Italian Official Development Assistance (ODA): A territorial perspective

Abstract

Official Development Assistance (ODA) promotes the economic development and welfare of developing countries. Its relevance has increased constantly since 1970 when the UN set the target of 0.7% of GNI for donor countries. This goal has been further reaffirmed by SDG 17.2 of the 2030 Agenda. In the last few years, there has been a growing strand of literature attempting to disentangle the development efforts of donor countries. Still, little emphasis has been put on the “local” dimension of aid on the donor side. This paper examines the flows of Italian Official ODA for project-based interventions and international scholarships, funded by local administrations and Italian public universities. Using OECD data, we examine the regional distribution, the sectoral allocation, the type of interventions, and the geographical orientation of ODA in the years 2019 and 2021. In addition, we carry out an exploratory econometric exercise to understand whether regional ODA flows follow a similar dynamic to that of trade flows between the recipient country and the region, using a simple gravity model. Results show that Italy’s ODA is mostly concentrated in a few Regions and focuses on a limited number of key sectors, addressing specific countries. We discuss the implications of these findings for the coherence and effectiveness of the development cooperation policy.