Written by Jaya Ramachandran, IPS
PARIS (IPS) – The OECD’s Development Assistance Committee has welcomed Portugal’s commitment to the Millennium Development Goals and support for very poor countries, as outlined in the government’s recent ‘Strategic Vision for Portuguese Co-operation’.
The Committee, however, has doubts that Portugal will succeed in raising its official development assistance (ODA) from 367 million dollars or 0.21 percent of Gross National Income (GNI) in 2005 to 0.51 percent by 2010 and 0.7 percent by 2015 as agreed by the European Union (EU).
“Meeting the ODA level of 0.33 percent of GNI by 2006, as agreed at the Barcelona Summit in the context of the Monterrey Conference, appears unlikely at this stage,” the report by the Development Assistance Committee (DAC), released on Apr. 19, says.
At the end of 2005, the Portuguese government’s budget deficit exceeded 6 percent of gross domestic product (GDP). While it is expected to narrow over 2006-2007 and real GDP growth will gain momentum, the country’s economy is nevertheless likely to lag behind average growth in the euro area, notes the report.
The report takes note of the Portuguese government’s intention to make a serious effort to reach the target of 0.51 percent by 2010, and welcomes this commitment given Portugal’s overall tight fiscal situation and the need to balance the national budget in a context of economic difficulties.
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Date Created: 5/8/2006 11:13:08 AM