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Smart use of oda

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Alina Kashapova

ODA, or official development assistance, provides a stable source of financing for developing countries with limited access to capital markets. Over the last two decades, ODA per capita has increased or been maintained in these countries. ODA also makes up 40% of total financial flows to fragile states and helps counteract economic downturns. While ODA may not increase much to finance sustainable development goals, it remains vital for ending poverty. The document argues that ODA should be used smartly as a catalyst to promote effective domestic resource mobilization, attract private sector financing, and mitigate climate-related risks.

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Smart Use of ODA What is it exactly?
Aids Contribution to Development ODA - stable source of development financing for the poorest countries with limited (or even no) access to international capital markets. Over the last two decades, ODA per capita has been maintained and sometimes increased in these countries. More than 30 Low Income Countries are receiving aid which exceeds 12 percent of their GNI per year
Aids Counter-Cyclicality ODA makes up 40 percent of total financial flows to fragile states
Post 2015 Though ODA has been a primary source of development financing for MDGs, its increase should be unlikely in the near future for financing SDGs
ODA is vital for ending poverty However, ODA that remains a robust and stable source of poverty reduction
While other finance instruments are getting more and more applicable
ODA is vital for ending poverty However, smart use of ODA means transferring it as a catalyst: ODA should promote an effective domestic resource mobilisation
Smart use also implies using ODA as a catalytic source of finance in order to attract private sector
Smart way also means that ODA should be used as a means of mitigating risks For example, in climate finance
Why ODA? SDGs are to be realized via various sources, however ODA will continue to be an important resource due to its focus on poverty and welfare Smart use of ODA implies its ability to act as a catalyst in areas such as domestic resource mobilisation and global public goods.
Sources Financing for Development (Post-2015), October 2013 The World Bank Group Investments to End Poverty, 2015 Development Initiatives How to better mobilise resources for sustainable development, 2014 - OECD

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Smart use of oda

  • 1. Smart Use of ODA What is it exactly?
  • 2. Aids Contribution to Development ODA - stable source of development financing for the poorest countries with limited (or even no) access to international capital markets. Over the last two decades, ODA per capita has been maintained and sometimes increased in these countries. More than 30 Low Income Countries are receiving aid which exceeds 12 percent of their GNI per year
  • 3. Aids Counter-Cyclicality ODA makes up 40 percent of total financial flows to fragile states
  • 4. Post 2015 Though ODA has been a primary source of development financing for MDGs, its increase should be unlikely in the near future for financing SDGs
  • 5. ODA is vital for ending poverty However, ODA that remains a robust and stable source of poverty reduction
  • 6. While other finance instruments are getting more and more applicable
  • 7. ODA is vital for ending poverty However, smart use of ODA means transferring it as a catalyst: ODA should promote an effective domestic resource mobilisation
  • 8. Smart use also implies using ODA as a catalytic source of finance in order to attract private sector
  • 9. Smart way also means that ODA should be used as a means of mitigating risks For example, in climate finance
  • 10. Why ODA? SDGs are to be realized via various sources, however ODA will continue to be an important resource due to its focus on poverty and welfare Smart use of ODA implies its ability to act as a catalyst in areas such as domestic resource mobilisation and global public goods.
  • 11. Sources Financing for Development (Post-2015), October 2013 The World Bank Group Investments to End Poverty, 2015 Development Initiatives How to better mobilise resources for sustainable development, 2014 - OECD