ABSTRACT
The official development assistance component of the capital requirements in 1980 is assumed to be equivalent to 0.7 percent of the projected gross national product of Organisation for Economic Co-operation and Development countries in that year. The capital requirements of the non-oil-exporting developing countries in 1980 have been projected on a number of assumptions regarding the course of events in the world economy. The shortfall of official development assistance from the levels targeted in the International Development Strategy has been a major deficiency in the structure of international co-operation for development. Non-concessional flows directed toward developing countries through bilateral channels also exhibited rapid growth during the 1960s and early 1970s. The distribution of financial flows among developing countries is determined by a combination of policy measures taken by individual donor agencies and market forces. One practice that has emerged for dealing with the problem of co-ordinating donor activities is the organization of aid consortia and consultative groups.
