Making international development co-operation smart enough to end poverty

In the fast-evolving landscape of development financing, this chapter asks What role now for official development assistance? For many years, it has made a difference for millions of people all over the world – will this continue to be the case in the future given the economic crisis in Europe, the rise in private sector development finance, the growing reliance on domestic taxes to fuel development, and the strengthening role of co-operation among countries of the South? The answer to the question is yes, but only if aid gets smart: in other words if it’s effective, well-targeted (to the poorest countries and communities) and well co-ordinated. The author outlines key steps for making aid (official development assistance or ODA) smart enough to help the global community end poverty. These include ensuring that development assistance adapts nimbly and effectively to the needs, challenges and priorities that will define the post-2015 development framework establishing a new development finance framework that brings together all the options provided by OECD countries – not only ODA and holding each other accountable through an internationally recognised, open and transparent system to report on and publicise development financing efforts and the resources that actually flow to developing countries.