The Mexico Global Partnership meeting has a whole session on domestic resource mobilisation (DRM). Our research has found that aid to DRM-specific projects was just 0.07% of official development assistance (ODA) in 2011. But the data show that much of this aid goes to countries with very low domestic resource levels.
Seven of the ten largest recipients of ODA for DRM-specific projects in 2011 have government spending levels below PPP$1,000* per person. The two largest recipient countries are Afghanistan and Pakistan – together receiving almost a third of the global total (US$35 million). Both countries have government spending per person levels well below the developing country average (PPP$341and PPP$517, compared with the PPP$1,360 average). Both countries received significant amounts of funding from the UK, the largest donor of DRM-specific aid.
An exception is Serbia, which features prominently in fifth place, despite having domestic levels three times the developing country average (PPP$4,129 per person).The European Union – the second-largest provider of DRM-specific ODA – focuses its work on neighbouring countries and provided 70% of this aid to Serbia.
The chart also shows the number of different donors contributing ‘core’ DRM aid to each of these countries (right hand side). Seven of the top ten had more than one donor, with two sub-Saharan African countries – Tanzania and Mozambique – having seven and six DRM project donors respectively. This multiplicity of different donors highlights the importance of effective co-ordination of institutions working in this area, particularly given partner countries’ strong emphasis on DRM support.
* Purchasing power parity, which attempts to adjust exchange rates for the actual buying power
Development Initiatives, Aid for domestic resource mobilisation: how much is there?, 12 February 2014 (analysis of project-level data from OECD DAC Creditor Reporting System)