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Development Co-operation Reviews Spain: 1998 No. 27

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The Spanish Government is making significant efforts to consolidate the political framework for development co-operation and improve the quality and transparency of its aid. A draft law on development co-operation was submitted to Parliament in the autumn of 1997 and new planning and evaluation systems for aid management are being introduced, including a multi-year indicative plan and country programmes. Despite severe budgetary constraints, an increase in the aid budget is also envisaged. These initiatives were well received by the OECD's Development Assistance Committee (DAC) during the review of Spain's aid policies and programmes. The Committee also took note of the major improvement in the balance of the Spanish aid effort with a significant increase in the grant aid programme, accompanied by a decline in the tied Development Aid Fund (FAD) loan component, and expressed the hope that this trend would continue. The DAC encouraged the Spanish authorities to pursue their efforts to ensure greater consistency of the FAD loans with the overall development objectives and policy directions for Spanish aid. In relation to general good practice among donors, the Committee indicated its support for the measures to enhance the effectiveness of the Spanish aid programme and its capacity to implement and suggested that the Spanish authorities consider a number of further initiatives:- a more rigourous application of development criteria in the identification and selection of FAD-financed projects and a better co-ordination with the grant aid programme, with particular attention to highly indebted countries;- continued progress towards greater autonomy for AECI with respect to administrative constraints and staffing, to foster a more flexible and professional organisation, geared to operating in the framework of the proposed law;- a study on aid tying as a basis for fuller understanding and debate on this issue in Spain;- continued efforts to improve methods for administering grants to NGOs.In 1998, the development co-operation policy of the following DAC Member countries will be reviewed: Canada, the European Community, Finland, Germany, Luxembourg and the United States.

Page Count: 57 Figure Count: 8 Table Count: 13
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Document Type: Review Article

Publication date: 1999-12-01

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