OECD DAC

Luxembourg has been a member of the OECD’s Development Assistance Committee (DAC) since 1993. With 1% of its gross national income (GNI) allocated to official development assistance (ODA), Luxembourg is a steadfast advocate within international bodies for the importance of ODA, particularly for the least developed countries (LDCs). It is worth noting that Luxembourg is one of the few countries that does not include international climate finance or refugee hosting costs within its ODA figures.

Luxembourg’s overall development cooperation strategy takes into account the recommendations from DAC peer reviews. The most recent peer review took place in 2024, with the Netherlands and Estonia acting as examiners. The report includes ten recommendations for Luxembourg’s development cooperation policy.

Relations with the DAC Development Cooperation Directorate are excellent, and Luxembourg is one of its top donors. Luxembourg relies on the DAC to ensure the quality and effectiveness of “genuine” aid. Policy coherence plays a key role in this area, and a study was conducted jointly with the DAC to strengthen this aspect in Luxembourg’s policies.