Types of development assistance
There are different types of development assistance:
- International aid is aid granted to third country beneficiaries, i.e. to another country or its residents.
- Project aid is aid provided for a specific purpose (training, construction project, purchase of equipment).
- Programme aid is aid provided within a specific sector to support measures addressing a broader problem (e.g. support for a reform in a branch of the economy or for a specific element of such a reform, e.g. in the education or health sectors).
- Budget support is a form of support for a country’s general policy/development strategy. It involves transfer of funds directly to the country’s budget to be disbursed through its national public finance system.
- Sector budget support/sector wide approach is a combination of programme aid and budget support. The donation is made for a specific reform in a given sector through the transfer of funds to a partner country.
- Food aid: support in the form of food donation to countries where people have limited access to food.
- Tied aid may be used by a partner country to purchase a donor country’s goods or services.
- Programme- or project-based technical assistance involves the use of experience and expertise of citizens of a donor country (officials, doctors, engineers, etc.) to support the development of a partner country.
- Loans, borrowings and debt cancellations support a partner country through concessional financial assistance. They may also be part of tied aid in the form of tied loan. Loans are treated as ODA when they convey a grant element of at least 25% of the whole amount.