Luxembourg joined the Development Assistance Committee (DAC) in 1992 and was last reviewed in 2008.
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Luxembourg’s development cooperation increased significantly throughout the 1990s and continues to do so today. In 2000, it joined the group of countries which devote at least 0.7% of their GNI. By 2008, Luxembourg had already stepped up its development aid contribution to 0.97% of GNI, spending 34.4% of its total aid budget on support for basic social services. The current government’s Official Development Development Assistance (ODA) objective is to reach 1% of GNI by 2011. Click here to consult OECD's basic data on Luxembourg. Â
Bilateral ODA, administered by the Luxembourg Agency for Development Cooperation (Lux-Development), is the principal pillar of Luxembourg’s development cooperation policy. In 2008, it accounted for 67% of its aggregate ODA. The 10 target countries of Luxembourg Development Cooperation in 2008 were, in descending order,Senegal, Mali, Cape Verde, Viet Nam, Nicaragua, Burkina Faso, Laos, Niger, El Salvador and Serbia. In addition to these countries, the West Bank and Gaza are considered a quasi-target country.
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Taking its inspiration from the millennium development goals (MDGs), Luxembourg development cooperation focuses on three key sectors: (i) health (stressing the ESTHER initiative); (ii) education, including vocational training and job integration; and (iii) integrated local development, including various aspects such as water and sanitation, decentralisation and microfinance. Throughout its development cooperation efforts, Luxembourg mainstreams three cross-sector issues: (i) gender equality, (ii) the environment and (iii) good governance. Also, Luxembourg has made a total contribution of approximately $4 million so far to the HIPC initiative, with a special focus on debt relief for Burkina Faso, Niger and Nicaragua, even though Luxembourg has no bilateral claim vis-Ã -vis HIPC.
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