OECD proposal risks transforming aid into backdoor subsidy for Western corporations?
Published on Thu, 2017-02-09 16:21
On March 9, the OECD's Development Assistance Committee will decide on how to include what are known as ‘private sector instruments’ (PSI), in aid. This could mean a dramatic increase in the use of aid to invest in or give loans to private companies, or to agree to bail out failed private sector projects, through guarantees. However, without strong safeguards and transparency standards there is a real risk that aid could be used as a backdoor subsidy for corporations with powerful lobbies in donor countries.
Read the CSO background paper on the proposal here.