. The figures in this section are based on official government reports, complemented by web-based research in the case of Brazil and Indonesia. The Bill and Melinda Gates Foundation is the only private funding entity reporting to the OECD.

The coverage of the data presented in the Development Co-operation Report has changed in recent years. The main points are as follows.

(Cross-references are given in CAPITALS)