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Luxembourg has been a member of the Development Aid Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) since 1992. As a unique international forum with 30 members, the DAC brings together the largest providers of development assistance. In 2021 the DAC celebrated 60 years of existence.

The overarching aim of the DAC for the 2023–2025 period as redefined in September 2022 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 has developed a new budget programme for 2023 and 2024 that will include, in particular, 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 work, in 2022 the DAC produced new guidance for interaction with the private sector.

The DAC organises periodic peer reviews of the efforts of its 30 members to analyse the effectiveness of development assistance, provide feedback and exchange good practice around development assistance. Each member country is evaluated every five to six years by two other member countries. In 2020, Luxembourg carried out its mid-term review. The full evaluation of Luxembourg was planned for 2022 but was postponed to 2024 due to the health crisis.