Net ODA received (% of gross capital formation)

Net official development assistance (ODA) is a critical financial metric that captures the flow of resources intended to foster economic growth and enhance living standards in eligible countries. This measure encompasses disbursements that include grants and loans with significant concessional elements, specifically those where the grant component is no less than 25% under a standardized discount rate. By evaluating the proportion of net ODA relative to gross capital formation—encompassing investments in infrastructure, technology, and human capital—this indicator provides insights into how external financial support is leveraged for domestic investment. A high percentage may suggest reliance on foreign aid, while a lower ratio could indicate sustainable domestic growth or effective resource mobilization. Such analysis serves as a vital tool for policymakers to assess the effectiveness of development strategies and international cooperation. Source: