DAC PEER REVIEW OF PORTUGAL

Richard Manning, Chair Development

Assistance Committee/OECD

What is a DAC peer review

• An OECD tool for co-operation and change

• A unique forum where donors work together to increase the effectiveness of their aid

PEER REVIEW PROCESS

• Started in November 2005• Two DAC Examiners: Ireland and Spain• One visit to Timor-Leste followed by

visit to capital• Main findings and recommendations

discussed at DAC meeting (19 April 2006)

• Find report on www.oecd.org/dac/peerreviews

Peer Review of Portugal

DAC praises Portugal’s commitment to:– Poverty reduction – Improving co-ordination and institutional

coherence– Increasing link between bilateral and

multilateral programmes – Strengthening financial planning and

evaluation – Constructive dialogue with civil society

organisations

But need for more impact on poverty….

•Aid allocations to reflect poverty focus more: in 2003-04, annual spending on basic education $3 m, on basic health $1 m, water $1 m, and agriculture $3 m

•Guidance in - education, capacity building, fragile states

•Technical expertise to implement ambitious mandate (eg gender, education)

….supported by system reforms

• Multi-year financial programming• Stronger coordination with stronger

IPAD role• Re-balancing IPAD’s human resources• Upgrade field-level representation and

update harmonisation plan• Build results culture• Develop NGO inputs

DAC net 1990-2005 ODA and simulations to 2006 and 2010

0.22

0.26

0.36

0.33

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

% o

f G

NI

0

20

40

60

80

100

120

140

OD

A (

2004

US

D b

illio

n)

ODA as a % of GNI (left scale)

Total ODA(right scale)

Total ODA to Africa(right scale)

0.33

Portugal facing challenge to increase aid

0.24

0.63

0.21

0.330.33

0.36

0.26

0.33

0.22 0.22

0.51

0.21

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

0.55

0.60

0.65

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

% o

f GNI

0

50

100

150

200

250

ODA

(200

4 US

D bi

llion

)

DAC ODA as a % of GNI (left scale)

Total ODA(right scale)

Portugal's ODA as a % of GNI(left scale)

Will Portugal reach its target?

• Portuguese ODA to reach USD 933 million or 0.51% GNI in 2010

• Portugal’s contribution: 2003 - USD 320 million or 0.22% GNI 2004 - With debt relief to the Republic of

Angola, USD 1 031 million or 0. 63% GNI 2004 - Without debt relief, USD 333 million or

0.20% GNI

Will Portugal reach its target?

If Portugal ….

Scales up ODA Develops an implementation plan

with a time-frame to 2010 Builds systems and capacity to

deliver

Lessons from Timor Leste

• High level of trust, long-term engagement and good policy dialogue

• Important stabilising security-related interventions in the immediate post-conflict period

• Alignment with Timor-Leste’s priorities• Contribution to State building and

citizenship

Lessons from Timor-Leste

But need for:• Strategic and systemic approach to education

and institution building• Stronger role in promoting local capacity

development• More decision-making authority and human

resources at field level • Strategic and operational alliances with other

bilateral donors • Monitoring, tracking and documenting results

Conclusions

• Portugal is vital in the PALOPs and Timor-Leste

• All players interested in Portugal’s contribution to achieving the Millennium Development Goals

• Scale up Portuguese aid and make it more effective and poverty-oriented

Peer Review

Portugal

Richard Manning

Development Assistance

Committee/OECD