Official development assistance

Official development assistance (ODA) refers to public resources provided to developing countries and multilateral institutions with the promotion of economic development and welfare as their main objective.

It may take the form of grants, concessional loans, technical co-operation or other flows meeting OECD criteria. Military expenditure and primarily commercial operations are generally excluded. The formal definition was established in 1969 and 1972; since 2018, loans have been counted on a grant-equivalent basis.

ODA recipients

The Development Assistance Committee list includes low-income, lower-middle-income and eligible upper-middle-income countries and territories. Botswana and Mauritius remain ODA-eligible.

The weight of ODA

The absolute amount received does not by itself show how important aid is to an economy. Net ODA as a percentage of gross national income gives an indication of its relative weight.

ODA and dependence

Receiving ODA does not necessarily mean depending on it. The relationship depends on the weight of aid, the sectors concerned and the country’s capacity to replace external resources.

Related factsheets

Tied aid — International co-operation — Economic dependence — Conditionality — Exit from aid