Managing Aid: Practices of DAC Member Countries

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Since its inception, one of the DAC's main functions has been to collect and publish statistics on aid flow. As noted in the Achievements section of this article, in the DAC's members adopted a criterion for calculating their aid contributions.

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It has become widely used by other organisations, and scholars, as a general measure of aid; for example, the United Nations and the World Bank both commonly use ODA as calculated by the DAC as their measure of aid. This is in spite of the fact that it is not an entirely comprehensive measure. It includes only aid from government sources; aid from private sources, including NGO's, is not counted.

About ten to fifteen percent of aid comes from private sources. ODA includes developmental and humanitarian aid, the latter being much the smaller of the two. It includes both outright grants and loans , as long as the loans are on significantly easier terms than the commercial norm: the DAC calls these "concessional" loans.

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The change to the definition of ODA in involved tightening the definition of "concessionality". The DAC defines concessionality according to a mathematically computed "grant element"; loans with a grant element of at least 25 percent are considered concessional and count as ODA. This criterion has not been changed since Loans made in a given year that are counted towards ODA are counted net of repayments made that year on the principal of old loans, but not net of interest payments. Therefore, after a loan has been paid back its overall effect on ODA figures is zero.

Its overall direct fiscal effect on the recipient is of course that the recipient has had to pay back some amount of interest. It also has collected some data on the OPEC countries' aid donations, which are significant: in fact OPEC donations are currently about twice that of the DAC countries' as a fraction of donor gross national income.

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Initially it included most developing countries. After the fall of Communism in Europe in the early s the Eastern European countries and the Soviet Union, which had formerly been donors of aid, [24] became aid recipients, albeit wealthier ones than most developing countries. Because of this and because some formerly poor East Asian countries were now middle-income, the DAC in divided the list of recipients into two parts, on the basis of national income.

This bifurcated list was abolished in , however, because of the confusion and accounting difficulties that were occasioned when countries moved from one part to the other of the list. Movement of countries on or off the list has caused the DAC to retroactively change past ODA figures for some group categories. From Wikipedia, the free encyclopedia. OECD committee.

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On other events, refer to the relevant section by date. Kuipers Eds. There are signs that some of these challenges are beginning to be addressed. Also, ongoing investment in South-South cooperation, as well as utilising regional fora as mechanisms for aid policy coordination and dialogue, have been key recurring issues on the non-DAC aid agenda, and are likely to remain important. Diversity in donorship. The changing landscape of official humanitarian aid. HPG Report 20, September Summary of report1 A recent report by ALNAP presents a system-level mapping and analysis of the performance of international humanitarian assistance between and Summary of report1 Location: Global What we know: Emergency aid funding has risen tenfold in the last 14 years.

What this article adds: A recent review of national and It is based Summary of report1 Devastation in Sri Lanka post tsunami The Indian Ocean earthquake and tsunami killed over , people with 1. A massive Published paper1 A recent HPG research briefing paper provides an overview of the changing role of aid policy in protracted crises.

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It starts with the premise that there has According to the editorial, many emergencies do not attract significant amounts Summary of research1 Location: Zimbabwe What we know: There is a lack of evidence on the extent to which multi-donor trust funds MDTFs contribute to aid effectiveness in Summary of report1 Women wait for a WFP general food distribution in Kabul A recent report analyses the current state of global humanitarian reform efforts from a What this Summary of study1 A recent study quantifies the funding provided by donors to meet the humanitarian needs of two of the most vulnerable groups: older people and people with Accept cookies.

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