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The Evolution of Official Development Assistance: Achievements, Criticisms and a Way Forward

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  • William Hynes

    (OECD)

  • Simon Scott

    (OECD)

Abstract

The definition of Official Development Assistance (ODA) has for 40 years been the global standard for measuring donor efforts in supporting development co-operation objectives. It has provided the yardstick for documenting the volume and the terms of the concessional resources provided, assessing donor performance against their aid pledges and enabling partner countries, civil society and others to hold donors to account. Yet for all its value, the ODA definition has always reflected a compromise between political expediency and statistical reality. It is based on interpretation and consensus and therefore allows for flexibility. It has evolved over the decades, while preserving the original concepts of a definition based on principal developmental motivation, official character and a degree of concessionality. While agreement on the ODA concept was a major achievement, discussion of the appropriateness of this measure has never ended. The paper documents the evolution of the ODA concept and proposes a possible new approach to measuring aid effort.

Suggested Citation

  • William Hynes & Simon Scott, 2013. "The Evolution of Official Development Assistance: Achievements, Criticisms and a Way Forward," OECD Development Co-operation Working Papers 12, OECD Publishing.
    • Handle: RePEc:oec:dcdaaa:12-en
    DOI: 10.1787/5k3v1dv3f024-en
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    References listed on IDEAS

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    1. R. Renard & D. Cassimon, 2003. "The Quality of Aid Statistics What We Should Be Measuring, and Why We Don’t," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(4), pages 652-674.
    2. Jean-Michel Severino & Olivier Ray, 2009. "Death and Rebirth of a Global Public Policy," Working Papers 167, Center for Global Development.
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    Cited by:

    1. Johnny Flentø & Leonardo Santos Simao, 2021. "Buying Security with Charity: Why donors change conditionality," DERG working paper series 21-12, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    2. Phuong-Tra Vu & Phung Bao Ngoc Van, 2021. "National culture and the distribution of foreign aid," Economics and Business Letters, Oviedo University Press, vol. 10(4), pages 359-368.
    3. Hillary Chijindu Ezeaku & Ifeoma C. Nwakoby & Obiamaka P. Egbo & Josaphat U. J. Onwumere, 2019. "On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan Africa," SAGE Open, , vol. 9(3), pages 21582440198, September.
    4. Hillary Chijindu Ezeaku & David Okelue Ugwunta & Godwin Imo Ibe & Ebele Igwemeka & Eze Festus Eze & Obiamaka P. Egbo, 2023. "Effect of bilateral and multilateral concessional debts on public investment in Africa: A contingency analysis," African Development Review, African Development Bank, vol. 35(2), pages 198-210, June.
    5. Joren Verschaeve & Jan Orbie, 2018. "Ignoring the elephant in the room? Assessing the impact of the European Union on the Development Assistance Committee's role in international development," Development Policy Review, Overseas Development Institute, vol. 36(S1), pages 44-58, March.
    6. Justin Yifu LIN & Yan WANG, 2015. "China’s Contribution to Development Cooperation: Ideas, Opportunities and Finances," Working Papers P119, FERDI.
    7. Cassimon, Danny & Renard, Robrecht & Verbeke, Karel, 2014. "How to account for concessional loans in aid statistics?," IOB Analyses & Policy Briefs 9, Universiteit Antwerpen, Institute of Development Policy (IOB).
    8. Momita, Yasuaki & Matsumoto, Tomoya & Otsuka, Keijiro, 2019. "Has ODA contributed to growth? An assessment of the impact of Japanese ODA," Japan and the World Economy, Elsevier, vol. 49(C), pages 161-175.
    9. Huong, Tran Thi Lan & Ha, Le Thanh, 2023. "A comprehensive analysis of the correlation between foreign aid and energy security in emerging countries: Does institutional quality matter?," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 952-968.
    10. Domínguez, Rafael & Olivié, Iliana, 2014. "Retos para la cooperación al desarrollo en el post-2015 /Challenges for Development Cooperation in the Post-2015," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 32, pages 995-1020, Septiembr.
    11. Manuel Ennes Ferreira & Bárbara Muniz, 2022. "Is the 0.7% goal of ODA/GNI still adequate for the recipients? An overview of the recipients’ situation with a focus on Africa," Working Papers Department of Economics 2022/04, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    12. Joseph Onjala, 2018. "China's development loans and the threat of debt crisis in Kenya," Development Policy Review, Overseas Development Institute, vol. 36(S2), pages 710-728, September.

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    More about this item

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • F35 - International Economics - - International Finance - - - Foreign Aid

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