Official development assistance is the financial funds that developing countries receive in order to boost their growth and economic well-being. These funds come from international organizations, which they receive from developed countries.
Developed countries generated a financial commitment in a binding desire, in which they agree that a percentage of their gross national product (GNP), be destined for official development assistance.
This initiative originated in the Organization for Economic Cooperation and Development (OECD), with the intention of promoting the quality of life of countries with less growth and less economic development.
Types of official development assistance
Funds for official development assistance can be delivered to beneficiary countries under the following conditions:
- Loan, granted in privileged financial situations. (from the World Bank, International Fund for Agricultural Development or the International Monetary Fund.)
- Technical donations, that is, share knowledge.
- Usually to the member countries of the Development Assistance Committee.
Main features of official development aid
In order for the beneficiary countries of these funds to continue receiving the aid, it is conditioned, that is, a commitment is sought on their part to improve their economic and social situation, for example, to ensure that they reduce their public deficit, improve the management of the environment, care for the most disadvantaged population, increase schemes of democratization, etc.
The criteria to determine which nation is capable of receiving official development assistance are the real income per capita, that is, it is prioritized to grant benefits to countries with lower levels of income. GDP per capital.
Official development assistance is intended primarily to allow countries that receive it to progress over time. Programs considered as priorities are subject to international agreements.
- There are needs to be addressed as a priority, such as:
- Reduction of infant mortality (children under 5 years old).
- Water and basic sanitary facilities for the entire population.
- Primary education for the entire population.
- Sustainable development, among others.
Examples of official development assistance
- Multilateral Help: They are contributions from different countries, whether mandatory or voluntary, and the exact amount that each country will contribute is generally unknown.
- Bilateral help: Which is direct, that is, the donor country helps the country that wishes to benefit or through cooperation institutions. Or the one that is not direct because it is channeled through funds or programs with sectoral or geographical allocation, also known as multi-bilateral.
- Delegated Cooperation: In this type, resources are assigned to a third agency, whose function is to manage the application of the aid.
- Triangular cooperation: This occurs in order to generate greater efficiency in the resource allocation Therefore, there are two agencies involved in the allocation process.
- South-South Cooperation: In which two developing countries come together, in order to share and exchange technology, knowledge and even resources.