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Living up to Policy Coherence for Development? The OECD’s Disciplines on Tied Aid Financing

Livia Fritz / Werner Raza

Wien, September 2014

With tied aid credits donors aim at boosting the international competitiveness of domesticenterprises while simultaneously contributing to development in recipient countries. Thoughregulated through the Arrangement on Officially Supported Export Credits, tied aid creditsclaim a place amongst the instruments of development policy and are eligible as OfficialDevelopment Assistance (ODA). This begs the question whether the international regulatoryframework is equipped to safeguard the presumed development goals. This paper examinesthe consistency of the tied aid disciplines of the Organisation for Economic Co-operation andDevelopment (OECD) with the development principles coined by the Development Assistance Committee (DAC). Thereby, the extent to which the OECD lives up to its ownpromise of Policy Coherence for Development (PCD) is scrutinised.

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