4/27/2009

Italy to push DAC on Tied aid definition

Ahead of the next DAC WG on statistics, Italy is asking the DAC to classify local procurement of good and services as either “untied” or “partially tied”. Italy is putting forwarded its requests following Accra commitment to favour local procurement responding to demands. The overall results of the this change will be mixed. On the one hand, it will encourage donors policy reforms to favour local procurement. On the negative side, its insertion within the untying heading will allow all donors to immediately improve their scores on aid untying, with no policy change needed, possibly disliking national business.

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