Upper middle income | Net ODA received (% of GNI)
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 GNI 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, and they increased 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 (GNI). 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 national income (GNI) 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. 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: 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. 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 GNI is calculated using values in U.S. dollars converted at official exchange rates.
Publisher
The World Bank
Origin
Upper middle income
Records
63
Source
Upper middle income | Net ODA received (% of GNI)
1960 0.18136817
1961 0.3927461
1962 0.36398698
1963 0.3232154
1964 0.24226429
1965 0.26202874
1966 0.27913868
1967 0.24683168
1968 0.24323269
1969 0.1982153
1970 0.1946891
1971 0.17819244
1972 0.1697504
1973 0.13690609
1974 0.137409
1975 0.15874936
1976 0.16978386
1977 0.13494226
1978 0.14938006
1979 0.23036291
1980 0.21996457
1981 0.22707696
1982 0.22282773
1983 0.21301086
1984 0.20946112
1985 0.22212123
1986 0.25705271
1987 0.28388877
1988 0.24768631
1989 0.25918925
1990 0.32124713
1991 0.38036022
1992 0.29019338
1993 0.27818717
1994 0.28409085
1995 0.30538686
1996 0.23705348
1997 0.19625853
1998 0.22461605
1999 0.27766673
2000 0.21670644
2001 0.20858167
2002 0.24241921
2003 0.23353295
2004 0.24781628
2005 0.45272467
2006 0.23401528
2007 0.19270293
2008 0.18177174
2009 0.13612983
2010 0.09397329
2011 0.10267004
2012 0.08394352
2013 0.07513331
2014 0.0821058
2015 0.07833784
2016 0.09772852
2017 0.08112726
2018 0.06798103
2019 0.05816173
2020 0.08635726
2021 0.06899185
2022
Upper middle income | Net ODA received (% of GNI)
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 GNI 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, and they increased 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 (GNI). 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 national income (GNI) 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. 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: 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. 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 GNI is calculated using values in U.S. dollars converted at official exchange rates.
Publisher
The World Bank
Origin
Upper middle income
Records
63
Source