Aid architecture

Focus

Major shifts in the international development finance landscape have created new opportunities and options for developing countries to access external finance for their development priorities. These shifts have also created new challenges and risks for managing such flows. In anticipation of a post-2015 development finance framework, the DAC 2012 HLM tasked the DAC Secretariat to better capture this changing landscape from the perspective of developing countries, including all officially supported resource flows.
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Stakeholders in Busan resolved to make information on development co-operation and other development resources better available and publicly accessible. They set out to implement a common, open standard for electronic publication of timely, comprehensive and forward-looking information by the end of 2015.
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The OECD has just released all of its Creditor Reporting System (CRS) 2011 and 2012 data in IATI XML format. In order to facilitate processing, separate files are now provided for each donor and recipient. This is an important contribution in making information about development finance easier to extract, locate, and compare.
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We help donors and recipients understand where aid is expected and most needed so that they can better plan and co-ordinate.

Multilateral aid

More than 200 multilateral agencies – including the United Nations, regional development banks and global funds – are the recipients of close to one-third of all aid. When including earmarked funding provided to multilaterals for implementation, this goes up to two fifths.

The DAC report on multilateral aid (pdf) looks at a number of key issues:

  • Trends in multilateral aid and the total use of the multilateral system
  • Donors’ multilateral aid strategies and reviews
  • Fragmentation and concentration of the multilateral system

Multilateral aid

 

Aid fragmentation and orphans

Fragmentation occurs when there are too many donors giving too little aid to too many countries. This can seriously impair the effectivenness of aid. The current pattern of how aid is delivered and received shows aid splinteres across too many donors, each with their own processes and priorities, working in often orvelapping relationship with each other.

Founded on the OECD/DAC's work on fragmentation is a study of where aid activity overlaps and where it is missing. The areas where aid overlaps are commondly referred to as "aid darlings", while those where it is missing as "aid orphans". What is the exact definition of an aid orphan? Which counties qualify? These are amongst the questions the OECD/DAC is closely examining. 

Aid fragmentation and orphans

 

Transparency

Transparency has been pushed to the top of the global agenda. The DAC's mandate to further the understanding of development finance, strengthen aid delivery, improve development policy and build partnerships for development is both complimentary to and a crucial part of the success of the global transparney agenda. As part of the OECD the DAC is working towards making this "transparency transformation" a success through four dimensions:

  • developing a range of instruments to help governments ensure that openness translates into concrete improvements;
  • supporting e-government and internet-based technologies and applications;
  • providing regular reviews of development partner (donor) countries; and
  • promoting greater transparency as a means to fight corruption.

Transparency and the Common Standard

Aid predictability

Recent studies indicate that the value of aid is reduced by 15-20% when it is unpredictable and volatile. For developing countries, uncertainty about future resources complicates decision making on resource allocations and can stand in the way of longer-term programmes and reforms. For donors, lack of predictable and transparent aid makes it harder to harmonise efforts - one of the fundamental aid effectiveness principles - and to achieve enduring development results.

To support efforts toward greater predictability and transparency, we conduct annual surveys of donors' spending plans for the following years and from this prepare the Outlook on Aid. This is currently the only regular global process aiming to reduce some of the uncertainties around future aid and monitoring aid predictability.
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Aid predictability

 

Country programmable aid

The concept of ODA covers a range of assistance from developed to developing countries - from grants and concessional loans to debt relief, humanitarian aid, development research, and aid administration costs in donor countries. Although it is a consistent and comparable global measure to track donor spending, ODA does not give an accurate idea of just how much aid is transferred to partner countries. The concept of country programmable aid (CPA) – a subset of ODA – was built on an earlier concept of “core” aid and is further detailed in our Development Brief (pdf). CPA is derived annually and data on CPA is available from 2000.

Country programmable aid

Countries list

  • Afghanistan
  • Albania
  • Algeria
  • Andorra
  • Angola
  • Anguilla
  • Antigua and Barbuda
  • Argentina
  • Armenia
  • Aruba
  • Australia
  • Austria
  • Azerbaijan
  • Bahamas
  • Bahrain
  • Bangladesh
  • Barbados
  • Belarus
  • Belgium
  • Belize
  • Benin
  • Bermuda
  • Bhutan
  • Bolivia
  • Bosnia and Herzegovina
  • Botswana
  • Brazil
  • Brunei Darussalam
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Canada
  • Cape Verde
  • Cayman Islands
  • Central African Republic
  • Chad
  • Chile
  • China (People’s Republic of)
  • Chinese Taipei
  • Colombia
  • Comoros
  • Congo
  • Cook Islands
  • Costa Rica
  • Croatia
  • Cuba
  • Cyprus
  • Czech Republic
  • Côte d'Ivoire
  • Democratic People's Republic of Korea
  • Democratic Republic of the Congo
  • Denmark
  • Djibouti
  • Dominica
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Equatorial Guinea
  • Eritrea
  • Estonia
  • Ethiopia
  • European Union
  • Faeroe Islands
  • Fiji
  • Finland
  • Former Yugoslav Republic of Macedonia (FYROM)
  • France
  • French Guiana
  • Gabon
  • Gambia
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Greenland
  • Grenada
  • Guatemala
  • Guernsey
  • Guinea
  • Guinea-Bissau
  • Guyana
  • Haiti
  • Honduras
  • Hong Kong, China
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iraq
  • Ireland
  • Islamic Republic of Iran
  • Isle of Man
  • Israel
  • Italy
  • Jamaica
  • Japan
  • Jersey
  • Jordan
  • Kazakhstan
  • Kenya
  • Kiribati
  • Korea
  • Kuwait
  • Kyrgyzstan
  • Lao People's Democratic Republic
  • Latvia
  • Lebanon
  • Lesotho
  • Liberia
  • Libya
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Macao (China)
  • Madagascar
  • Malawi
  • Malaysia
  • Maldives
  • Mali
  • Malta
  • Marshall Islands
  • Mauritania
  • Mauritius
  • Mayotte
  • Mexico
  • Micronesia (Federated States of)
  • Moldova
  • Monaco
  • Mongolia
  • Montenegro
  • Montserrat
  • Morocco
  • Mozambique
  • Myanmar
  • Namibia
  • Nauru
  • Nepal
  • Netherlands
  • Netherlands Antilles
  • New Zealand
  • Nicaragua
  • Niger
  • Nigeria
  • Niue
  • Norway
  • Oman
  • Pakistan
  • Palau
  • Palestinian Administered Areas
  • Panama
  • Papua New Guinea
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Puerto Rico
  • Qatar
  • Romania
  • Russian Federation
  • Rwanda
  • Saint Helena
  • Saint Kitts and Nevis
  • Saint Lucia
  • Saint Vincent and the Grenadines
  • Samoa
  • San Marino
  • Sao Tome and Principe
  • Saudi Arabia
  • Senegal
  • Serbia
  • Serbia and Montenegro (pre-June 2006)
  • Seychelles
  • Sierra Leone
  • Singapore
  • Slovak Republic
  • Slovenia
  • Solomon Islands
  • Somalia
  • South Africa
  • South Sudan
  • Spain
  • Sri Lanka
  • Sudan
  • Suriname
  • Swaziland
  • Sweden
  • Switzerland
  • Syrian Arab Republic
  • Tajikistan
  • Tanzania
  • Thailand
  • Timor-Leste
  • Togo
  • Tokelau
  • Tonga
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Turks and Caicos Islands
  • Tuvalu
  • Uganda
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • United States
  • United States Virgin Islands
  • Uruguay
  • Uzbekistan
  • Vanuatu
  • Venezuela
  • Vietnam
  • Virgin Islands (UK)
  • Wallis and Futuna Islands
  • Western Sahara
  • Yemen
  • Zambia
  • Zimbabwe
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