9/25/2009

Italian tied aid to the LDCs

According to the last DAC report on implementing the 2001 recommendations, in 2007 only 53% of Italian aid bilateral commitments to LDCs were untied, pushing Italy to the bottom of the DAC donors list. The main sectoral share of the LDCs tied aid is due to Power plant initiatives (19 million dollars) and emergency distress (16 millions dollars) interventions ( 36% in total). It is important to note that according to the 2001 DAC recommendations, emergency relief has no obligation to be untied. In 2008 the value of emergency tied aid might further increase as Italy shipped 25 miilion euros worth of food aid ( chicken meet, mailnly) being purchased from 4 Italian companies.

The 2007 tied aid result in LDCs is quite surprising as Italy amended its International development Law's section dealing with tied soft loans, in order to comply with the 2001 and 2008 OECD/DAC recommendations on aid untying. This figure might point out to the need to better communicate internally changes of the Italian aid regulatory framework in order to chance long-established aid management practices