ODA is at unprecedented levels in dollar terms. With the recent rapid rise in South-South Cooperation
combined with commitments to increase aid from ‘traditional’ donors, aid is projected to rise further still over
the next couple of years. This is largely due to the MDG agenda. Nevertheless, the importance of aid relative
to other financial flows should not be exaggerated for many developing countries; for others, however —
especially the LDCs and some SIDS — aid will remain a critical source of external finance for some time to
come