Editing Development aid (section)

== Types ==

=== Bilateral and multilateral official development assistance ===
{{Further|Official development assistance}}
Official aid may be [[Bilateralism|bilateral]]: given from one country directly to another; or it may be [[Multilateralism|multilateral]]: given by the donor country to pooled funds administered by an international organisation such as the [[World Bank]] or a UN Agency ([[UNDP]], [[UNICEF]], [[UNAIDS]], etc.) which then uses its funds for work in developing countries. To qualify as multilateral, the funding must lose its identity as originating from a particular source.<ref>{{Cite book |last=Gulrajani |first=Nilima |title=Bilateral versus multilateral aid channels: Strategic choices for donors |date=March 2016 |publisher=Overseas Development Institute |isbn= |location= |pages=7}}</ref> The proportion of multilateral aid in ODA was 28% in 2019.<ref name=":24" />

=== Trilateral ===
Trilateral development cooperation (also called triangular development cooperation) is a type of development cooperation, wherein [[Development Assistance Committee|OECD DAC]] member states or multilateral institutions provide development assistance to emergent development actors, with the aim of assisting them in carrying out development projects in other developing countries.<ref>United Nations Economic and Social Council (2008), page 8. Trends in South-South and Triangular Development Cooperation. url: http://www.un.org/en/ecosoc/docs/pdfs/south-south_cooperation.pdf.</ref>

The purpose of trilateral development cooperation is to combine the strengths of both OECD DAC member states and the new development actors in delivering more effective aid to recipient countries.<ref>OECD (2016), page 9. Dispelling the myths of triangular co-operation - Evidence from the 2015 OECD survey on triangular co-operation. url: https://www.oecd.org/dac/dacglobal- relations/OECD_Triangular_co-operation_survey_report_2016.pdf.</ref> The OECD DAC member states and multilateral institutions participate in trilateral development cooperation with the aimed goal of increasing aid effectiveness and efficiency, phasing out bilateral aid, transferring good practices, and capacity building.<ref>Ashoff, Guido (2010). Triangular Cooperation: Opportunities, risks, and conditions for effectiveness. Tech. rep. January 2010, pp. 22–24. url: https://openknowledge.worldbank.org/server/api/core/bitstreams/8917388a-5ef3-5a1c-9412-6aacae567900/content</ref>

=== Non-ODA development aid ===
Analyses of development aid often focus on ODA, as ODA is measured systematically and appears to cover most of what people regard as development aid. However, there are some significant categories of development aid that fall outside ODA, notably: private aid, remittances, aid to less-poor countries and aid from other donor states.

==== Private development aid ====
A distinction is often made between development aid that is ''governmental'' ("official") on the one hand, and ''private'' (originating from individuals, businesses and the investments of [[Foundation (nonprofit)|charitable foundations]], and often channeled through religious organisations and other [[Non-governmental organization|NGOs]]) on the other. Official aid may be government-to-government, or it may be channeled through intermediary bodies such as [[United Nations System|UN agencies]], [[international financial institutions]], NGOs or other contractors. NGOs thus commonly handle both official and private aid. Of aid reported to the OECD, about 80% is official and 20% private.<ref name=":23" />

==== Remittances ====
Development aid is not usually understood as including [[remittance]]s received from migrants working or living in [[diaspora]]—even though these form a significant amount of international transfer—as the recipients of remittances are usually individuals and families rather than formal projects and programmes. 

[[World Bank]] estimates for remittance flows to "developing countries" in 2016 totalled $422&nbsp;billion,<ref>{{Cite web|last=|first=|date=April 2018|title=Migration and Remittances: Recent Developments and Outlook|url=http://documents1.worldbank.org/curated/en/805161524552566695/pdf/125632-WP-PUBLIC-MigrationandDevelopmentBrief.pdf|url-status=live|archive-url=https://web.archive.org/web/20200829144249/http://documents1.worldbank.org/curated/en/805161524552566695/pdf/125632-WP-PUBLIC-MigrationandDevelopmentBrief.pdf |archive-date=29 August 2020 |access-date=5 February 2021|website=World Bank}}</ref> which was far greater than total ODA. The exact nature and effects of remittance money remain contested.<ref>[http://www.imf.org/external/pubs/ft/wp/2003/wp03189.pdf Are Immigrant Remittance Flows a Source of Capital for Development? - WP/03/189<!-- Bot generated title -->]</ref> The [[International Monetary Fund]] has reported that private remittances may have a negative impact on economic growth, as they are often used for private consumption of individuals and families, not for economic development of the region or country.<ref>[http://www.imf.org/external/pubs/cat/longres.cfm?sk=16801.0 Are Immigrant Remittance Flows a Source of Capital for Development<!-- Bot generated title -->]</ref>

==== Aid to less-poor countries ====
ODA only includes aid to countries which are on the [http://www.oecd.org/dac/financing-sustainable-development/development-finance-standards/daclist.htm DAC List of ODA Recipients] which includes most countries classified by the World Bank as of low and middle income.<ref>{{Cite web|last=|first=|date=|title=DAC List of ODA Recipients|url=http://www.oecd.org/dac/financing-sustainable-development/development-finance-standards/daclist.htm|url-status=live|archive-url=https://web.archive.org/web/20170424061342/http://www.oecd.org:80/dac/financing-sustainable-development/development-finance-standards/daclist.htm |archive-date=24 April 2017 |access-date=8 February 2021|website=OECD}}</ref>

==== Weakly-concessional loans ====
Loans from one state to another may be counted as ODA only if their terms are substantially more favourable than market terms. The exact rules for this have varied from time to time. Less-concessional loans therefore would not be counted as ODA but might be considered as including an element of development aid.<ref>{{Cite web|last=|first=|date=|title=Official development assistance – definition and coverage|url=http://www.oecd.org/dac/financing-sustainable-development/development-finance-standards/officialdevelopmentassistancedefinitionandcoverage.htm|url-status=live|archive-url=https://web.archive.org/web/20160719055510/http://www.oecd.org:80/dac/financing-sustainable-development/development-finance-standards/officialdevelopmentassistancedefinitionandcoverage.htm |archive-date=19 July 2016 |access-date=8 February 2021|website=OECD}}</ref>

==== Aid from other donor states ====
Some states provide development aid without reporting to the OECD using standard definitions, categories and systems. Notable examples are China and India. For 2018, the OECD estimated that, while total ODA was about $150 billion,<ref name=":25" />  an additional six to seven billion dollars of ODA-like development aid was given by ten other states.<ref name=":26" /> (These amounts include aid that is humanitarian in character as well as purely developmental aid.)

==== TOSSD ====
Recognizing that ODA does not capture all the expenditures that promote development, the OECD in 2014 started establishing a wider statistical framework called TOSSD (Total Official Support for Sustainable Development) that would count spending on "international public goods". In March 2022, TOSSD was adopted as a data source for indicator 17.3.1 of the SDGs global indicator framework to measure development support. The TOSSD data for 2020 shows more than USD 355 billion disbursed to support for sustainable development, from almost 100 provider countries and institutions.<ref>{{Cite web|title=Total Official Support for Sustainable Development (TOSSD)|url=https://www.tossd.org/}}</ref> The [[Commitment to Development Index]] published annually by the [[Center for Global Development]] is another attempt to look at broader donor country policies toward the developing world. These types of activity could be formulated and understood as a kind of development aid although commonly they are not.