Development finance standards

OECD's methodology for calculating sectoral imputed multilateral aid



Data on donors’ bilateral aid by sector can be easily extracted from the DAC’s online databases.  In order to provide a more complete picture of donors’ aid to a specific sector, their multilateral ODA also needs to be taken into account.  This is done by calculating “imputed multilateral ODA” to this sector as follows:

1.   Based on multilateral agencies’ reporting to the DAC, we first calculate each agency’s flows to a given sector as a share of the agency’s total aid (core resources only).  Three-year average data are used (data on a multilateral agency’s outflows in years n through n+2 are used for calculating imputed multilateral ODA through that agency in year n+2).

2.   The share obtained in step 1 for any given agency is applied to donors’ contributions to the core resources of that agency in year n+2.  The resulting amounts represent the imputed flows from donors to a particular sector through this agency. 


Imputed multilateral ODA can only ever be an approximation.  (See also: OECD's methodology for calculating imputed multilateral aid.)


We are interested to estimate Germany's 2007 ODA contribution to the health sector through core funding to UNICEF. The calculation is as follows:

1.   UNICEF allocated on average y% of its aid to the health sector in 2005-07.

2.   Germany’s imputed multilateral aid to the health sector through UNICEF was y% of Germany's 2007 core contribution to UNICEF; in this case: 0.174 x USD 8.24 million = USD 1.4 million. 


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