ODA: what is it and how does it work?
How is Official Development Assistance (ODA) measured?
Official development assistance (ODA) is the term used by Development Assistance Committee (DAC) members to refer to what most people would call aid. ODA includes activities carried out with the economic development and welfare of developing countries as their main objective. It is a measure of donor effort, including grants and grant equivalents of concessional loans.
Who reports data on their development cooperation to the OECD?
The DAC publishes a list of countries and organisations that report to the OECD on their aid and other financial flows to developing countries. The list encompasses DAC members, countries that are not members, and multilateral organisations, as well as several of the largest private philanthropic foundations working for development.
Which countries are eligible to receive ODA?
The DAC maintains a List of ODA-eligible countries which it reviews every three years.
What other kinds of financial flows are available in addition to ODA?
In addition to ODA (both bilateral and multilateral), the DAC collects and publishes data on other official flows (OOF), official export credits and private flows. See our databases and our page on Resource flows to developing countries beyond ODA.
An international Task Force has also developed a new international standard for measuring the full array of resources in support of the 2030 Agenda: Total Official Support for Sustainable Development (TOSSD). It is designed to monitor all official resources flowing into developing countries for their sustainable development, but also private resources mobilised through official means. It measures contributions to international public goods – up to now “invisible” in development finance statistics – that help countries reach their Sustainable Development Goals. See www.tossd.org.
Donors and flows
What are the different forms of aid and who receives them?
Bilateral aid represents flows from official (government) sources directly to the recipient country.
Multilateral aid represents core contributions from official (government) sources to multilateral agencies which use them to fund their own developmental programmes. Multilateral agencies, such as United Nations agencies, are governed by representatives of governments, unlike non-governmental organisations (NGOs).
A donor can contract a multilateral agency to deliver a programme or project on its behalf in a recipient country: the funds are typically counted as bilateral flows, and often referred to as Bi/Multi. Donor funds channelled through NGOs are also typically counted as bilateral flows.
What is the difference between multilateral ODA and multilateral outflows?
Double counting is avoided by being clear about what is being measured. Donors report the following flows to the DAC:
- Bilateral ODA flows to recipient countries
- Multilateral ODA - core contributions to ODA-eligible multilateral organisations
- Earmarked ODA channeled through multilateral organisations (Bi/Multi) to a specific recipient (the multilateral organisation is contracted to deliver a specific project)
- Other official flows
- Private flows originating in the donor country
These flows are added together and represent the total official and private flows.
Multilateral organisations report their outflows to the DAC, including details of the recipients such as the country or region. When it comes to calculating the total for a recipient country, the total flows reported by donors are used except donors’ core contributions to multilateral agencies. Instead, data recorded on outflows from multilateral organisations to a recipient country are added to bilateral flows.
This method results in more detailed information on the spending of ODA in a given recipient country.
What is the difference between core (pooled) and non-core contributions to multilateral agencies?
ODA to multilateral development organisations from donor countries is pooled, which makes it an integral part of the recipient institution’s financial assets that can then be used to meet an agency’s running and programme costs. Non-core funding includes instances where the donor specifies how the money is spent.
Statistical terms and reporting issues
Where can I find a glossary of key definitions and reporting directives?
- Technical terms are defined in the DAC Glossary of Key Terms and Concepts.
- Reporting directives and rules used by donor countries can be found in the Statistical Reporting Directives.
What is the difference between ODA flows and ODA grant equivalents?
ODA can take the form of (i) grants, where financial resources are provided to developing countries free of interest and with no provision for repayment, or (ii) soft loans, which have to be repaid with interest, albeit at a significantly lower rate than if developing countries borrowed from commercial banks.
ODA flows: Until recently, grants and loans were valued in the same way: by recording the flows of cash that were granted, or the face value of loans that were lent to developing countries, deducting any repayments on the loans. This “cash basis” or “flow basis” method, has been used to produce ODA headline figures until 2018.
ODA grant equivalent: From 2018 onwards, instead of recording the actual flows of cash between lender and borrower, the headline measure of ODA is based on the loans’ “grant equivalents”. This new way of measuring aid loans aims to better reflect the actual effort by donor countries –and their taxpayers: only the “grant equivalent” of loans is recorded as ODA. The more generous the loan, the higher the ODA value.
For the sake of transparency, ODA flows are still collected and published, in parallel of ODA grant equivalents.
When are data on aid published, and what is the difference between preliminary and final data?
There are two main data updates each year. In April, high-level (aggregated) figures are published on total ODA by donor countries for the previous calendar year. In December, these figures are updated with detail on how the funds were allocated by recipient country, sector (health, education, etc), geographical region, and income group (least developed, Upper Middle Income, etc). In December, detail is also available right down to individual project level. In addition to these two main updates, partial database updates occur in June and September each year.
What is country programmable aid?
Country programmable aid (CPA) is the portion of ODA donors programme spent in individual countries, over which partner countries could have a significant say. CPA is much closer than ODA to capturing the flows of aid that go to the partner country, and has been proven in several studies to be a good proxy of aid from DAC donors recorded at country level.
What is the difference between a commitment and a disbursement?
Commitments measure donors’ intentions and allow to monitor the targeting of resources to specific purposes and recipient countries. They fluctuate as aid policies change, and reflect how donors’ political commitments translate into action. They give an indication about future flows.
Disbursements show actual payments made each year. They show the realisation of donors’ intentions and the implementation of their policies. They are necessary to examining the contribution of donors’ actions to development achievements. They describe aid flows better from the recipient’s point of view.
Analysing the relation between commitments and disbursements can provide useful insights on aid delivery. Commitments are often multi-year and subsequent disbursements spread over several years. In DAC statistical reporting systems, commitments, even if multi-year, are recorded in whole in the year they are signed (the use of moving averages in statistical presentations smoothens the resulting fluctuations). Subsequent disbursements of an earlier commitment are recorded annually, in the years they are transferred from donors to recipients. An increase in aid allocations over time is thus visible in disbursements data only with a few years’ time lag. Consequently, disbursements in one year cannot be directly compared to commitments in the same year, as disbursements may relate to commitments originally recorded in different years.
Discover our databases
What is the OECD Data Explorer?
The OECD Data Explorer is the organisation's data warehouse, providing access to all OECD statistical data. It replaces the former OECD.Stat database, delivering the same information in a refreshed, interactive format with summary tables, figures, and microdata.
In the Data Explorer, the OECD’s development finance statistics are accessible under Topic > Development > Official Development Assistance. These statistics provide a comprehensive perspective on development finance to countries on the DAC list of ODA recipients and to international organisations listed as ODA-eligible. This includes official development assistance (ODA), other official flows (OOF), and contributions from private providers and foundations, as well as statistics on officially-supported export credits and private flows at market terms.
What happened to OECD.Stat and QWIDS?
As of July 2024, the OECD.Stat website and QWIDS data query tool have been fully replaced by the OECD Data Explorer. In the coming months, the OECD plans to introduce new tools to enhance the exploration, analysis, and visualisation of development finance statistics.
What is the difference between the aggregate and individual project data?
The OECD publishes data both at aggregate level (e.g. figures aggregated by donor, recipient, sector, modality, etc.), and in the separate Credit Reporting System (CRS) dataset at disaggregated individual project level.
In the past, aggregate and disaggregated data were collected through different questionnaires. For historical data, therefore, totals in the DAC and CRS datasets do not always match. The discrepancies can arise from:
- Coverage gaps, especially for earlier years – not all donors provided data compatible with the level of detail required for the CRS;
- Different bases being used – e.g. it may be that for some entries, aggregate data were reported as commitments, whereas activity level (CRS) reporting may reflect actual disbursements.
To search individual datasets from the DAC and CRS datasets in the Data Explorer, look under Topic > Development > Official Development Assistance, then select a dataset.
I see negative disbursement figures when I run a data query – what does this mean?
When calculating net ODA flows, loan repayments are recorded as negative and deducted from ODA disbursements. In some cases, loan repayments are higher than new ODA and thus net ODA will show as a negative number.
What do the results such as ‘..’ and ‘-‘ and ‘0’ mean?
When viewing data online on the Data Explorer:
- .. Indicates an empty field. It is equivalent to an NA or NULL value.
- 0 or 0.00 Indicates a reported value of 0 or a very small value.
Where can I find the CRS data and how can I download it?
Creditor Reporting System (CRS) data on commitments from 1995 and disbursements from 2002 are available in the OECD Data Explorer.
Earlier commitment and disbursement data are available for download, but there are gaps in the coverage for some donors and years. Yet, this data is still useful for some analytical purposes, e.g. on ODA loans.
To download the complete CRS database in a delimited file, go to the CRS: Creditor Reporting System (flows) dataset CRS: Creditor Reporting System (flows) in the Data Explorer (Topic > Development > Official Development Assistance > CRS: Creditor Reporting System (flows)). On the main page, titled ‘Overview’, you will see a list of links under Related files. Click on the file name you would like to download.
These related files are available in two formats: text (.txt) and parquet (.parquet). The CRS text files – e.g. CRS 2022 (dotStat format) – contain full CRS activity-level data by year, with the previous OECD.Stat format included to support users who are accustomed to the legacy platform. All CRS text files can be converted to either Excel 2007 or a later version (you need to use the vertical bar ‘|’ as delimiter and none as text qualifier) or any other software which enables the use of files with more than 65,000 rows.
The parquet file is available in two formats: CRS-Parquet contains all columns, while CRS-reduced parquet contains codes only (rather than codes and names) for values such as donor country, recipient country and sector, to make the file size more manageable. The parquet file can be loaded into a data processing software such as R (using the Arrow package) or Python (using Pandas).
ODA markers and themes
What are ODA markers?
Markers are applied to project level data across a number of sectors to help the international community track the inclusion of specific policy objectives in development co-operation activities.
The CRS currently tracks 11 markers, as follows:
- Gender equality
- Nutrition
- Inclusion and empowerment of persons with disabilities
- Aid targeting the objectives of the Framework Convention on Climate Change – climate change adaptation
- Aid targeting the objectives of the Framework Convention on Climate Change – climate change mitigation
- Aid to environment
- Democratic and inclusive governance
- Reproductive, maternal, new-born and child health (RMNCH)
- Aid targeting the objectives of the Sendai Framework for Disaster Risk Reduction (DRR)
- Aid targeting the objectives of the Convention on Biological Diversity
- Aid targeting the objectives of the Convention to Combat Desertification
See definitions and methodology of markers in Annexes 19 and 20.
Markers can assume three values. They are scored 2 if the policy objective is the principal (primary) objective of the activity. They are scored 1 if the policy objective is a significant (secondary) objective of the activity. They are scored zero if the activity was screened but the policy objective was not identified. Activities can be marked with more than one marker. Different sets of marker data cannot be simply added together without considering overlaps, as this might lead to double counting of projects that support more than one policy objective.
- Data for all markers is available via the “Export” function of the CRS tables in OECD.Stat (export related files).
- Additionally, specific tables are available in OECD.stat for Gender equality and the Environment.
- Climate change related development finance, including multilateral and bilateral non-concessional development finance.
Can support to COVID-19 vaccines be counted in ODA?
Since the emergence of the Covid-19 pandemic, many questions have been raised on whether activities in response to the pandemic can be counted as ODA. Answers are included in the OECD Secretariat's interpretation on eligibility, based on the Reporting Directives, which provide guidance for reporting on 2020 and 2021 ODA .
Can support to refugees be counted in ODA?
Official support to refugees from an ODA-eligible country can be reported in ODA. The ODA-eligibility rules vary depending on whether the support is provided in ODA-eligible countries or in donor countries:
- Support to refugees hosted in ODA-eligible countries: expenses can generally be fully reported as ODA.
- Support to internally displaced people (IDPs) in ODA-eligible countries is fully ODA-eligible.
- Support to refugees hosted in DAC donor countries or in non-DAC provider countries that are not ODA recipients: expenses for temporary sustenance of refugees can be reported in ODA during the first twelve months of their stay, prior to and post recognition of refugee status. This is called in-donor refugee costs.
Can support to migration be counted in ODA?
Support given to developing countries under projects related to migration can count as ODA. One key element for a programme to be ODA-eligible is to aim primarily to promote development in the recipient country, rather than to address domestic concerns in donor countries. The DAC has agreed in 2022 on principles and criteria to guide ODA reporting in these situations with the goal of preserving the integrity of ODA.