Development Assistance Committee (DAC) Criteria

The Development Assistance Committee (DAC) criteria are standards used to identify whether financial aid qualifies as official development assistance (ODA). To meet these criteria, aid must be provided by governments or official agencies, primarily aimed at promoting economic growth and social progress in developing countries. The assistance should be concessional (offering favorable terms), be targeted toward developing countries' needs, and be transparent and measurable. Essentially, these criteria ensure that aid is purposeful, essentially sustainable, and aimed at reducing poverty and improving living standards in poorer nations.