Private Area

Public Development Aid

Publications in the Spotlight:

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 OECD Themed Dossier

In the late 1980s and throughout the 90s, we saw considerable growth in the flow of Foreign Direct Investment (FDI), reflecting the progressive integration and liberalisation of economic policy.


The annual flow of developing countries grew by 250% during the 1980s and was over five times higher (an increase of 520%) in the following decade, reaching a value of 22.9 billion US dollars in 1999.

The net cash inflow from private debt and equity inflow to developing countries reached a record $647 billion US dollars in 2006, 17% up on 2005, following a three-year growth trend of almost 50%.
In contrast, since 1990, we have seen a drop in the inflow of public financing aimed at developing countries.
At the United Nations 1970 General Assembly, the donating countries, now united under the OECD’s Development Assistance Committee (DAC), committed to setting aside 0.7% of their GNI for Public Development Aid (PDA) in order to uphold the realisation of the MDGs. Currently, only Denmark, Luxemburg, Norway and Sweden have achieved the target.

The action plan for Africa, announced at the 2002 G-8 Summit in Kananaskis, suggested the need to channel at least 50% of PDA to the African continent.

At the 2005 United Nations Summit, the Monterey Consensus was reaffirmed, acknowledging the importance of improving efforts where aid was concerned, particularly for Africa, the only continent that clearly diverged from the MDG targets for 2015.

At the G-8 Summit in Gleneagles, in 2005, a “renewed commitment to Africa” was launched with the promise to increase the amount of PDA allocated to Sub-Saharan Africa by $25 billion US dollars per year until 2010, an amount which more than doubled that of the pre-2004 levels.

However, effective progress is scarce. The PDA from the 22 member nations of the OECD’s Development Aid Committee (DAC) fell by $3 billion US dollars in 2006.

The peer review carried out by the OECD – Organisation for Economic Co-operation and Development’s DAC is an exercise to assess the effort and performance of the organisation’s member states, and is carried out by its peers within the scope of Co-operation for Development. Every member is examined with a critical eye approximately every four years. The most recent assessment completed in late 2010, was made public by the OECD and the Ministry of Foreign Affairs and Co-operation’s Instituto Português de Apoio ao Desenvolvimento (Portuguese Institute for Development Support).


Oikos has put together a Themed Dossier which involves the dissemination, explanation and dialogue revolving around the DAC’s assessment with the aim of contributing to the continuous improvement of Portugal’s performance in respect of Co-operation for Development.

This was done by means of a Wiki ( NAO FUNCIONA O LINK), a tool that allows users to collaborate in the collective construction of knowledge.

We would encourage interested readers to become editors of it. Versão wiki

Take a look, too, at:


» João Gomes Cravinho, Secretary of State for Portuguese Co-operation, talks to Oikos about the OECD Report (In Portuguese)
» Fátima Proença, from ACEP, talks to Oikos about the OECD Report (In Portuguese)
» Europe must fulfil its commitments and keep its promises of aid to poorer countries (In Portuguese)


Projects in the Spotlight:

» Zero Poverty



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