Italian ODA 2006: few money, better targeted to Africa, but too much technical assistance

According to the last DAC data for 2006, the Italian ODA is at 0.20% of GNI - 3.6 billions dollars - 30% down from 2005 level, when ODA/GNI was at 0.29%. In 2006, Italy ranks at the bottom of European donors list, only Greece ranks worse. The latest release of these official data mark the Italian failure to reach the EU Barcelona target - 0.33% ODA/GNI by 2006. The Italian aid is boosted by debt relief (37.8%) and compulsory contributions to the EC budget (36.1%). For the first time since 1994, Italian bilateral share (55%) is larger then the multilateral one (45%).

In 2007, the Italian ODA is expected to increase up to 0.29%-0.31%, thanks to specially approved decrees paying for arrears to IDA and Global Funds, and allocating resources to development cooperation. According to the latest financial perspective, the Italian Government is committed to reach 0.33% in 2008, yet the target is again unlikely to be met, with ODA levels forecast to decrease from 2007.

In 2006, 77% of Italian bilateral aid is untied, yet by discounting debt relief, only 27% aid is untied - a significant increase from last year when untied aid - debt relief net - was at 62%.

As for 2006 sectoral allocations, technical assistance is still the most important sector ( 8.5% in sectoral aid), while support to education is at just 3.75. Administrative costs increased by 25 million dollars, almost doubling its share in bilateral aid (2.65%). Italian support to Basic Social Services decreased from last year, from 5.03% to 3.36%.

As for geographical allocations, Nigeria is the first recipient (754 million dollars) - 72% debt relief - followed by Iraq and Serbia, where debt relieves are on average above 90%. By discounting debt relief, Nigeria is still the first recipient followed by Lebanon and Afghanistan. Angola, Indonesia and Ghana had negative transfers.

Italian aid to Sub-Saharan Africa increased by 200 million dollar, despite overall ODA level decreased.The share of bilateral ODA to the region significantly increased reaching out 52% from 38%, while the share to Middle East decreased. The aid reorientation advantaged non-LDC countries, as the received the same amount of aid.