Definition of Official Development Assistance

Summary#

These final regulations, called the Regulations Defining “official development assistance”, tell how Canada will define and count its foreign aid for the purposes of the Official Development Assistance Accountability Act. They align Canada's definition with the most recent one agreed by the OECD‑DAC and put the new rule into effect so reporting to Parliament and to international bodies matches. The item was registered June 10, 2021 and published in the Canada Gazette on June 23, 2021; the government set the rule to take effect on April 1, 2022.

What it does#

• Says that, for the Act, “official development assistance” (ODA) means international assistance that
  • meets the criteria of the OECD‑DAC definition of ODA as published on the OECD website (and as amended there from time to time), or
  • meets the disaster/emergency criteria already in the Act (referenced in the regulations).
• Specifies that any change the OECD makes to its ODA definition will be adopted in Canada only when that change is posted on the OECD website in both official languages.
• Moves Canada’s official definition out of the main law (where it was fixed) into regulations. That makes it easier to keep Canada’s reporting aligned with international practice without another law change.
• Clarifies that the regulations take effect for the full fiscal year starting April 1, 2022, to make reporting consistent.

Who's affected#

• Global Affairs Canada, which prepares Canada’s annual aid reports and statistics.
• Parliament, which receives the Report to Parliament on international assistance based on this definition.
• International development researchers, NGOs, and watchdogs who track Canada’s aid numbers.
• Donor agencies and other countries (because the change aligns Canada with the OECD‑DAC common rules).
• Programs or instruments that involve concessional loans, sovereign lending, or private‑sector financing — these types of operations can be counted differently under the updated OECD rules. It is not clear from the regulations exactly which specific loan or investment projects will change in Canada’s reporting; that depends on OECD guidance and how Global Affairs Canada applies it.

Why it matters#

• It brings Canada’s public reporting of aid into line with the international standard used by most donors. That makes Canada’s figures easier to compare with other countries.
• The change affects how certain loans and private‑sector instruments are counted. That can change the total dollar amount reported as Canadian aid even if spending hasn't changed in reality.
• Putting the definition in regulation means Canada can update its reporting rules faster as international counting rules evolve. However, updates will only take effect after the OECD publishes them in both official languages, which can cause small delays.