Aid |
Aid quality is just as important as aid quantity, so the CDI measures gross aid as a share of GDP adjusted for various quality factors: it subtracts debt service, penalizes “tied” aid that makes recipients spend aid only on donor goods and services, rewards aid to poor but relatively well-governed recipients, and penalizes overloading poor governments with many small projects.
Portugal’s aid performance
Strengths
- Large share of aid to poor and relatively well-governed recipients (selectivity rank: 1)
Weaknesses
- Low net aid volume as a share of the economy (0.3%; rank: 16)
- Small amount of private charitable giving attributable to tax policy (rank as a share of GDP: 20)
- Allows project proliferation; small average project size (rank: 24)
- Large share of tied or partially tied aid (61.4%; rank: 22)
|
Trade
|
International trade has been a force for economic development for centuries. The CDI measures trade barriers in rich countries against exports from developing countries.
Portugal’s trade performance
Strengths
- Low tariffs on textiles (6.4% of the value of imports; rank: 3)
- Low tariffs on apparel (6.4% of the value of imports; rank: 3)
- High level of manufactures imports from poorer countries (10.1% of GDP per capita; rank: 4)
Weaknesses
- High agricultural subsidies (equivalent to a tariff of 11.0% of the value of imports; rank: 13)
|
Investment
|
Rich-country investment in poorer countries can transfer technologies, upgrade management and create jobs. The CDI includes a checklist of policies that support healthy investment in developing countries.
Portugal’s investment performance
Strengths
- Employs foreign tax credits to prevent double taxation of corporate profits earned abroad
- No restrictions on pension fund investments in emerging markets and provides official support for outflows of portfolio investment
Weaknesses
- Does not actively participate in the Extractive Industries Transparency Initiative (EITI)
- Political risk insurance agency does not screen projects for social impacts
|
Migration
|
The movement of people from poor to rich countries provides unskilled immigrants with jobs, income and knowledge. This increases the flow of money sent home by migrants abroad and the transfer of skills when the migrants return home.
Portugal’s migration performance
Strengths
- Large share of foreign students from developing countries (83.4%; rank: 5)
- Tuition for foreign students the same as for nationals
Weaknesses
- Bears small share of the burden of refugees during humanitarian crises (rank: 25)
- Small number of immigrants from developing countries entering Portugal (rank by share of population: 15)
|
Environment
|
Rich countries use a disproportionate amount of scarce resources, and poor countries are most vulnerable to global warming and ecological deterioration, so the CDI measures the impact of policies on the global climate, fisheries and biodiversity.
Portugal’s environment performance
Strengths
- No fossil fuel production rate per capita (rank: 1)
- Low greenhouse gas emissions rate per capita (5.5 tons of carbon dioxide equivalent; rank: 3)
- High gas taxes ($1.38 per liter; rank: 5)
- Low fishing subsidies ($0.09 per person; rank: 10)
Weaknesses
- Low compliance with mandatory reporting requirements under multilateral environmental agreements relating to biodiversity (rank: 17)
|
Security
|
Since security is a prerequisite for development, the CDI rewards contributions to internationally sanctioned peacekeeping operations and forcible humanitarian interventions, rewards military protection of global sea lanes, and penalizes arms exports to poor and undemocratic governments.
Portugal’s security performance
Strengths
- Significant personnel contributions to UN-sanctioned peacekeeping operations over last decade (rank by share of GDP: 7)
- Positions naval fleet to protect sea lanes vital for international trade (rank: 8)
- Few arms exports to poor and undemocratic governments (rank by share of GDP: 10)
|
Technology
|
Rich countries contribute to development through the creation and dissemination of new technologies. The CDI captures this by measuring government support for R&D and penalizing strong intellectual property rights regimes that limit the dissemination of new technologies to poor countries.
Portugal’s technology performance
Strengths
- High government expenditure on R&D (rank by share of GDP: 3)
- High tax subsidy rate to businesses for R&D (rank: 3)
- Small share of government R&D expenditure on defense (0.12%; rank: 5)li>
Weaknesses
- Allows patents on plant and animal varieties
- Allows patents on software programs
|
