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Donors

It already seems clear that the financial and economic crisis will extend into 2010-11. This may provoke a political reaction away from support for multilateral engagement. The 2009 OECD/DAC Report on Aid Predictability (Survey on Donors’ Forward Spending Plans 2009-2011) shows that donors are lagging behind the Gleneagles target.

Most donor countries’ Official Development Assistance (ODA) commitments are expressed as a share of their Gross National Income (GNI). Given the fall and slow recovery in actual and expected GNI, aid budgets are also likely to shrink unless governments maintain the growth rates they have maintained for ODA over the past two years.

While some ILO donors have cut aid budgets, an equally plausible scenario is that the global reach of the jobs crisis will lead to increased backing for the Decent Work Agenda and for the central role of the ILO and its constituents in coordinated recovery efforts. Although 2009 is not yet over, there is every reason to believe that the combined contributions from the ILO’s extra-budgetary donors in the biennium 2008-09 will exceed half a billion US dollars. This represents a significant increase over past biennia. It is a reflection of the trust placed in the ILO and of the clear recognition of the important role of the ILO in a reformed United Nations system.

The ILO's enhanced resource mobilization strategy aims at directing extra-budgetary and RBSA resources to Decent Work Outcomes through targeted fund-raising efforts. To establish strategic, ambitious and realistic targets for resource mobilization, adequate mechanisms will be developed to formulate results-based implementation plans and to identify resource gaps for Decent Work Outcomes. Donors will be encouraged to shift away from earmarked funding for particular technical cooperation projects, and towards un-earmarked, predictable and inclusive multi-annual partnership agreements, and to contribute to the RBSA. In this way they will help the Office reduce the gap between available resources and those needed to fully implement the Decent Work Agenda.

The past three years have been marked by several key important changes in international development assistance, which have resulted in ambitious aid targets and the linking of aid to effectiveness, based on achieving development results, building more effective and inclusive partnerships, and country ownership of the development process.

The 2007-08 biennium was marked by several key important changes in international development assistance, which have resulted in ambitious aid targets and the linking of aid to effectiveness, based on achieving development results, building more effective and inclusive partnerships, and country ownership of the development process. In the wake of the 2005 Paris Declaration, the 2007 General Resolution on the Triennial Comprehensive Policy Review (TCPR), the 2008 Accra Agenda for Action (AAA), the 2008 UN High-level Event on the Millennium Development Goals, the ongoing UN reform processes, and other policy initiatives such as the Financing for Development follow-up meeting in Doha, the ILO is responding to these many challenges to “unlock the full potential of aid in achieving lasting development results”. ILO resource mobilization was highlighted as good practice in the first-ever OECD/DAC report on multilateral aid.

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Last update:09.11.2009 ^ top