Luxembourg's development cooperation - Annual report 2018

In 2018, Luxembourg’s official development assistance (ODA) amounted to 401,30 million euros, 0,98 % of gross national income (GNI). Thus Luxembourg is still one of the small number of OECD members – alongside Denmark, Norway, Sweden and the United Kingdom – that has maintained its ODA at 0,7 % of GNI or above.

At the international level, official development assistance reached 149,3 billion USD in 2018, a slight decrease (2,7 %) in real terms compared to 2017, due in particular to the decrease in expenditure for refugees in the donor countries. If we exclude the latter, net ODA contributions remained stable compared to the previous year. It should be noted that the OECD also has a heading called “donation equivalent”, which enables the inclusion of contributions by donors in the form of loans supporting development. If we include this, ODA in 2018 amounted to 153 billion USD. 

Bilateral aid to the least developed countries fell by 3 % in real terms, aid to Africa by 4 % and humanitarian aid increased by 8 %. According to the Secretary-General of the OECD, Angel Gurría, “this slump in official assistance is particularly worrying because it follows on from data showing that private contributions to development are also falling.”

ODA accounts for over two thirds of the external financing allocated to the least developed countries and often acts as a lever to mobilise private investment, increase fiscal receipts in poor countries and thereby to contribute to achieving the Sustainable Development Goals set by the UN.

Official development assistance from the members of the Development Assistance Committee was on average 0,31 % of GNI in 2018.