Aid reforms could see big increase in private sector subsidies

Aid reforms could see big increase in private sector subsidies

The Guardian: World News

Leaked document shows OECD members discussing changes to official aid rules that would allow more funds to be invested in or loaned to private companies

Wealthy donor countries are debating the biggest changes to development aid in more than 40 years, in a closed-door meeting on Monday that could see a “massive increase” towards aid that supports the private sector.

According to a leaked official document seen by the Guardian, proposed reforms to official aid would allow a wide variety of “private-sector instruments” to be used as vehicles for development, meaning that aid could be used to invest in, or give loans to, private companies, or to underwrite those companies’ activities through guarantees.

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view The Guardian: World News