After Gleneagles: What Role for Loans in ODA?

Daniel Cohen, Pierre Jacquet and Helmut Reisen

No 31, OECD Development Centre Policy Briefs from OECD Publishing

Abstract: Suppose a DAC donor earmarks $1 billion of taxpayers’ money for official development assistance (ODA). The donor may use two instruments as an outright grant or in combination with a market loan to produce a concessional loan of $2 billion with a percentage grant element of 50 per cent. Many nowadays think the choice should be clear: provide grants only, leave loans to the market. The purpose of this Policy Brief is to qualify and inform this choice....

Date: 2006-12-01
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