ABSTRACT

DAC averages explained Donors frequently refer to the DAC average when discussing their aid as a percentage of GNP. Fifteen out of 21 donors can claim to have exceeded the DAC average in 1996. But this figure does not really give a true picture of the generosity of DAC donors. This is because the average is arrived at by adding the GNP of all DAC donors and dividing this by donors’ combined ODA. This produces a weighted average - which tends to be skewed downwards by the poor aid/GNP ratios of large donors such as the USA and Japan.