Indicator 17.2.1:Net official development assistance, total and to least developed countries, as a proportion of the Organization for Economic Cooperation and Development (OECD) Development Assistance Committee donors' gross national income (GNI)
Target 17.2: Developed countries to implement fully their official development assistance commitments, including the commitment by many developed countries to achieve the target of 0.7 per cent of gross national income for official development assistance (ODA/GNI) to developing countries and 0.15 to 0.20 per cent of ODA/GNI to least developed countries; ODA providers are encouraged to consider setting a target to provide at least 0.20 per cent of ODA/GNI to least developed countries
Goal 17: Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development
Definition and Rationale
This indicator is defined as the percentage of the Gross National Incomes (GNI) of the OECD’s Development Assistance Committee’s (DAC) donor members that is disbursed as Official Development Assistance (ODA) to all developing countries and least developed countries.
The DAC defines ODA as those flows to countries and territories on the DAC list of ODA recipients and multilateral institutions which are:
(1) Provided by official agencies, including state and local governments, or by their executive agencies; and
(2) Each transaction of which:
a. is administered with the promotion of the economic development and welfare of developing countries as its main objective; and
b. is concessional in character and conveys a grant element of at least 25 percent (calculated at a rate of discount of 10%).
Gross National Income (GNI) is defined as the sum of a country’s gross domestic product plus net income received from overseas.
Rationale and Interpretation:
Target 17.2 measures the commitment by many developed countries to achieve the target of 0.7 per cent of ODA/GNI and 0.15-0.20 per cent of ODA/GNI to the least developed countries.
Data Sources and Collection Method
The OECD/DAC has been collecting data on official and private resource flows from 1960 at an aggregate level and 1973 at an activity level through the CRS (CRS data are considered complete from 1995 for commitments at an activity level and 2002 for disbursements).
A statistical reporter is responsible for the collection of DAC statistics in each providing country/agency. This reporter is usually located in the national aid agency, the Ministry of Foreign Affairs or Finance etc.
Method of Computation and Other Methodological Considerations
The percentage of GNI disbursed as ODA (PODA) is calculated using the following formula:
where i denotes net ODA Disbursements.
This indicator is calculated for each DAC member donor country as well as other non-DAC providers that report their ODA to the OECD.
Comments and limitations:
The data are available in OECD DAC aggregate databases from 1960.
Proxy, alternative and additional indicators: N/A
This indicator can be disaggregated by donor, recipient country, type of finance, type of aid, sub sector, etc.