The rules governing ODA are changing and these are the first set of ODA statistics published under new rules regarding how ODA is accounted for. Under these rules, only a percentage of each ODA loan is counted as ODA – the percentage is dependent on how concessional the loan is. This is offset by the fact that loan repayments are no longer deducted from the headline ODA figure for each donor.
Donors are also now able to report some additional investments in the private sector of developing nations as ODA – known as private sector instruments (PSIs).
In order to compare data against previous years, the OECD has published ODA figures for 2018 calculated according to the previous ‘net ODA’ measure as well as the new ‘grant equivalent’ measure of ODA.
- Key findings
- ODA falls for the second year running
- On a net ODA basis, 17 DAC donors reported a rise in ODA but falls in other countries outweighed this
- Under the new rules, ODA in 2018 appears to be US$3.7 billion higher compared to the previous measure
- The change in measurement of ODA has made no difference to the number of donors achieving 0.7%
- ODA from DAC donors to LDCs continues to flatline
- ODA to short-term priorities has fallen from its 2016 peak, but remains at historically high levels
- Some donors give loans on much softer terms than others
- Three-quarters of ODA-eligible PSIs reported by donors came from three donors
Photo: Dorte Verner/World Bank