What is Official Development Assistance (ODA)?

Adopted as a concept by the Development Assistance Committee (DAC) of the Organization for Economic Cooperation and Development in 1969, official development assistance (ODA) is a classification of resource flows from 22 DAC donor countries that meet four criteria.

• From the Official Sector - Federal, Central, Provincial, State, and Local Governments

• To Developing Countries and Select International Organizations - Eligible countries are designated by the OECD based on various indicators (per capita GNI, Agriculture valued added, life expectancy, and others). Excludes countries in transition to market economies and more advanced developing countries.

• Developmental/Humanitarian in Purpose - legislative or executive intent of assistance

• Concessional in Character - Grants and loans that contain a grant element of at least 25 percent

What qualifies as ODA for the United States?

Net disbursements from the following United States government agencies qualified as ODA in 2000:

• USAID: Development Assistance Funds, Economic Support Funds, P.L. 480 Title II food aid, International Disaster Assistance, Transition Initiatives, SEED/NIS funds to developing countries, and administrative costs; receipts are principal repayments on USAID loans.

• the State Department: Migration and Refugees, International Narcotics Control, Assessed/Voluntary contributions to qualifying international organizations, Nonproliferation, Anti-terrorism, Economic Support Fund, and others

• the Treasury Department: the International Development Association (a part of the World Bank that makes low interest loans to poor countries) and Regional Development Funds/Banks, such as the African Development Bank.

• the Agriculture Department: Food aid under Section 416(b), Food for Progress, and P.L. 480 Title I loans; receipts are principal payment on Title I loans.

• the Defense Department: In-country support for narcotics control, humanitarian assistance, demining, and others

• the Department of Health and Human Service: Office of Refugee Resettlement (inclusion of official assistance to refugees during their first year of residency in the donor country is allowed).

• Peace Corps: all mission and administrative expenses.

• the Interior Department: transfers to the former Trust Territories: Palau, Federated States of Micronesia, and the Republic of the Marshall Islands.

• Other Agencies. Some part of spending from the following agencies is also counted as ODA:  Trade and Development Agency, Labor, Inter-American Foundation, African Development Foundation, Asia Foundation, Energy, Export-Import Bank, Office of the President, Justice, Nuclear Regulatory Commission, EPA, Commerce, and the National Science Foundation.

 What is excluded from ODA for the United States?

Excluded are:

• Loans to developing countries from Export-Import Bank, the Overseas Private Insurance Corporation, and the General Service Manager of the Commodity Credit Corporation of USDA.

• Official aid that meet three ODA criteria but is directed to developing countries in transition to market economies and more advanced developing countries is excluded.  Official aid to these countries totaled $2,506 million in 2000.

• Costs of peacekeeping operations are excluded unless there are identifiable costs related to development/ humanitarian activities within the operations -- infrastructure improvements, disaster relief, and others.

• Also excluded: general State Department operations, IMF quota contributions, Foreign Military Sales, International Military Education and Training, collaborative activities of USIA and other agencies, and others.

  Net ODA Disbursements from the United States in 2000

Source: USAID/PPC/DP)

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