Within the framework of the Millennium Development Goals (MDGs), Germany’s targets development cooperation are to contribute to the fight against poverty, to secure peace, to achieve democracy, to shape a fair globalization and to protect the environment. These overarching goals have been translated into ten key sectors in 2008, which have remained valid under the current government. The current government has prioritized six of them: 1) good governance, 2) education and training, 3) health, 4) rural development, 5) climate protection, environmental protection and resource management, and 6) economic cooperation. Yet these priorities are only partly reflected in the allocation of funds by sector.

According to preliminary OECD Development Assistance Committee (OECD DAC) figures, Germany was the 2nd largest European government donor in 2012, with US$13.1 billion (€10.2 billion) provided in net ODA (in current prices). In real terms, net ODA decreased by 0.7% compared to 2011, and the ODA share declined from 0.39% of GNI in 2011 to 0.38% in 2012.

Net ODA disbursements had declined from US$13.8 billion (€9.9 billion) in 2008 to US$12.2 billion (€8.8 billion) in 2009, mainly due to the low share of debt relief (1%) in that year, compared to 18% of net ODA in 2008. While debt relief remained at a low level in 2010 (1%) and 2011 (2%), net ODA increased to US$14.1 billion (€10.1 billion) in 2011. Apart from debt relief, Germany also reports imputed students costs, administrative costs, costs for refugees in Germany and development awareness efforts, which together accounted for 10.7% of Germany’s net ODA disbursements in 2011.

Germany implements innovative financing instruments to increase its ODA. One example is the use of revenues from the sale of CO2 emission certificates which are earmarked for climate related activities in developing countries through Germany’s Energy and Climate Fund (with a budget of US$462 milion or €372 million in 2013).

More information on: Bilateral and multilateral funding