Monday, December 18, 2017

Denmark ignores OECD warning on use of aid as export subsidy

Denmark will continue to use aid as export subsidises to its companies selling capital goods to poor countries financed by so-called tied mixed credits. An article published in Development Today earlier this year revealing the Danish practice caused several donor countries to voice their concerns to the OECD headquarters in Paris.

The Chair of the Development Assistance Committee (DAC) at the OECD Richard Manning has in a sharp letter to the Danes referred to the DT article and pointed out that providing tied mixed credits to least developed countries is a violation of an agreement reached by OECD donors in 2001 about abolishing this practice.

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