Key numbers on development assistance trends
-
Net official development assistance (ODA) from the 22 DAC member countries has increased to over $100 billion over the last two years, with a promise of increases of 30 percent over the next three years.
-
Most ODA is for special purpose needs which do not translate into funds available for development projects and programs. Developing country governments are only receiving about $38 billion in net country programmable aid (CPA).
-
Sub-Saharan Africa is especially hard hit by this wedge between ODA and CPA. It only received $12.1 billion in CPA in 2005, showing almost no increase over the preceding two decades.
-
Non-DAC bilateral assistance (NDBA) is growing rapidly and amounts to more than $8 billion in ODA and $5 billion annually in CPA.
-
Private aid (PrA) from DAC member countries might already contribute between $58-68 billion per year, although aggregate data is sketchy.
-
Total aid flows to developing countries therefore currently amount to around $180 billion annually.
Key trends in aid architecture
-
Multilateral aid agencies (around 230) outnumber donors and recipients combined.
-
Multilaterals only disburse 12 percent of total aid (offi cial plus private), and about one-quarter of total net CPA.
-
Multilaterals disburse more towards Africa than do bilaterals.
-
The average number of donors per country is growing, while average project size appears to be shrinking, implying growing fragmentation of aid.
Key Issues
-
Mechanisms for information sharing, coordination, planning and aid administration are increasingly costly and ineffective.
-
There is a growing need for efficient allocation rules for donors to fund the growing number of aid agencies, but assessments of aid agency effectiveness is in its infancy.
-
Scaling up, learning and innovation could advance as new players experiment with new methods, but would require more public and private sector exchanges.