Middle income | Net ODA received (% of gross capital formation)

Net official development assistance (ODA) consists of disbursements of loans made on concessional terms (net of repayments of principal) and grants by official agencies of the members of the Development Assistance Committee (DAC), by multilateral institutions, and by non-DAC countries to promote economic development and welfare in countries and territories in the DAC list of ODA recipients. It includes loans with a grant element of at least 25 percent (calculated at a rate of discount of 10 percent). Development relevance: The ratio of aid to gross capital formation provides a measure of recipient country's dependency on aid. Ratios of aid are generally much higher in Sub-Saharan Africa than in other regions, particularly in the 1980s. High ratios are due only in part to aid flows. Many African countries saw severe erosion in their terms of trade in the 1980s, along with weak policies, falling incomes, imports, and investment. Thus the increase in aid dependency ratios reflects events affecting both the numerator (aid) and the denominator (gross capital formation). DAC exists to help its members coordinate their development assistance and to encourage the expansion and improve the effectiveness of the aggregate resources flowing to recipient economies. In this capacity DAC monitors the flow of all financial resources, but its main concern is official development assistance (ODA). Grants or loans to countries and territories on the DAC list of aid recipients have to meet three criteria to be counted as ODA. They are provided by official agencies, including state and local governments, or by their executive agencies. They promote economic development and welfare as the main objective. And they are provided on concessional financial terms (loans must have a grant element of at least 25 percent, calculated at a discount rate of 10 percent). The DAC Statistical Reporting Directives provide the most detailed explanation of this definition and all ODA-related rules. DAC statistics aim to meet the needs of policy makers in the field of development co-operation, and to provide a means of assessing the comparative performance of aid donors. DAC statistics are used extensively in the Peer Reviews conducted for each DAC member every four to five years, and have a wide range of other applications. They are used to measure donors' compliance with various international recommendations in the field of development co-operation (terms, volume), and are indispensable for analysis of virtually every aspect of development and development co-operation. From 1960 to 1990, official development assistance (ODA) flows from DAC countries to developing countries rose steadily, but then fell sharply in the 1990s. Since then, a series of high-profile international conferences have boosted ODA flows. In the mid-2000s, ODA once again rose due to exceptional debt relief operations for Iraq and Nigeria. Despite the recent financial crisis, ODA flows have continued to rise and in the early 2010s reached their highest real level ever at about US $130 billion. This demonstrates effectiveness of aid pledges, especially when they are made on the basis of adequate resources and backed by strong political will. Limitations and exceptions: Data on ODA is for aid-receiving countries. The data cover loans and grants from DAC member countries, multilateral organizations, and non-DAC donors. They do not reflect aid given by recipient countries to other developing countries. As a result, some countries that are net donors are shown as aid recipients. The indicator does not distinguish types of aid (program, project, or food aid; emergency assistance; or post-conflict peacekeeping assistance), which may have different effects on the economy. Ratio of aid to gross capital formation provides measures of recipient country's dependency on aid. But care must be taken in drawing policy conclusions. For foreign policy reasons some countries have traditionally received large amounts of aid. Thus aid dependency ratio may reveal as much about a donor's interests as about a recipient's needs. The quality of data on government fixed capital formation depends on the quality of government accounting systems which tend to be weak in developing countries. Measures of fixed capital formation by households and corporations - particularly capital outlays by small, unincorporated enterprises - are usually unreliable. Estimates of changes in inventories are rarely complete but usually include the most important activities of commodities. Because the indicator relies on information from donors, it is not necessarily consistent with information recorded by recipients in the balance of payments, which often excludes all or some technical assistance - particularly payments to expatriates made directly by the donor. Similarly, grant commodity aid may not always be recorded in trade data or in the balance of payments. Moreover, DAC statistics exclude aid for military and antiterrorism purposes. The aggregates refer to World Bank classifications of economies and therefore may differ from those of the OECD. Statistical concept and methodology: Net official development assistance (ODA) per capita consists of disbursements of loans made on concessional terms (net of repayments of principal) and grants by official agencies of the members of the Development Assistance Committee (DAC), by multilateral institutions, and by non-DAC countries to promote economic development and welfare in countries and territories in the DAC list of ODA recipients. It includes loans with a grant element of at least 25 percent (calculated at a rate of discount of 10 percent).Gross capital formation consists of outlays on additions to the conomy's fixed assets plus net changes in the level of inventories. It is generally obtained from industry reports of acquisitions and distinguishes only the broad categories of capital formation. Data on capital formation may be estimated from direct surveys of enterprises and administrative records or based on the commodity flow methods using data from production, trade and construction activities. The flows of official and private financial resources from the members of the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) to developing economies are compiled by DAC, based principally on reporting by DAC members using standard questionnaires issued by the DAC Secretariat. The ODA excludes nonconcessional flows from official creditors, which are classified as "other official flows," and aid for military and anti-terrorism purposes. Transfer payments to private individuals, such as pensions, reparations, and insurance payouts, are in general not counted. In addition to financial flows, ODA includes technical cooperation, most expenditures for peacekeeping under UN mandates and assistance to refugees, contributions to multilateral institutions such as the United Nations and its specialized agencies, and concessional funding to multilateral development banks. Flows are transfers of resources, either in cash or in the form of commodities or services measured on a cash basis. Short-term capital transactions (with one year or less maturity) are not counted. Repayments of the principal (but not interest) of ODA loans are recorded as negative flows. Proceeds from official equity investments in a developing country are reported as ODA, while proceeds from their later sale are recorded as negative flows. The official development assistance estimates are published annually at the end of the calendar year in International Development Statistics (IDS) database. Net ODA received as a percent of gross capital formation is calculated using values in U.S. dollars converted at official exchange rates.
Publisher
The World Bank
Origin
Middle income
Records
63
Source
Middle income | Net ODA received (% of gross capital formation)
3.50285596 1960
5.99836257 1961
6.64953359 1962
5.7375544 1963
4.96495356 1964
4.50483809 1965
4.4785073 1966
4.7779737 1967
4.08353086 1968
3.60299816 1969
3.0129056 1970
3.04987014 1971
2.77657625 1972
2.81807109 1973
2.98403426 1974
3.31964488 1975
3.06350883 1976
2.58106667 1977
2.6981741 1978
2.65925972 1979
2.62220034 1980
2.35920346 1981
2.46803138 1982
2.30239102 1983
2.28504121 1984
2.33144577 1985
2.76550105 1986
2.95081292 1987
2.79557321 1988
2.78277374 1989
3.43790917 1990
3.90421816 1991
3.50488964 1992
2.91387755 1993
3.07387237 1994
2.67162407 1995
2.35268275 1996
1.9563135 1997
2.29050903 1998
2.50598952 1999
2.06560329 2000
2.09687343 2001
2.19291621 2002
1.94549765 2003
1.78332061 2004
2.50078776 2005
1.87532851 2006
1.3019953 2007
1.1542047 2008
1.13799636 2009
0.89899566 2010
0.79502939 2011
0.73865926 2012
0.79446886 2013
0.74335196 2014
0.73878782 2015
0.76014191 2016
0.69456244 2017
0.6068838 2018
0.58977741 2019
0.79857289 2020
0.65312712 2021
2022

Middle income | Net ODA received (% of gross capital formation)

Net official development assistance (ODA) consists of disbursements of loans made on concessional terms (net of repayments of principal) and grants by official agencies of the members of the Development Assistance Committee (DAC), by multilateral institutions, and by non-DAC countries to promote economic development and welfare in countries and territories in the DAC list of ODA recipients. It includes loans with a grant element of at least 25 percent (calculated at a rate of discount of 10 percent). Development relevance: The ratio of aid to gross capital formation provides a measure of recipient country's dependency on aid. Ratios of aid are generally much higher in Sub-Saharan Africa than in other regions, particularly in the 1980s. High ratios are due only in part to aid flows. Many African countries saw severe erosion in their terms of trade in the 1980s, along with weak policies, falling incomes, imports, and investment. Thus the increase in aid dependency ratios reflects events affecting both the numerator (aid) and the denominator (gross capital formation). DAC exists to help its members coordinate their development assistance and to encourage the expansion and improve the effectiveness of the aggregate resources flowing to recipient economies. In this capacity DAC monitors the flow of all financial resources, but its main concern is official development assistance (ODA). Grants or loans to countries and territories on the DAC list of aid recipients have to meet three criteria to be counted as ODA. They are provided by official agencies, including state and local governments, or by their executive agencies. They promote economic development and welfare as the main objective. And they are provided on concessional financial terms (loans must have a grant element of at least 25 percent, calculated at a discount rate of 10 percent). The DAC Statistical Reporting Directives provide the most detailed explanation of this definition and all ODA-related rules. DAC statistics aim to meet the needs of policy makers in the field of development co-operation, and to provide a means of assessing the comparative performance of aid donors. DAC statistics are used extensively in the Peer Reviews conducted for each DAC member every four to five years, and have a wide range of other applications. They are used to measure donors' compliance with various international recommendations in the field of development co-operation (terms, volume), and are indispensable for analysis of virtually every aspect of development and development co-operation. From 1960 to 1990, official development assistance (ODA) flows from DAC countries to developing countries rose steadily, but then fell sharply in the 1990s. Since then, a series of high-profile international conferences have boosted ODA flows. In the mid-2000s, ODA once again rose due to exceptional debt relief operations for Iraq and Nigeria. Despite the recent financial crisis, ODA flows have continued to rise and in the early 2010s reached their highest real level ever at about US $130 billion. This demonstrates effectiveness of aid pledges, especially when they are made on the basis of adequate resources and backed by strong political will. Limitations and exceptions: Data on ODA is for aid-receiving countries. The data cover loans and grants from DAC member countries, multilateral organizations, and non-DAC donors. They do not reflect aid given by recipient countries to other developing countries. As a result, some countries that are net donors are shown as aid recipients. The indicator does not distinguish types of aid (program, project, or food aid; emergency assistance; or post-conflict peacekeeping assistance), which may have different effects on the economy. Ratio of aid to gross capital formation provides measures of recipient country's dependency on aid. But care must be taken in drawing policy conclusions. For foreign policy reasons some countries have traditionally received large amounts of aid. Thus aid dependency ratio may reveal as much about a donor's interests as about a recipient's needs. The quality of data on government fixed capital formation depends on the quality of government accounting systems which tend to be weak in developing countries. Measures of fixed capital formation by households and corporations - particularly capital outlays by small, unincorporated enterprises - are usually unreliable. Estimates of changes in inventories are rarely complete but usually include the most important activities of commodities. Because the indicator relies on information from donors, it is not necessarily consistent with information recorded by recipients in the balance of payments, which often excludes all or some technical assistance - particularly payments to expatriates made directly by the donor. Similarly, grant commodity aid may not always be recorded in trade data or in the balance of payments. Moreover, DAC statistics exclude aid for military and antiterrorism purposes. The aggregates refer to World Bank classifications of economies and therefore may differ from those of the OECD. Statistical concept and methodology: Net official development assistance (ODA) per capita consists of disbursements of loans made on concessional terms (net of repayments of principal) and grants by official agencies of the members of the Development Assistance Committee (DAC), by multilateral institutions, and by non-DAC countries to promote economic development and welfare in countries and territories in the DAC list of ODA recipients. It includes loans with a grant element of at least 25 percent (calculated at a rate of discount of 10 percent).Gross capital formation consists of outlays on additions to the conomy's fixed assets plus net changes in the level of inventories. It is generally obtained from industry reports of acquisitions and distinguishes only the broad categories of capital formation. Data on capital formation may be estimated from direct surveys of enterprises and administrative records or based on the commodity flow methods using data from production, trade and construction activities. The flows of official and private financial resources from the members of the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) to developing economies are compiled by DAC, based principally on reporting by DAC members using standard questionnaires issued by the DAC Secretariat. The ODA excludes nonconcessional flows from official creditors, which are classified as "other official flows," and aid for military and anti-terrorism purposes. Transfer payments to private individuals, such as pensions, reparations, and insurance payouts, are in general not counted. In addition to financial flows, ODA includes technical cooperation, most expenditures for peacekeeping under UN mandates and assistance to refugees, contributions to multilateral institutions such as the United Nations and its specialized agencies, and concessional funding to multilateral development banks. Flows are transfers of resources, either in cash or in the form of commodities or services measured on a cash basis. Short-term capital transactions (with one year or less maturity) are not counted. Repayments of the principal (but not interest) of ODA loans are recorded as negative flows. Proceeds from official equity investments in a developing country are reported as ODA, while proceeds from their later sale are recorded as negative flows. The official development assistance estimates are published annually at the end of the calendar year in International Development Statistics (IDS) database. Net ODA received as a percent of gross capital formation is calculated using values in U.S. dollars converted at official exchange rates.
Publisher
The World Bank
Origin
Middle income
Records
63
Source