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The OECD’s Development Assistance Committee (DAC) defines official development assistance (ODA) as “government aid that promotes and specifically targets the economic development and welfare of developing countries”.
In 2021, the Ministry of Foreign and European Affairs managed 82.22% of ODA, i.e. EUR 375.02 million (of which EUR 366.31 million was managed by the Directorate for Development Cooperation and Humanitarian Affairs).
The table below (breakdown of gross ODA tab) gives the distribution by type of cooperation of all Luxembourg’s 2021 ODA expenditure, following the rules of the DAC.
The following table (ODA by sector tab) gives the breakdown by sector of all Luxembourg ODA expenditure in 2021.
Established by the amended law of 6 January 1996 on development cooperation and humanitarian action, the Development Cooperation Fund (DCF) is an instrument enabling the Ministry of Foreign and European Affairs to carry out development programmes and projects extending over several years.
As the graph below shows, Luxembourg’s official development assistance initially grew slowly but steadily.