OECD Bilateral Donors

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OECD bilateral donors

DAC Reviews Sweden: concentration & coherence
The possibility of the Swedish and Norwegian aid agencies (Sida and NORAD) representing each other in some African countries is one of the positive ideas stressed in the Oct 2000 DAC Review meeting on Sweden. Sweden is aiming to delegate more to field offices. The DAC suggested that Sweden's aim of focusing more on 20 of its current 100 recipients could be reinforced if the status of the 20, and their share of resources, were reinforced. The Swedish Commission of Inquiry into Swedish Policy for Global Development is due to report in Oct 2001 - making proposals on how coherent policies could combat poverty in the context of globalisation. See www.oecd.org/dac for further details of the review.

Aid Reviews of Portugal, Italy & NZ
Recent reports in the DAC's triennial programme of bilateral donor reviews look at the development co-operation policies and practices of Portugal, Italy and New Zealand. See www.oecd.org/dac for further details.

DAC Review of France
The DAC review meeting on France took place in Mar 2000. France remains the OECD's 3rd largest donor in spite of a 32% cash decline in French aid over the 4 years to 1998. French aid stood at 0.40% GNP in 1998 - down from 0.64% in 1994 but still the highest G7 donor and 6th highest of 22 DAC donors, as well as being above the average country effort.

The French development cooperation system is currently undergoing major reform, with the aid system being refocused around 2 cores - the Ministry of Foreign Affairs (MFA) and Ministry for Economic Affairs, Finance and Industry (MEFI) - with one main operating agency, the AFD (French Development Agency). An Interministerial Committee CICID provides political supervision whilst a newly established Haut Conseil (HCCI) provides civil society input. A new French aid strategy is due to be unveiled soon - and the DAC clearly hopes that the reorganisation and new strategy will improve the record of France in such areas as basic social services, gender, evaluation and aid trying. See www.oecd.org/dac

See also the IPPF Shadow Peer Review of France, which looks at the French record in implementing ICPD Cairo 1994 outcomes.

DAC Review of Austria

Austria is the 16th largest DAC donor, providing 0.22% of GNP in aid against an EU average of 0.33%. Responsibility for Austrian Aid is dispersed over several ministries, but the Department for Development Cooperation (DDC) in the Ministry of Foreign Affairs is assuming a wider role on coordination. The DDC is responsible for Austria's core aid programme, but this only represents about 17% of total ODA. The DAC review urged Austria to increase its level of aid, to have one comprehensive ODA budget, to produce an Annual Report and to establish an overall aid policy which would help to ensure that the overall Austrian effort was better coordinated.

Australian aid review

Political and popular support for aid in Australia’s remains strong and the country's security and economic progress are closely linked to the prosperity and stability of the Asia-Pacific region. Yet Australia’s ODA has fallen to 0.27% of GNP, its lowest level ever, in spite of an Australian economy expanding for most of the last decade - GDP grew by 4.5% in real terms in FY 1998/99. Australia’s ODA has been on a declining trend since 1975 when it peaked at 0.65%.

Whilst urging greater effort on aid volume, the DAC noted that the process leading through the 1996 Simons Committee report (One Clear Objective: poverty reduction through sustainable development) to the government’s subsequent policy statement, Better Aid for a Better Future (1997) was well prepared and transparent, a model for a national review of development co-operation. Australia’s White Paper on foreign and trade policy, In the National Interest (1997), recognised development co-operation as a strand of external policy - alongside foreign, trade, defence and immigration policies - and the importance of an integrated approach to policy making. Following the Simons recommendations, the government re-affirmed that a single organisation should manage the aid programme to ensured its coherence and integrity. AusAID’s core business as "advising on development issues and delivering Australia’s development co-operation programme with excellence". The government now "purchases" two specific outputs from AusAID - policy advice and programme management.

Review of Norway

Even though Norway currently provides around 0.9% of its GNP as aid to developing countries and aims to raise this to 1.0%, the DAC notes the difficulty Norway faces in accomodating within the budget a development co-operation agenda which has widened dramatically encompass social investments, democracy, human rights and peace-building, private sector development and trade, and debt reduction, with environmental and gender concerns as generic themes. Norway is actively supporting implementation of the partnership concept via the World Bank's Comprehensive Development Framework and related mechanisms being promoted by the UN.

The proportion of aid going to Norway's 12 designated partner countries has been falling steadily, from 43.5% in 1996 to 42.3% in 1998, reflecting widespread Norwegian political and humanitarian activism. In 1998 humanitarian assistance was given to more than 70 countries; emergency aid has risen to 16% of total Norwegian ODA, well above the DAC average of 4%. The Ministry of Foreign Affairs has been reorganised to better integrate development and foreign policy and NORAD is now taking more responsibility for formulating country strategies and country level policy dialogue. Norwegian aid prioritises social sectors - and Norway is moving away from projects toward programmatic support and sector-wide approaches - requiring new capacities within NORAD. The percentage of Norwegian aid that is tied, (excluding technical assistance) fell from 18% in 1993 to 9% in 1997. Almost a quarter of total ODA was channelled through NGOs in 1998.

Netherlands

Pithy points and Dutch Policy.
Dutch aid minister Eveline Herfkens is frank about the dilemmas facing donors. She quotes the Mozambican Environment Minister's response when she asked him what his policy priorities were. " You tell me…. You're the one that wanted an environment policy". Ms Herfkens also notes the Finance Minister's comment that he had no idea how 75% of aid coming into the country was being spent - 600 foreign missions visit the country every year - well-intentioned but often undermining the government. Unlike many donors, Netherlands is pursuing its policy of concentration, (to focus aid and reduce the burden on recipient countries). It has now ended development aid to Peru and Ecuador (though both remain eligible for assistance with environmental projects) see www.minbuza.nl/english for a Feb 2001 update on Dutch development assistance in 1999.

Dutch policy of concentrating development assistance
Fifty years on from launching its development effort, Netherlands is progressively concentrating its bilateral aid on a limited number of countries (17) where it believes progressive local policies are a good basis for a long-term development partnership. Dutch aid, as a percentage of GNP, has remained at 0.81% or 0.80% since 1995 and is projected at 0.81% and 0.80% in 1999 and 2000 respectively - against a UN target of 0.7%. Netherlands Development Assistance (Neda), Web: www.os.minbuza.nl Address: Neda, PO Box 20061, 2500 EB The Hague, Netherlands

Netherlands Africa Policy

A green paper outlining the Netherlands' new Africa policy to was sent to parliament in Aug '99 by Minister of Foreign Affairs Jozias van Aartsen and Development Cooperation Minister Eveline Herfkens. The policy emphasises the need for an integrated approach in which political, economic and development instruments work together. In view of the costs of conflict management, cross-border environmental problems, the destruction of investments and under-utilisation of Africa as an economic partner, the two main objectives of Dutch policy are

promotion of security and stability
promotion of good governance and good policy.

Whilst Minister Herfkens development cooperation approach aims to focus structural bilateral aid on 20 of the 78 current recipients of Dutch aid, the integrated Africa policy does not focus exclusively on the countries that meet the eligibility criteria for structural development aid. It takes account of the extremes: 'the apparently hopeless countries where there is no sound policy or good governance and the countries which because of their regional importance or constructive political, economic and social policy play or could play a special role in providing stability'.

The integrated policy will influence Dutch inputs to the EU, including the planned summit for Africa and the European Union in the spring of 2000 and the Netherlands aims to play an active role on initiatives by the World Bank and UN to draw up development frameworks.

The Dutch note that terms like rule of law, democratisation and good governance generally require refinement in an African context, but say that the Netherlands will not align itself with those who say that these are typically Western concepts which must not be imposed on other cultures. Human rights should not in principle be different in Africa than in the rest of the world. 'In countries where there is poor policy and governance, as far as we are concerned there can be no question of a "business as usual" approach to cooperation.' For more see http://www.bz.minbuza.nl/English/f_sumnews14.html (DIU2 - Nov 1999)

DUTCH INTEGRATE AID & FOREIGN AFFAIRS
Since 1997 the Dutch government has grouped all foreign policy expenditure (including development co-operation spending) under one budget head known as the Homogeneous Budget for International Co-operation (HGIS). Netherlands Development Assistance (Neda) has recently published a report entitled Netherlands Development Assistance 1997/1999: Proposals and Results. This reports on aid performance, notes strong parliamentary support for the Dutch government's allocation of a fixed proportion of national income to development co-operation - 0.8% of Netherlands gross national product

In 1997 the Netherlands met four of its five development assistance targets which include spending 20% of aid on basic social services and 4% of aid on reproductive healthcare. The new Dutch Minister for Development Co-operation, Eveline Herfkens has insisted that the Netherlands will continue to increase aid in line with the growing Dutch economy (which grew 3.3% per year in 1996 and 1997 - and is due to have a growth rate of around 4% in 1998 and 1999). Neda Information Dept. PO Box 20061, 2500EB The Hague, Netherlands, order reference OSDR0314/E. (DIU1 - July 1999)

Greece

In Dec 1999, Greece became the 24th member of the OECD's Development Assistance Committee (DAC). Greece, an aid recipient until the 1980s, started its aid effort mainly in the Balkans, Black Sea Regions and Eastern Mediterranean during the 1990s. It aims to give 0.2% of GNP in aid by 2001.

Irish aid reviewed

The Irish aid programme, now 25 years old, was reviewed by the DAC in the first half of 1999. Ireland's aid has grown at 20% a year in real terms since 1992, and it is projected to reach 0.35% GNP in 1999- though this is still below the average country effort of 0.4% GNP. The review team noted Ireland's efforts to implement a partnership-based approach in area programmes - with a strong emphasis on sector-wide approaches. The DAC also noted the Irish orientation towards poverty reduction, the social sectors, human rights and democratisation, with gender equality and environmental sustainability being followed through from policy to practice. The DAC encouraged Ireland to pursue its leading role in promoting coherence in the way its policies impact on developing countries.

Amongst the DAC's recommendations were:

That Ireland pursue plan to join the African Development Bank

That Ireland should update its written policy statement so as to provide a clear government-wide commitment to promote development, poverty reduction and a growing aid programme.

The need for strengthened staffing and skill mixes - as well as greater attention to evaluation and results monitoring, in order to maintain and secure the quality and quantity of Irish aid.

The need to be wary of even a modest increase in the number of priority countries for Irish assistance (the DAC noted Ireland's potential to assist co-ordination in its current priority countries).

For info www.oecd.org/dac email dac.contact@oecd.org fax + 331 44 30 61 40. (DIU2 - November 1999)

IRISH AID ANALYSED
Helen O'Neill, from University College Dublin, Centre for Development Studies (CDS) has produced a Development Research Briefing on Ireland's Foreign Aid in 1998 (incorporating a retrospective review of 25 years of Irish aid). Helen O'Neill: Email: helen.oneill@ucd.ie University College Dublin, Fax: +353-1-269 1963. Helen O'Neill's 1997 review looked in particular at Ireland's follow up to the Food Summit and Social Summit. (April 2000).

Aid Management Systems Analysed
OECD donor countries have a variety of ways of managing their aid programmes. In a comparison of management systems for development cooperation in OECD/DAC members, Hyun-sik Chang, Arthur M. Fell and Michael Laird describe the main features of DAC members’ approaches – focusing particularly on organisational frameworks. The 142 page report examines such issues as how aid administration relates to foreign affairs departments, whether agencies take a geographic or functional approach, and donor representation and management in recipient countries. See: http://www.oecd.org/dac E-mail: arthur.fell@oecd.org Fax: (33-1) 44 30 61 44 (DIU2 - Nov 1999)

German aid falling

Recent reports from Germany (September 99) show that BMZ (the Ministry for Economic Cooperation and Development) is facing an 8.7% reduction in its budget in the year 2000. The cuts are part of wider government efforts to reduce spending – but it is clear that aid is expected to take a particularly heavy share of overall reductions that are projected at 1.5% of federal spending. If the cuts in spending happen, and they still need to be debated in Parliament, it will represent a major reversal of policy by the new Social Democratic & Green Government, whose Aid Minister, Heide Marie Wiezcorek-Zeul, pledged to reverse the recent downward trend in German aid. (DIU2 - Nov 1999)

DFID Evaluations

DFID's Evaluation Department has recently released three evaluation studies relating to Primary Health and Education. EV627 looks at Strengthening Primary Education in Kenya 1991-96; EV628 is an Evaluation of Health Sector Adjustment Project (HSAP) in the British Caribbean Dependent Territories 1993-1996; and EV632 looks at DFID's Health Work Programmes in Primary Care Policies and Practices and Health Economics and Financing.

Evaluation Department: E-mail: enquiry@dfid.gov.uk DFID have produced an Evaluation catalogue listing all evaluations and their summaries (EVSUMS). All EVSUMS are on the Web www.dfid.gov.uk or fax + 44 0207 917 0561. (DIU2 - Nov 1999)

DFID IDT Strategy Papers

DFID has begun an important exercise to produce a series of eight International Development Target Strategy Papers (TSPs), in addition to their existing "Country", "Institutional" and "Knowledge and Research" Strategy Papers.

The purpose of the TSPs is to set out long term thinking on key development challenges facing DFID and the international community. The papers will lay out how the international community together with developing countries themselves, civil society, the private sector and others, can achieve the IDTs and what DFID can do to contribute to that effort. The series will include papers on Economic Well-being, Better Health, Education, Gender Equality, Better Management of the Environment, Water Resources and Environmental Sanitation, and Effective Governance.

The TSPs will inform forthcoming rounds of Institutional Strategy Papers and future Country Strategy Papers and Knowledge and Research Strategy Papers. They will provide the basis for integrated working between DFID’s efforts at country and regional level and with the multilateral institutions.

The Better Health TSP has recently been released for public consultation. It looks at a number of key issues - for reducing infant and child mortality, reducing maternal mortality, attaining universal access to reproductive services and reducing HIV infection. It concludes that with the right policies, actions and resources, progress can be made on each of these, though the maternal mortality target is particularly challenging and the impact of the HIV/AIDS epidemic will have severe effects on progress in many areas.

Copies of this draft paper can be found at www.dfid.gov.uk under "What We Do" followed by "Strategy Papers". Hard copies are available from Dr Dermot Maher (see below). Consultation versions of other draft TSPs will be published on the same Internet page when they are ready. Comments on the draft health TSP should reach Dr Dermot Maher email health-tsp@dfid.gov.uk Fax: (0171) 917 0428 by 17 Dec 1999. (DIU2 - November 1999)

New Japanese Aid Plans

Japan has announced a new medium-term ( 5 year) ODA policy. The new policy aims to be consistent with both Japan's own ODA Charter and the DAC Shaping the 21st Century Development Partnership Strategy, which Japan helped to shape. Whilst emphasising the importance of self-help efforts and good governance as countries 'work toward economic take-off', Japan will place greater emphasis on poverty alleviation programmes, social development, human resources development, policy-related assistance and other "soft" types of aid. Economic growth is seen as a necessary measure for the improvement of welfare. But Japan will pay special attention to equitable and efficient resource allocation, the amelioration of disparities, and the provision of assistance to sectors not benefiting from private flows. Japan will endeavour to achieve the goals of the "20/20 Initiative. It will assist developing countries in their efforts to improve policy formulation and implementation capabilities and to comprehensively address poverty alleviation, emphasising software-oriented cooperation such as the development of institutions that will promote the distribution of the benefits of economic development to impoverished populations. Japan has given aid to more than 150 countries and it was the largest bilateral donor to 47 countries in 1996. Over the 5 years from 1992, Japan provided 60% of bilateral aid to East Asia. See: http://www.mofa.go.jp/policy/oda/mid-term/1999/index.html (DIU2 - Nov 1999)

DAC REVIEW OF DENMARK

Denmark heads the DAC league giving 0.99% GNP in aid. In cash terms Denmark is the 8th largest donor (out of 21). Denmark was praised at the DAC review meeting for concentrating its aid - focusing on 20 countries, of which 18 are low income or least developed countries.

Denmark has pursued a policy of active multilateralism since 1996, though there is no evidence that its aim of promoting greater focus and efficiency in multilaterals has been advanced. Denmark has been keen to shift from project to programme based aid in support of sectors. Some 13% of Danish aid is channelled through NGOs. Denmark was praised in the review for its strong record on evaluation and the close integration between its aid and foreign policy approach - which tends to reinforce coherence.

On a less positive note, Denmark's informal aid tying, which aims for a 50% return to Denmark from bilateral ODA, and which is meant to maintain strong support for a high level of aid within the Danish export community, was seen as complicating DAC discussions on untying aid to least developed countries. (DIU1 - July 1999)

DAC REVIEW OF JAPAN

The DAC review meeting of Japan took place in April 99. The review welcomed Japan's major contribution to support for countries hit by the Asian financial crisis - about $80 billion, of which $10 billion will be Official Development Assistance (ODA).

The DAC noted that to halt the decline in Japanese aid Ð which fell from 0.28% of GNP in 1995 to 0.22% in 1997 - Japan needs to confirm the current freeze on previously proposed aid budget cuts and restore aid to a path of growth. (Japan had planned cuts of 10% per year for 3 years - but now looks like avoiding these cuts in years 2 and 3). Under Japan's new medium term aid policy, country strategies should improve coordination within the Japanese aid system and encourage participation via recipient countries, other donors and NGOs. The DAC look forward to further Japanese ODA reform and in particular a strengthening of the role of implementing agencies, further decentralisation and increased NGO involvement. The DAC stressed the need for Japan to give more emphasis to sector policy dialogue and the socio-economic impacts of its aid projects. Website: www.oecd.org/dac (DIU1 - July 1999)

NZ REVIEWS NGO SUPPORT
The New Zealand Ministry of Foreign Affairs and Trade (MFAT) Development Co-operation Division has published (Oct '98) a two-volume Evaluation of the Voluntary Agency Support Scheme (VASS). Key findings are that the VASS is a sound system with room for expansion and that Block Grants should be the norm, supplemented by new Partnership Grants. Recommendations include the need to streamline VASS requirements and the need for MFAT to have an overall strategic policy framework to guide its relations with NGOs. Email don.clarke@mfat.govt.nz Fax + 64 4494 8515

New Zealand's Ministry of Foreign affairs and Trade (MFAT) has produced their 1998 to 1999 programme of profiles. These provide details of New Zealand's aid spending in each country and region. The profiles list project objectives, description, participation and funding levels. Fax (04) 494 8515 or E-mail dev@mft.govt.nz (DIU1 - July 1999)

AUSTRALIAN OPINION
According to Focus, the quarterly magazine from AusAid (Australia's agency for international development) 84% of Australians support overseas aid, with 60% seeing NGO aid as effective compared with 46% for government aid, but only a minority see aid as "very effective". Concern about the management of aid is widespread - but does not undermine the moral imperative to give. 47% of people interviewed for the Newspoll survey (commissioned by AusAid and the Australian Council for Overseas Aid ACFOA) claim to have contributed money or time to an overseas aid agency in the last twelve months. To subscribe to Focus fax (02) 6206 4695. AusAid Website www.ausaid.gov.au

From the AusAid Global Education Website, it is possible to download educational materials, statistics, case studies and a directory of resources: www.globaled.ausaid.gov.au

For more on public opinion (north and south) on aid and development issues, see Public attitudes and involvement (DIU1 - July 1999)

FINNISH REPORT ON CULTURE & DEVELOPMENT

The Department for International Development Cooperation of the Ministry for Foreign Affairs in Finland (Fax: +358 9 1341 6428; postal address: Katajanokanlaituri 3, FIN-00160 Helsinki, Finland; ISBN 951-724-208-5) has published a thematic evaluation on the role of culture in Finnish development cooperation. The 190 page evaluation makes an independent analysis of the role of culture as a quality factor in Finnish assistance. The report assesses whether the goals and policies of Finland's cooperation attach sufficient significance to culture in development. The work draws heavily on case studies in Ethiopia, Mozambique and Vietnam. (DIU1 - July 1999)

Donor evaluations

Evaluations by DAC donor countries vary a great deal, with some donors taking a systematic approach and others having a very patchy record, with few evaluations available for external scrutiny. This section of the DI website provides brief details of recent evaluations which are available.

Denmark, environmental policy development and the role of NGOs

Danida has produced a summary evaluation of a Policy Development Project implemented by the World Wildlife Fund (WWF, now the Worldwide Fund for Nature) on implementing the convention on biological diversity (1993). The evaluation concludes that the project has produced many tangible results, ranging from the provision of valuable technical advice to Government on convention issues to capacity building and developing opportunities for civil society input into decision making. This project has made a very significant contribution to the promotion of the convention on biological diversity and to policy development on the convention.

Evaluation: Denmark, humanitarian issues & the UN

As part of a wider evaluation of its humanitarian systems, 1992-1998, Danida has published an evaluation of its assistance through the UN and international organisations (1999/9). Conclusions include:

Humanitarian aid is in danger of becoming a substitute for development action as a result of agency 'mission creep'.

Refugees and other person affected by armed conflict represent a small number of the world's people in deep poverty, but they have special needs.

The level of support for emergency victims is not sustainable during later reintegration and development.

National authorities have to be made more responsible and accountable for protection of assistance. (UN and other aid agencies need to facilitate this national takeover.)

Humanitarian agencies need an exit strategy from day two.

Protracted emergencies need a different approach after the first emergency phase.

The recent Danish evaluation of UNDP's Programme for Accountability and Transparency (PACT) shows that Danish support provided critical 'seed money', creating a global player in public expenditure accountability. But the evaluation noted that Danish policy was normally to provide large annual contributions to UN agencies' core resources without earmarking, and that the success of the PACT initiative was not a good argument for Denmark changing policies towards earmarking, which ran the risk of introducing distortions into the priorities of agencies such as UNDP.

Other evaluations published by DANIDA cover Rural Water Supply & Sanitation in Bangladesh (1999/2); Health in Bhutan (1999/10); an evaluation of UNCDF (The United Nations Capital Development Fund), which is a semi-autonomous unit within UNDP. Danida: Email: um@um.dk Web: www.um.dk Fax: + 45 32 54 05 33.

Danish aid to South Africa
DANIDA has published a summary evaluation of Danish Transitional Assistance to the Republic of South Africa. The broadly positive findings underline the benefits of the intimate local knowledge that Denmark had established through its embassy and NGOs. The evaluation highlights the need to match timeframe and ambitions. It notes that around 60% of Danish assistance to South Africa was channelled through both Danish and local NGOs and argues that programme funding for NGOs linked to activity is preferable to core funding as it helps focus interventions and implies a time limit.

For copies of above reports, contact Bech Distribution: Email: hdv@bech-distribution.dk Fax:+ 45 46 55 01 69.

The Swedish government agency Sida publishes an Evaluations Newsletter.
It aims to communicate the results of Sida financed development assistance. The Sida Evaluations Newsletter is available free from wendy.fryer@sida.se Fax: +(46) 8698 5610. Full evaluations from Sida can be ordered from the Sida Infocenter, Fax: +(46) 8760 5895. Web: www.sida.se