OECD Development Co-operation Peer Reviews: Portugal 2022

Annex A. Progress since the 2016 DAC peer review recommendations

Towards a comprehensive Portuguese development effort

 

Recommendations 2016	Progress
1.1 Building on its strong political commitment to policy coherence for development, Portugal should invest more in analysing and monitoring how its policies in key areas are affecting developing countries and take action to address policy inconsistencies.	Partially implemented The government commissioned CSO analyses on key topics. It has adopted policies in areas of relevance (climate change, green procurement, oceans, migration action plan). However, it does not follow up with monitoring and reporting.
1.2 When Portugal develops its approach to private sector development, it should ensure this has a positive development impact and respects the DAC recommendations on aid untying.	Partially implemented No strategy yet developed but on-going reflection on private sector engagement and how to maximise development impact, including through study with OECD. SOFID exchanges with European peers to integrate Environmental, Social and Governance (ESG) criteria into its credit appraisals.

Vision and policies for development co-operation

 

Recommendations 2016	Progress
2.1 Following its Strategic Concept 2014 – 2020, Portugal should establish a realistic medium-term operational plan that identifies a manageable set of priorities for its programme in line with its funding and expertise capacity. It should also develop appropriate guidance for implementing this plan.	Not implemented No operational plan was established and only one specific policy or guidance has been adopted since the peer review (on development education).
2.2 Portugal should fully integrate its bilateral concessional loans portfolio into its strategic planning and country programming processes in order to exploit synergies.	Implemented Though of decreasing relevance with the phasing out of loans, they are part of country strategies and annual monitoring.
2.3 Camões I.P. should support programme staff throughout Portugal’s public administration to integrate gender equality and the environment into all of Portugal’s programmes.	Partially implemented Translation into Portuguese of marker guidance and training and evaluation on integration of gender equality, but not substantive changes in practice yet.

Aid volume and allocation

 

Recommendations 2016	Progress
3.1 Portugal should establish time-bound, intermediate targets for meeting its international aid volume commitments as its economy recovers. This plan should include a commitment to increase the grant share of its ODA budget.	Not implemented No time-bound ODA plan exists even though gross domestic product has reached pre-financial crisis levels. The grant share substantially increased as loans were phased out.
3.2 Portugal should reverse the decline in its ODA to least developed countries and maintain its engagement with countries most in need in line with the 2014 High Level Meeting commitments. Portugal should also comply with the 1978 DAC recommendation on terms and conditions on lending to LDCs.	Implemented To the extent Portugal can geographically allocate its ODA, this is strongly focused on countries most in need, with the highest share among DAC countries of ODA allocated to LDCs. With the decrease of loans, Portugal now essentially complies with the 1978 DAC recommendation.

Organisation and management

 

Recommendations 2016	Progress
4.1 Portugal should examine its business model to ensure that the entity charged with managing its complex system has a clear and appropriate mandate.	Partially implemented Portugal has led reflections on how to enhance Camões’ mandate to implement, co-ordinate and steer development co-operation. This led to the creation of co-operation centres in partner countries as a main measure.
4.2 Portugal should also examine whether this entity has adequate human and financial resources to respond to its mandate.	Partially implemented Camões has led reflections on its human and financial resources, but substantial challenges remain.
4.3 Portugal should ensure that its development cooperation is governed by human resources and financial rules and regulations with sufficient flexibility to deliver the programme efficiently.	Partially implemented Portugal has updated its legal framework for recruiting co-operation agents, and is adjusting its rules, including to meet new EU pillar assessment requirements. It has also introduced new financing lines that improve rapid and flexible CSO responses to crises.

Development co-operation delivery and partnerships

 

Recommendations 2016	Progress
5.1 Portugal should strengthen its guidance and the incentives for staff to use partner country systems in delivering their programmes.	Partially implemented Portugal continues limited budget support, engages in public financial management and country strategies encourage use of country systems. However, the 2018 GPEDC monitoring highlighted on-going challenges.
5.2 Portugal should move towards establishing programme-based framework agreements with selected CSO partners.	Not implemented While new instruments for rapid and flexible responses to crises exist, Portugal is using project agreements for all CSO partnerships.
5.3 - Portugal should establish shared context and risk analysis to guide the numerous public entities actors working in fragile states.	Partially implemented Context analysis and internal exchange as well as consultation with stakeholders inform the preparation of country strategies (once every five years). However, Portugal does not undertake dedicated country analysis, and risk management does not specifically consider risks at country level.
5.4 In future allocations and programmes, Portugal should make every effort to meet the OECD recommendation and its Busan commitments to untying aid.	Implemented Tied loans are being phased out. On-going tied aid stems from previously agreed loans. It will also be important to balance development co-operation and private sector promotion priorities.

Results and accountability

 

Recommendations 2016	Progress
6.1 Portugal should ensure that all its country programmes have a clear set of expected outcome-orientated results and that staff regularly monitor progress towards achieving them.	Partially implemented Results frameworks at country level collate outputs. They indicate higher level objectives, but do not articulate concrete outcomes. There are annual progress monitoring exercises of country programmes, and they are systematically evaluated.
6.2 In order to achieve a more cohesive and co-ordinated programme, Portugal’s development actors should share lessons on approaches and results with each other on a regular basis.	Partially implemented The creation of co-operation centres has the potential to enhance co-ordination and exchange in partner countries. Evaluation findings are disseminated systematically. Thematic and geographic groups exchange prior to the elaboration of country strategies, but not more regularly.
6.3 Portugal should adopt and put into practice the new evaluation policy as soon as possible.	Partially implemented A new Evaluation Plan 2021-23 provides some follow-up to the 2016 Evaluation Policy, including for dedicated resources. However, Portugal has undertaken relatively few evaluations over the past years, and uptake of findings is limited.

Humanitarian assistance

 

Recommendations 2016	Progress
7.1 Portugal should build on its new operational strategy for the humanitarian programme to ensure that future responses are predictable, leverage Portugal's comparative advantage, and are in line with humanitarian principles.	Implemented New funding mechanisms for humanitarian assistance increase predictability and flexibility for CSOs. Multilateral funding is mostly for programmes and pooled funds with soft earmarking.
7.2 Portugal should set out guidelines for the use of military and civil defence assets in its humanitarian response, in line with international agreements.	Partially implemented Portugal does not have specific guidelines on the use of its military assets in humanitarian responses, but the 2015 humanitarian strategy stipulates Portugal’s adherence to the principles and guidelines of relevant international standards. Increased interactions at operational levels are nevertheless helping to address these concerns.