title: Scope and structure of German official development assistance: trends and implications for the BMZ and other ministries
Creators: name: Bohnet, Michael
name: Klingebiel, Stephan
name: Marschall, Paul
Publisher: name: German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)
publisherIdentifier: https://ror.org/01t3zke88
publisherIdentifierScheme: ROR
Year: 2018
Subjects: subject: Entwicklungspolitik
subject: Development Policy

description: The structure of German Official Development Assistance (ODA) is in a state of
 transition. Germany’s growing international role, the increasing importance of climate
 issues as well as the refugee crisis are contributing greatly to a significant increase in
 German ODA, which has more than doubled since 2012 and amounted to around EUR 22 billion
 in 2017. The coalition agreement between the CDU/CSU and the SPD in 2018 has prioritised
 ODA-eligible expenditures and views development policy as a priority area. Significant
 changes can also be seen with regard to the scope and pattern of ODA expenditures: <br>
 The budget of the Federal Ministry for Economic Cooperation and Development (BMZ) and its
 share of the federal budget have increased due to an upvaluation of development
 cooperation (DC). At the same time, the BMZ’s portion in Germany’s overall ODA fell from
 73 per cent in 1995 to 33 per cent in 2016. Nonetheless, projections for 2017 based on the
 second government draft for the 2018 budget indicate a trend reversal. Projection for
 2017: BMZ 37 per cent, with KfW market funds 45 per cent; Federal Foreign Office (AA) 14
 per cent; Projection for 2018: BMZ 49 per cent, with KfW market funds 53 per cent; AA 13
 per cent. <br> ODA-eligible contributions of other federal ministries have increased
 significantly. Both the ODA-eligible portion of the EU budget and the development policy
 contributions of the federal states have doubled since 1995. Market funds mobilised via
 the KfW as well as the eligible expenditures for refugees in Germany have been
 particularly important at times. <br> The following interpretations can be drawn based on
 those trends: <br> Largely positive interpretation from a development policy perspective:
 Development cooperation has become more important in recent years and is no longer a
 comparatively small area of activity that relates exclusively to the BMZ. New challenges
 have resulted from other ministries having a much stronger interest in maintaining and
 using resources for development cooperation. Germany’s ODA contributions have thus risen
 overall and the BMZ’s share of the budget has increased. <br> Largely critical
 interpretation from a development policy perspective: The distribution of funds among a
 larger number of actors is making it difficult to pursue a coherent development policy
 approach, and other policy areas are not primarily aimed at development policy objectives
 due to their tasks and interests. The current situation implies a loss of importance for
 the BMZ and thus the original development policy area. <br> Due to a rise in ODA
 contributions and the growing importance of a wide variety of development policy actors in
 Germany, there is now an increased need for greater coordination. The following is
 therefore recommended: 
 

 
 conduct systematic development policy reviews of all ODA projects of all
 ministries
 

 more intensively coordinate Germany’s ODA contributions through the BMZ in a steering
 group

 concentrate ODA funds more towards the BMZ, which is the specialised department in
 development policy.
description: Briefing Paper, 16/2018