2010

Finland’s Development Cooperation

MINISTRY FOR FOREIGN AFFAIRS OF FINLAND

Poverty has been reduced

• is appropriate and coherent

• corresponds to partner countries’ primary goals

• is valued by partner countries, owing to its competence, approaches and expertise

What reduces poverty?

• Economic growth, better governance and successful policy have reduced poverty especially in Africa’s cities.

• The resolution of conflict in Nepal reduced poverty and created a more favourable atmosphere for economic and social development.

What prevents the reduction of poverty?

• Global crises and climate change as well as countries’ internal and regional conflicts slow down development.

• The benefits of economic growth are not distributed equally among everyone. In Africa, poverty has increased in rural areas.

The main objeCTive oF FinlanD’s DeveloPmenT PoliCy anD DeveloPmenT

CooPeraTion is The reDuCTion oF PoverTy in DeveloPing CounTries.

There is room for improvement in

• the sustainability, complementarity and effectiveness of the results

• the planning and monitoring of activities

according to the summary of evaluations for 2008–2010, Finland’s development cooperation

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support programme for poor areas of vietnam

In Vietnam, Finland finances the country’s own support programme for poor areas. Its aim is to diversify the sources of livelihood in poor mountainous areas populated by ethnic minorities.

More than two million families have benefited from the programme: they have received 11,800 trees for use as food crops, 33 million cash crop seedlings, 300,000 cows, over a million poultry and 470,000 tonnes of fertilisers. Nearly a million people have received training in agriculture and forestry.

Results of the suppoRt pRogRamme foR pooR aReas of Vietnam

Strategic indicators Situation at departure in 2006

Result in 2010

Objective for 2010

Poverty among ethnic groups and remote districts 47% 28.8% 30%

Communes with a road connecting villages and centres 54.3% 80.7% 80%

Communes with a small-scale irrigation system 53.7% 70% 80%

Households in the scope of electricity distribution About 60% 85% 100%

Households with clean drinking water 53.3% 67.8% 80%

Share of children going to school 77.5% 90% 95%

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Food security and agriculture

Agriculture and food security rose to the fore of devel-opment policy after the food crisis of 2007–2008. The agricultural sector has risen from less than two per cent of bilateral development cooperation financing to over six per cent during the years 2006–2009.

In developing countries

• almost half of the population lives in rural areas

• agriculture is the most important source of livelihood

• two out of three people in abject poverty live in rural areas

Finland implements development cooperation with the aim of strengthening food security

• in Africa: Ethiopia, Kenya, Mozambique, Tanzania, Zambia

• in Asia: Cambodia, Kyrgyzstan, Vietnam

• in Latin America: Nicaragua

Development cooperation projects

• increase food production

• develop the refining and marketing of agricultural products

• support producer organisations

Forestry

Finland has clearly increased its support to forest sec-tor projects. Promotion of private forestry has received more weight than before as it offers income opportuni-ties to rural communities and encourages people to pro-tect forests and use them sustainably.

ecologically sustainable development

a Clean living environmenT ProDuCing eCosysTem serviCes is an

essenTial requiremenT For PoverTy reDuCTion anD susTainable

eConomiC DeveloPmenT. naTural resourCes CreaTe oPPorTuniTies

For eConomiC groWTh anD alleviaTing PoverTy iF They are useD in

an eCologiCally susTainable manner.

• Promotion of village forestry and the livelihood of villages: Vietnam, Laos, Central America

• Cooperation between small and medium-sized industry and forest owner associations: Tanzania

• Production and marketing chain for wood carbon: Kenya

• Forests and climate change: FAO, the Food and Agriculture Organization of the United Nations

Climate change

Finland has increased its support for meteorological services in developing countries, which thus have better possibilities to adapt to climate change and to prepare for extreme phenomena in advance.

Projects linked with advance preparation are in

• Nepal and the Himalayan region

• Peru

• Southern Africa

• Central Asia

• Pacific island states

Projects linked with the environment and security are in

• Ukraine and Moldova

Water supply

As a natural resource, a maintainer of ecosystems and for households, water is of fundamental importance in promoting ecologically sustainable development. Water also has a strong influence on security, because con-flicts directly or indirectly associated with water are becoming more common.

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economically sustainable development

PoverTy reDuCTion requires

eConomiCally susTainable DeveloPmenT

baseD on groWTh in ProDuCTive aCTiviTy

anD TraDe. groWTh in ProDuCTion

CreaTes jobs anD reDuCes PoverTy,

Thereby also reDuCing DeveloPing

CounTries’ neeD To FinanCe PubliC

seCTor aCTiviTy Through DeveloPmenT

assisTanCe anD DebT.

aid for trade

• Agriculture and forestry

• Sustainable energy production

• Information society

• Entrepreneurship: women entrepreneurs, business incubators for micro and small enterprises, training

environment and energy partnership

Regional funds support innovative projects on renewable energy in which the private sector also participates.

• Latin America: Andes region, Central America

• Africa: Southern and Eastern Africa

• Asia: Mekong region, Indonesia

The partnership programme of Finland, the World Bank infoDev programme and Nokia improves the competitiveness of small and medium-sized enterprises and creates jobs.

Entrepreneurial activity in agriculture and technology have a central role in 2010–2012 in the programme implemented in Africa, Asia and in Eastern Europe, the Caucasus and Central Asia. 15-year-old Banele can get to the school

computer for two hours a week. His school is participating in the Shiyakhula Living Labs project in South Africa, which receives support from Finland. • Marja-Leena Kultanen 5

socially sustainable develop- ment

soCially susTainable DeveloPmenT

is an inseParable elemenT oF

susTainable DeveloPmenT anD

PoverTy reDuCTion. DeveloPmenT

CooPeraTion suPPorTs The

imPlemenTaTion oF DemoCraCy,

realisaTion oF CiTizens’ righTs

equally anD WiThouT DisCriminaTion,

anD aCCess To basiC serviCes.

education

The priority of cooperation in the education sector has shifted to countries recovering from violent cri-ses and fragile states. In the education sector, Finland emphasises basic education, the education of girls and equal access to education, in line with the Millennium Development Goals.

• Ethiopia: Special education

• Mozambique: Raising the level of education and utilisation of information technology in education

• Nepal: Reform of primary education

• Palestinian Territories: Quality of education and educational material

• Andes region: Vocational training alongside bilingual education

local administration, good governance

• Vietnam: Possibilities of poor areas to influence investments

• Tanzania: Reform of local administration and the state subsidy system for municipalities

• Cambodia: Development of the land use and management system

human rights

• Continuous discussion with partner countries

• Country and regional offices of the UN Office of the High Commissioner for Human Rights: Uganda, the Middle East, Colombia

• UN Special Rapporteur on Disability

One of Finland’s partner countries, Ethiopia, has succeeded in getting four million children to school in a decade. It appears that the country will reach the primary education goal by the year 2015.

Puspa Giri and Sabina Giri, both in 7th form, attend Batsala Devi

primary school in Sanghachok village in Sindhupalchok District,

Nepal. • Erja-Outi Heino

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Where are development cooperation funds used?

FinlanD’s DeveloPmenT CooPeraTion FunDs rose by 328 million

euros, or 44 Per CenT, During The governmenT’s Term oF oFFiCe.

in 2010 FinlanD’s DeveloPmenT assisTanCe rose To slighTly over

one billion euros. The sum is 0.55 Per CenT oF The gross naTional

inCome anD 187 euros For eaCh Finn.

DeVelopment CoopeRation DisBuRsements 2007–2010: 12 gReatest CountRies

2007 EUR million 2008 EUR million 2009 EUR million 2010 EUR million

Tanzania 20.36 Tanzania 24.67 Tanzania 31.58 Mozambique 31.53

Mozambique 19.88 Mozambique 23.15 Mozambique 26.59 Tanzania 29.97

Vietnam 16.67 Vietnam 15.58 Zambia 15.72 Vietnam 14.43

Nicaragua 14.50 Nicaragua 10.44 Vietnam 14.94 Ethiopia 14.33

Zambia 13.49 Zambia 9.84 Ethiopia 11.49 Zambia 14.18

Afghanistan 8.24 Afghanistan 9.43 Nepal 10.16 Nepal 11.57

Nepal 6.69 Nepal 8.62 Afghanistan 10.06 Afghanistan 11.10

Kenya 6.16 Serbia ja Montenegro 8.55 Nicaragua 8.91 Nicaragua 10.92

Sudan 5.30 South Africa 7.51 South Africa 7.93 Sudan 9.87

South Africa 5.04 Ethiopia 5.94 Palestinian Territories 6.86 Kenya 8.67

Serbia and Montenegro* 4.29 Palestinian Territories 4.40 Kenya 5.79 Palestinian Territories 6.14

Ethiopia 3.97 Kenya 3.77 Laos 4.32 Laos 4.35

* Up to the year 2008, Serbia and Montenegro also included Kosovo

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Nicaragua

Dominican Republic

Long-term cooperation countries

Other cooperation countries

Countries recovering from crises

Regional and thematic cooperation

multi- lateral cooperation

Multilateral actor 2007 2008 2009 2010

EU 128.6 146.5 154.9 151.0

UN agencies 76.7 78.3 94.6 98.2

World Bank 40.1 29.6 48.9 60.6

Regional development financing institutions 24.0 32.4 34.7 26.6

Global Environment Facility (GEF) 6.9 7.5 7.8 15.0

Nordic Development Fund (NDF) 5.9 18.3 6.5 1.9

Others 8.1 4.7 12.1 10.2

Total 290.2 317.3 359.4 363.6

multilateRal aiD DisBuRsements 2007–2010

Honduras

El Salvador

Costa RicaPanama

Belize

Guatemala

Bolivia

Ecuador

Colombia

Peru

Finland’s central partners

• United Nations Development Programme (UNDP), the United Nations Population Fund (UNFPA), the United Nations Children’s Fund (Unicef), the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women), the World Health Organization (WHO), the Joint United Nations Programme on HIV/AIDS (UNAIDS), the United Nations Food and Agriculture Organization (FAO), the United Nations Environment Programme (UNEP)

• Development financing institutions: World Bank Group, African, Asian and Latin American regional development financing institutions

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Ethiopia

Sudan

Somalia

Kenya

Tanzania

Mozambique

Zambia

Afghanistan

Palestinian Territories

Nepal

Vietnam

Mekong

Western Balkans

eu cooperation

The eu anD iTs member sTaTes are

TogeTher The WorlD’s largesT Donor

oF DeveloPmenT assisTanCe: 53 billion

euros in 2010, or 54 Per CenT oF The

Whole WorlD’s oFFiCial DeveloPmenT

assisTanCe.

in 2010 FinlanD ChannelleD 151 million

euros oF iTs DeveloPmenT assisTanCe

Through The eu.

results of multilateral cooperation

International Development Association (IDA)

During the past 10 years:

• 310 million children vaccinated

• 113 million people received clean drinking water

• 47 million people received food and basic health care and reproduction health services

• 105 million children received better education and school facilities

• 26 million people came within access of a weatherproof road

Asian Development Fund

Years 2005–2008:

• 25,000 km of better roads benefiting over 133 million people

• 834,000 households linked to the electricity distribution network

• over 2 million people received a micro-loan

African Development Fund

Years 2006–2008:

• over 16 million people included in the scope of the electricity distribution network

• over 41 million received transport services

• 11 million new pupils got access to school

• 433,000 micro-loans were granted

The WiDer euroPe iniTiaTive is

a DeveloPmenT PoliCy FrameWorK

Programme, launCheD in 2009,

ThaT enComPasses easTern

euroPe, The souTh CauCasus anD

CenTral asia.

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• Over one-third of Finland’s humanitarian aid goes to Africa.

• Aid channels: UN Office of the High Commissioner for Human Rights (UNHCR), the United Nations World Food Programme (WFP), United Nations Children’s Fund (Unicef), the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), the International Federation of Red Cross and Red Crescent Societies, Finnish humanitarian aid organisations

• Projects run by nearly 300 Finnish organisations in 90 countries received a total of 83.7 million euros in support.

• The majority of the projects develop education, health care, good governance and civil society.

• Most of the assistance focuses on Africa and Asia.

• Most of the projects are in Tanzania, Kenya, Somalia, India and Nepal.

humani- tarian aid

Development cooperation of civil society organisations

Mrs Sukham is building a new home to replace the one destroyed by flood in South Pakistan in April 2011. • Pirjo-Liisa Heikkilä

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additional information about development cooperation and

developing countries:http://formin.finland.fi/developmentpolicy

global.finland.fi

humani- tarian aid

Front Cover: Water Resources Management Project in Nepal, which is supported by Finland • Auli Keinänen

DEVELOPMENT COMMUNICATIONS PO BOX 456

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Internet: formin.finland.fi/developmentpolicy and global.finland.fi E-mail: keoinfo@formin.fi