Portugal is among the seven countries that cut back most on foreign aid to developing countries last year according to the Organisation for Economic Co-operation and Development (OECD).
The numbers reveal that Portugal donated some $488 million in 2013, equivalent to 0.23% of Gross Domestic Product (GDP), but this dropped to $419 million in 2014, a 15% drop, only surpassed by Spain where foreign aid was slashed by 20.3%, and Japan, which reduced its donations by 15.3%.
Portuguese poverty
Poverty indicators are traditionally very high in Portugal compared to the EU average and have deteriorated further in the wake of the financial and economic crisis.
A recent report from the European Commission found that the number of people threatened by poverty or social exclusion rose by 220,000 between 2007 and 2013. This represents an increase to 27.4% of the total Portuguese population in 2013, while the gap between Portugal and the rest of the euro area (23%) has widened.
No progress
The report highlights that “no progress has been achieved on strengthening social assistance” in Portugal and those that are most affected by poverty and social exclusion are from low-work-intensity households and those with children.
Cuts that have been made to non-pension benefits have disproportionately affected the very poor in Portugal and adversely affected children under the age of 10.
The increasing levels of poverty and social exclusion have been affected by the rising levels of unemployment up to 2013 and this has been compounded, according to the EC, by a weakened social protection system and policy measures adversely affecting disposable income.
The report concludes that “the inadequate social protection system was unable to cope with the sudden rise in joblessness and the consequent increase in poverty” in Portugal.