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Peer reviews of DAC members

DAC Peer Review of Portugal

 

12/04/2001 - A commitment to halve world poverty by 2015 is one of the priorities of international development co-operation, and the OECD is documenting the efforts of member countries to achieve this goal. Part of this effort is guided by the Development Assistance Committee (DAC) whose members monitor development assistance.

Portugal's official development assistance/gross national product (ODA/GNP) ratio was 0.26% in 1999 and ranked 16th out of 22 DAC Member countries. Portugal rejoined the DAC in 1991 and has the lowest per capita GNP amongst the Members. Its ODA has grown continuously in recent years and recorded USD 276 million in 1999. A high proportion of this assistance is allocated to least developed countries.

The DAC reviewed Portugal's development co-operation policies and programme on 11 April 2001. The Portuguese Delegation for the peer review was led by Ms Inês Rosa, on behalf of the President of the Portuguese Institute of Co-operation (ICP). The Examining countries were Belgium and New Zealand. The DAC Chairman, Mr. Jean-Claude Faure, summarised the review of Portugal's aid programme:

  • The DAC welcomes Portugal's aim to reach 0.35% ODA/GNP ratio in the near future.

  • Responding to recommendations made in the last Peer Review, Portugal adopted a certain number of decisions and began to reform its aid programme.

  • The DAC welcomes in particular Portugal's establishment of the Inter-ministerial Committee for Co-operation to co-ordinate the ministries and the Council of Ministers for Co-operation Affairs that approves the annual aid programme and budget. The DAC encourages the Portuguese authorities to consider their potential for enhancing policy coherence. The programme is still spread among 17 ministries and numerous agencies, universities and municipalities. Co-ordination could be improved in order to reduce overlaps. It would be more effective for Portugal to consolidate similar types of activities under the responsibility of one ministry or entity.

  • Although poverty reduction is a major goal in Portuguese co-operation, the aid programme still gives insufficient attention to poverty issues. Under the guidance of ICP, the programme could be geared towards a more poverty-focused orientation in line with the International Development Goals and in the framework of country strategies. In this context, it would be desirable to have increased resources allocated towards basic social services.

  • ICP is yet to become a full fledged co-ordinating body. Although it has made significant progress in using a database system to consolidate all development co-operation expenditures, it could take a stronger role in policy formulation, develop operational tools and guidelines, mainstream cross-cutting issues, and implement a comprehensive monitoring and evaluation system. In order to carry out these tasks effectively, it would require ICP to be given more financial and human resources. Furthermore, field staffing could be augmented, as currently only one or two officials from ICP are posted in each main partner country to oversee the ODA activities.

  • The newly created Portuguese Development Support Agency (APAD) promotes Portuguese investment, supports social and economic infrastructure, and stimulates the private sector in beneficiary countries through preferential loans, guarantees, equities, and grants. The DAC encourages further clarification of APAD's role, criteria and instruments, particularly in supporting the private sector in partner countries.

  • Portugal's debt relief effort represented USD 126 million (in constant 1998 USD) in 1999 and was 35% of total gross ODA disbursements (the DAC average was 4%). This was largely the result of defaults on state guaranteed private export credits and loans. Portugal is no longer extending such credits to Highly Indebted Poor Countries (HIPC) to avoid further debt accumulation. A fully comprehensive and open information policy on Portugal's debt relief strategy and criteria for granting new state guarantees will be positive.

  • The DAC applauds Portugal's rapid response to the East Timor crisis in August 1999. It established the Office of the Commissioner to Support the Transition in East Timor and increased its budgetary allocation to USD 68 million in 2000.

  • There is scope for Portuguese non-governmental organisations (NGOs) to play a more significant role in Portuguese development co-peration. The DAC encourages increased ICP support for Portuguese and recipient country NGOs in public education and project implementation.

  • Since Portugal is one of the largest bilateral donors to all the Portuguese-speaking African countries (PALOPs), its participation in multilateral forums could be strengthened.

The main findings and recommendations of this Peer Review by the DAC will be available next week on the OECD/DAC Internet web site, http://www.oecd.org/dac . The full report of the review, including the findings, the report of the Secretariat and related statistical material, will be published in the DAC Journal.

For further details and to arrange interviews with participants, journalists are invited to contact Helen Fisher, OECD Media Relations Division (Tel. 33 1 45 24 80 97).

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