6.11 Net concessional flows from multilateral institutions
See Table 6.11 hereAbout the data
Definitions
Data sources
Complementing table 6.9, this table shows concessional aid flows to developing countries from multilateral institutions as reported by the Development Assistance Committee (DAC) of the OECD. These institutions include multilateral development banks (for example, the World Bank and regional development banks), United Nations agencies, and regional groups such as the Commission of the European Communities (CEC).
Concessional flows from multilateral institutions can take the form of loans or grants. The data here cover resources provided through designated "soft loan windows," such as the World Bank Group’s International Development Association (IDA) and the development funds of the regional development banks. IDA provides long-term, interest-free loans to the poorest countries to promote economic development; in 1996, 79 countries were eligible for IDA assistance.
The International Monetary Fund (IMF) provides concessional loans through the IMF Trust Fund, its Structural Adjustment Facility (SAF), and its Enhanced Structural Adjustment Facility (ESAF). ESAF, the successor to SAF (no SAF commitments have been made since 1994) provides assistance to help strengthen a country’s balance of payments position and to foster economic growth in low-income member countries facing protracted balance of payments problems. ESAF loans cover a three-year period and carry an annual interest rate of 0.5 percent with a five-year grace period and 10-year maturity.
Resources for concessional lending come from contributions by member countries and retained earnings from the multilateral institutions’ nonconcessional business. (Although some loans provided through the nonconcessional arms of the development banks may meet the DAC definition of concessional, they are not reported here. They are, however, included in table 6.12). Funding for United Nations agencies is provided by DAC member countries and other members of the United Nations to support a range of development and humanitarian activities, including support for refugees and peacekeeping operations in war-torn countries.
Aid not allocated by country or region (including administrative costs, research into development issues, and aid to nongovernmental organizations) is included in the world total; regional and income group totals therefore do not add up to the world total.
• Multilateral institutions are organizations with governmental membership that conduct all or a significant part of their activities to promote development.
• IDA is the International Development Association, the soft loan window of the World Bank Group.
• IMF is the International Monetary Fund, which provides concessional loans through the Structural Adjustment Facility (SAF), the Enhanced Structural Adjustment Facility (ESAF), and the IMF Trust Fund.
• AfDB is the African Development Bank, which provides concessional loans through the African Development Fund.
• ADB is the Asian Development Bank, which provides concessional loans through the Asian Development Fund.
• IDB is the Inter-American Development Bank, which provides concessional loans through the Inter-American Development Fund for Special Operations.
• CEC is the Commission of the European Communities. Its development fund, the European Development Fund, provides assistance to developing countries that are signatories to the Lomé Convention.
• Other international financial institutions include the International Fund for Agricultural Development and the European Bank for Reconstruction and Development.
• WFP is the World Food Programme.
• UNDP is the United Nations Development Programme.
• UNFPA is the United Nations Population Fund.
• UNICEF is the United Nations Children’s Fund.
• Other United Nations agencies include the United Nations High Commissioner for Refugees, the United Nations Relief and Works Agency for Palestine Refugees in the Near East, and the United Nations Regular Program for Technical Assistance.
Data on aid are compiled by DAC and published in its annual statistical report, Geographical Distribution of Financial Flows to Aid Recipients, and in the DAC chairman’s report, Development Co-operation. The OECD also makes its data available on diskette and magnetic tape and on the Internet.
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