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The DAC & Official Development Assistance (ODA) Kimberly Smith, Administrator Development Cooperation Directorate OECD 28 May 2008 Moscow, Russia.

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Presentation on theme: "The DAC & Official Development Assistance (ODA) Kimberly Smith, Administrator Development Cooperation Directorate OECD 28 May 2008 Moscow, Russia."— Presentation transcript:

1 The DAC & Official Development Assistance (ODA) Kimberly Smith, Administrator Development Cooperation Directorate OECD 28 May 2008 Moscow, Russia

2 What is the DAC? Development Assistance Committee (DAC) of the OECD. 22 Bilateral Donors, plus European Commission (EC). Objective: improve development assistance through coordination and collaboration with major stakeholders. Collect and synthesize data on aid and foreign assistance and deliver the data to the public. 2

3 DAC Statistics Measure resources for development (not just aid) including; Official Development Assistance (ODA) Other Official Flows (OOF) Private Flows (NGOs) Net Private Grants DAC statistics are the only reliable source of both total and comparative data on aid performance 3

4 DAC Reporters Data is collected data from: All DAC Member Countries Non DAC Donors (voluntary) Multilateral Agencies (voluntary) Limited data on aid only (ODA) from non-DAC members. In the future, we hope to improve reporting from non- DACs, multilaterals and foundations. 4

5 Current DAC Members AustraliaFranceLuxembourgSweden AustriaGermanyNetherlandsSwitzerland BelgiumGreeceNew ZealandUnited Kingdom CanadaIrelandNorwayUnited States DenmarkItalyPortugalEuropean Commission (Multilateral) FinlandJapanSpain 5

6 Collection Methods – DAC Members DAC questionnaire – aggregate level data Creditor Reporting System (CRS) – activity level reports CRS++ Method Both systems based on instructions agreed by members detailed in Statistical Reporting Directives Reports supplied by members and other reporters 6

7 DAC Questionnaire The full DAC Questionnaire consists of the following 7 Tables: 1 – Disbursements and Commitments of Official and Private Flows 2a – Destination of Official Development Assistance – Disbursements 2b – Destination of Other Official Flows – Disbursements 3a – Destination of Official Development Assistance – Commitments 4 – Destination of Private Direct Investment and Other Private Capital 5 - Official Bilateral Commitments (or Gross Disb.) by Sector of Destination 7b – Tying Status of Bilateral Official Development Assistance – Commitments 7

8 Creditor Reporting System CRS Form 1 reports on annual obligations, while CRS Form 2 reports on gross disbursements. Over 30+ variables per form including; Recipient Countries (possibility of grouping by continent or by income group) Donors (grouped into bilateral and multilateral) Sectors and Sub-Sectors Codes Activity/Project Titles and Descriptions Flows: Grants, Loans, ODA, OOF Channels of Delivery Policy Markers (gender equality, environment, PD/GG) RIO Markers (biodiversity, climate change, desertification) 8

9 Data Collection Timeline Advanced Questionnaire (AQ) Data solicitation – Jan/Feb each Year Reporting Deadline – March 15th DAC Press Release - April (preliminary figures) Full DAC Questionnaire Data solicitation – Jan/Feb each Year Reporting Deadline – July 15th DAC Press Release - December 9

10 Statistics on Non DAC Members Abbreviated reporting form. Records disbursements (and commitments) of aid by recipient. Limited presentation of data in DCR; but supplemented by textual information: draft supplied by donor. Reporting is voluntary. Current reporters include all non-DAC OECD members except Mexico, Arab donors, Israel, Thailand and Baltic states. 10

11 Current Non-DAC Reporters Bolded countries are the non-DAC OECD Members * Only textual information reported, no data Arab DonorsIsraelSlovak Republic Czech RepublicKorea, SouthSlovenia EstoniaMexico*Thailand HungaryLatviaTaiwan IcelandLithuaniaTurkey Poland 11

12 Collection Method – Non DAC Members Abbreviated DAC Table 1 TABLE DAC N1 - Abridged versionReporting country:??? DAC QUESTIONNAIRE ON AID FLOWS FROM NON-DAC DONORS DISBURSEMENTS OF FLOWS TO ODA RECIPIENTS ON THE DAC LISTPeriod: edition Exchange rate used:??? Date:??? Disbursements Million US Dollars Gross Amounts ReceivedNet (-) Total ODA010 Bilateral ODA015 Multilateral ODA180 GNI001///////////// ODA%GNI002///////////// 12

13 Collection Method – Non DAC Cont. Abbreviated DAC Table 2a/3a TABLE DAC N2a/3aReporting country:??? DAC QUESTIONNAIRE ON AID FLOWS FROM NON-DAC DONORS DESTINATION OF GRANTS AND CONCESSIONAL LOANS - COMMITMENTS AND DISBURSEMENTSPeriod: edition Exchange rate used:??? Date:??? D I S B U R S E M E N T S MILLION US DOLLARS NEW COMMITMENTSGRANTSLOANSTOTAL NET (TOTAL FOR GRANTS GROSSREPAYMENTS RECIPIENT AND LOANS) DISBURSEMENTSOF PRINCIPALDISBURSEMENTS ( - ) I. EUROPE, TOTAL 0.00 ALBANIA BELARUS BOSNIA-HERZEGOVINA CROATIA MACEDONIA (FYROM) MOLDOVA MONTENEGRO SERBIA TURKEY UKRAINE STATES OF EX-YUGOSLAVIA UNSPECIF EUROPE, REGIONAL

14 Statistical Outputs Annual Development Co-operation Report (DCR) Geographical Distribution of Financial Flows Statistical analysis in Peer Reviews of DAC members aid programme CD-ROM and on-line access External uses, including World Bank publications, Millennium Development Goals and other UN documents, databases and publications 14 International Development Statistics Online

15 What is ODA? The official measure of foreign aid. Only internationally comparable measure of donor assistance. Reported by donor countries to the OECD/DAC on an annual basis. 15

16 ODA Targets & Performance 1970 UN Resolution urged advanced countries to provide 0.7% of their national income as ODA. The average ODA/GNI ratio for DAC countries was only 0.31% in Only five countries achieve the 0.7% target, but several others have plans to do so. The EU has set ambitious ODA targets of GNI of 0.17% of GNI by 2010 and 0.33% by 2015 for the 12 new members. 16

17 Explanation of ODA ODA are official flows to or for developing countries that are provided: for developmental purposes by the official sector (Government, public funds) as grants or as soft loans (ODA loans are at terms significantly softer than commercial transactions, and bear a grant element of at least 25% compared with a loan at 10%.) 17

18 Official Definition of ODA Those flows to countries and territories on DAC List of ODA Recipients and to multilateral institutions which are; I. Provided by official agencies, including state and local government, or by their executives agencies; and II. Each transaction of which; a) Is administered with the promotion of the economic development and welfare of developing countries as its main objective; and b) is concessional in character and conveys a grant element of at least 25 per cent (calculated at a rate of 10 per cent). 18

19 ODA Eligible Countries Specifically defined set of countries Includes all low and middle income countries Exceptions: G8 members, EU Members and countries with a firm date of accession to the EU Reviewed every three years by the DAC Countries may graduate from the list, or change income groups 19

20 ODA Eligible International Organizations Agencies to which core contributions are reported as ODA in whole or in part include: Many United Nations & UN Administered Funds European Commission International Monetary Fund (concessional windows only) World Bank (IDA) World Trade Organization (technical assistance activities) Regional Development Banks Other Multilaterals 20

21 Definition of ODA Flows Commitment: Firm undertaking to provide specified funds Disbursement: Actual payment or expenditure of funds Grant: Non-repayable Loan: Initial Loan plus Repayments. Only report repayments of loan principal, not interest Performance assessed on net disbursements Net disbursements = disbursements of grants + disbursements of loans - repayments of loan principal 21

22 Important Notes ODA is a measure of donors expenditures on aid. It is NOT a measurement of the amount of value received by a recipient country. ODA is a subset of foreign assistance. 22

23 Examples of ODA Activities Development Projects – schools, clinics, water supply systems etc… Emergency Aid for Natural or Man-made Disasters Contributions to Multilateral Development Agencies Food Aid, Emergency and Developmental Aid to Refugees and IDPs Debt Relief outlined by Paris Club Agreement Officially Financed Scholarships for students in developing countries 23

24 Non Eligible ODA Activities Military or Security Assistance Cultural programmes for the donors nationals resident in other countries Aid from NGOs financed from private sources Foreign Direct Investment Official export credits or other commercially motivated transactions Guarantees on private export credits or investments Reduced tariffs or other concessions on imports from developing countries 24

25 Importance of Data Domestic and Foreign Policy/Diplomacy Fosters Accountability Improves Transparency Provides a Platform for Dialogue Recipient Countries Other Donors Alignment with International Standard Drives Future Policy Decisions 25

26 Establishing a Database Collection of facts, both financial and descriptive. Living entity – flexible, updatable, ever- expanding. Requires a lot of up-front work. ASSET. Tool for answering questions and provides the basis for in-dept analysis, and future policy implications. 26

27 Data Collection Who will collect the data? What is the current mandate for data collection? Is this type of reporting mandated by law? Agreement between government and international organization? How is the message of importance conveyed? 27

28 Further Information & Resources General User Guide for DAC Statistics: Short Guide to ODA Eligibility: Is it ODA: List of ODA-eligible International Organisations: DAC List of ODA Recipients: DAC Statistical Database: DAC Statistical Tables: 28

29 Contact Information Kimberly Smith 29


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