U.N. Chief asks nations to contain declining Official Development Assistance (ODA)
Ban Ki-moon, the U.N. Secretary-General, has expressed concerns over the continuous decline in Official Development Assistance (ODA) and has asked the nations to reverse the fall.
In a progress report to the U.N. General Assembly on the Millennium Development Goals (MDGs), Mr. Ban expressed concern at the drop in ODA — which comes under MDG8, the global partnership — over the past two years.
ODA fell by 4% in real terms in 2012, following a 2% dip in 2011, according to the Organisation for Economic Co-operation and Development (OECD). Since reaching a peak in 2010, ODA has fallen by 6% in real terms.
As per the report, ODA will remain crucial to leverage other finance, particularly for the least developed countries and those emerging from conflicts and disasters. The report asks donors to establish a timetable for meeting ODA targets and enhancing the principles on development effectiveness, as set out in Busan, South Korea, where ownership of development strategy by aid recipients was emphasized.
What is Official Development Assistance (ODA)?
Official Development Assistance is defined as those flows to countries and territories on the the list of recipients of the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) and to multilateral development institutions which are:
- provided by official agencies, including state and local governments, or by their executive agencies; and
- each transaction of which:
- is administered with the promotion of the economic development and welfare of developing countries as its main objective; and
- is concessional in character and conveys a grant element of at least 25% (calculated at a rate of discount of 10% )