April 27, 2016     cib    

In 2015, development aid grew by 6.9% from 2014, totalling 131.6 billion US dollars, as was recently reported by Development Assistance Committee (DAC) of the Organisation for Economic Cooperation and Development (OECD). The aid budget spent on refugees more than doubled in 2015, as a result of the refugee crisis in Europe, taking up the majority of Official Development Aid (ODA) growth in 2015. However, also without the increase from refugee spending, development aid grew by 1.7%.

Around half of the donor countries draw funds spent on refugee aid from existing development budgets Refugees continue to pose a large challenge for development agencies, as 1.5 million refugees claimed asylum in 2015 in OECD countries.

OECD pushes for aid to be used wisely

As development aid makes up more than two thirds of external finance for least developed countries, the DAC is recommending that development aid be used to leverage private investment and domestic tax revenue increases. This ties in with the work of CIB members that are strengthening the capacity of local governments to raise their own revenue, as well as host new businesses and create a flourishing local economic environment.