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8.b          What is the Development Co-operation Report (DCR)?

The Development Cooperation Report (DCR) isthe outcome of the Development Cooperation Dialogues (DCD). It was first published as DCR 2010. It was formerly called the Donor Financial Review (DFR) Report. Like the DFR Reports were, the DCRis prepared by the Aid Management Directorate (AMD) of the Ministry of Finance (MoF). They are to be published annually from now on.  

2.a          What is Official Development Assistance (ODA), aid and foreign assistance?

Development assistance (also development assistance, development cooperation, technical assistance, international aid, ODA, overseas aid or foreign aid) is aid given by governments and other agencies to support the economic, social and political development of developing or recipient countries. It is differentfrom humanitarian aid as it focuseson alleviating poverty in the long term, rather than a short term response.

ODA is flows of official financing administered with the promotion of economic development and welfare of developing countries as the main objective. ODA flows arecontributions of donor government agenciesto developing countries (including both bilateral ODA and ODA to multilateral institutions). ODA are disbursements by bilateral donors and multilateral institutions.

2.c          What is On-budget?

As per the OECD guidance, assistance is qualified as On-budget/Direct Budget support when the fund disbursed is managed according to the national budget/treasury procedures of the partner country.  This includes both general budget support (discretionary) and earmarked assistance.  The On-budget assistance is made throughtwo channels:

  1. Bilateral
  1. Legal agreement is signed between MoF and the donor;
  2. The assistance is implemented by a Government entity and the fund is executed through the financial management systems of Afghanistan (budget, treasury, procurement and audit)
  3. Has been reflected in National Budget and approved by the parliament.
  1.  Multilateral Trust Fund

It includes support through Trust Funds such as Afghanistan Reconstruction Trust Fund (ARTF), Law and Order Trust Fund (LOTFA), and  Afghanistan Peace and Reintegration Trust Fund (APRTF).  In the context of Afghanistan, the following criteria are applied:

  1. Legal agreement between donors and administrator for the trust fund exists
  2. The fundsaretransferred from donorsto the trust fund and then to Government
  3. All the other criteria as mentioned under bilateral framework

Assistance to multilateralssuch as UN agencies which do not follow the above criteria are not considered On-budget.

2.b          What is Core Budget?

In the context of Afghanistan, Core Budget is the national budget of the Government. Prepared and administered by the Ministry of Finance, the core budget is a list of all planned expenses and revenues of the Government in a fiscal year. Core Budget consists of Development and OperatingBudgets. Development Budget financesall developmental activities, while the OperatingBudget finances the recurrent costs of the Government.

2.e          What is Technical Assistance (TA)?

Technical assistance supports development by employing advisers (both foreign and national) who help to strengthen capacity in both human and institutional resources, and to design appropriate macroeconomic, financial, and structural policies.