• Factsheet
  • 20 April 2018

Aid spending by DAC donors in 2017

Author

Rob Tew

In this factsheet we provide an overview of key trends in official development assistance (ODA) emerging from the April 2017 Organisation for Economic Co-operation and Development (OECD) Development Assistance Committee (DAC) data release.

Notes

[1] UN, 2011, Fourth United Nations Conference on the Least Developed Countries – Programme of Action for the Least Developed Countries for the Decade 2011–2020. Available at: http://unohrlls.org/UserFiles/File/IPoA.pdf

[2] See OECD, 2015, Why modernise official development assistance? Available at: www.oecd.org/dac/financing-sustainable-development/Addis%20flyer%20-%20ODA.pdf.

[3] Grant element is the standard way of measuring how concessional a loan is. It can be viewed as the difference between the cost, in today’s prices, of the future repayments a borrower will have to make on the loan in question and the repayments the borrower would have had to make on a non-concessional loan. This is therefore the amount of money that is considered to have been ‘given away’ by the donor, hence ‘grant element’. The grant element is normally shown as a percentage of the value of the loan. Low interest rates and longer maturity periods will result in higher grant element percentages. Any loan with a ‘grace period’ – that is a period of time before any repayments have to be made – will also have an increased grant element.

[4] For a fuller treatment of this topic see Development Initiatives, 2018, Accounting for ODA loans – the effect of the new rules. Available at: www.devinit.org/wp-content/uploads/2018/03/Accounting-for-ODA-loans-Feb-2018-briefing