FWTW Additional Information

Additional Information  (From Whom to Whom)

 

Acronyms

AfDB - African Development Bank; AfDF - African Development Fund; AFRO - WHO African Region; AMRO -WHO Region of the Americas; Arab Fund (AFESD) - Arab Fund for Economic and Social Development; AsDB Special Funds - Asian Development Bank; BADEA - Banque Arabe de Développement Economique en Afrique; BMGF - Bill & Melinda Gates Foundation; CEB - Council of Europe Development Bank; EMRO - WHO Eastern Mediterranean Region; EU Institutions - European Commission, European Community; EURO - WHO European Region; Gavi - Global Alliance for Vaccines and Immunization; IDA - International Development Association (World Bank); IDB Sp.Fund - Inter-American Development Bank, Special Fund; OFID - OPEC Fund for International Development; SEARO - WHO South East Asia Region; The Global Fund - The Global Fund to Fight AIDS, Tuberculosis and Malaria; UN - United Nations; UNAIDS - Joint United Nations Programme on HIV/AIDS; UNDP–United Nations Development Programme; UNFPA - United Nations Population Fund; UNICEF - United Nations Children’s Fund; UNPBF - United Nations Peacebuilding Fund; UNRWA - United Nation Food and Relief Agency; WFP - World Food Programme; WHO - World Health Organization; WPRO - WHO Western Pacific Region

Channel of Delivery

In any ODA activity, the channel of delivery is the first implementing partner of the funds disbursed. The channel of delivery is the institution or body that has implementing responsibility over the funds and is directly accountable to the donor.  The FWTW charts use the seven OECD Development Assistance Committee (DAC) channels; Multilateral Organizations; Non-Governmental Organizations (NGOs) and Civil Society, Private Sector Institutions, Public Sector Institutions, Public-Private Partnerships (PPPs),Teaching / research institution and Others.  Channels identified as blank are due to incomplete reporting by donors.

Find the list of all the sectors classified in the DAC and CRS Purpose codes here http://www.oecd.org/development/financing-sustainable-development/development-finance-standards/dacandcrscodelists.htm

Commitments and Disbursements

The Creditor Reporting System  (CRS) financial data presented are commitments and disbursements. A commitment is a firm written obligation by a government or official agency, backed by the appropriation or availability of the necessary funds, to provide resources of a specified amount under specified financial terms and conditions and for specified development purposes. A disbursement is the release of funds to, or the purchase of goods or services for a recipient; by extension, the amount thus spent. Disbursements record the actual international transfer of financial resources, or of goods or services valued at the cost to the donor. It can take several years to disburse a commitment.

Yearly commitments and disbursements are presented in constant Million USD to ensure comparability over years

Creditor Reporting System (CRS)

The CRS is a statistical reporting system, maintained by the OECD, whose first original purpose was to monitor the debt of developing countries. It has evolved over time and continues to evolve to match needs.  It now covers several aid activities’ dimensions: the sector of destination, the form or type of aid, and the policy objective(s), the channels of implementation (or delivery). Geography and several others for both Commitments and Disbursements https://stats.oecd.org/glossary/detail.asp?ID=5910

Country, Multicountry and Global Level Aid Recipient

Based on the Common Reporting Standard (CRS)  geographical attribution of activities, the levels of implementation are at the Country level: activities implemented in and for a beneficiary country; Multicounty level: activities implemented in and for the benefit of more than one country at geographical regions/sub regions levels (Middle East, North & Central America, North of Sahara, Oceania, South of Sahara, etc.);  Global level:  activities that have no immediate and direct geographical target or beneficiary; Global level activities address issues that go beyond the boundaries of individual nation states and are implemented for a global scope, product or effect.  Financial support to entities or institutions that have a mandate to support development activities are also considered as Global level implementation.

Development Assistance Committee (DAC)

The Development Assistance Committee (DAC) is the committee of the OECD which deals with development co-operation matters. Currently there are 30 members of the DAC: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, The Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, the United Kingdom, the United States and the European Union. https://www.oecd.org/development/dac-glossary.htm#DAC

Debt Relief

Peaks in disbursements in total DA charts for the years 2005 to 2006 are due to the debt relief initiative that was granted under the Heavily Indebted Poor Country (HIPC) initiative of the International Monetary Fund (IMF) and the World Bank.  In the years 2005 - 2006 alone, almost Billion, constant 2017 US$ 97.5 of debt relief were provided.  The amount is more than 50% of all debt relief recorded in the  Creditor Reporting System (CRS) from 2002 to 2017.

In order to have a better visual understanding of DA trends it may be useful to exclude Debt relief from the chart.

Donor Types

The OECD DAC defines Bilateral, Multilateral and Private donors’ as the following:

Bilateral: Bilateral donor countries directly provide aid flows to an aid recipient country (https://www.oecd.org/dac/dac-glossary.htm#Total_Receipts)

Multilateral: International institutions with governmental membership which conduct all or a significant part of their activities in favour of development and aid recipient countries. They include multilateral development banks (e.g. World Bank, regional development banks), United Nations agencies, and regional groupings (e.g. certain European Union and Arab agencies)  https://www.oecd.org/dac/dac-glossary.htm#Multi_Agencies

Private donors provide private sector resource flows at market terms (i.e. changes in holdings of private long-term assets held by residents of the reporting country) and private grants (i.e. grants by non-governmental organizations and other private bodies, net of subsidies received from the official sector). (https://www.oecd.org/dac/dac-glossary.htm#Private_Flows)

Income Groups

The OECD Development Assistance Committee (DAC) maintains a list of Official Development Assistance (ODA) Recipients that includes all countries and territories eligible to receive Official Development Assistance (http://www.oecd.org/dac/financing-sustainable-development/development-finance-standards/daclist.htm).  Countries are allocated to income groups depending on their gross national income (GNI) per capita as assessed by the World Bank: Least Developed Countries, Other Low Income Countries (per capita GNI <= $1 005 in 2016), Lower Middle Income Countries (per capita GNI $1 006-$3 955 in 2016) and Upper Middle Income Countries (per capita GNI $3 956-$12 235 in 2016).  The DAC revises the list of countries by income group level every three years.

Financial Arrangements

Definitions of grants, concessional loans, private development finance and equity investments as follows:

Grants: Grants are transfers made in cash, goods or services for which no repayment is required.  OECD, https://stats.oecd.org/glossary/detail.asp?ID=1143

Concessional loans: These are loans that are extended on terms substantially more generous than market loans. The concessionality is achieved either through interest rates below those available on the market or by grace periods, or a combination of these. Concessional loans typically have long grace periods. OECD, https://stats.oecd.org/glossary/detail.asp?ID=5901

Private development finance: Consist of flows at market terms financed out of private sector resources (i.e. changes in holdings of private long-term assets held by residents of the reporting country) and private grants (i.e. grants by non-government organizations, net of subsidies received from the official sector). OECD, https://stats.oecd.org/glossary/detail.asp?ID=3803

Equity investments: Equity investments provide developmental support and long-term growth capital that private enterprises need. IFC https://www.ifc.org/wps/wcm/connect/CORP_EXT_Content/IFC_External_Corporate_Site/Solutions/Products+and+Services/Equity

National Health Accounts and Official Development Assistance

In some countries, there are years with Official Development Assistance (ODA) commitments or disbursements are higher than the total health expenditures as reported in the National Health Accounts.  These figures cannot be compared sensu stricto because ODA funds, either committed or disbursed, at any particular time are most often spent over a multiple-year period of time after commitments have been made. Total expenditures of the National Health Accounts are best estimates of expenditures that occurred in a given year, and include ODA funds that were committed and disbursed in the past but have only been spent at the country level in that year. In addition, the OECD ODA commitments and disbursements in constant 2017 USD whereas the National Health Accounts reports the expenditures at the current exchange rate or in terms of purchasing power parties.

Learn more on National Health Accounts https://www.who.int/health-accounts/en/

Official Development Assistance

Official development assistance (ODA) is defined by the OECD Development Assistance Committee (DAC) as government aid that promotes and specifically targets the economic development and welfare of developing countries. The DAC adopted ODA as the “gold standard” of foreign aid in 1969 and it remains the main source of financing for development aid. ODA flows to countries and territories on the DAC List of ODA Recipients and to multilateral development institutions are: i. Provided by official agencies, including state and local governments, or by their executive agencies; and ii. Concessional (i.e. grants and soft loans) and administered with the promotion of the economic development and welfare of developing countries as the main objective. Learn more here http://www.oecd.org/dac/stats/What-is-ODA.pdf