DAC peer review

Coffee harvesting in Nicaragua

Recommendations for Luxembourg's Development Cooperation

Overall framework for development cooperation

Luxembourg has strengthened the strategic approach of its development cooperation by formulating a general and several sectorial strategies. According to the committee, the programme would benefit from refining the vision and objectives if its cooperation, and setting out action plans for the key sector strategies. While its cooperation with multilateral actors is exemplary, the synergy between the different assistance channels could be reinforced.

Promoting development beyond aid

The DAC welcomed the incorporation of the need to promote policy coherence for development into Luxembourg’s law on development cooperation as a mandate of the inter-ministerial committee. This consolidation would benefit from the raising of staff’s awareness and an increase in the committee’s resources in order to analyse the impact of Luxembourg’s policies on developing countries in greater detail.

Aid volume and allocation

In 2009-2010, 51 % of Luxembourg’s total ODA was focused on the nine partner countries of Luxembourg’s Development Cooperation in line with the DAC’s recommendations concerning the geographical concentration of aid. In order to improve cooperation with its partner countries, the committee suggested that Luxembourg identify criteria to ensure the transition towards other forms of cooperation with the more advanced partner countries.

Organisation and management

Luxembourg’s programme is marked by evolution from the project approach to the programme approach. To support this change, the relationship between the Ministry and Lux-Development, and the potential presence of Cooperation offices in an increasing number of priority countries needs to be reassessed. Furthermore, both institutions would benefit from a review of training and knowledge management.

Improving the impact of development cooperation

Despite the successful evolution towards a programme approach, the DAC identified two major persistent challenges. How can a greater use of national systems for disbursing bilateral aid be ensured, and how can results frameworks that correspond to the objectives of Luxembourg’s Development Cooperation in its partner countries be developed?