The main objective of ODA is to promote development.
to reduce the extent of tying of assistance and to mitigate any harmful effects [and make loans tied to particular sources] available for utilization by the recipient countries for the purpose of buying goods and services from other developing countries.…
Financial and technical assistance should be aimed exclusively at promoting the economic and social progress of developing countries and should not in any way be used by the developed countries to the detriment of the national sovereignty of recipient countries.
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Developed countries will provide, to the greatest extent possible, an increased flow of aid on a long-term and continuing basis., known as the Development Assistance Committee (DAC). GNP, which the OECD used up to 2000 is now replaced with the similar GNI, Gross National Income which includes a terms of trade adjustment.
Some quoted articles and older parts of this site may still use GNP or GDP.] is basically aid from the governments of the wealthy nations, but doesn’t include private contributions or private capital flows and investments.
Development aid has long been recognized as crucial to help poor developing nations grow out of poverty.
In 1970, the world’s rich countries agreed to give 0.7% of their GNI (Gross National Income) as official international development aid, annually.
Measured as a proportion of gross national income (GNI), aid lags far behind the 0.7 percent target the United Nations set 35 years ago.
Moreover, development assistance is often of dubious quality.
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