The Role of Official Development Assistance in Realizing Agenda 2063
The Addis Ababa Action Agenda (AAAA) reaffirmed official development assistance (ODA) commitments contained in both the Monterrey Consensus and the DOHA declaration on Financing for Development, including the commitment by many developed countries to achieve the target of 0.7 percent of Gross National Income (GNI) and 0.15-0.2 percent of ODA/GNI to the least developed countries. The Developments Assistance Committee (DAC) highlights the importance of ODA for the poorest and most vulnerable countries and includes a commitment to reverse the recent decline in ODA to Least Developed Countries (LDC) to encourage ODA of 0.2 percent of GNI to LDCs, and to recognize those countries that allocate at least 50 percent of ODA to LDCs. It also commits to prioritizing the allocation of concessional international public finance to those with the greatest needs and least ability to mobilize other resources. Whilst harnessing external sources such as ODA may be commendable in contribution to eradicating poverty and boosting support for trade, it is important to note that ODA is still shrinking and creates dependency amongst African States leaving them with limited capacity to commit to effectively mobilize domestic revenue.