Italy in the Development Cooperation Report 2008

Commitment to the MDGs. Since the adoption of its official guidelines in 1999, poverty reduction has been a principal objective of Italian development co-operation. However, Italy has yet to establish a coherent approach to mainstreaming this goal. A proposal to reform the structure of development co-operation and focus commitments on the MDGs was examined by the Italian parliament but the governemnt crisis blocked the process.

Aid effectiveness agenda. Italy supports the principle of recipient ownership and attempts to align its programmes with local strategies when possible. Its ability to carry out its commitments, however, is hampered by a lack of staff, organisational support and operational flexibility. The 2004 peer review encouraged Italy to build upon its efforts to streamline administration in order to address the parallel need for a clear strategy on harmonisation. Italy aims to reinforce the quality of evaluation feedback, including improved evaluation planning and operational guidance.

Advancing gender equality and women’s empowerment. The 2007 guidelines for Italian development co-operation maintain gender equality and women’s empowerment as a priority. The Directorate General for Development Co-operation intends to increase its commitment to the MDGs on gender. Specific action in favour of gender equality in 2007 included: i) a major seminar on the empowerment of women in West Africa and a new Italian programme on this topic; ii) a workshop on implementing the UN resolution concerning the participation of women in peace building and post-conflict reconstruction in Somalia; iii) specific programmes for the empowerment of women in Afghanistan, Lebanon and Palestine.

ODA 2008 forecast: still at 0.29%

Estimates for 2008 ODA are difficult to forecast during the budget cycle, as ODA budgeted resources are scattered and hidden within many financial headings in different Ministries. Moreover important components such as debt relief and concessional loans are not highlighted in the budget. Finally, during last year, significant financial resources for development cooperation – 1.1 billions euros –were allocated extra-budget cycle, via special decrees, with a share of these funds is to be disbursed in 2008. The 2008 disbursement of 2007 out-of-budget allocations, together with expected extra-budget allocation in 2008 are the main responsible for the ODA peak to 0.28-0.29% in 2008, after its stalling in 2007 – 0.21-0.23%. The forecast peak is neither enough to meet the EU Barcelona 0.33% target with a two year delay nor it is sustainable - likely to decrease in 2009. Since the approval of the 2002 road map for aid increase, included in the 2003-2006 Financial perspective, Italy summed up 4.5 billions euros in aid arrears - the gap between commitments and actual disbursements.

2008 Italian ODA could further increase thanks to extra budget cycle allocations, as it occurred in 2007. Last year ODA appropriations increased between January and June (from 1.1 billion to 1.5 billion euro). According to the current projections on 2008 level, the additional disbursement of 650 million euro will be enough to meet the 0.33% target.