Aid
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What it measures
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Aid quality is just as important as aid quantity, so the CDI measures gross aid as a share of GNI 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 uncorrupt recipients, and penalizes overloading poor governments with many small projects.
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Portugal Overall
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Portugal Strengths
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- Selectivity: large share of aid to poor recipients with relatively democratic governments (rank: 4)
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Portugal Weaknesses
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- Low net aid volume as a share of the economy (0.22%; rank: 17)
- Small amount of private charitable giving attributable to tax policy (rank as a share of GDP: 21)
- Allows project proliferation; small average project size (rank: 17)
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Trade
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What it measures
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International trade has been a force for economic development for centuries. The CDI measures trade barriers in rich countries against exports from developing countries.
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Portugal Overall
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Score: 5.6
Rank: 8
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Portugal Weaknesses
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- High tariffs on agricultural products (38.7% of the value of imports; rank: 14)
- High agricultural subsidies (equivalent to 12.3% tariff; rank: 13)
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Investment
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What it measures
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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.
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Portugal Overall
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Portugal Strengths
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- 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
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Portugal Weaknesses
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- Has yet to complete Phase 2 monitoring of implementation of the OECD Anti-Bribery Convention
- Does not actively participate in the Extractive Industries Transparency Initiative (EITI)
- Does not screen projects for social impacts through national political risk agency
- Political risk insurance also given to inefficient, import-substituting projects
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Migration
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What it measures
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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.
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Portugal Overall
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Portugal Strengths
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- Large share of foreign students from developing countries (82.8%; rank: 5)
- Tuition for foreign students the same as for nationals
- Large number of immigrants from developing countries entering Portugal (rank by share of population: 7)
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Portugal Weaknesses
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- 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)
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Environment
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What it measures
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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.
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Portugal Overall
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Portugal Strengths
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- Low greenhouse gas emissions rate per capita (8.6 tons of carbon dioxide equivalent; rank: 7)
- Low fishing subsidies ($0.05 per person; rank: 6)
- High gas taxes ($1.16 per liter; rank: 2)
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Portugal Weaknesses
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- Steadily rising greenhouse gas emissions during 1996–2006 (average annual growth rate/GDP, 1.3%; rank: 22)
- Large number of endangered species imports (rank: 14)
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Security
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What it measures
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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.
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Portugal Overall
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Portugal Strengths
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- Significant financial and personnel contributions to internationally sanctioned peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 8)
- No arms exports to poor and undemocratic governments (rank by share of GDP: 1)
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Portugal Weaknesses
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- Provides little protection of global sea lanes that are important to international trade (rank by share of GDP: 14)
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Technology
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What it measures
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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.
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Portugal Overall
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Portugal Strengths
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- High tax subsidy rate to businesses for R&D (rank: 2)
- Small share of government R&D expenditure on defense (0.0%; rank: 6)
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Portugal Weaknesses
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- Low government expenditure on R&D (rank by share of GDP: 14)
- Offers patent-like proprietary rights to developers of data compilations, including those assembled from data in the public domain
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