What to expect from this data?
Crucially, the data included here is on the money that flows out of donor countries, not necessarily the money that flows into low-income countries: as we’ve mentioned earlier, some of this money is spent in the donor countries themselves.
Also, as with all data on ‘aid’, or Official Development Assistance, remember that it is just a small part of a wider ecosystem of financial flows going into developing countries. In the case of the figures included here, they are also subject to the OECD’s definition of what they actually consider to be Official Development Assistance; ie.
- Their main purpose must be the economic development or welfare of the developing country
- The source must be “official” (eg. no informal financial flows like remittances or charitable contributions from individuals are included)
- Must go to one of the countries which appear on a list of ‘Official Development Assistance’ recipients, agreed by the DAC.
- It can be administered through grants or loans, but loans must be given at a more generous rate than usual loans – this can be done through either the recipient of the loan (the poorer country) having a longer time to pay the loan back, or having a lower interest rate. These kinds of loans are known as concessional loans.
The DAC database also includes:
- OOF (Other official flows)
- FDI (Foreign Direct Investment)
- Some private flows
