II. World Bank Group - AidFlows

1 Glossary of AidFlows terms 1 This Glossary is organized alphabetical by section, with the exception of Development Statistics & Goals. II. World bank Group DEFINITIONS Click here for Trust Fund Definitions AidFlows Acronyms: World bank Group Development Statistics and Goals: By WBG entity: World bank (IBRD & IDA) IFC MIGA III. Asian Development bank DEFINITIONS: I. OECD DEFINITIONS Donor and Beneficiary View terminology as set out by OECD-DAC Please click on a section below By WBG entity: World bank (IBRD & IDA) IFC MIGA By WBG entity: World bank (IBRD & IDA) IV. Inter American Development bank DEFINITIONS: Glossary of AidFlows terms OECD 2 OECD DEFINITIONS: Bilateral ODA Bilateral transactions are those undertaken by a donor country directly with an aid recipient.

2 They also include transactions with national and international non-government organizations active in development and other internal development-related transactions such as interest subsidies, spending on promotion of development awareness and administrative costs. Bilateral ODA includes project and programme aid, technical cooperation, developmental food aid, debt relief and humanitarian aid. Commitment A firm obligation, expressed in writing and backed by the necessary funds, undertaken by an official donor to provide specified assistance to a recipient country or a multilateral organisation. Bilateral commitments are recorded in the full amount of expected transfer, irrespective of the time required for the completion of disbursements. Commitments to multilateral organisations are reported as the sum of (i) any disbursements in the year reported on which have not previously been notified as commitments and (ii) expected disbursements in the following year.

3 Country Programmable Aid (CPA) Country Programmable Aid (CPA) is the portion of aid donors programme at country/regional level. It is closer to capturing actual aid flows to countries than the concept of Official Development Assistance (ODA), and has been proven a good proxy for aid recorded at country level. CPA is defined through exclusions, by subtracting from total gross bilateral ODA activities that: (i) are inherently unpredictable (humanitarian aid and debt relief) (ii) entail no cross-border flows (administrative costs, imputed student costs, promotion of development awareness, and costs related to research and refugees in donor countries) (iii) do not form part of co-operation agreements between governments (food aid, aid from local governments, core funding to NGOs, ODA equity investments, aid through secondary agencies, and aid which is not allocable by country or region) Constant Dollars In DAC publications, flow data are expressed in US dollars (USD).

4 To give a truer idea of the volume of flows over time, data can be presented in constant prices and exchange rates, with a reference year specified. This means that adjustment has been made to cover both inflation in the donor s currency between the year in question and the reference year, and changes in the exchange rate between that currency and the United States dollar over the same period. The DAC has developed deflators for resource flows that convert data in current dollars ( using the exchange rates prevailing in the year of the flow) to data in constant dollars ( to dollars with Glossary of AidFlows terms OECD 3 the purchasing power they had in a recent reference year). The methodology is explained on the OECD s website. The OECD section of the of AidFlows contains data stated in constant US dollars with the exception of the two graphs in the tab "ODA as % of GNI & per Capita" which are in current dollars as as percentages, the current/constant distinction is irrelevant.

5 Development Assistance Committee (DAC): Development Assistance Committee (DAC) is the specialized committee of the OECD that serves as a forum for discussions on aid and development among the main Western aid donors. It comprises 28 countries and the European Commission (EC). For the purpose of data reporting, the EC is not included. Apart from DAC members, many non-DAC countries report to the OECD on their development finance flows. DAC Members The DAC has 29 DAC members: 1. Australia 2. Austria 3. Belgium 4. Canada 5. The Czech Republic 6. Denmark 7. Finland 8. France 9. Germany 10. Greece 11. Iceland 12. Ireland 13. Italy 14. Japan 15. Korea 16. Luxembourg 17. The Netherlands 18. New Zealand 19. Norway 20. Poland 21. Portugal 22. Slovak Republic 23. Slovenia 24.

6 Spain 25. Sweden 26. Switzerland 27. United Kingdom 28. United States 29. European Union Institutions DAC-EU Members The 19 members of the European Union that are also members of Glossary of AidFlows terms OECD 4 the DAC. This set of countries does not include the entire membership of the European Union. Debt Relief Includes total debt forgiveness and other action on debt such as debt conversion and debt buybacks. Disbursement The release of funds to or the purchase of goods or services for a recipient; by extension, the amount thus spent. Disbursements record the actual international transfer of financial resources, or of goods or services valued at the cost to the donor. In the case of activities carried out in donor countries, such as training, administration or public awareness programmes, disbursement is taken to have occurred when the funds have been transferred to the service provider or the recipient.

7 They may be recorded gross (the total amount disbursed over a given accounting period) or net (the gross amount less any repayments of loan principal or recoveries on grants received during the same period). It can take several years to disburse a commitment. European Union Note: The data referred to under European Union are calculated as a sum of available data for EU countries. G7 Note: The data referred to under G7 are calculated as a sum of available data for G7 countries. G8 Note: The data referred to under G8 are calculated as a sum of available data for G8 countries. Gross National Income (GNI) Gross National Income (GNI): previously known as Gross National Product (GNP), Gross National Income comprises the total value of goods and services produced within a country ( its Gross Domestic Product), together with its income received from other countries (notably interest and dividends), less similar payments made to other countries.

8 Multilateral ODA Multilateral contributions made by a donor to a recipient institution which: 1. conducts all or part of its activities in favor of development; 2. is an international agency, institution or organization whose members are governments, or a fund managed autonomously by such an agency; and 3. pools contributions so that they lose their identity and become an integral part of its financial assets. Multilateral ODA: Other Agencies Other Agencies refer to Multilateral Development Banks, UN Agencies and other organizations such as the GFATM. Multilateral outflows As opposed to multilateral ODA (those flows from bilateral Glossary of AidFlows terms OECD 5 providers of development co-operation to core resources of a multilateral organisation), multilateral outflows is the spending by multilateral organisations of their core resources.

9 These data are collected by the OECD in order to provide a more detailed picture of the geographical and sectoral allocation of funds going to recipient countries. Net Debt Relief Grants Includes debt forgiveness, other action on debt, and offsetting entries for forgiven debt. Rescheduled loans are not included. Official Development Assistance (ODA) Official Development Assistance (ODA) is defined as those flows to developing countries on the DAC List of ODA Recipients and to multilateral development institutions which are: 1. provided by official agencies, including state and local governments, or by their executive agencies; 2. and 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.

10 Is concessional in character and conveys a grant element of at least 25 per cent (calculated at a rate of discount of 10 percent per annum). ODA data in this report are based on net disbursements in current US dollars (Table DAC1). Other Multilaterals In this report, comprise UN agencies, European Commission (EC), Montreal Protocol (MP), Global Environment Facility (GEF), Regional Development Banks (RDBs), and other recipient institutions as defined above. The Global Fund to Fight Aids, Tuberculosis, and Malaria (GFATM) reported in Bilateral ODA. Recipient institutions Multilateral agencies such as UN agencies, EC development agencies, IDA, GEF, Regional Development Banks, etc. Sector Allocable Aid As only a portion of aid can be allocated to sectors, when measuring shares of aid to specific sectors it is recommended to limit the denominator to aid that can be apportioned.