Portugal

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.

• Score: 2.8
• Rank: 18

• Selectivity: large share of aid to poor and relatively well-governed recipients (rank: 1)

• Low net aid volume as a share of the economy (0.23%; rank: 17)
• 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: 16)
• Large share of tied or partially tied aid (34%; rank: 18)

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.

Score: 6.5

Rank: 7

• Low tariffs on textiles (6.0% of the value of imports; rank: 3)
• Low tariffs on apparel (6.0% of the value of imports; rank: 3)

• High agricultural subsidies (equivalent to a tariff of 10.2% of the value of imports; rank: 11)

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.

• Score: 5.4
• Rank: 12

• Employs foreign tax credits to prevent double taxation of corporate profits earned abroad
• Provides support for outflows of portfolio investment
• Does not impose restrictions on pension fund investments in emerging markets

• Does not actively participate in the Extractive Industries Transparency Initiative (EITI)
• Does not screen projects for social impacts through national political risk agency

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.

• Score: 4.0
• Rank: 14

• Large share of foreign students from developing countries (85%; rank: 5)
• Tuition for foreign students the same as for nationals

• Only a small increase during the 1990s in the number of unskilled immigrants from developing countries living in Portugal (rank by share of population: 13)
• Bears small share of the burden of refugees during humanitarian crises (rank: 20)

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.

• Score: 7.3
• Rank: 8

• Low greenhouse gas emissions rate per capita (5.6 tons of carbon dioxide equivalent; rank: 3)
• Low fishing subsidies ($0.10 per person; rank: 7)
• High compliance with mandatory reporting requirements under multilateral environmental agreements relating to biodiversity (rank: 4)
• Low fossil fuel production rate per capita (0.0 tons of carbon dioxide equivalent; rank: 1)

• Steadily rising greenhouse gas emissions during 1999–2009 (average annual growth rate/GDP, -1.9%; rank: 14)

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.

• Score: 5.7
• Rank: 7

• Few arms exports to poor and undemocratic governments (rank by share of GDP: 7)

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.

• Score: 7.0
• Rank: 1

• High government expenditure on R&D (rank by share of GDP: 5)
• High tax subsidy rate to businesses for R&D (rank: 3)
• Small share of government R&D expenditure on defense (0.0%; rank: 5)

• Allows patents on plant and animal varieties
• Allows patents on software programs