If the TOSD measure incentivizes donors to increase funding through market-like instruments, they are likely to be more common in the near future.
As the Development Assistance Committee looks for ways to better measure TOSD in the overall changing FfD landscape, some argue that the new, holistic sustainable development approach makes it artificial to exclude global public goods such as climate change and peace/security from the definition of ODA itself.
24) Donors will no longer be attributed as much ODA from loans as before, but they will be recognized for the total gross value of development flows under the TOSD measure.
26) When it comes to SRHR, both the measurement of non-grant loans within overall TOSD and the redefinition of the loan reporting framework may be of great concern for SRHR financing as donor funding priorities might shift further away from the social, non-productive sectors--including in the world's poorest countries where basic health systems, including SRHR services, continue to be chronically underfunded.
As population assistance currently accounts for just over 5% of ODA, DAC measurement of TOSD may show how under-funded activities measured under this sector code are compared to their importance in the Sustainable Development Goals framework.
DAC tracking of TOSD may incentivize donors to increase funding through non-grant ODA mechanisms, such as loans and market-like instruments.
The expansion of "development finance" through TOSD to include for-profit interests will further exacerbate the problem.
In this case, the total development effort as measured through TOSD will appear to increase exponentially, but by counting financial flows not targeted exclusively at poverty eradication and those most in need.