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The DAC &Official Development Assistance
(ODA)
Kimberly Smith, Administrator
Development Cooperation Directorate
OECD 28 May 2008
Moscow, Russia
What is the DAC?
• Development Assistance Committee (DAC) of the OECD.
• 22 Bilateral Donors, plus European Commission (EC).
• Objective: improve development assistance through coordination and collaboration with major stakeholders.
• Collect and synthesize data on aid and foreign assistance and deliver the data to the public.
2
DAC Statistics
• Measure resources for development (not just aid) including;
Official Development Assistance (ODA)
Other Official Flows (OOF)
Private Flows (NGOs)
Net Private Grants
• DAC statistics are the only reliable source of both total and comparative data on aid performance
3
DAC Reporters
• Data is collected data from:
All DAC Member Countries Non DAC Donors (voluntary)
Multilateral Agencies (voluntary)
• Limited data on aid only (ODA) from non-DAC members.
• In the future, we hope to improve reporting from non-DACs, multilaterals and foundations.
4
Current DAC Members
Australia France Luxembourg Sweden
Austria Germany Netherlands Switzerland
Belgium Greece New Zealand United Kingdom
Canada Ireland Norway United States
Denmark Italy Portugal European Commission (Multilateral)
Finland Japan Spain
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Collection Methods – DAC Members
• DAC questionnaire – aggregate level data
• Creditor Reporting System (CRS) – activity level reports
• CRS++ Method
• Both systems based on instructions agreed by members detailed in Statistical Reporting Directives
• Reports supplied by members and other reporters
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DAC Questionnaire
The full DAC Questionnaire consists of the following 7 Tables:
• 1 – Disbursements and Commitments of Official and Private Flows
• 2a – Destination of Official Development Assistance – Disbursements
• 2b – Destination of Other Official Flows – Disbursements
• 3a – Destination of Official Development Assistance – Commitments
• 4 – Destination of Private Direct Investment and Other Private Capital
• 5 - Official Bilateral Commitments (or Gross Disb.) by Sector of Destination
• 7b – Tying Status of Bilateral Official Development Assistance – Commitments
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Creditor Reporting System
CRS Form 1 reports on annual obligations, while CRS Form 2 reports on gross disbursements. Over 30+ variables per form including;
• Recipient Countries (possibility of grouping by continent or by income group)
• Donors (grouped into bilateral and multilateral)• Sectors and Sub-Sectors Codes• Activity/Project Titles and Descriptions• Flows: Grants, Loans, ODA, OOF• Channels of Delivery• Policy Markers (gender equality, environment, PD/GG)• RIO Markers (biodiversity, climate change, desertification)
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Data Collection Timeline
• Advanced Questionnaire (AQ)
Data solicitation – Jan/Feb each Year
Reporting Deadline – March 15thDAC Press Release - April (preliminary figures)
• Full DAC Questionnaire
Data solicitation – Jan/Feb each YearReporting Deadline – July 15th
DAC Press Release - December
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Statistics on Non DAC Members
• Abbreviated reporting form.
• Records disbursements (and commitments) of aid by recipient.
• Limited presentation of data in DCR; but supplemented by textual information: draft supplied by donor.
• Reporting is voluntary. Current reporters include all non-DAC OECD members except Mexico, Arab donors, Israel, Thailand and Baltic states.
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Current Non-DAC Reporters
Bolded countries are the non-DAC OECD Members
* Only textual information reported, no data
Arab Donors Israel Slovak Republic
Czech Republic Korea, South Slovenia
Estonia Mexico* Thailand
Hungary Latvia Taiwan
Iceland Lithuania Turkey
Poland
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Collection Method – Non DAC Members
Abbreviated DAC Table 1
TABLE DAC N1 - Abridged versionReporting
country:???DAC QUESTIONNAIRE ON AID FLOWS FROM NON-DAC DONORSDISBURSEMENTS OF FLOWS TO ODA RECIPIENTS ON THE DAC LIST Period:2007
2006 editionExchange rate
used:??? 112 113 114 Date:??? Disbursements
Million US DollarsGross
Amounts Received Net
(-) Total ODA 010 Bilateral ODA 015 Multilateral ODA 180 GNI 001 ///////////// ///////////// ODA%GNI 002 ///////////// /////////////
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Collection Method – Non DAC Cont.
Abbreviated DAC Table 2a/3a
TABLE DAC N2a/3a Reporting country: ???DAC QUESTIONNAIRE ON AID FLOWS FROM NON-DAC DONORSDESTINATION OF GRANTS AND CONCESSIONAL LOANS - COMMITMENTS AND DISBURSEMENTS Period: 2007 2007edition
Exchange rate used: ???
Date: ???
305 201 204 205 206
D I S B U R S E M E N T S
MILLION US DOLLARS NEW COMMITMENTS GRANTS LOANS TOTAL
NET (TOTAL FOR GRANTS GROSS REPAYMENTS
RECIPIENT AND LOANS) DISBURSEMENTS OF PRINCIPAL DISBURSEMENTS ( - ) I. EUROPE, TOTAL 0.00 0.00 0.00 0.00 0.00 ALBANIA 071 0.00 BELARUS 086 0.00 BOSNIA-HERZEGOVINA 064 0.00 CROATIA 062 0.00 MACEDONIA (FYROM) 066 0.00 MOLDOVA 093 0.00 MONTENEGRO 065 0.00 SERBIA 063 0.00 TURKEY 055 0.00 UKRAINE 085 0.00 STATES OF EX-YUGOSLAVIA UNSPECIF. 088 0.00 EUROPE, REGIONAL 089 0.00
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Statistical Outputs
• Annual Development Co-operation Report (DCR)
• Geographical Distribution of Financial Flows
• Statistical analysis in Peer Reviews of DAC member’s aid programme
• CD-ROM and on-line access
• External uses, including World Bank publications, Millennium Development Goals and other UN documents, databases and publications14
International Development
Statistics Online
What is ODA?
• The official measure of foreign aid.
• Only internationally comparable measure of donor assistance.
• Reported by donor countries to the OECD/DAC on an annual basis.
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ODA Targets & Performance
• 1970 UN Resolution urged advanced countries to provide 0.7% of their national income as ODA.
• The average ODA/GNI ratio for DAC countries was only 0.31% in 2006.
• Only five countries achieve the 0.7% target, but several others have plans to do so.
• The EU has set ambitious ODA targets of GNI of 0.17% of GNI by 2010 and 0.33% by 2015 for the 12 new members.
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Explanation of ODA
ODA are official flows to or for developing countries that are provided:
• for developmental purposes
• by the official sector (Government, public funds)
• as grants or
• as “soft loans” (ODA loans are at terms significantly softer than commercial transactions, and bear a “grant element” of at least 25% compared with a loan at 10%.)
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Official Definition of ODA
“Those flows to countries and territories on DAC List of ODA Recipients and to multilateral institutions which are;
I. Provided by official agencies, including state and local government, or by their executives agencies; and
II. Each transaction of which; a) Is administered with the promotion
of the economic development and welfare of developing countries as its main objective; and
b) is concessional in character and conveys a grant element of at least 25 per cent (calculated at a rate of 10 per cent).”
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ODA Eligible Countries
• Specifically defined set of countries
• Includes all low and middle income countries
• Exceptions: G8 members, EU Members and countries with a firm date of accession to the EU
• Reviewed every three years by the DAC
• Countries may graduate from the list, or change income groups
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ODA Eligible International Organizations
Agencies to which core contributions are reported as ODA in whole or in part include:
• Many United Nations & UN Administered Funds
• European Commission
• International Monetary Fund (concessional windows only)
• World Bank (IDA)
• World Trade Organization (technical assistance activities)
• Regional Development Banks
• Other Multilaterals
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Definition of ODA Flows
• Commitment: Firm undertaking to provide specified funds
• Disbursement: Actual payment or expenditure of funds
• Grant: Non-repayable
• Loan: Initial Loan plus Repayments. Only report repayments of loan principal, not interest
• Performance assessed on net disbursements
• Net disbursements = disbursements of grants +
disbursements of loans - repayments of loan principal
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Important Notes
• ODA is a measure of donors’ expenditures on aid.
• It is NOT a measurement of the amount of value received by a recipient country.
• ODA is a subset of foreign assistance.
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Examples of ODA Activities
• Development Projects – schools, clinics, water supply systems etc…
• Emergency Aid for Natural or Man-made Disasters
• Contributions to Multilateral Development Agencies
• Food Aid, Emergency and Developmental
• Aid to Refugees and IDPs
• Debt Relief outlined by Paris Club Agreement
• Officially Financed Scholarships for students in developing countries
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Non Eligible ODA Activities
• Military or Security Assistance
• Cultural programmes for the donor’s nationals resident in other countries
• Aid from NGOs financed from private sources
• Foreign Direct Investment
• Official export credits or other commercially motivated transactions
• Guarantees on private export credits or investments
• Reduced tariffs or other concessions on imports from developing countries
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Importance of Data
• Domestic and Foreign Policy/Diplomacy
• Fosters Accountability
• Improves Transparency
• Provides a Platform for DialogueRecipient CountriesOther Donors
• Alignment with International Standard
• Drives Future Policy Decisions25
Establishing a Database
• Collection of facts, both financial and descriptive.
• Living entity – flexible, updatable, ever-expanding.
• Requires a lot of up-front work.
• ASSET. Tool for answering questions and provides the basis for in-dept analysis, and future policy implications.
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Data Collection
• Who will collect the data?
• What is the current mandate for data collection?
Is this type of reporting mandated by law? Agreement between government and
international organization?
• How is the message of importance conveyed?
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Further Information & Resources
• General User Guide for DAC Statistics: www.oecd.org/dac/stats/dac/guide
• Short Guide to ODA Eligibility: “Is it ODA”: www.oecd.org/dataoecd/21/21/34086975.pdf
• List of ODA-eligible International Organisations: http://www.oecd.org/dataoecd/36/16/31724727.pdf
• DAC List of ODA Recipients: www.oecd.org/dac/stats/daclist
• DAC Statistical Database: www.oecd.org/dac/stats/idsonline
• DAC Statistical Tables: www.oecd.org/dac/stats/dac/reftables 28
