DanishDevelopment Assistance

Facts & Figures

KenRwa

2000

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11.2%

9.8%

43.7%

5.2%

51.1%

USD 167.0 million – from both bilateral (7.1% / USD

106.0 million) and multilateral (4.1% / USD 61.0

million) appropriations was channelled through Danish

non-governmental organisations

USD 148.7 million – from the multilateral

appropriation was contributed to humanitarian

relief, partly through Danish non-governmental

organisations

USD 651.5 million – was channelled via international

organisations (multilateral assistance)

USD 77.3 million covered administrative costs

USD 762.2 million – was transferred directly to

recipient countries (bilateral assistance).

In 2000 total Danish official assistance

amounted to USD 1,490.9 million.

T h e O v e r r i d i n g G o a l

Reducing poverty remains the overriding goal and the guiding principle ofcooperation with bilateral as well as multilateral partners even when the DanishDevelopment Policy is revised, as it was in year 2000. The Policy builds on theconcept of partnership with people in developing countries, and it states thatDenmark is an advocate of

• the promotion of economic growth with poor population groups as activeparticipants, and with equal participation of men and women

• appropriate allocations for social sectors (education, health, water supply etc.) • popular participation in the development process, strengthening the rule of

law and good governance.

The aspects of gender, the environment, and democracy and human rights areintegral concepts in all development activities which receive Danish support.

The Danish development budget is distributed fairly equally betweenbilateral assistance (directly to the recipient countries) andmultilateral assistance (through international organisations).

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B i l a t e r a l A s s i s t a n c e

Nicaragua

Bolivia

Guatemala

India

Programme countriesRecipients of transitional assistanceOther bilateral assistance

Bhutan

Bangladesh

Vietnam

Kenya

Tanzania

Uganda

Rwanda

Mozambique

Zambia

Angola

South Africa

Zimbabwe

Benin

GhanaLiberia

Egypt

Gaza/Westbank

Burkina Faso

Eritrea

Albania

Nepal

Niger

Malawi

Main Recipients of Danish Bilateral Assistance

Danish assistance takes the form of grants. In 2000 Denmark channelled 66 percent of its bilateral assistance through programmes and projects in 18 countries,referred to as “programme countries”, for which special development assistancestrategies have been formulated. Of the assistance channelled to specific countries,57.3 per cent went to Africa, 28.3 to Asia, 10.1 to Latin America, and 4.3 per centto the Balkans.

While project assistance was previously predominant, Danida is gradually turningto a more holistic approach by supporting the countries' own sector developmentprogrammes, provided they are in line with the objectives of Danish assistance. Thecooperation encompasses support to capacity building in the partner countries’ministries and at lower administrative levels, as well as direct financial and/ortechnical assistance to the implementation of selected development activities.

Of the USD 499.8 million going to the 18 programme countries in 2000, USD190.5 million was allocated to sector programme support.

In addition to the assistance to programme countries, Denmark granted transi-tional assistance to countries which have experienced war, are converting from aplanned to a market economy, or need support for an ongoing democratisation.Most of this assistance took the form of projects with clearly defined objectives andtime frames. Denmark also continued certain activities in India and Niger, whichformerly were programme countries.

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B i l a t e r a l A s s i s t a n c e

Education 9.0%

Other sectors andnon-sector 30.8%

Health 9.6%

Water Supply andSanitation 8.9%

Transport 11.2%

Agriculture, Forestry andFisheries 12.2%

Other Productionand Trade 5.9%

Democratisation, human rights,good governance 7.0%

Energy 5.4%

Programme Countries at a Glance

GNP/capita, Mortality, % Illiteracy Life Danish Sectors

USD of children as % of adult expectancy, assistance, selected

under age 5 population, men/women 2000, USD for Danish

men/women million assistance

Bangladesh 370 96 49/71 58/59 33.7 1,4,5

Benin 380 140 46/77 52/55 19.4 1,4,5

Bhutan 510 63 58 61 8.4 2,7,8

Bolivia 1010 78 9/22 60/64 20.1 4,7,10

Burkina Faso 240 210 68/87 43/45 24.5 1,4,6

Egypt 1400 59 35/58 65/68 29.6 1,6,7

Eritrea 200 90 34/62 49/52 11.0 3,4

Ghana 390 96 22/40 58/62 38.1 1,2,5,6

Kenya 360 124 12/27 50/52 9.0 *

Malawi 190 229 27/56 42/42 21.8 3,4,12

Mozambique 230 213 42/73 44/47 37.8 3,4,6

Nepal 220 107 43/78 58/58 23.4 3,6,7

Nicaragua 430 42 34/31 66/71 26.5 4,5,7

Tanzania 240 136 17/36 46/48 64.9 2, 4,5,9

Uganda 320 170 24/46 42/41 53.8 1,2,4,5

Vietnam 370 42 5/9 66/71 38.6 1,4,11

Zambia 320 192 16/31 43/43 21.0 2,3,5

Zimbabwe 520 125 8/17 50/52 18.1 2,4,5

Sectors: 1: Water Supply and Sanitation 2: Health 3: Education 4: Agriculture 5: Transport 6: Energy

7: Environment and Administration of Natural Resources 8: Urban Development 9: Trade and Industry

10: Indigenous Peoples 11: Fisheries 12: Telecommunication

*No sectors selected due to human rights situation and corruption.

Division of total bilateral assistance

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Trade and Industry

Danida sees the private sector as an engine of development. The developmentcooperation is shaped according to this. Danish trade and industry is invited toparticipate in the development process. Some of the programmes and instrumentsare developed for this purpose:

B i l a t e r a l A s s i s t a n c e

The Private SectorDevelopment ProgrammeSupports long-term partnershiparrangements at all levels betweencompanies in Denmark and 10 of the18 programme countries. USD 92.8million is allocated for a 5-year period.

The Business-to-Business ProgrammeWorks very much along the same linesas the Private Sector DevelopmentProgramme but covers South Africaonly. The objective is to create businessand job opportunities for the SouthAfricans who were deprived of suchopportunities during the time ofapartheid. USD 23.5 million has beenallocated for a period ending in 2001.

The Mixed Credits SchemeWorks with a yearly framework alloca-tion of USD 37.1 million. The grantelement, which is financed by Danida,is at 35-50 per cent, depending on thedevelopment level of the recipientcountry. Countries with a GNP/capitaof less than USD 2,396 are eligible.

The Industrialization Fund forDeveloping Countries (IFU)Offers equity capital, loans and adviceto joint venture investments in coun-tries with a GNP/capita of less thanUSD 5,280. In 2000 the fund madeinvestments totalling USD 64.5 mil-lion in 41 projects.

Trust Funds in InternationalFinance InstitutionsThe funds are reserved for specialpurposes or for the use of Danishconsultants, for instance in thepreparation of development activities.For the years 1999-2001 an amountof USD 34.5 million is allocated forthe funds.

ScholarshipsScholarships are granted to companiesin developing countries which buyDanish production plants or have along-term cooperation with Danishpartners.

TechChangeThis is a sales pitch at industrial fairsin Denmark or in developing countries.Its purpose is to establish contactsbetween companies in Denmark andthe countries covered by the PrivateSector Development Programme.Representatives from selected companiesin developing countries are invited byDanida to participate in the fairs heldin Denmark. An amount of USD 2.2million is appropriated for the purpose,covering the period 1999-2001.

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Assistance through Non-governmental Organisations (NGOs)

In 2000 Danida channelled USD 106.0 million through Danish NGOs fordevelopment activities. In addition, Danish NGOs received USD 61.0 millionfor international humanitarian relief operations (in the accounts grouped withmultilateral assistance). The NGOs also received contributions from Danida fortheir information and cultural activities.

As a main rule, Danish NGOs may obtain Danida funding for activities in allcountries with a GNP/capita below USD 1,997.

The main part of the USD 106.0 million for development activities wasdistributed as follows:• USD 47.4 million for framework allocations to the 5 largest NGOs in

Denmark: CARE Danmark, the Danish Red Cross, the Danish Trade UnionCouncil for International Development Cooperation, DanChurchAid andIbis. Framework allocations imply that Danida evaluates the NGO, itscapacity and strategy instead of each project.

• USD 26.8 million for projects and mini-programmes implemented by otherNGOs.

• USD 28.1 million for the stationing of development workers and relatedactivities.

Advisers

In 2000 the posting of Danish long-term advisers, the employment of localadvisers for work on Danish projects and programmes and the hiring ofconsultants for short-term operations amounted to USD 35.8 million. At year-end, Danida had 265 bilateral long-term advisers, 17 per cent of them female.

Support to Research

Danida's support to research amounted to USD 37.7 million in 2000. Inaddition, support for research activities is included in a great number of otherDanida programmes and projects. The assistance to research is channelled toDanish researchers as well as institutes in developing countries and cooperationbetween them, and to international research.

B i l a t e r a l A s s i s t a n c e

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Multilateral assistance is contributed through international organisations. Formany years multilateral assistance has constituted close to half of the total Danishassistance. The newly revised Danish development policy upholds the highpriority because many tasks are solved better through international cooperation.International organisations have special advantages when cooperation is neededacross the boarders.

It is Denmark’s policy to support the efforts to make the internationalorganisations work effectively, based on high professional and administrativestandards. This policy is labelled Active Multilateralism. It encompasses a range ofinstruments. For instance the creation of alliances with like-minded countries aswell as consultations with the organisations and adjustment of the contributionsin accordance with evaluations of the organisations’ objectives, management andefficiency.

Danish contributions to humanitarian relief operations are accounted asmultilateral assistance and are included in the figures in the chart. Humanitarianassistance amounted to USD 152.0 million (9.8 per cent of total assistance).Of this, USD 61.0 million was channelled through Danish organisations.

In 2000, over 200 electoral experts, election observers, human rights expertsand other personnel from the International Humanitarian Service participated incivilian aspects of intervention in the world's hotspots. The costs amounted toUSD 7.0 million.

M u l t i l a t e r a l A s s i s t a n c e

United Nations System in Total:USD 269.8 million/41.4%

European Union USD 92.7 million/14.2%

United Nations DevelopmentProgramme (UNDP) USD 59.2 million/9.1%

United Nations High Commissionerfor Refugees (UNHCR) USD 36.3 million/5.6%

World Food Programme (WFP) USD 39.8 million/6.1%

United Nations Children's Fund (UNICEF) USD 33.1 million/5.1%

United Nations Fund forPopulation Activities (UNFPA) USD 25.3 million/3.9%

Other UN USD 76.1 million/11.6%

World Bank Group USD 103.4 million/15.9%

Regional DevelopmentBanks and Funds

USD 41.3 million/6.3%

OtherUSD 144.3 million/22.2%

Distribution of multilateral assistance

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L e a d i n g D o n o r

0 3,000 6,000 9,000 12,000 15,000

Source:

Development Co-operation, 2000,

OECD (Figures are from 1999)

Japan 15,323/0.35

USA 9,145/0.10

France 5,637/0.39

Germany 5,515/0.26

UK 3,401/0.23

Netherlands 3,134/0.79

Italy 1,806/0.15

Denmark 1,733/1.01Canada 1,699/0.28

Sweden 1,630/0.70

Spain 1,363/0.23

Norway 1,370/0.91

Australia 982/0.26

Switzerland 969/0.35

Belgium 760/0.30

Austria 527/0.26

Finland 416/0.33

Portugal 276/0.26

Ireland 245/0.31

Greece 194/0.15

New Zealand 134/0.27

Luxembourg 119/0.66

Development Assistance, USD million and % of GNP

USA

nce

any

UK

nds

taly

markd

For Further Information:

“How and Why– 20 Questions and Answers” provides a brief introduction toDanish development assistance policy.

Danida’s Year 2000 Annual Reportprovides details of not only spending,but also policy considerations.

Country Strategiesare policy papers on bilateral assistanceto each of the 18 programme countriesexcept Kenya.

This and more material is available inEnglish from Danida's distributionagent:Bech DistributionPhone: +45 46 55 01 55Email: bdm@bech-distribution.dk

You can also visit the Web-site:www.danida.dk

D e s i g n : D e s i g n g r a f i k / 1 1 4 4 0 · T e x t : T e x t P a r t n e r · P h o t o : J ø r g e n s c h y t t e · P r i n t : N i e l s e n & K r o h n

By Parliamentary resolution, the size of Danish development assistance ismaintained at the level of 1 per cent of the Gross National Product (GNP).This makes Denmark the world’s leading donor in terms of the percentage ofGNP transferred to international development cooperation. With its populationof 5 million, Denmark is the 8th biggest donor in the world when countries areranked according to their contribution in USD.

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