Official development assistance (ODA)

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Official development assistance (ODA) is defined as government aid designed to promote the economic development and welfare of developing countries. Loans and credits for military purposes are excluded. Aid may be provided bilaterally, from donor to recipient, or channelled through a multilateral development agency such as the United Nations or the World Bank. Aid includes grants, "soft" loans and the provision of technical assistance. Soft loans are those where the grant element is at least 25% of the total. The OECD maintains a list of developing countries and territories; only aid to these countries counts as ODA. The list is periodically updated and currently contains over 150 countries or territories with per capita incomes below USD 12 276 in 2010. Data on ODA flows are provided by the 29 OECD members of the Development Assistance Committee (DAC).

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Keywords:  official financing, developing countries, Official development assistance, aid, DAC, government aid, ODA, donors

Country Programmable Aid (CPA) You or your institution have access to this content


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Country Programmable Aid (CPA) is the portion of aid that donors programme at country or regional level. CPA for bilateral donors is defined through exclusions, by subtracting from total gross bilateral official development assistance (ODA), all activities that: (i) are inherently unpredictable by nature (humanitarian aid and debt relief); or (ii) entail no cross-border flows (administrative costs, imputed student costs, promotion of development awareness, and costs related to research and refugees in donor countries); or (iii) do not form part of co-operation agreements between governments (food aid, aid from local governments, core funding to NGOs, ODA equity investments, aid through secondary agencies, and aid which is not allocable by country or region). CPA from multilateral agencies is derived by subtracting from total multilateral outflows the non-CPA elements that are applicable to multilateral agencies. CPA is measured in gross disbursement terms and does not net out loan repayments since these are not usually factored into country aid decisions. CPA tracks the proportion of ODA over which recipient countries have, or could have, significant say. As such, CPA is closer to capturing actual aid flows to countries than the concept of official development assistance, and has been proven a good proxy for aid recorded at the country level. CPA is derived from the standard OECD Development Assistance Committee (DAC) and Creditor Reporting System (CRS). This indicator is measured in USD constant prices, using 2015 as the base year.

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Keywords:  ODA, aid transactions, DAC, international aid, bilateral aid, regional aid, development aid, development assistance, country aid, aid recipients
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