Luxembourg

ODA Spending

How much ODA does Luxembourg contribute?

How is Luxembourg's ODA changing?

How is Luxembourg's ODA allocated?

Bilateral Spending

Niger, Burkina Faso, Senegal, Cabo Verde, and Mali, along with Laos and Nicaragua, are priority partner countries, indicated in Luxembourg’s Road to 2030 strategy. Luxembourg is committed to providing at least 50% of bilateral ODA to priority partner countries.

Multilateral Spending and Commitments

What is the future of Luxembourg's ODA?

Luxembourg’s budget documents indicate a 14% increase in the development cooperation budget between 2022 and 2023, translating to a projected ODA of US$603 million in 2023. The projected January-April 2024 budget suggests no change in funding levels between 2023 and 2024.

Politics & Priorities

What is the current state of Luxembourg's politics?

Luxembourg is a parliamentary representative democratic monarchy. Luxembourg has a multi-party system dominated by several key parties. The CSV, a center-right party, focuses on Christian-democratic and conservative values and has historically been the largest and most influential party. The LSAP is center-left, advocating for social democracy, labor rights, and social welfare. The DP, a centrist to center-right party, emphasizes liberal and pro-business policies, along with individual freedoms and European integration. The Greens are a progressive party focusing on environmental sustainability and social justice. These main parties often form coalitions to govern, as no single party typically secures a majority in Luxembourg's Chamber of Deputies.

Who is responsible for allocating ODA?

Luxembourg’s MFEA, and specifically the Directorate for Development Cooperation and Humanitarian Affairs, is responsible for designing and implementing Luxembourg’s development cooperation policy with input from the ICDC. Around one-third of Luxembourg’s bilateral ODA is channeled through its development cooperation agency, Lux-Development, also known as LuxDev. The Ministry of Finance is responsible for multilateral initiatives with IFIs.

What are Luxembourg's development priorities?

Luxembourg’s development co-operation strategy, The Road to 2030, prioritizes four themes:

• Access to quality basic social services
• Socio-economic integration of women and youth
• Inclusive and sustainable growth; and
• Inclusive governance.

The strategy also mentions three priority cross-cutting themes:

• Human rights
• Gender equality; and
• Environmental sustainability.

The Road to 2030 indicates Luxembourg’s aim to align with the EU’s Common Foreign and Security Policy, as well as active engagement:ABBREU policymaking and coordination on development cooperation policy and humanitarian action.

Luxembourg actively promotes sustainable financing, including by introducing a sustainability check for all new regulations to improve policy coherence for sustainable development. In August 2022, Luxembourg adopted a new humanitarian action strategy that committed Luxembourg to allocate 15% of its overall annual ODA to humanitarian actions. This commitment is unlikely to significantly affect Luxembourg’s ODA composition, as 18% of bilateral ODA was already allocated to humanitarian assistance in 2021.