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

Portugal facing challenge to increase aid

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

Portugal Peer Review Richard Manning Development Assistance Committee/OECD