An Assessment of Data on ODA Financial Flows in the Forest Sector

Madhvani, A.1999: Overseas Development Institute

The forest sector in most developing countries has substantial need of funding for sustainable forest management but is constrained by many factors. This study presents information gathered on international Overseas Development Assistance (ODA) flows in the forestry sector, as part of UNDP and the Intergovernmental Forum on Forests (IFF) Secretariat's preparations for Programme Element II.a., 'The Need for Financial Resources', at its Third Session (3-14 May 1999, Geneva). It also comments on issues of relevance to the broader context of IFF Process

This study argues that levels of new ODA commitments appear to have risen over the late 1980's, reaching their highest levels in real terms in the 1990-1992 period (in excess of 2 billion US dollars, 1996 prices), and subsequently fallen to lower levels. Such a peak in aggregate levels of new commitments is partly a result of the largest single provider of funds, the World Bank, having particularly large commitments (over $600 million) in 1990, 1992 and also 1994. Data for all other agencies suggest that their aggregate levels of new commitments were at their highest levels over the same period ($1.3-1.6 billion over 1988-92), and have fallen slightly since then ($1.2-1.4 billion for 1993-6, 1996 prices). Though this study is not in a position to explain this subsequent decline, part of the reason may lie with the growing popularity of parallel funding areas concerned with the environment and biodiversity.