ODA is financial support from official providers to aid recipients (low- and middle-income countries) in areas such as health, sanitation, education, and infrastructure. It mainly consists of either grants or “soft” loans and it makes up over two thirds of external finance for least-developed countries.
Official development assistance (ODA)
Official development assistance (ODA) is government aid that promotes and specifically targets the economic development and welfare of developing countries. ODA has been the main source of financing for development aid since it was adopted by the OECD’s Development Assistance Committee (DAC) as the “gold standard” of foreign aid in 1969. The OECD is the only official source of reliable, comparable, and complete statistics on ODA.
Key messages
The DAC List of ODA-eligible recipients shows all countries and territories meeting the criteria to receive ODA. These consist of all low- and middle-income countries based on gross national income (GNI) per capita as published by the World Bank, with the exception of former G8 members, EU members, and countries with a firm date for entry into the EU. The list also includes all of the Least Developed Countries (LDCs) as defined by the United Nations (UN). It is reviewed every three years by the OECD’s DAC.
The DAC tracks and monitors ODA so that individual donor efforts are measured alongside the broader development finance landscape. The OECD ensures that providers adhere to the primary objective of ODA (the economic development and welfare of aid recipients) and inform them about where their ODA should go relative to existing needs.
Context
International aid rises in 2023 with increased support to Ukraine and humanitarian needs
International aid from official donors rose in 2023 to a new all-time high of USD 223.7 billion, up from USD 211 billion in 2022, as provider countries increased aid flows to Ukraine and directed more humanitarian assistance to developing countries. This aid amounted to 0.37% of DAC countries’ combined gross national income.
ODA for gender equality dropped for the first time in a decade
The share of development finance for gender equality decreased after a decade of progress—from 45% in 2019-20 to 43% in 2021-22. Less than 1% of ODA is aimed at ending violence against women and girls.
