Proposal for the ‘Modernisation of Private Sector Instruments’
The background paper provides a critical analysis of the proposals made by the Development Assistance Committee (DAC) secretariat of the OECD in the paper titled, “Implementation of the Principles of ODA Modernization on Private Sector Instruments,” which is yet to be made public. The DAC’s proposals would allow a wide variety of private sector instruments to be used as vehicles for international aid. This means an increase in the possible use of aid to invest in or give loans to private companies, or to underwrite their activities, through guarantees. These proposals are arguably the biggest change to Official Development Assistance (ODA) rules for several decades. The background paper contains key policy recommendations.