ODA, DAC and the 0.7% standard
ODA (Official Development Assistance)
In order to compare the assistance efforts of the various donors and monitor the fulfilment of pledges made, the concept of ODA, Official Development Assistance, was developed, whereby it is possible to discuss on an international basis what may and may not be categorised as “aid”. This standard has since been adopted internationally; its definition is managed by the Development Assistance Committee (DAC) of the OECD.
Official development assistance covers all flows to developing countries and to multilateral organisations that satisfy the following two conditions:
- The donor is an official body, such as a local or federal government and its executive government agencies.
- The primary aim of the transaction is to further economic development and wellbeing in the developing countries, and is concessionary in nature. In the case of loans, this means that at least 25% of the sum must be a donation.
Donations and loans for military ends are excluded.
For more information, see the “Is it ODA?” brochure, or go to www.oecd.org/dac/stats/methodology
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Developing countries are defined for these purposes as all countries or groups of countries that appear on the official list of the DAC. This list can be viewed at www.oecd.org/dac/stats/daclist.
There is also an official list of the multilateral organisations taken into consideration. See “Annex 2” at www.oecd.org/dac/stats/dacdirectives.
Contributions to the general resources of these organisations (“core contributions”) can wholly or in part be considered as official development assistance
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The 0.7% standard
As early as the 1970s, it was internationally accepted that the official development assistance of wealthy countries should consist of at least 0.7% of their Gross National Income (GNI). Belgium, too, has set itself the legal requirement of meeting this standard as of 2010.
In 2010, Belgian official development assistance amounted to 2,265 million euros, or 0.64% of GNI, its highest figure ever. With this percentage, Belgium places itself sixth on the list of the OECD’s DAC assistance committee’s donors, after Luxembourg, the Scandinavian countries and the Netherlands.
The engine behind the strong growth of the last few years was the budget for development cooperation (Directorate-General for Development, DGD). Debt relief for the Democratic Republic of the Congo also contributed to the good result for 2010. Within the FPS Foreign Affairs, Foreign Trade and Development Cooperation, the D0.2 - Budget and ODA department is responsible for the statistical monitoring of official development assistance and for the growth towards 0.7% of GNI. For additional statistics, or for information about the OECD’s DAC figures and ODA accountability, you can contact them directly, more specifically at antoon.vanbroeckhoven@diplobel.fed.be, berbel.vrancken@diplobel.fed.be or lutgarde.degreef@diplobel.fed.be.
Evolution of development cooperation as % of the Gross National Income (GNI)
