prop · H103131en · 2014-03-18 00:00:00 — Aid may also involve developing innovative financing mechanisms, finding new, more effective channels and partners, using tried and tested methods in a new context or exploiting the possibilities of digitalisation to improve aid effectiveness. Through innovation, aid can better meet global challenges such as poverty and climate change, while the innovativeness of partner countries is reinforced. Aid also needs to be sufficiently flexible to be able to be adapted to different contexts and rapid change. must be able to offer differentiated forms of cooperation, adapted to the political and economic conditions of the respective countries and partners. A long-term approach Comm. 2013/14:131 in development efforts must always go hand in hand with a readiness to act quickly where required. 6.5New knowledge and cooperation with other actors In aid must draw on the knowledge, competence and capacity that exist among Swedish actors such as private enterprise, civil society organisations including diaspora groups, agencies and other public actors, such as research. also needs to relate to the new aid actors in global aid and find new paths for collaboration with non-traditional aid actors. must welcome innovative ideas and methods, collaboration and opportunities. In those countries in which aid operates, the private sector can help to improve the living conditions of people living in poverty. Investments or innovations that have great potential for reducing poverty are, however, not always profitable for the individual company. Thus aid can stimulate and reinforce the positive role of companies in the development process. Swedish aid must avoid acting so as to disrupt the market but it must not hesitate to act to develop it. Cooperation with the private sector must stimulate innovative solutions and be concentrated in areas that provide a high return on Swedish aid. Swedish aid must work with the actors that provide the greatest possible impact and must not be tied to Swedish companies. 6.6Particular conditions in fragile states Swedish aid must be adapted to particular conditions in fragile states. A large proportion of Swedish aid goes to countries that find themselves in a conflict or post-conflict situation. This means that aid initiatives are carried out in complex, risk-filled and rapidly changing environments. Longer-term development is often carried out in parallel with humanitarian initiatives and with peace-keeping operations that include military components. military and civilian roles separate is important. The strategic role of aid in such a situation contributes both to addressing the acute conflict and its structural causes while the fight against poverty, opportunities for future democratic development and the individuals right to security in the foreground. During armed conflict, as well as in post-conflict situations, state-to- state cooperation can be problematic. The state is often weak and dominated by the previously warring parties. The risk of Swedish aid boosting an illegitimate regime or of fuelling underlying causes of conflict must therefore be taken into account through a conflict-sensitive approach. If national ownership is weak, ownership in some situations can also be sought, for example, at local level and through civil society. In situations in which peace is fragile, the majority of aid needs to be focussed on areas that seek to strengthen peace, security and stability. 2013/14:131 Swedish commitment to peace and security must in this case also support early recovery that normally arises immediately after a conflict. At the same time this involvement must also promote long-term development and support the fight against poverty and opportunities for future democratic development. 6.7Cost and risk awareness Swedish aid must be cost and risk aware. The resources earmarked for aid initiatives must be used as cost-effectively as possible. This means that costs must be set against the value and benefit of the intervention in the form of its results. Cost-awareness must be present when planning, implementing and following up aid initiatives. Cost effectiveness is a relative measurement and it is only by comparison, either between the same type of intervention over time or between different interventions, that conclusions can be drawn. What can be considered to be reasonable costs and results varies depending on the context. Interventions must be designed appropriately. The size of the intervention may vary depending on the context, the target group and the result that is to be achieved. Cost effectiveness is to be sought but small interventions may be effective in achieving results in certain circumstances. The risk management of aid administration has one clear purpose: to identify, evaluate and manage circumstances that may limit opportunities for attaining the objectives set. A risk analysis must always be carried out to identify and survey the circumstances that may prevent the operation from attaining the desired results and evaluating risks on the basis of the likelihood and consequences of them occurring. The risks that are so serious as to be unacceptable must be managed through some kind of control measure where possible. The measures must be drawn up in the light of a cost-benefit assessment. Thorough risk assessment and risk management are crucial if aid is to achieve the desired result and taxpayers money is to be managed responsibly. However, risk management does not only involve minimising risk; it is also a question of weighing up risks and potential results. A certain amount of risk is often essential if the aid is to achieve its intention. Accepting particular risks does not, however, mean that accepts the consequence of the risk occurring, e.g. corruption. In its results strategies, the Government defines a direction and activities with different degrees of risk that taken as a whole create a level of risk that is acceptable for in order to achieve results. In conflict and post-conflict countries the risks are often higher. The priorities of the Government in aid policy are realised through bilateral and multilateral undertakings, and through actions within the framework of EU aid. The Government recognises that bilateral aid, multilateral aid and EU aid complement each other. Better cooperation and synergies between bilateral aid and aid through multilateral organisations and via the EU must be sought in order to attain as good results as possible. In some cases, the goals of the Governments aid policy can best be attained through bilateral aid, in other cases in cooperation with and through multilateral organisations, through Swedish action within the framework of EU aid or through a combination of these channels. The importance of better cooperation and synergies applies to bilateral and multilateral aid and EU aid. In order to be capable of tackling regional or global issues, such as global environmental problems and climate change, cooperation between different actors is necessary – both in aid and between countries affected. The Government is keen to review the transaction costs and identify what is necessary to lower them in the long term. 7.1.1 Focus on poor and unfree countries The Governments general point of departure is that must concentrate its bilateral aid on the countries where the need is greatest, starting where Swedish aid efforts are judged capable of leading to good results and where Swedish bilateral aid is judged to have a clear added A large proportion of Swedish aid is channelled bilaterally. majority of the worlds population who live in poverty live in middle- However, the Government sees the main task of bilateral aid as being to focus on people who live in poverty or under oppression in countries that have limited resources of their own, in other words low-income countries. Many of these people also live in conflict- The Government also considers that aid has a duty to further democracy and human rights and contribute towards peace and reconciliation and the environment and climate, even in countries that are not among the poorest countries. A bilateral aid undertaking gives an opportunity to influence the broader development issues in individual countries by conducting dialogue on priority issues, not least democracy and human rights and the causes of poverty and oppression, but also the environment and climate. There may also be political added value in bilateral aid and opportunities to promote the rights-based perspective and reinforce values important to such as gender equality and transparency. Bilateral aid is also an efficient tool for working against the tide in individual partner countries. This, for example, may involve gender equality, sexual and reproductive 2013/14:131 health and rights, the rights of LGBT persons, abolition of the death penalty and the rights of people with disabilities. Bilateral aid also provides important knowledge of the reality in which people who live in poverty and under oppression live and in which aid is carried out. Some of the countries in the Eastern Partnership and the Western , plus , do not fall within the criteria of poor or unfree countries, but closer ties with the EU are crucial to these countries seeking to strengthen democracy and carry out reforms in their societies. is one of the most powerful advocates of EU expansion. For this reason, the Government sees it as essential that Swedish aid contributes towards reforms that seek to support countries forging closer ties with the EU and to strengthen democracy and increase respect for human rights. experiences can be used as a tool to support the countries journey towards open, democratic societies under the rule of law and with a modern market economy. This intensifies the fight against poverty and reform efforts on doorstep. As the individual countries draw nearer to the EU, democratically and economically, the reform partnership can gradually be phased out. 7.1.2A strong focus on the individual The Governments point of departure in deciding on the direction, scope and form of aid in a particular country is always the rights, needs and prerequisites of individuals to lift themselves out of poverty, oppression and vulnerability. The perspective on development of people who live in poverty themselves must be applied in planning, implementing, and in following up and analysing Swedish aid initiatives: Planning of Swedish aid initiatives must always be based on knowledge of the women, men, boys and girls towards whom aid is focussed and of the communities in which they live. requires that this knowledge also forms the basis of partner countries planning for poverty reduction and development. Many variables interact and influence the living conditions, power and choices of individuals and groups. This is particularly true of the extent to which societys structures and institutions support the initiative of individuals and groups to improve their living conditions. Knowledge of the individuals problems, needs and priorities must be obtained through close contact with the target group to a much greater extent. In planning all Swedish aid the following question must be asked: What change must be achieved in the lives of people living in poverty and under oppression? When implementing Swedish initiatives, results and collaboration must be sought at the lowest possible appropriate level, as close to peoples daily lives and reality as possible. Swedish aid must be strongly locally anchored. This improves opportunities for the target groups of aid to demand accountability regarding the aid provided and the results promised. Initiatives can also be carried out at a higher institutional level if this is judged to contribute to results that benefit the person living in poverty and under oppression. The level at which the initiative takes place depends on the results sought and how these can best be attained. However, the ultimate aim is better living conditions for the individual Comm. 2013/14:131 living in poverty and under oppression – in the short or long term – which is why the result must be followed up as close to the individual as possible. Follow-up and analysis of Swedish aid initiatives must be based on the question: What effects do Swedish aid initiatives have on the opportunities of individual people living in poverty and under oppression to improve their living conditions? 7.1.3The different partners of Swedish aid Swedish aid has a wide range of partners to work with. The state bears the fundamental responsibility for meeting citizens rights, civil and political, as well as social, economic and cultural. Thereby the state also has responsibility for creating prerequisites for people living in poverty to lift themselves out of poverty and oppression. This makes the state and societys institutions important partners for Swedish aid. The Government considers that civil society is a development actor in its own right and that its organisations constitute a powerful force for change and play a key role in work to reduce poverty. In many countries civil society plays an important role in assisting vulnerable people and having an effect on openness, the development of democracy and respect for human rights. Close cooperation with civil society organisations, including political parties, e.g. through party-affiliated organisations, can either supplement, balance or replace direct state support. must therefore promote representative, legitimate and independent actors in civil society and also draw attention to collaboration at global level between civil society actors. The Governments view is that support from civil society to reduce poverty can ultimately also be a means for individuals to do their bit towards taking moral responsibility for supporting people subjected to oppression, vulnerability and poverty. Many civil society organisations have great potential for acting locally and close to the people living in poverty and under oppression that Swedish aid is seeking to reach. This strengthens the opportunities to attain and follow up results at local level and individual level, while improving the accountability of aid initiatives. In this collaboration must particularly pay attention to the potential of civil society organisations to create opportunities for organisation and channels through which people and groups can make their voices heard – particularly people who are discriminated against or marginalised who live in poverty and under oppression. Swedish agencies also have subject knowledge that means that they are in demand as a partner in particular aid initiatives. On the basis of their Government mandate, Swedish agencies can thereby play an important role in carrying out aid interventions. The long-term collaborations that emerge also create a results and lasting relationships beyond the aid itself. The priorities of aid policy must form the basis of operations, which are to contribute towards reaching the objectives of aid policy. 2013/14:131 must also work in partnership with private enterprise. It is in private enterprise that the foremost opportunities can be found for creating employment that enables people who live in poverty to earn a living. The private sector also has a fundamental role to play in terms of contributing financing, new solutions, products and services that are adapted to the needs and purchasing power of people living in poverty. Private enterprise often also has an opportunity to directly affect areas that are central to peoples living conditions, such as human rights, the environment and corruption. One fundamental principle when aid cooperates with actors in the business sector is that all cooperation must contribute towards the overarching objective of aid – the needs of people living in poverty and under oppression must be the starting point of all operations. In the same way as with collaboration with other actors, cooperation with the private sector must be characterised by openness, transparency and cost-efficiency. It must also be independent, resultsfocussed and avoid disrupting the market. Cooperation with industry should be characterised by high requirements in terms of CSR. The Government seeks to reduce the reporting burden on aid administration and those implementing Swedish aid, including civil society organisations. The main rule must be that results must be reported appropriately and with a long-term perspective. Follow-up in the shorter term must be kept concise such that increased efforts can instead be put into following the development of initiatives in the field. 7.1.4 Swedish aid must be adapted to the country context operates bilateral aid in different types of countries, all with their specific development challenges. To attain as positive results as possible, aid needs to start out from and be adapted to the conditions that prevail in In the normal case, bilateral aid takes the form of long-term cooperation based on the countries plans and strategies for development and poverty reduction, so promoting The degree of trust in the government of the partner country is afforded greater weight in considering what type of cooperation Swedish aid could finance in an individual country. Human rights, democracy and good governance are of particularly great importance when the Government is assessing what type of aid can offer. countries in which has fundamental trust in the government and its agencies, can run broad and long-term aid that builds on state-to-state cooperation and is based on the development strategy of the partner country itself. If trust in the government of the partner country proves to be misplaced, the aid must particularly focus on strengthening pro-reform movements and encouraging respect for human rights, the development of democratic institutions, openness and If trust in the government of the partner country deteriorates considerably or is entirely lacking, the aid must not be channelled through government actors; instead, alternative partners must be sought. In the majority of cases, aid can be channelled to NGOs and pro- Comm. 2013/14:131 democracy movements in civil society. has undertaken to comply with the agreement from on the New for Engagement in Fragile States. The agreement involves five peacebuilding and state-building goals and principles for cooperation. In fragile and conflict-affected countries this cooperation must be based on trust. The country itself, in other words the government, civil society and other actors, must own the process. This is necessary in order to link economic issues and politics and security. For the countries that demonstrate a serious commitment to implementing substantive reforms in line with these principles, more significant Swedish support can be considered. 7.1.5Forms of bilateral aid The vast majority of Swedish aid comprises grants. The growth of new aid actors and the importance of new capital flows and sources of financing means that aid needs to incorporate cooperation with different actors and support to initiatives of a catalytic or innovative nature. It is therefore the Governments ambition to channel an increasing proportion of Swedish aid through innovative forms of aid and financing. Innovative forms must therefore also be trialled regarding donations. aid can create incentives for improving the results and create a clearer contract between the donor and the partner, where the latter is given responsibility for determining how the results are to be attained. forms of aid are characterised by the aid being paid out ex-post on the basis of the results achieved. This form differs from traditional aid, which usually finances a particular operation in advance, which is expected to lead to particular results. Within the framework of international undertakings on aid effectiveness, and other donors have undertaken to provide aid to a greater extent in the form of broad and coordinated aid to programmes run by the partner, known as a programme-based approach. This form of aid reduces transaction costs and helps to increase partner ownership. In countries in which Swedish aid includes budget support or other forms of programme support, in its dialogue with partner countries, will work to ensure that civil society actors have an opportunity for participation, transparency and accountability vis à vis those in power and in overall national and local political processes and efforts to reduce poverty. General budget support for poverty reduction is a form of aid which means that support is given directly to a countrys state budget with the aim of supporting the countrys poverty reduction strategy in its entirety. The Government has laid down fundamental conditions that must be met for general budget support to be granted: Fundamental respect for human rights and democracy, and clear commitments and measures to strengthen them. A national plan or equivalent for development and poverty reduction that enjoys democratic support and is generally deemed relevant, credible and feasible. 2013/14:131 A growth-enhancing economic policy that is sustainable in the long term, aiming at development and poverty reduction and incorporating macroeconomic stability as a necessary prerequisite. Public financial management systems that are sufficiently transparent, robust and effective to enable the support to achieve its goals, along with positive development of these systems. A clear undertaking on the part of the partner countrys Government to fight corruption in the public sector, and measures taken to this end. When the above conditions are met, general budget support may have positive effects. However, general budget support is associated with a number of risks and challenges, because it requires a higher degree of trust in the partner countrys government and the policy pursued. To manage these challenges and focus more sharply on results, the Government sees advantages of trialling results-based contracts that link payments made to result indicators agreed in advance in line with the partner countries own priorities. 7.2.1The multilateral system as an effective aid channel Global problems require global solutions. For this reason, the Government has chosen to be strongly engaged in multilateral cooperation and channels a large proportion of Swedish aid through multilateral organisations. Through multilateral institutions with great legitimacy and global or regional presence, can effectively combine its support with other countries aid to identify the best shared solutions to help the people who need it most. With their capacity for implementation, the multilateral organisations have good prerequisites to finance programmes that seek long-term capacity and policy development, social institutions, extensive infrastructure development and macroeconomic support for reform. In this way the burden of coordination for a partner country with limited capacity is reduced and the likelihood of achieving the desired result increased. This ties in well with international undertakings on aid effectiveness and the need to reduce the number of aid actors in countries that receive aid. With their legitimacy, size and expertise, multilateral organisations are also well placed to more efficiently contribute towards important political, social and behavioural changes at country level, primarily through national policy dialogue and competence , and globally normative work. The multilateral system is also represented in many of the most vulnerable countries, which makes it easier for the system to act quickly in the event of crises or disasters. Multilateral organisations can also contribute towards spreading global public goods and make it possible for the global community to join forces on various thematic issues.