Disbursement of Official Development Assistance (ODA) rose sharply in 2003 according to data compiled by the United Nations Development Programme (UNDP). The increase in US dollar terms reflects higher spending among top donors and the appreciation of non-dollar currencies, particularly the Japanese yen and euro.

Over the last few years some donors have sought to harmonize ODA allocations. The Five Banks Initiative, which include the World Bank, the Asian Development Bank, the Japanese JBIC, French ADF and German KfW, favours large loan projects mainly in infrastructure, other capital investments and policy support. The Like-Minded Donors Group, consisting of Australia, Canada, Denmark,Finland, Germany, Netherlands, Norway, Sweden, Switzerland and United Kingdom, prefers a larger number of small projects including technical cooperation grants. These donors operate in sectors such as rural development, human development and natural resource management.