Italy to push DAC on Tied aid definition

Ahead of the next DAC WG on statistics, Italy is asking the DAC to classify local procurement of good and services as either “untied” or “partially tied”. Italy is putting forwarded its requests following Accra commitment to favour local procurement responding to demands. The overall results of the this change will be mixed. On the one hand, it will encourage donors policy reforms to favour local procurement. On the negative side, its insertion within the untying heading will allow all donors to immediately improve their scores on aid untying, with no policy change needed, possibly disliking national business.

Italian strategy for multilateral organizations

In 2009 the Italian development cooperation has issued its first strategy on multilateral organizations (3 page document). The strategy is only an annual document and does not include all the multilateral organizations. It does not refer to Regional Banks, as the document was published by the Ministry of Foreign Affairs with no clear engagement by the Ministry of Economic and Finance ( responsible for dealing with Banks).

However, contradictory, the documents breaks down the sectoral multiannual investment for multilateral organization with emergency 27% and food-agriculture 22% as the main sectors. The selection criteria followed the priority issue of the G8 presidency and evaluations by the Italian embassy. In line with the 2009-2011 strategy, the Italian development cooperation deems an asset for the multilateral organization having an headquarter in Italy, worth investing. There is no reference to any coordinated evaluation of multilateral effectiveness among partners, including donors and partners countries.

According to the document, Italy is to reduce its financial contribution to fewer multilateral organization due to financial constraints and will to further concentrate. 40 multilateral organizations are mentioned throughout the text, with FAO, WHO and UNPFA, being the most frequently referred to. This strategy commits the Italian development cooperation to develop multilateral organizations specific guidelines in case the Italian contribution be above 10 million euro.