A farewell to ODA? The future of development finance …
A farewell to ODA? The future of development finance
Globale Verantwortung, KOO, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE)
24 October 2013, Vienna
Over decades, most donors kept on making empty promises to spend 0.7% of their GDP for
official development assistance (ODA). With 2015, the target year to reach the Millennium
Development Goals, in sight, discussions on development finance and the reform of ODA are
in full swing. Many donor countries are in favour of broadening the definition of ODA, while
NGOs are already worried about high levels of “inflated aid”.
But to what extent does ODA actually matter for developing countries’ progress? In terms of
volume, public domestic resources (tax), Foreign Direct Investment as well as remittances
and other private finance flows are far more important sources of finance in most countries of
the Global South. What are the differences between those flows, and are ODA and the 0.7%
aid target still relevant for international development?