Chapter_47(S)-01
INFOGRAPHIC: Who funds development? Flows from OECD to developing countries 1990–2010
The exponential growth of private investments and remittance flows since 1990 have changed the priorities, impact and influence in the development aid landscape once dominated by Official Development Assistance. Data source: Adelman and Spantchak (2014). "Foundations and private actors" in International development: Ideas, experience, and prospects. Oxford: Oxford University Press. (French version)

— Abstract

While Official Development Assistance (ODA) comprised the majority of resource flows in international development during much of the twentieth century, today private money (philanthropy, remittances, and investment) significantly surpasses ODA. Moreover, the developing world has also changed thanks to increased remittances, a more skilled labor force, open markets, and rise of communication technology. Private actors in developing countries are taking on a greater role in the development assistance process. These private flows have fundamentally transformed the way foreign aid is delivered: the private sector, with more flexibility and higher risk tolerance, is more likely to fund programs that government aid may not. This paradigm shift offers a great opportunity to reinvent official aid, allowing the aid community to better focus on results, demand-driven development, transparency, and sustainability.

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— Suggested Readings

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