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Official Development Assistance (ODA)

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PPGPortal > Home > Concept Dictionary > N, O > Official Development Assistance (ODA)

Official Development Assistance (ODA)  

Grants or loans to developing countries which are undertaken by the official sector, have promotion of economic development as the main objective and are at concessional financial terms.

(OECD, 2008 b)


Grants or loans to countries and territories on Part I of the Development Assistance Committee’s List of Aid Recipients (developing countries) which are: (a) undertaken by the official sector; (b) with promotion of economic development and welfare as the main objective; (c) at concessional financial terms [if a loan, having a grant element of at least 25 per cent]. In addition to financial flows, technical co-operation is included in aid. Grants, loans and credits for military purposes are excluded. For the treatment of the forgiveness of loans originally extended for military purposes. Transfer payments to private individuals (e.g. pensions, reparations or insurance payouts) are in general not counted.


Organisation for Economic Co-operation and Development (OECD) Development Assistance Committee Working Party on Aid Evaluation.2002. "Glossary of Key Terms in Evaluation and Results Based Management." Paris: OECD Publications.


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