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Luxembourg has been a member of the OECD’s Development Aid Committee (DAC) since 1992. A unique international forum, the DAC brings together the largest providers of development assistance, and has 30 members.

The overarching aim of the DAC for the 2018–2022 period is to promote development cooperation and other relevant policies so as to contribute to the implementation of the 2030 Agenda for Sustainable Development, including sustained, inclusive and sustainable economic growth, poverty eradication, improvement of living standards in developing countries, and to a future in which no country will depend on aid.

In order to achieve this overarching objective, the Committee’s activities include monitoring the resources that support sustainable development, assessing them and reporting on them; reviewing development cooperation policies and practices and upholding international norms and standards; carrying out analysis, developing guidance and collecting good practice to assist the members of the DAC and the expanded donor community to enhance innovation in development cooperation, development impact and effectiveness and the results produced by development cooperation.

As part of this remit, in 2020 the DAC conducted a mid-term review of the peer review of Luxembourg. This welcomed the solid progress made, particularly in the area of inclusive finance, digitisation and climate change. Among the country’s key actions are national whole-of-government strategies, a dialogue and mechanisms designed to bring about more coherence in public action, and investment in information management. Since Luxembourg is a leader in sustainable and inclusive finance, the mid-term review encouraged it to promote the integration of developing countries within sustainable finance. Investment in its cross-cutting priority, i.e. the environment, and the thinking about how to address fragility and risk management were picked out as areas to focus on for further progress.