Using the cash-flow basis ODA figure to compare 2018 with 2017 shows that bilateral ODA to the least-developed countries fell by 3% in real terms from 2017, aid to Africa fell by 4%, and humanitarian aid fell by 8%, writes the OECD.
2018 ODA outflows rose in 17 donor countries, with the biggest increases in Hungary, Iceland and New Zealand. ODA outflows fell in 12 countries, due in some to fewer refugee arrivals, with the largest declines in Austria, Finland, Greece, Italy, Japan and Portugal.The grant-equivalent ODA figure for 2018 is equivalent to 0.31% of the DAC donors’ combined gross national income, well below the target ratio of 0.7% ODA to GNI.
Five DAC members – Denmark, Luxembourg, Norway, Sweden and the United Kingdom – met or exceeded the 0.7% target. Non-DAC donors Turkey and the United Arab Emirates, whose ODA is not counted in the DAC total, provided 1.10% and 0.95% respectively of their GNI in development aid. Whereas previously the full face value of a loan was counted as ODA and repayments were progressively subtracted, the grant-equivalent methodology means only the “grant portion” or the amount the provider gives away by lending below market rates, counts as ODA.
The loan parameters are set so that donors can henceforth only provide loans to poor countries on very generous terms. The new grant-equivalent figure is not comparable with historical ODA data and so the 2018 figures starts a new grant-equivalent ODA series.“Less ODA is going to least-developed and African countries, where it is most needed.
This is worrying,” said DAC Chair Susanna Moorehead. “This new grant-equivalent methodology is a more accurate and transparent way of measuring donor effort. It is also designed to incentivise donors to send the most concessional loans, and more grants, to the countries that need them most.”The OECD’s aid statistics include official flows from DAC donors to developing countries.
The OECD also monitors flows from some non-DAC providers and private foundations. The preliminary data release each April is followed by final and detailed statistics at the end of each year with a detailed geographic and sectoral breakdown.The DAC is an OECD committee that serves as a forum for 30 donors and observer bodies.
ODA is defined as official financing flows to promote the economic development and welfare of low and middle-income countries. Net ODA is total ODA spent minus repayment of loan principals by recipient countries..
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