COMMISSION STAFF WORKING DOCUMENT EU Accountability Report 2011 on Financing for Development   Review of progress of the EU and its Member States   Accompanying document to the  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS  Enhancing EU Accountability on Financing for Development towards the EU Official Development Assistance Peer Review   VOL V
Date: 2011-04-19
Institutions: European Commission
Subjects: climate change, developing countries, development aid, development plan, development policy, distribution of EU funding, international cooperation

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EUROPEAN COMMISSION 

Brussels, 19.4.2011 
SEC(2011) 504 final 

COMMISSION STAFF WORKING DOCUMENT 

EU Accountability Report 2011 on Financing for Development 

Review of progress of the EU and its Member States 

Accompanying document to the 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Enhancing EU Accountability on Financing for Development 
towards the EU Official Development Assistance Peer Review 

VOL V 

{COM(2011) 218 final} 
{SEC(2011) 500 final} 
{SEC(2011) 501 final} 
{SEC(2011) 502 final} 
{SEC(2011) 503 final} 
{SEC(2011) 505 final} 

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Annex 7 

Donor Profiles 

AUSTRIA  

AT A GLANCE 

POLICY FRAMEWORK 

Austria's development cooperation is based on the Federal Act on Development Cooperation 
of 2002 (amended in 2003) and the current Three Year Programme on Austrian Development 
Policy  2009-2011,  which  is  focussed  on  the  MDGs  and  aid  effectiveness.  The  Federal 
Ministry  for  European  and  International  Affairs  is  responsible  for  development  policy, 
Austria's  Development Agency (ADA) and the Austrian Development Bank (OeEB) for aid 
implementation. The introduction of a five year budget cycle (2009-2013) has  made overall 

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aid  flows  more  predictable1.  The  Federal  Financial  Framework  Act  2010–2013  sets  the 
financial parameters for medium-term ODA levels2. 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax administrations in developing countries: Austria provides aid in these fields to EU 
candidate countries, EU Neighbourhood Policy countries (through EU Twinning projects 
on  customs  and  tax  administration)  and  ACP  countries  administrations  (support  to: 
Customs, Semi-autonomous Revenue Authorities and Ministries of Finance). 

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since 2010: (i) Double Taxation Conventions signed with Bosnia and Herzegovina, Hong 
Kong, Libya, Serbia, and Qatar; (ii) under negotiation with Argentina, Bahamas, Cayman 
Islands,  Chile,  Isle  of  Man,  Iceland,  Jersey,  Guernsey,  Sri  Lanka,  Tajikistan,  and 
Turkmenistan 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

Yes 

in International Business Transactions: 

Yes 
•  Stolen Assets Recovery initiative (STAR): 
No 
•  Extractive Industry Transparency Initiative (EITI): 
No 
• 
Yes 
IMF Regional Technical Assistance Centres: 
• 
Yes 
International Tax Dialogue: 
• 
No 
International Tax Compact: 
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

2.  SCALING UP ODA 

ODA individual commitments /gap to agreed targets (total ODA, Africa, LDCs) 

-  According  to  its  present  estimates  (until  2014)  Austria  is  set  to  miss  the  2015  0.7% 
ODA/ GNI target by a wide margin and will – on current forecasts – even remain below 
the EU collective ODA/GNI target of 0.39% in 2006 set by EU leaders in Barcelona .  

1 

http://english.bmf.gv.at/EconomicPolicy/EconomicpolicyinAustria/Stabilityprogram/STAPRO_2009_bis_2013_E
Nfinal.pdf 

2 Three Year Programme on Austrian Development Policy 2009-2011 (revised in November 2009). Update in  
March 2011: reports, programs and policy statements of the Austrian Development Cooperation. Please note  
that more recent publications are only available in German at the moment (Dreijahresprogramm 2010 – 2012,  
Bericht 2009): http://www.entwicklung.at/services/publications/reports/en/,  
http://www.entwicklung.at/services/publications/programmes/en/ 
http://www.entwicklung.at/services/publications/policy_documents_focus_documents/en/ 
http://www.entwicklung.at/entwicklungspolitik/oesterreich/de/ 

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- 

In 2010, Austria spent EUR 905 million as ODA (preliminary), 0.32% of its GNI. This 
was a slight recovery on 2009, when fewer debt relief measures reduced ODA volume, 
but it remains 0.11 percentage points below the 2008 ratio. 

-  Debt relief made up 50% of Austria’s ODA during the period 2005 - 2007 and more 
than 40% in 2008, which is higher than any other DAC member. With the decline in debt 
relief, Austria must sharply increase its aid to meet its agreed 2015 target. 

Austria - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

1,00

0,80

0,60

0,40

I

N
G

f
o
%
a
s
a
A
D
O

2015 Target: 0.70

2010 Target: 0.51

ODA gap to 2015 target from 2010 level 
(EUR million)
1,424
Average annual increase needed:
285

0,70

0,57

0,64

0,52

0,50

0,47

0,43

0,32

0,49

0,41

0,27

0,20

0,23

0,24

0,22

0,24

0,23

0,26

0,23

0,20

0,34

0,32

0,32

0,30

0,35

0,34

0,34

0,00

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member States or 
based on agreed EU commitments for 2015. ODA in current prices.  

Austria Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,30 

0,26 

0,24 

0,19 

0,02 

0,04 

0,02 

0,02 

0,02 

0,02 

0,06 

0,03 

0,13 

0,08 

0,04 

0,02 

0,25 

0,21 

0,23 

0,20 

0,18 

0,20 

0,21 

0,17 

0,19 

0,19 

0,22 

0,23 

0,24 

0,23 

0,29 

0,28 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

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Source: OECD/DAC data  

-  "Realistic, verifiable actions for meeting individual ODA commitments until 2015" 
taken  in  2010:  Although  the  Council  of  Ministers  confirmed  the  ODA  goals  in 
November  2010,  Austria  projects  ODA  levels  substantially  below  the  2005  –  2010 
average.  

-  No measure taken nor planned to contribute to the EU27 target to channel at least 

50% of EU collective ODA increase to Africa. 

-  Austria  will  reach  the  target  of  0.15%-0.20%  ODA/GNI  to  LDCs  by  2010  and 

onwards. 

3.  SUPPORT FOR / USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Austria  intends  to  step  up  efforts  for  innovative  financing  mechanisms  with 
significant revenue generation potential, with a view to ensuring predictable financing 
for  sustainable  development.  Austria's  budget  for  fiscal  year  2011  does  not  allocate 
revenues  from  an  agreed  increase  of  the  tax  for  private  foundations  to  development 
cooperation.  However,  the  concept  of  earmarking  these  revenues  for  development 
cooperation might be discussed again during the next budget negotiations. 

-  Austria did not use innovative financing mechanisms for development, but introduced 
an  airline  ticket  tax  (from  January  2011)  without  earmarking  its  revenues  for 
development.  

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

-  Support to private investment in developing countries: 

Foreign Direct Investment 

FDI to Developing Countries

14,000 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

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-

Austria

2003

677 

2004

743 

2005

2,182 

2006

1,476 

2007

11,435 

2008

4,896 

2009

1,832 

-  Financial tools to support private investment 

Source: OECD/ DAC  

• 
• 

Investment guarantees: Yes 
Improvement of the overall banking system: No 

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•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: No 
•  Blending: Yes 
•  Private public partnerships: Yes 
•  Business and investment climate: Yes 
• 
•  Export credits: No 

Investment facilities: Yes 

-  Austria promotes the adoption of internationally agreed principles and standards on 
Corporate  Social  and  Environmental  Responsibility  by  European  companies.  ADA 
offers  Business  Partnerships  to  Austrian/European  companies  on  a  co-financing  basis. 
CSR oriented activities play a particular role in this type of projects. Health, education and 
compliance with social and ecological standards are the most frequent topics. One typical 
example is the hepatitis vaccination programme of OMV, the leading Austrian oil and gas 
corporation.  The  project,  implemented  in  Pakistan,  focuses  on  vaccination  and  medical 
education  and  is  part  of  a  comprehensive  development  programme  including  water  and 
infrastructure. 

-  No  new  initiatives  were  started  in  2010  to  include  social  and  environmental  clauses  in 

ODA-financed public procurement.  

-  Austria did not implement solutions internally or in cooperation with third countries 

to overcome barriers to migrants and their families' access to financial services. 

5.  AID FOR TRADE  

Austria, AfT Commitments  
(in EUR000) 

Trade-Related Assistance 

Trade Policy and Regulations 
(category 1) 
Building Productive Capacity  
(Focus on Trade Development, category 2) 
Other Trade Development  
(category 6) 

Total Trade-Related Assistance 

Wider Aid for Trade Agenda 

Trade Policy and Regulations 
(category 1) 
Economic Infrastructure  
(category 3) 

2006 

2007 

2008 

2009 

162 

675 

2 113 

97 

4 845  12 904  21 681  18 109 

0 

0 
5 006  13 579  23 794  18 205 

0 

0 

2006 

2007 

2008 

2009 

162 

675 

2 113 

97 

7 873  22 802  11 503  22 692 
  Building Productive Capacity (category 4)  17 978  20 541  36 988  35 512 

Trade related adjustment  
(category 5) 
Other Trade Related Needs  
(category 6) 

  Total Aid for Trade 

0 

0 

0 

0 

0 

0 
26 012  44 018  50 604  58 301 

0 

0 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

Source: OECD CRS Database (latest update) 

-  Austria delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) 

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-  Actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-
income  countries:  contribution  to  DeMFLIC  (Debt  Management  Facilitation  for  Low 
Income Countries) a World Bank Multi-Donor Trust Fund. 

-  Austria  favours  reform  of  the  international  architecture  for  restructuring  of 
sovereign debts in order to deal with potential future cases of debt distress in low-income 
countries (through the Paris Club with a role for International Financial Institutions). 
-  No specific intervention to prevent aggressive litigation against HIPCs (in particular 

to prevent the actions of "vulture funds"). 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Austria  supported  ownership  through  consultations  and 

coordination with partner countries and through partner capacity development. 

-  On  Conditionality.  In  2010,  Austria  progressed  by  harmonising  conditionalities  with 

other donors. 

-  On  Transparency  and  Predictability.  Austria  publicly  discloses  information  on  aid 

volumes through the Austrian Development Agency (ADA) web site. 

-  On  Alignment.  Austria  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy. 

-  On  Harmonisation.  In  2010,  ADA  was  authorised  to  manage  EU  funds.  Delegated 
cooperation agreements with the European Commission and other Member States can now 
be concluded where appropriate. 

-  On  Mutual  Accountability.  Austria  established  a  joint  framework  for  monitoring  joint 
commitments  with  some  of  its  priority  countries  (i.e.  Bhutan,  Burkina  Faso,  Ethiopia, 
Mozambique, Nicaragua and Uganda). 

-  On Managing for Development Results. Austria provides capacity building support for 

this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International Financial Institutions. Austria supports a single EU Chair for the IMF in 
order  for  the  EU27  to  speak  with  one  voice.  In  the  case  of  Multilateral  Development 
Banks,  the  rationale  for  a  single  constituency  is  considered  less  evident,  but  could  be  a 
long-term  goal.  A  consolidation  process  requires  fair  terms  of  representation  of  smaller 
countries  and  efficient  coordination  mechanisms,  including  better  EU  coordination  on 
MDB  boards,  among  the  EU27  capitals  and  common  positions  in  the  subcommittee  on 
IMF  matters—“SCIMF”—  of  the  Economic  and  Financial  Committee,  or  equivalent 
forum on WB/MDBs issues. These discussions should precede deliberations and decision 
making at G8/G20 level. 

-  Austria favours stronger Brussels based coordination on issues related to the World 

Bank and MDBs. 

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BELGIUM  

AT A GLANCE 

POLICY FRAMEWORK  

The  strategic  framework  that  guides  Belgian  development  co-operation  actors  includes  the 
1999  Law  on  International  Cooperation,  laws  governing  specific  actors  of  Belgian 
development  cooperation,  various  royal  decrees,  strategies  of  actors  related  to  the  federal 
level,  and  separate  strategies  by  federated  entities.  Belgium’s  development  cooperation  has 
gained  new  momentum  over  the  last  two  years,  driven  by  international  commitments  and  a 
process  of  self-reflection.  New  policies  have  been  issued,  aid  management  reforms  have 
advanced, and a new law on development cooperation has been prepared in 2010 in parallel 
with the government’s programme for 2008-2011. 

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I. INCREASING FINANCIAL RESOURCES FOR DEVELOPMENT AND GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax  administrations  in  developing  countries:  Belgium  provides  aid  in  these  fields  to 
ACP  country  administrations  (support  to:  Semi-autonomous  Revenue  Authorities  and 
Ministries of Finance). 

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since  2010:  (i)  Double  Taxation  Conventions  signed  3  with  Anguilla,  Congo,  Czech 
Republic,  Dominican  Republic,  Granada,  Japan,  Korea,  Macedonia,  Malta,  Montserrat,  
Rwanda,  ;  (ii)  under  negotiation  4  with  Barbados,  Botswana,  Colombia,  Israel,  Panama, 
Poland, Uruguay, (iii) planned with India, South Korea, Kyrgyzstan, Netherlands, Serbia, 
Turkmenistan 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

Yes 

Yes 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
No 
•  Extractive Industry Transparency Initiative (EITI):  
Yes 
• 
NC 
IMF Regional Technical Assistance Centres:  
• 
NC 
International Tax Dialogue:  
• 
NC 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
NC 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   NC 
• 
NC 

IMF Topical Trust Fund on Tax policy and administration:  

2.  SCALING UP ODA 

ODA Individual commitments and gap to target  

–  Belgium planned to meet the 0.7% target by 2010, but remained below it, reaching ODA 
level of 0.64% of GNI by spending EUR 2265 million (preliminary). Belgium has a legally 
binding commitment to the 0.7% target for 2010 and beyond.  

–  Debt  relief  makes  up  a  particularly  high  share  of  Belgium’s  ODA  increase.  This  share, 
however,  is  expected  to  decline  in  2011  and  Belgium  needs  to  make  sure  to  sustain  the 
0.7% target in the medium and long term.5 

3 http://www.fiscus.fgov.be/interfafznl/fr/international/conventions/sign.htm 
4 http://www.fiscus.fgov.be/interfafznl/fr/international/conventions/index.htm 
5 An inventory of existing mechanisms to comply with Aid Commitments by Member States, Standard Briefing, 
Policy Department DG External Policies, December 2010.  

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Belgium - ODA as a % of GNI 
Historical data,  Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

I

N
G

f
o
%
a
s
a
A
D
O

1.00

0.80

0.60

0.40

0.20

0.00

2015 Target: 0.70

2010 Target: 0.51

0.38

0.34

0.31

0.35

0.30

0.36

0.37

0.60

0.43

0.41

0.53

0.50

0.55

0.48

0.43

0.70

0.70

0.70

0.70

0.70

0.70

0.70

0.70

0.70

0.64

0.64

ODA gap to 2015  target from 2010  level 
(EUR million)
707
Average annual increase needed:
141

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

Belgium Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,12 

0,02 

0,25 

0,13 

0,10 

0,02 

0,07 

0,06 

0,04 

0,02 

0,02 

0,02 

0,02 

0,05 

0,02 

0,02 

0,36 

0,32 

0,29 

0,30 

0,29 

0,34 

0,35 

0,37 

0,36 

0,35 

0,40 

0,40 

0,38 

0,53 

0,52 

0,46 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

-  "Realistic, verifiable actions for meeting individual ODA commitments until 2015" 
taken  in  2010:  The  official  directorate  of  Development  and  Cooperation  is  currently 
drafting  a  mid-term  budget  plan  to  ensure  required  new  ODA  will  be  available  to 
maintain ODA/GNI around 0.7% after 2010.  

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-  50%  of  new  resources  for  bi-lateral  Belgian  development  cooperation  in  2010  and 

2011 went to African partner countries, mostly in Sub-Saharan Africa  

-  Will you reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010 and onwards: 

Already achieved 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Belgium  did  not  use  innovative  financing  mechanisms  for  development  except  net 
receipts from the Belgian Lottery “which should be regarded as innovative financing”. 
-  Belgium  intends  to  step  up  efforts  for  innovative  financing  mechanisms  with 
significant  revenue  generation  potential.  Belgium  is  ready  to  implement  a  Currency 
Transactions  Tax  (CTT)  if  consensus  is  reached  at  Euro-level.  A  law  in  this  regard  was 
voted in parliament in 2004.     

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

Foreign Direct Investment  

FDI to Developing Countries

3,000 

2,500 

2,000 

1,500 

1,000 

500 

-

)
s
e
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i
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p
9
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0
2
(

s
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f
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s
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i
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-500 

Belgium

2003

-

2004

-136 

2005

1,144 

2006

2,815 

2007

1,087 

2008

1,121 

2009

2 

Financial tools to support private investment 

Source: OECD/ DAC  

Investment guarantees: Yes 
Improvement of the overall banking system: Yes 

• 
• 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: No 
•  Blending: Yes 
•  Private public partnerships: No 
•  Business and investment climate: Yes 
• 
•  Export credits: Yes 

Investment facilities: No 

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–  Belgium  promotes  the  adoption  of  internationally  agreed  principles  and  standards  on 
Corporate Social and Environmental Responsibility by European companies. The Belgian 
Development Cooperation supports several activities within the framework of Fair Trade: 
the  Trade  for  Development  Centre  within  the  Belgian  Technical  Cooperation  (BTC)  and 
several NGOs (Max Havelaar, Oxfam Wereldwinkels, Oxfam Magasins du Monde, etc.). 
The  Belgian  Development  Cooperation  organised  a  seminar  on  corporate  governance 
together with the World Bank at the beginning of December 2010 

–  Belgium  supports  the  Kimberley  process  and  the  FAO  Code  of  Conduct  for  Responsible 

Fisheries 

–  No  new  initiatives  were  started  in  2010  to  include  social  and  environmental  clauses  in 
ODA-financed  public  procurement  (the  Belgian  law  on  public  procurement  of  24 
December 1993 has not changed during 2010) 

–  Belgium  implemented  the  "General  Principles  for  International  Remittances  Services" 
agreed  by  the  Committee  on  Payments  and  Settlements  Systems  (CPSS).  Meanwhile, 
Belgium  has  robust  and  reliable  data  concerning  the  amounts  and  destination  of 
remittances from Belgium. 

5.  AID FOR TRADE 

Belgium AfT Commitments (in EUR thousands) 

2006 

2007 

2008 

2009 

Trade-Related Assistance 

Trade Policy and Regulations 
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

1 999 

2 101 

7 219 

14 257 

50 438 

30 474 

51 189 

190 243 

0 

0 

0 

0 

Total Trade-Related Assistance

52 437

32 575

58 408 

204 500 

Wider Aid for Trade Agenda 

Trade Policy and Regulations 
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

1 999 

2 101 

7 219 

14 257 

45 616 

80 036 

44 369 

105 272 

108 481 

127 023 

169 282 

269 502 

0 

0 

0 

0 

0 

0 

0 

0 

Total Aid for Trade 

156 096

209 160

220 871 

389 031 

Source: OECD CRS Database (latest update) 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Belgium delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) 

without delay. 

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-  Actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-
income countries: financially supporting the World Bank Debt Management Facility and 
also participating in the African Legal Support Facility. 

-  Belgium does not favour reform of the international architecture for restructuring of 

sovereign debts 

-  Specific interventions to prevent aggressive litigation against HIPCs (in particular to 
prevent the actions of "vulture funds"): Yes. On April 6, 2008, Belgium passed a bill to 
prevent the seizure or transfer of public funds for international cooperation, in particular 
related to the methods of the Vulture Funds. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Belgium  supported  ownership  through  consultations  and 
coordination  with  partner  countries,  through  guidance  and  incentives  for  staff  in  partner 
countries, and through partner capacity development.  

-  On  Conditionality.  In  2010,  Belgium  progressed  by  harmonising  conditionalities  with 

other donors. 

-  On  Transparency  and  Predictability.  Belgium  publicly  discloses  information  on  aid 
volumes  through  the  Belgium  Development  Cooperation  web  site6  and  through  the 
websites of field offices. 

-  On  Alignment.  Belgium  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy. 

-  On Harmonisation. Belgium signed a general arrangement on delegated cooperation with 

the Netherlands in 2011. 

-  On Mutual Accountability. Belgium established a joint framework for monitoring joint 
commitments with some of its priority countries (i.e. Mozambique, Tanzania, Uganda). 
-  On Managing for Development Results. Belgium provides capacity building support for 

this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International Financial Institutions. Belgium supports a single EU Chair at the IMF in 
order for the EU27 to speak with one voice. Notably in the IMF, preferably by a single 
seat for the euro area. As for the MDBs, this can best be done by an informal coordination 
mechanism  among  Executive  Directors  (e.g.  World  Bank),  and,  for  important  matters, 
among representatives from the capitals (e.g. Voice reforms, Development Committee). 
-  Belgium  does  not  favour  stronger  Brussels  based  coordination  on  issues  related  to 

the World Bank and MDBs. 

6 http://diplomatie.belgium.be/en/policy/development_cooperation/ 

EN 

13 

   EN 

 
 
 
 
                                                 
BULGARIA   

POLICY FRAMEWORK  

Bulgaria’s international development cooperation activities are guided by the ‘Concept on the 
Policy of Bulgaria for participation in the international development cooperation’ adopted by 
the  Council  of  Ministers  (2007).  The  Ministry  of  Foreign  Affairs  manages  Bulgaria’s 
development  cooperation  activities.  The  Ministry  of  Finance  plays  a  role  in  ODA 
programming  and  planning  and  determines  the  selection  of  financial  mechanisms  and 
instruments. Bulgaria has stated that it will strive to reach the ODA targets set for the newly 
acceded Member States at 0.17% of GNI in 2010 and 0.33% of GNI in 2015, depending on its 
economic status and possibilities.7 A bilateral development strategy is awaiting adoption.8  

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support  to  reform  programmes  for  capacity  development  of  custom,  judiciary  and 
tax  administrations  in developing countries:  Bulgaria  provides  support  to  the  General 
Department  of  National  Taxation  of  Mongolia  in  the  field  of  taxation  and  collection  of 
mandatory social security contributions, including laws, regulations, manuals and training 
materials.  

-  Promotes the principles of good governance in tax matter: Yes 
-  New  Bilateral  Tax  Information  Exchange  Agreements  and  Double  Taxation 
Conventions  of  2010:  i)  Agreements  under  negotiation:  Venezuela;  ii)  Agreements 
planned: Yemen. 

-  Support/ratification of/adherence to international conventions/initiatives on tax issues: 

IMF Regional Technical Assistance Centres: Yes 
International Tax Dialogue: Yes 
International Tax Compact: Yes 

• 
• 
• 
•  African Tax Administration Forum (ATAF): Yes 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT): Yes 
• 
•  United Nations Convention against Corruption (Merida): Yes 
•  OECD  Convention  on  Combating  Bribery  of  Foreign  Officials  in  International 

IMF Topical Trust Fund on Tax policy and administration: Yes 

Business Transactions: Yes 

•  Stolen Assets Recovery initiative (STAR): No 
•  Extractive Industry Transparency Initiative (EITI): No 

2.  SCALING UP ODA 

ODA individual commitments/gap to agreed targets 

7 http://www.euroresources.org/guide/donor_profiles/bg_bulgaria.html  
8 http://www.acp-eucourier.info/Bulgaria-s-developme.1038.0.html  

EN 

14 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
                                                 
-  Bulgaria  spent  EUR  31  million  on  ODA  in  2010  (preliminary),  a  nominal  250% 
increase compared to 2009 (partly due to improved ODA reporting); this corresponds to 
0.09% ODA/ GNI, compared to 0.04% in 2009.   

-  Share of debt relief in ODA: N/A 

Bulgaria - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

2015 Target: 0.33

2010 Target: 0.17

ODA gap to 2015 target from 2010 level 
(EUR million)
121
Average annual increase needed:
24

0,25

0,29

0,20

0,06

0,04

0,04

0,090,09

0,01

0,00

0,15

0,08

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 
2015"  taken  in  2010:  The  multi-annual  indicative  timetable/minimum  aid  level 
commitment  will  be  established  after  the  adoption  of  the  Ordinance  of  the  Council  of 
Ministers on the objectives, principles and mechanisms of participation of the Republic of 
Bulgaria in international development cooperation and a medium-term programme. 

-  Have you taken or do you plan to take measures to ensure that at least 50% of EU 

collective aid increases of ODA resources are channelled to Africa? N/A 

-  Bulgaria will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010 

3.  SUPPORT  FOR/  USE  OF  INNOVATIVE  SOURCES  AND  MECHANISMS  OF 

FINANCING DEVELOPMENT  

-  Bulgaria has not implemented any innovative financing sources and mechanisms and 

has no plan to step up efforts in the area.  

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Financial tools to support private investment: 

• 
• 

Investment guarantees: No 
Improvement of the overall banking system: No 

EN 

15 

   EN 

 
 
 
 
 
 
 
 
 
•  Microfinance/ access to financial services: No 
•  Risk management initiatives: No 
•  Blending: No 
•  Private public partnerships: No 
•  Business and investment climate: No 
• 
•  Export credits: No 

Investment facilities: No 

-  Promoting Corporate Social and Environmental Responsibility: N/A 
-  New  initiatives  in  relation  to  including  social  and  environmental  clauses  in  ODA-

financed public procurements: N/A 

-  Bulgaria  has  implemented  the  "General  Principles  for  International  Remittances 
Services" agreed by the Committee on Payments and Settlements Systems (CPSS).   

5.  AID FOR TRADE 

Bulgaria AfT Commitments (in EUR thousands) 

2006 

2007 

2008 

2009 

Trade-Related Assistance

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

Total Trade-Related Assistance 

n/a 

n/a 

n/a 

n/a 

3

n/a 

n/a 

3

3 

0 

0 

3

4 

0 

0 

4 

Wider Aid for Trade Agenda 

2006

2007

2008

2009 

Trade Policy and Regulations 
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

Total Aid for Trade

n/a 

n/a 

n/a 

n/a 

n/a 

3

n/a 

n/a 

n/a 

n/a 

n/a 

3

3 

0 

0 

0 

0 

3

4 

0 

0 

0 

0 

4 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

Source: OECD CRS Database (latest update) 

-  Bulgaria  has  delivered  on  its  commitments  to  the  HIPC  and  MDRI  initiatives, 

including commitments towards IDA and the African Development Bank 

-  Bulgaria  sees  no  need  for  reform  of  the  international  architecture  for  the 

restructuring of sovereign debts.  

-  Bulgaria  has  not  planned  any  specific  measure  to  prevent  aggressive  litigation 

against HIPCs. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

EN 

16 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.  MORE EFFECTIVE EU AID  

-  On Ownership. N/A   
-  On Conditionality. N/A.  
-  On Transparency and Predictability. N/A. 
-  On  Alignment.  Bulgaria  has  not  integrated  the  principles  of  the  Code  of  Conduct  on 
Complementarity  and  Division  of  Labour  in  strategies,  staff  guidance  and  programming 
processes/guidelines.  

-  On Harmonisation. Bulgaria has no arrangements in place for delegated cooperation. 
-  On Mutual Accountability. Bulgaria has not established joint frameworks for monitoring 

joint commitments. 

-  On Managing for Development Results. Bulgaria does not provide capacity support for 

Managing for Development Results. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Bulgaria  believes  there  are  reasonable  assumptions  for  an  enhanced  level  of 
agreement among EU member states on major issues of common interest on the agenda 
of the IMF, the World Bank, and other MDB-s. It should be taken in account, though, that 
each  EU  member  state  is  a  separate  shareholder  in  the  respective  IFI  with  its  inherent 
rights and obligations.  

EN 

17 

   EN 

 
 
CYPRUS 

POLICY FRAMEWORK  

Cyprus  development  assistance  is  guided  by  the  Μedium-Term  Strategy  for  Official 
Development Assistance 2006-2010.9 Cypriot assistance is directed to 5 programme countries 
where Cyprus will undertake to implement more comprehensive schemes of assistance and to 
14  project  countries  where  Cypriot  aid  is  delivered  in  the  form  of  small  scale  individual 
projects. Sectoral priorities are infrastructure development, social and services sectors and the 
environment.  Cyprus  development  activities  are  labeled  CyprusAid.10  The  highest  decision 
making  body  is  the  Coordination  Body  headed  by  the  Minister  of  Foreign  Affairs  and 
membership  from  the  Minister  of  Finance  and  the  Permanent  Secretary  of  the  Planning 
Bureau.  The  Planning  Bureau  has  policy  preparation,  administrative  and  implementation 
functions for the decisions. 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Cyprus does not provide support to reform programmes for capacity development of 

custom, judiciary and tax administrations in developing countries  

-  Promotes the principles of good governance in tax matter: No 
-  New Double Taxation Conventions of 2010: 

Agreements concluded 
Denmark 
Kuwait 
Bahrain 
Georgia 
Monaco 
United Arab Emirates 
Armenia 
Russia 
Agreements under negotiation 
Norway 
Spain  
Ukraine 
Agreements planned 
Israel 
Estonia 
India 
Poland 
Serbia 
Greece 
Netherlands 
Bosnia-Herzegovina 

Explanation 
Revision of existing DTC 
Revision of existing DTC 
DTC 
DTC 
DTC 
DTC 
Revision of existing DTC 
Protocol amending existing DTC 

Revision of existing DTC 
DTC 
Revision of existing DTC 

DTC 
DTC 
Revision of existing DTC 
Protocol of existing DTC 
Revision of existing DTC 
Revision of existing DTC 
DTC 
DTC 

-  State  of  ratification  of/  adherence  to  international  conventions/  initiatives  on  tax 

issues:  

9 http://www.planning.gov.cy/planning/planning.nsf/dmlcystrategy_en/dmlcystrategy_en?OpenDocument  
10http://www.planning.gov.cy/planning/planning.nsf/All/2D4926C033E44160C225753F0036FE75?OpenDocum
ent  

EN 

18 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
IMF Regional Technical Assistance Centres: No 
International Tax Dialogue: No 
International Tax Compact: No 

• 
• 
• 
•  African Tax Administration Forum (ATAF): No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT): No 
• 
•  OECD  Global  Forum  on  Transparency  and  Exchange  of  Information  on  Tax 

IMF Topical Trust Fund on Tax policy and administration: No 

Purposes: Yes 
• 
International Organization of Tax Administrations (IOTA): Yes 
•  Commonwealth Association of Tax Administrators (CATA): Yes 
•  United Nations Convention against Corruption (Merida): Yes 
•  OECD  Convention  on  Combating  Bribery  of  Foreign  Officials  in  International 

Business Transactions: No 

•  Stolen Assets Recovery initiative (STAR): No 
•  Extractive Industry Transparency Initiative (EITI): No 

2.  SCALING UP ODA 

ODA individual commitments/gap to agreed targets 

-  Cyprus spent EUR 34 million on ODA in 2010 (preliminary), i.e. 20% of its GNI and 
met the 2010 0.17% ODA/GNI target. This was a nominal increase by 5% compared to 
2009.  Additional  efforts  are  needed  in  comparison  to  other  government  expenditure 
projects to reach the 2015 0.33% ODA/GNI target. 

-  Share of debt relief in ODA during the period 2004 – 2009: N/A 

Cyprus - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

2015 Target: 0.33

2010 Target: 0.17

ODA gap to 2015 target from 2010 level 
(EUR million)
35
Average annual increase needed:
7

0,29

0,26

0,31

0,23

0,20

0,20

0,20

0,17

0,19

0,19

0,18

0,18

0,17

0,03

0,09

0,15

0,12

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

EN 

19 

   EN 

 
 
 
 
 
 
 
 
 
-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 

2015" taken in 2010: None. 

-  Cyprus  is  committed  to  ensure  that  the  majority  of  Cypriot  ODA  goes  to  Africa. 
Almost 50% of Cypriot programme countries are countries of the African region. Given 
that  increases  in  the  volume  of  bilateral  assistance  are  distributed  evenly  between  the 
programme  countries,  this  implies  that  at  least  50%  of  the  aid  increases  in  bilateral 
assistance will be channelled to Africa. 

-  Almost 50% of Cypriot bilateral assistance is provided to LDCs. 

3.  SUPPORT  FOR/  USE  OF  INNOVATIVE  SOURCES  AND  MECHANISMS  OF 

FINANCING DEVELOPMENT  

-  Cyprus  supports  UNITAD  (medical  drug  financing  through  innovative  sources)  with 
EUR  0.4  million,  but  has  no  intention  to  step  up  efforts  in  the  area  of  innovative 
financing mechanisms. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Financial tools to support private investment: 

Investment guarantees: No 
Improvement of the overall banking system: No 

• 
• 
•  Microfinance/ access to financial services: No 
•  Risk management initiatives: No 
•  Blending: No 
•  Private public partnerships: No 
•  Business and investment climate: Yes 
• 
•  Export credits: No 
•  Scholarship on managerial and financial matters: Yes 

Investment facilities: No 

-  Cyprus  does  not  promote  the  adoption  of  internationally  agreed  principles  and 
standards  on  Corporate  Social  and  Environmental  Responsibility  by  European 
companies.  

-  Cyprus does not support the Kimberley process and the FAO Code of Conduct for 

Responsible Fisheries. 

-  New  initiatives  in  relation  to  including  social  and  environmental  clauses  in  ODA-

financed public procurements: None 

-  Cyprus has no current plans to implement solutions internally or in cooperation with 
third  countries  to  overcome  barriers  to  migrants  and  their  families'  access  to 
financial  services.  Cyprus’  development  and  migration  policies  are  currently  not 
interconnected. 

-  Cyprus does have robust and reliable data concerning the amounts and destination 

of remittances from the country. 

-  Cyprus  has  not  implemented  the  General  Principles  for  International  Remittances 

Services" agreed by the Committee on Payments and Settlements Systems (CPSS)  

5.  AID FOR TRADE 

No information available on Cyprus’ commitments for Aid for Trade 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

EN 

20 

   EN 

 
 
 
-  Cyprus  has  delivered  on  its  commitments  to  the  HIPC  and  MDRI  initiatives, 

including commitments towards IDA and the African Development Bank. 

-  Cyprus  sees  no  need  for  reform  of  the  international  architecture  for  the 

restructuring of sovereign debts.  

-  Cyprus has not planned specific interventions to prevent aggressive litigation against 

HIPCs. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  Cyprus  supported  country  ownership  in  2010  through  consultation  and 

coordination with partner countries. 

-  On  Conditionality.  Cyprus  has  carried  out  the  following  actions  on  conditionalities  in 

2010: harmonisation with other donors.  

-  On  Transparency  and  Predictability.  Cyprus  publicly  discloses  information  on  aid 

volume on a website.  

-  On  Alignment.  Cyprus  has  integrated  the  principles  of  the  Code  of  Conduct  on 
Complementarity  and  Division  of  Labour  in  strategies,  staff  guidance  and  programming 
processes/guidelines.  

-  On Harmonisation. Cyprus has arrangements in place for delegated cooperation. In fact, 
all projects funded by Cyprus Aid are implemented through delegated cooperation. There 
is a mechanism in place to track cases of delegated cooperation. 

-  On Mutual Accountability. Cyprus has not established a joint framework for monitoring 

joint commitments in priority countries. 

-  On Managing for Development  Results. Cyprus does not provide capacity support for 

Managing for Development Results. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Cyprus believes that the EU27 should speak with one voice in the IMF, World Bank 
and  the  main  multilateral  development  banks'  governing  bodies.  The  EU  Member-State 
holding the EU Presidency should communicate the EU position on behalf of all members 
after an intra EU preparatory meeting. 

-  Cyprus support stronger Brussels based coordination on issues related to the World 

Bank and MDB's. 

EN 

21 

   EN 

 
CZECH REPUBLIC  

POLICY FRAMEWORK  

The Principles for Providing Foreign Aid, the Bill on Foreign Development Cooperation and 
humanitarian  aid  and  the  objectives  contained  in  the  Concept  of  the  International 
Development  of  the  Czech  Republic  2008-2012  illustrate  the  extent  to  which  the  Czech 
Republic recognises development co-operation as a policy area in its own right.11 

In  the  past  ten  years,  the  Czech  Republic  introduced  a  number  of  major  changes  in  the 
concept  and  organisation  of  development  cooperation,  aimed  at  increasing  the  efficiency  of 
aid provided to partner countries and adapting it to the changing international environment. A 
turning  point  was  the  Czech  Republic's  accession to  the  European  Union  that  is  the  world's 
leading  provider  of  external  assistance.  The  Czech  Development  Agency  (CzDA)  is  an 
implementing body of the Czech Development Cooperation primarily focused on design and 
execution  of  bilateral  development  projects.  CzDA  has  been  in  operation  since  January  1, 
2008  and  was  re-established  by  the  Law  on  Development  Cooperation  and  Humanitarian 
Assistance  on  July  1,  2010.  12  Since  2010,  the  agency  reports  to  the  Ministry  of  Foreign 
Affairs in charge of coordination of Czech ODA13. 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax  administrations  in  developing  countries:  Czech  Republic  provides  aid  in  these 
fields  to  EU  Neighbourhood  Policy  countries  (support  to:  Tax  Administration  and 
Ministry of Finance through projects on administration of customs duties, customs control 
customs).  

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since 2010: (i) Double Taxation Conventions signed with Isle Of Man, Guernsey, British 
Virgin  Islands,  Bosnia  And  Herzegovina;  (iia)  DTC  under  negotiation  with  Jersey, 
Bermuda, San Marino, China, Hong Kong, Barbados, Denmark, (iib) Protocol to the DTC 
under  negotiation  with  Serbia,  Belgium,  Belarus;  (iii)  planned  with  Cayman  Islands, 
Seychelles. 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  

No 

11 Special DAC review 2007 
12 Czech development Agency (CzDA) http://www.czda.cz/?lang=en  
13 Peacebuilding within Czech Official Development, Assistance Initiative for Peacebuilding (IfP), a consortium 
led by International Alert and funded by the European Commission 
http://www.initiativeforpeacebuilding.eu/pdf/Peacebuilding_within_Czech_Official_development_assistance.pdf 

EN 

22 

   EN 

 
 
 
 
 
 
 
 
 
 
 
                                                 
 
•  OECD Convention on Combating Bribery of Foreign Officials  
• 
Yes 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
No 
•  Extractive Industry Transparency Initiative (EITI):  
No 
• 
No 
IMF Regional Technical Assistance Centres:  
• 
No 
International Tax Dialogue:  
• 
No 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

2.  SCALING UP ODA 

–  In 2010 the Czech Republic spent EUR 169 million (preliminary), i.e.0.12% of its GNI, 

the same level as in 2009 and short of the 0.17% target.  

–  Share of debt relief in ODA: N/A 

ODA Individual commitments and gap to target  

Czech Republic - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

ODA gap to 2015 target from 2010 level 
(EUR million)
410
Average annual increase needed:
82

0,26

0,30

0,22

0,17

0,12

2015 Target: 0.33

2010 Target: 0.17

1995

1996

1997

0,03
1998

0,03
1999

0,03
2000

0,11

0,11

0,12

0,11

0,12

0,12

0,12

0,12

0,13

0,12

0,07

0,05

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

EN 

23 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Czech Republic - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,01 

0,01 

0,01 

0,01 

0,01 

0,00 

0,00 

0,02 

-

0,10 

0,10 

0,11 

0,11 

0,10 

0,12 

0,12 

-

-

0,03 

0,03 

-

0,03 

0,05 

0,05 

-
-
1995

-
-
1996

-
-
1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Source: OECD/DAC data for 2002-2010 

-  "Realistic,  verifiable  actions  for  meeting  individual  ODA  commitments  until  2015" 
taken in 2010: Czech Republic established a multi-annual indicative timetable/minimum 
aid level commitment, approved by the national government.  

-  No measures taken nor planned to contribute to the EU27 target to channel at least 

50% of EU collective ODA increase to Africa. 

-  Czech  Republic  will  not  reach  the  target  of  0.15%-0.20%  ODA/GNI  to  LDCs  by 

2010 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Czech  Republic  does  not  intend  to  step  up  efforts  for  innovative  financing 

mechanisms with significant revenue generation potential 

-  Czech Republic did not use innovative financing mechanisms for development 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Financial tools to support private investment 

• 
Investment guarantees: Yes 
• 
Improvement of the overall banking system: No 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: No 
•  Blending: No 

EN 

24 

   EN 

 
 
 
 
 
 
•  Private public partnerships: No 
•  Business and investment climate: No 
• 
•  Export credits: Yes 

Investment facilities: Yes 

-  Czech  Republic  promotes  the  adoption  of  internationally  agreed  principles  and 
standards  on  Corporate  Social  and  Environmental  Responsibility  by  European 
companies.  Ministry  of  Foreign  Affairs  conducts  dialogue  with  some  major  Czech 
corporations  about  global  and 
issues.  Private  sector 
representatives  are  also  associate  members  of  the  Czech  Council  for  Development 
Cooperation. 

international  cooperation 

-  Czech Republic supports the Kimberley process and the FAO Code of Conduct for 

Responsible Fisheries 

-  New initiatives in 2010 to include social and environmental clauses in ODA-financed 
public  procurement:  Measures  according  to  paragraph  44  of  the  Public  Procurement 
Law  

-  Czech Republic did not implement solutions internally or in cooperation with third 
countries  to  overcome  barriers  to  migrants  and  their  families'  access  to  financial 
services.  However,  the  competent  authorities  of  the  Czech  Republic  closely  cooperate 
with the World Bank in the matter of International Remittance Service. 

5.  AID FOR TRADE 

Czech Republic, AfT Commitments (in EUR thousands) 

2006 

2007 

2008 

2009 

Trade-Related Assistance 

Trade Policy and Regulations 
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

Total Trade-Related Assistance

Wider Aid for Trade Agenda 

Trade Policy and Regulations 
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

Total Aid for Trade 

52 

124 

46 

0 

n/a 

52

52 

n/a 

n/a 

n/a 

n/a 

52 

0 

n/a 

124

n/a 

n/a 

n/a 

n/a 

n/a 

124 

53 

0 

0 

53 

0 

0 

46

46 

53 

0 

0 

0 

0 

0 

0 

0 

0 

46 

53 

Source: OECD CRS Database (latest update) 

EN 

25 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Czech Republic delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ 

AfDB) without delay. 

-  Actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-
income  countries:  Through  the  application  of  the  OECD  Principles  and  Guidelines  to 
Promote  Sustainable  Lending  Practices  in  the  Provision  of  Official  Export  Credits  to 
LICs. 

-  Czech  Republic  does  not  favour  reform  of  the  international  architecture  for 

restructuring of sovereign debts 

-  No specific intervention to prevent aggressive litigation against HIPCs (in particular 

to prevent the actions of "vulture funds"). 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010  and  beginning  2011,  development  cooperation  programming 

process with priority (programme) countries is under way. 

-  On Conditionality. In 2010, Czech Republic progressed by harmonising conditionalities 

with other donors and by reducing the number of conditionalities. 

-  On Transparency and Predictability. Czech Republic publicly discloses information on 

aid volumes through the Czech development Agency (CzDA) web site. 

-  On Alignment. Czech Republic partially integrated the principles of the Code of Conduct 

on Complementarity and Division of Labour in its development strategy. 
-  On Harmonisation. No arrangement in place on delegated cooperation. 
-  On Mutual Accountability. No joint framework for monitoring joint commitments.  
-  On  Managing  for  Development  Results.  Czech  Republic  does  not  provide  capacity 

building support for this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International Financial Institutions. Czech Republic supports a single EU Chair for the 
IMF  in  order  for  the  EU27  to  speak  with  one  voice.  For  instance,  to  coordinate  EU27 
positions on key policy issues. 

-  Czech  Republic  does  not  favour  stronger  Brussels  based  coordination  on  issues 

related to the World Bank and MDBs. 

EN 

26 

   EN 

 
 
 
 
  
DENMARK   

AT A GLANCE 

POLICY FRAMEWORK  
The Danish parliament adopted a new development policy in June 2010.14 The Government 
presents to parliament every year its plan and priorities for Danish development assistance for 
the coming five year period.15 The priorities of Denmark's development cooperation for years 
2011-2015  are  concentration  on  fewer  countries  (from  26  to  15  partner  countries)  and  five 
priority  sectors  –  i)  freedom,  democracy  and  human  rights,  ii)  growth  and  employment,  iii) 

14 http://www.um.dk/en/menu/DevelopmentPolicy/DanishDevelopmentPolicy/  
15 

http://www.um.dk/en/menu/DevelopmentPolicy/DanishDevelopmentPolicy/PrioritiesOfTheDanishGov
ernmentForDanishDevelopmentAssistance/  

EN 

27 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
                                                 
gender equality, iv) stability and fragility, and 5) environment and climate. During 2011-2013 
Denmark will maintain the same level of ODA in Danish krone, which implies a decrease of 
the  ODA/GNI  ratio  when  GNI  grows.  The  annual  budget  for  development  cooperation  is 
determined by the Government’s Finance Act.16 Administration of development assistance is 
the responsibility of the Ministry of Foreign Affairs.  

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support  to  reform  programmes  for  capacity  development  of  custom,  judiciary  and 
tax  administrations  in  developing  countries:  Denmark  provides  support  to  developing 
countries'  tax  policy  and  administration  (semi-autonomous  revenue  authorities  and 
ministries of finance) in Asia and ACP countries.  

-  Promotes the principles of good governance in tax matter: Yes 
-  New  Bilateral  Tax  Information  Exchange  Agreements  and  Double  Taxation 

Conventions of 2010: None  

-  State of ratification of/ adherence to international conventions/ initiatives on tax issues:  

IMF Regional Technical Assistance Centres: No 
International Tax Dialogue: No 
International Tax Compact: No 

• 
• 
• 
•  African Tax Administration Forum (ATAF): No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT): No 
• 
IMF Topical Trust Fund on Tax policy and administration: No 
•  United Nations Convention against Corruption (Merida): Yes 
•  OECD  Convention  on  Combating  Bribery  of  Foreign  Officials  in  International 

Business Transactions: Yes 

•  Stolen Assets Recovery initiative (STAR): No 
•  Extractive Industry Transparency Initiative (EITI): Yes 

2.  SCALING UP ODA 

ODA individual commitments/gap to agreed targets 

-  Denmark  has  since  many  year  exceeded  the  EU  2015  0.7%  ODA/GNI  target.  The 
Government  will  maintain  Danish  development  assistance  at  the  level  of  DKK  15.2 
billion annually over the period 2011-2013. Denmark spent EUR 2164 million on ODA 
in  2010  (preliminary),  i.e.  0.90%  in  2010  compared  to  0.88%  in  2009.  This  was  an 
increase by 4.3% in real terms compared to 2009.  

-  Debt relief made up only 3% of Danish ODA during the period 2004 - 2009 

16 DAC peer review Denmark 2007 

EN 

28 

   EN 

 
                                                 
Denmark - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

National Path

1,00

1,04

0,96

0,99

0,97

1,01

1,06

1,03

0,96

2015 Target: 0.70

2010 Target: 0.51

I

N
G

f
o
%
a
s
a
A
D
O

0,80

0,60

0,40

0,20

0,00

0,84

0,85

0,81

0,80

0,81

0,82

0,90

0,90

0,88

0,80

0,80

0,80

0,82

0,79

0,77

0,80

ODA gap to 2015 target from 2010 level 
(EUR million)
76
Average annual increase needed:
15

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

Denmark - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,02 

0,02 

0,03 

0,01 

0,01 

0,02 

0,04 

0,00 

0,01 

0,02 

0,05 

0,04 

0,04 

0,01 

0,01 

1,03 

0,95 

0,96 

1,00 

1,05 

1,01 

0,93 

0,84 

0,84 

0,79 

0,75 

0,77 

0,78 

0,87 

0,89 

0,10 

0,86 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

EN 

29 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 
2015" taken in 2010: The Danish government is committed to the 0.7% target. It expects 
the level of ODA/GNI to be 0.84% in 2011. 17 

-  Denmark is committed to ensure that the majority of Danish ODA goes to Africa.  
-  Denmark  will  continue  to  exceed  the  target  of  0.15%-0.20%  ODA/GNI  to  LDCs 

from 2010 onwards. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Denmark  has  not  implemented  any  innovative  financing  sources  and  mechanisms 

and has no plan to step up efforts in the area.  

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: Foreign Direct Investment 

FDI to Developing Countries

)
s
e
c
i
r
p
9
0
0
2
(

s
o
r
u
E
f
o

s
n
o

i
l
l
I

M

1,800 

1,600 

1,400 

1,200 

1,000 

800 

600 

400 

200 

-

Denmark

2003

94 

2004

417 

2005

27 

2006

362 

2007

1,637 

2008

1,597 

2009

430 

-  Financial tools to support private investment: 

Source: OECD/ DAC  

• 
Investment guarantees: Yes 
• 
Improvement of the overall banking system: No 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: No 
•  Blending: No 
•  Private public partnerships: Yes 
•  Business and investment climate: Yes 
• 
•  Export credits: Yes 

Investment facilities: Yes 

17 

EN 

http://www.um.dk/en/menu/DevelopmentPolicy/DanishDevelopmentPolicy/PrioritiesOfTheDanishGov
ernmentForDanishDevelopmentAssistance/  

30 

   EN 

 
 
 
 
 
 
 
                                                 
-  Denmark promotes the adoption of internationally agreed principles and standards 
on Corporate Social and Environmental Responsibility by European companies. See 
Box. 

Box  Innovative  Partnerships  for  Development  (IPD)  Programme:  The  IPD  Programme  offers  financial  and 
advisory support to partnerships between Danish companies and companies, organisations or public institutions 
in developing countries. The programme sets out to promote better working and living conditions for employees, 
their  families,  the  community  and  society  at  large  by  advancing  strategic  CSR  and  socially  responsible 
innovation. Partnerships must be within the framework of the Global Compact and the MDGs and must be long-
term sustainable. Partnership proposals are measured against six development impact criteria to ensure adequate 
development  impact.  The  maximum  support  provided  under  the  B2B  Programme  is  DKK5  million  (approx. 
EUR 670.000) to each partnership project. 

–  Denmark is a long-term donor to the UN Global Compact.  

–  New initiatives in relation to including social and environmental clauses in ODA-financed 

public procurements: N.A. 

–  Denmark  has  current  no  plans  to  implement  solutions  internally  or  in  cooperation  with 
third  countries  to  overcome  barriers  to  migrants  and  their  families'  access  to  financial 
services.  However,  Denmark  awaits  the  World  Bank’s  upcoming  study  on  migration, 
remittances and diaspora in Africa and EU recommendations which are expected in 2011.  

5.  AID FOR TRADE 

Denmark, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

2006 

2007 

2008 

2009 

0.268 

0.940 

5.621 

1.465 

47.845 

47.230 

67.317 

95.038 

0 

0 

0 

0 

Total Trade-Related Assistance

48.113

48.170

72.939 

96.503

Wider Aid for Trade Agenda 

Trade Policy and Regulations 
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

0.268 

0.940 

5.621 

1.465 

75.580 

136.160 

36.995 

63.382 

113.111 

117.951 

130.851 

186.367 

0 

0 

0 

0 

0 

0 

0 

0 

Total Aid for Trade 

188.959

255.050

173.468 

251.213

Source: OECD CRS Database (latest update) 

EN 

31 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Denmark  has  delivered  on  its  commitments  to  the  HIPC  and  MDRI  initiatives, 

- 

including commitments towards IDA and the African Development Bank 
In  addition,  Denmark  has  provided  DKK9  million  to  the  cancellation  of  Haiti´s 
multilateral debt. 

-  Denmark  sees  no  need  for  reform  of  the  international  architecture  for  the 
restructuring  of  sovereign  debts.  However,  Denmark  believes  that  non-Paris  Club 
creditors need to be involved in future restructuring and cancellation of LIC debt. 

-  No specific interventions to prevent aggressive litigation against HIPCs have been taken. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On Ownership. Denmark supported country ownership in 2010 through consultation and 
coordination with partner countries and by supporting partner capacity development. 
-  On Conditionality. Denmark has carried out the following actions on conditionalities in 

2010: harmonisation with other donors and making conditionalities public.  

-  On  Transparency  and  Predictability.  Denmark  publicly  discloses  information  on  aid 

volume on central and field office websites.  

-  On  Alignment.  Denmark  has  integrated  the  principles  of  the  Code  of  Conduct  on 
Complementarity  and  Division  of  Labour  in  strategies,  staff  guidance  and  programming 
processes/guidelines.  

-  On  Harmonisation.  Denmark  has  arrangements  in  place  for  delegated  cooperation. 
Denmark  was  approved  to  administer  EC  funds  in  the  indirect  centralised  management 
mode,  i.e.  delegated  cooperation  in  2010.  Denmark  subscribes  to  the  Nordic  Plus 
principles for delegated cooperation, where Nordic Plus countries have agreed to mutually 
approve each other as potential partners for delegated co-operation arrangements. There is 
no mechanism in place at headquarters level to track cases of delegated cooperation. 

-  On Mutual Accountability. Denmark has established a joint  framework  for  monitoring 

joint commitments in priority countries. 

-  On  Managing  for  Development  Results.  Denmark  provides  capacity  support  for 

Managing for Development Results. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Denmark believes that the EU27 should speak with one voice in the IMF, World Bank, 

the main multilateral development banks' governing bodies and the G20.  

EN 

32 

   EN 

 
 
 
ESTONIA  

POLICY FRAMEWORK  

Estonian  Development  Cooperation  started  in  1997,  with  budget  allocation  since  1998. 
Estonian  objectives  and  priorities  for  development  co-operation  policy  are  outlined  in  the 
"Principles of Estonian Development Cooperation” approved by the Riigikogu (Parliament) in 
January  2003  as  a  successor  of  the  previous  policy  document  "Principles  of  Development 
Cooperation for the Years 1999-2000”.  
The  Ministry  of  Foreign  Affairs18 
is  responsible  both  for  programming  and  for 
implementation  of  the  development  cooperation  policy.  Other  governmental  agencies 
implement specific projects in the scope of their competence. In January 2011, the Estonian 
Government  approved  Strategy  for  Estonian  development  cooperation  and  humanitarian  aid 
for  2011-2015  and  the  implementation  plan  of  the  development  plan  for  the  years  2011-
201219.  Detailed  information  on  Estonia's  bilateral  development  cooperation  activities  is 
available on the dedicated Ministry of Foreign Affairs website20.  

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax  administrations  in  developing  countries:  Estonia  provides  aid  in  these  fields  EU 
Neighbourhood  Policy  countries  (support  to:  Tax  Administrations  and  Ministries  of 
Finance). 

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 

since 2010: N/A 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

Yes 

Yes 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
No 
•  Extractive Industry Transparency Initiative (EITI):  
No 
• 
No 
IMF Regional Technical Assistance Centres:  
• 
No 
International Tax Dialogue:  
• 
No 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

http://www.vm.ee/?q=en/taxonomy/term/55  

18 
19 http://www.vm.ee/sites/default/files/arengukoostoo-humanitaarabi_arengukava_2011-2015.pdf       
20 https://rakendused.vm.ee/akta/index.php?language=eng  

EN 

33 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
2.  SCALING UP ODA 

–  Estonia's ODA/GNI was 0.10% in 2010, the same as in 2009, with a nominal increase of 
EUR  1  million  to  EUR  14  million  of  ODA  (preliminary).  This  falls  short  of  the  2010 
target of 0.17%, which the government has set as the minimum target for 2015.  

–  Share of debt relief in ODA: N/A 

ODA Individual commitments and gap to target  

Estonia - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

2015 Target: 0.33

2010 Target: 0.17

ODA gap to 2015 target from 2010 level 
(EUR million)
47
Average annual increase needed:
9

0,26

0,30

0,22

0,14

0,14

0,16

0,17

0,16

0,12

0,10

0,08

0,09

0,08

0,10

0,10

0,10

0,05

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

-  "Realistic, verifiable actions for meeting individual ODA commitments until 2015" 
taken in 2010: Estonia is striving for the 0,33% margin by having fixed a minimum level 
contribution  in  the  2011-2015  Strategy,  which  will  be  subject  to  yearly  updates  and 
possible upward corrections depending on the economic situation.     

-  No direct measures taken or planned to contribute to the EU27 target to channel at 
least 50% of EU collective ODA increase to Africa. With the increasing EU support to 
Africa, indirectly the share of Africa in Estonian ODA will increase as well.  From 2011 
Estonia also will contribute to the 10th EDF (European Development Fund).  

-  Estonia will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010 and 

onwards 

3.  SUPPORT  FOR/  USE  OF  INNOVATIVE  SOURCES  AND  MECHANISMS  OF 

FINANCING DEVELOPMENT  

- 

Innovative source of financing: ETS auctioning revenues 

EN 

34 

   EN 

 
 
 
 
 
 
 
 
 
 
-  Estonia needs to analyse the merits of innovative financing mechanisms with regard 

to the volume of Estonian aid. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Financial tools to support private investment 

Investment guarantees: Yes 
Improvement of the overall banking system: No 

• 
• 
•  Microfinance/ access to financial services: No 
•  Risk management initiatives: No 
•  Blending: Yes 
•  Private public partnerships: No 
•  Business and investment climate: Yes 
• 
•  Export credits: No 

Investment facilities: No 

-  Estonia  does  not  promote  the  adoption  of  internationally  agreed  principles  and 
standards  on  Corporate  Social  and  Environmental  Responsibility  by  European 
companies. 

-  No  new  initiatives  were  started  in  2010  to  include  social  and  environmental  clauses  in 

ODA-financed public procurement.  

-  Estonia did not implement solutions internally or in cooperation with third countries 
to overcome barriers to migrants to financial services. The small amount of migrants is 
the main reason why the flow of funds from migrant workers back to their families in their 
countries of origin has no dominant role in Estonian remittance market 

-  Estonia 

implemented  the  "General  Principles  for  International  Remittances 
Services"  agreed  by  the  Committee  on  Payments  and  Settlements  Systems  (CPSS). 
No other initiative as Estonia already has a safe and enforceable regulatory environment 
for the money remittance market (implementation of the PSD in the beginning of 2010 , 
the Estonian Anti-Money Laundering and Terrorist Financing Prevention Act …) 

-  Estonia  has  robust  and  reliable  data  concerning  the  amounts  and  destination  of 
remittances  from  Estonia.  Furthermore,  Estonia  adopted  the  operational  definitions, 
recommendations  and  best  practices  on  improving  the  quality  and  coverage  of  data  on 
remittances according to the compilation guide drafted by the "Luxembourg Group". 

EN 

35 

   EN 

 
 
 
5.  AID FOR TRADE 

Estonia, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

Total Trade-Related Assistance

Wider Aid for Trade Agenda 

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

Total Aid for Trade 

2006 

2007 

2008 

2009 

n/a 

n/a 

n/a 

n/a 

10

n/a 

n/a 

n/a 

n/a 

n/a 

10

n/a 

n/a 

36

n/a 

n/a 

n/a 

n/a 

n/a 

36

46 

32 

0 

78 

46 

320 

32 

0 

0 

13 

1 

0 

14

13 

320 

1 

0 

0 

398 

334

Source: OECD CRS Database (latest update) 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Estonia delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) 

without delay 

-  Actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-

income countries: increasing our contribution to the IDA by 41.1%. 

-  Estonia does not favour reform of the international architecture for restructuring of 

sovereign debts 

-  No specific intervention to prevent aggressive litigation against HIPCs (in particular 

to prevent the actions of "vulture funds"). 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

EN 

36 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Estonia  supported  ownership  through  consultations  and 
coordination  with  partner  countries,  through  guidance  and  incentives  for  staff  in  partner 
countries, and through partner capacity development  

-  On Conditionality. No Action 
-  On  Transparency  and  Predictability.  Estonia  publicly  discloses  information  on  aid 

volumes through the Estonian Development Cooperation web site 21 

-  On  Alignment.  Estonia  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy.  

-  On  Harmonisation.  Legal  and/or  administrative  arrangements  to  ensure  delegated 

cooperation are project based. 

-  On  Mutual  Accountability.  No  joint  framework  for  monitoring  joint  commitments. 
Mutual accountability is somewhat covered through the cooperation agreements with the 
priority target countries since 2011 

-  On  Managing  for  Development  Results.  Belgium  does  not  provide  capacity  building 

support for this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International Financial Institutions. Estonia supports a single EU Chair for the IMF in 
order  for  the  EU27  to  speak  with  one  voice.  Shareholders  have  sometimes  different 
perspectives  to  certain  issues,  so  "one  voice"  would  probably  be  going  too  far  and 
everything  does  not  need  to  be  intra-EU  coordinated.  In  some  areas  the  EU  common 
statements or position papers are of course useful or even necessary. Generally the EU27 
has a well-functioning internal coordination of views on main IMF policy issues; similar 
coordination  could  be  replicated  in  other  IFIs  if  current  coordination  is  viewed 
unsatisfactory in producing a coordinated understanding. As European countries belong to 
different constituencies at the IMF/WB/other MDBs, the strengthened coordination is the 
best way to increase the cohesiveness of the EU voice in the IFIs. 

-  Estonia favours stronger Brussels based coordination on issues related to the World 

Bank and MDBs. 

21 Via the webpage www.mfa.ee and more detailed Aid Database: 
https://rakendused.vm.ee/akta/index.php?language=eng 

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EUROPEAN COMMISSION  

AT A GLANCE  

POLICY FRAMEWORK  
Since 2006, the "European Consensus on Development"22 has defined the general framework 
for  the  action  of  the  Union  and  Member  States.  It  highlights  the  Commission’s  dual 
development role by clarifying its added value in relation to the Member States (its federating 
role) and by elaborating in its role as a donor. In addition, the Union is particularly committed 
to  honouring  the  United  Nations  Millennium  Development  Goals  (MDG),  for  which  the 
Union  has  put  in  place  various  instruments  that  will  also  help  reinforce  the  impact  of  its 
action23. In January 2011, the European Commission merged EuropeAid and the Directorate-
General for Development to create the EuropeAid Development and Cooperation Directorate-

22 Official Journal C 46 of 24.2.2006 
23 http://europa.eu/legislation_summaries/development/general_development_framework/index_en.htm 

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38 

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General.  The  goal  of  the  merger  is  to  create  a  single  voice  for  the  EU  on  development  and 
cooperation issues. 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax  administrations  in  developing  countries:  European  Commission  provides  aid  in 
these  fields  to  EU  candidate  countries,  EU  Neighbourhood  Policy  countries,  Asia,  Latin 
America  and  ACP  Countries  (support  to  administrations  and  policy  of:  Customs,  Semi-
autonomous  Revenue  Authorities  and  Ministries  of  Finance).  In  March  2011,  the 
European  Parliament  adopted  two  resolutions  urging  the  European  Union  to  impose  a 
financial transaction tax and give more tax-related development assistance to developing 
countries while combating fraudulent practices and tax evasion24. 

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since 2010: N/A. The specific issue as such is not relevant for the Commission since such 
bilateral  agreements  are  concluded  at  Member  State  level  as  they  fall  within  Member 
States' competence. However, it should be noted that the EU does have agreements with 
five third countries on the taxation of savings income. 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

No 

No 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
Yes 
•  Extractive Industry Transparency Initiative (EITI):  
Yes 
• 
Yes 
IMF Regional Technical Assistance Centres:  
• 
Yes 
International Tax Dialogue:  
• 
No 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
Yes 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

2.  SCALING UP ODA 

ODA Individual commitments and gap to target  

-  The EU institutions do not have a specific ODA targets, majority of the funds reported as 

ODA by the Commission are imputed to Member States.  

-  The EU institutions spent EUR 9804 million of ODA in 2010, a 0.8% increase in real 

terms on the 2009 figure of EUR 9654 million.  

24  http://www.europarl.europa.eu/en/pressroom/content/20110308IPR15028/html/Tax-reform-to-boost-revenue-

for-EU-and-developing-countries 

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39 

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EU institutions' ODA in nominal terms 

Net ODA from EU Institutions
(EUR million, 2008 prices)

 12 000

 10 000

 8 000

 6 000

 4 000

 2 000

 -

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2000-2010 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  The  European  Commission  intends  to  step  up  efforts  for  innovative  financing 
mechanisms  with  significant  revenue  generation  potential,  with  a  view  to  ensuring 
predictable  financing  for  sustainable  development.  At  the  Foreign  Affairs  Council 
(Defence & Development) in December 2010, the Council discussed innovative financing 
sources and mechanisms for development. The Commission stated that it would continue 
its work on the technical feasibility of such mechanisms and their potential impact. 

-  The  Commission  conducted  an  impact  assessment  on  new  financial  sector  taxes 
(notably a Financial Transaction Tax and a Financial Activities Tax) which was published 
on  March  2011.  Revenues  from  such  taxes  could  be  used  to  respond  to  global  and 
European challenges, such as development and the achievement of the MDGs, as well as 
efforts to tackle climate change 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 
-  Financial tools to support private investment 

Investment guarantees: Yes 
Improvement of the overall banking system: Yes 

• 
• 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: Yes 
•  Blending: Yes 
•  Private public partnerships: No 
•  Business and investment climate: Yes 
• 
•  Export credits: No 

Investment facilities: Yes 

-  The  European  Commission  promotes  the  adoption  of  internationally  agreed 
principles and standards on Corporate Social and Environmental Responsibility by 
European  companies.  The  Commission  intends  to  continue  to  promote  CSR  and  other 
sustainability  oriented  scheme  as  a  voluntary  concept,  with  an  emphasis  on  dialogue 
between  stakeholders.  It  promotes  international  benchmarks  for  CSR  such  as  the  UN 
MDGs, the ILO tripartite declaration of principles, the OECD guidelines for multinational 

EN 

40 

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enterprises,  the  UN  principles  for  sustainable  investment  and  the  UN  Global  Compact. 
The  EU  also  aims  include  sustainable  development  chapters,  with  provisions  on 
environment and labour, in all bilateral trade agreements. 

-  The  European  Commission  supports  the  Kimberley  process  and  the  FAO  Code  of 

Conduct for Responsible Fisheries. 

-  No  new  initiatives  were  started  in  2010  to  include  social  and  environmental  clauses  in 

ODA-financed public procurement.  

-  The European Commission did not implement solutions internally or in cooperation 
with  third  countries  to  overcome  barriers  to  migrants  and  their  families'  access  to 
financial  services.  The  Commission  is,  though,  implementing  programmes  in  partner 
countries  with  the  aim  of  developing  the  financial  sector  (e.g.  microfinance,  technical 
assistance on financial sector regulation and supervision) and improving financial literacy 
in order to familiarise households receiving remittances with banking services.  

5.  AID FOR TRADE 

European Commission, AfT Commitments (in EUR thousands) 

2006 

2007 

2008 

2009 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

327 695 

212 452 

238 095 

315 655 

574 519 

569 858 

317 330 

262 995 

0 

249 830 

451 526 

332 496 

Total Trade-Related Assistance

902 214

1 032 140

1 006 951 

911 146

Wider Aid for Trade Agenda 

Trade Policy and Regulations 
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs 
(category 6) 

327 695 

212 452 

238 095 

315 655 

1 312 274 

1 111 541 

1 661 064 

1 118 032 

922 630 

862 039 

701 599 

1 567 413 

0 

0 

0 

4 037 

11 312 

249 830 

451 526 

332 496 

Total Aid for Trade 

2 562 598

2 435 862

3 056 322 

3 344 907

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

ource: OECD CRS Database (latest update) 

-  The  European  Commission  delivered  on  its  HIPC/  MDRI  commitments  (including 

vis-à-vis IDA/ AfDB) without delay. 

S

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41 

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-  Actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-
income countries: committing EUR 3 Million for the WB DMF and EUR 3 Million to the 
UNCTAD DMFAS. Financing agreements should be signed early 2011. 

-  The  European  Commission  favours  reform  of  the  international  architecture  for 
restructuring  of  sovereign  debts  in  order  to  deal  with  potential  future  cases  of    debt 
distress  in  low-income  countries  (through  the  Paris  Club  with  a  role  for  International 
Financial Institutions, and through collective action clauses in debt contracts). 

-  Specific  intervention  to  prevent  aggressive  litigation  against  HIPCs  (in  particular  to 
prevent  the  actions  of  "vulture  funds"):  The  European  Commission  is  considering  using 
the  "African  Legal  Support  Facility"  to  provide  ad  hoc  legal  advice,  on  demand,  to 
countries. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  the  European  Commission  supported  ownership  through 
consultations  and  coordination  with  partner  countries  and  through  partner  capacity 
development.  

-  On  Conditionality.  In  2010,  the  European  Commission  progressed  by  harmonising 

conditionalities with other donors and by reducing the number of conditionalities. 

-  On  Transparency  and  Predictability.  The  European  Commission  publicly  discloses 
information on aid volumes through its Development Cooperation web site 25 and through 
the website of field offices. Data are also available in the Annual Report on development 
policies  and  external  assistance  which  is  widely  disseminated  (to  Delegations,  national 
development agencies, Parliaments and ministers, stakeholders, etc.). 

-  On Alignment. The European Commission partially integrated the principles of the Code 
of Conduct on Complementarity and Division of Labour in its development strategy. 
-  On  Harmonisation.  Guidelines  have  been  developed  in  December  and  templates  for 
Delegation  and  Transfer  Agreements  have  been  approved  in  and  further  fine  tuned  the 
past years. 

-  On Mutual Accountability. The European Commission established a joint framework for 
monitoring  joint  commitments  with  some  of  its  priority  countries.  The  European 
Commission is waiting for the Paris Survey outcome to confirm its position.  

-  On  Managing  for  Development  Results.  The  European  Commission  provides  capacity 

building support for this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International  Financial  Institutions.  The  European  Commission  is  in  favour  of  an  EU 
single seat in the IFIs as a long term ultimate objective to represent the European Union 
with a single voice. The European Commission have been giving support to this solution 
for  years  (as  reflected  in  several  official  Commission's  documents,  such  as  written 
statements by Commissioners L. Michel and P. Nielson and the Council's conclusions on 
Monterrey  or  the  report  "EMU  at  10").  There  is  work  to  do  to  deepen  and  broaden  the 
coordination between EU Member States, in order to strengthen Europe's voice in the IFIs 
though  a  consolidated  and  less  fragmented  European  representation.  However,  the 

25 http://ec.europa.eu/europeaid/how/delivering-aid/monterrey_en.htm 

EN 

42 

   EN 

 
                                                 
Commission  warns  against  rushing  into  intermediate  solutions,  and  instead  favours  a 
package-based approach to such issues. 

-  The  European  Commission  favours  stronger  Brussels  based  coordination  on  issues 

related to the World Bank and MDBs. 

EN 

43 

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FINLAND 

AT A GLANCE 

POLICY FRAMEWORK  

Finland’s development co-operation is based on annual state budgets and guiding documents 
rather  than  being  enshrined  in  law.26  The  current  overarching  strategic  document  is  a 
government  resolution  on  development  policy  from  October  2007.27  In  it  the  government 
states that it will ensure that Finland’s ODA reaches 0.51% of GNI in 2010 and 0.7% in 2015. 
Poverty reduction is the overall objective, but there is no particular sectoral focus. Finland has 
eight long-term partner countries and five partner countries recovering from violent crises.28 

26 OECD DAC Peer Review Finland 2007 
27 http://formin.finland.fi/public/default.aspx?contentid=107497  
28 http://formin.finland.fi/public/default.aspx?nodeid=15359&contentlan=2&culture=en-US  

EN 

44 

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Finland’s  development  policy  is  formulated,  planned  and  implemented  by  the  Ministry  for 
Foreign Affairs.29  

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support  to  reform  programmes  for  capacity  development  of  custom,  judiciary  and 
tax  administrations  in  developing  countries:  Finland  provides  support  to  developing 
countries'  tax  policy  and  administration  to  ministries  of  finance  in  ACP  countries.  In 
addition, support is provided to national governments, audit institutions and civil society 
organisations to strengthen public financial management.  

-  Promotes  the  principles  of  good  governance  in  tax  matter:  Yes,  in  budget  support 

dialogue. 

-  New  Bilateral  Tax  Information  Exchange  Agreements  and  Double  Taxation 

Conventions of 2010: None  

-  State of ratification of/ adherence to international conventions/ initiatives on tax issues: 

IMF Regional Technical Assistance Centres: No 
International Tax Dialogue: No 
International Tax Compact: No 

• 
• 
• 
•  African Tax Administration Forum (ATAF): No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT): No 
• 
IMF Topical Trust Fund on Tax policy and administration: No 
•  United Nations Convention against Corruption (Merida): Yes 
•  OECD  Convention  on  Combating  Bribery  of  Foreign  Officials  in  International 

Business Transactions: Yes 

•  Stolen Assets Recovery initiative (STAR): No 
•  Extractive Industry Transparency Initiative (EITI): Yes 

2.  SCALING UP ODA 

ODA individual commitments/gap to agreed targets 

-  Finland  spent  EUR  1008  million  on  ODA  in  2010  (preliminary),  a  6.9%  increase  in 

real terms compared to 2009,i.e. 0.55% of its GNI, up from 0.54% in 2009.  

-  Debt relief made up only 3% of Finnish ODA during the period 2004 - 2009 

29 http://formin.finland.fi/public/default.aspx?contentid=107497  

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45 

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Finland - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

2015 Target: 0.70

2010 Target: 0.51

0,31

0,33

0,32

0,33

0,31

0,31

0,32

0,35

0,35

0,37

0,46

0,44

0,40

0,39

0,62

0,59

0,55

0,65

0,70

0,68

0,54

0,55

0,56

0,56

0,56

0,55

ODA gap to 2015 target from 2010 level 
(EUR million)
616
Average annual increase needed:
123

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

Finland - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

-

-

0,08 

-

-

0,00 

0,54 

0,55 

0,38 

0,40 

0,39 

0,44 

-

0,02 

-

0,00 

0,03 

-

0,00 

0,00 

-

0,01 

0,33 

0,29 

0,32 

0,31 

0,30 

0,31 

0,32 

0,35 

0,35 

0,35 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 
2015"  taken  in  2010:  The  Finnish  Development  Policy  Programme,  i.e.  Government 

EN 

46 

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Decision-in-Principle,  stated  the  commitment  to  ensuring  the  development  cooperation 
appropriations which will take Finland towards 0.7% GNI set by the UN and that Finland 
is committed to achieve the target 0.51% in 2010 as established in the European council’s 
decision.  The  Ministry  for  Foreign  Affairs  has  based  its  forward  planning  on  that 
commitment.  However,  the  figures  indicated  above  as  total  ODA  are  based  on  the 
budgetary spending limits for the MFA of Finland exercised development assistance that 
were set by the Government for the years 2011-2014, adding to it an estimate of the ODA 
implemented by other ministries. According to the Government decision of the spending 
limits for 2011-2014 (March 2010) Finland’s ODA will increase up to 0.58% of GNI in 
2011.  In  the  Government  decision  considering  the  years  2012-2014  a  technical 
assumption  is  made  that  the  percentage  value  of  0.58%  remains.  However,  in  the 
Government decision it is stated that Finland is committed to increasing ODA towards the 
0.7% target. Finland holds parliamentary elections in April 2011 and the next government 
will decide on spending limits for 2012-2015. The spending limits will be reviewed during 
inter-ministerial budget frame negotiations and confirmed through a Government decision 
in autumn 2011. 
In budgeting at least 50% of Finland’s development aid which is targeted by country 
or region will be allocated to Africa. 

- 

-  Finland  will  meet  the  target  of  0.15%-0.20%  ODA/GNI  to  LDCs  by  2010  and 

onwards. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Finland does not support any innovative financing mechanisms and has no plans to 

do so.  

-  However, Finland supports the EU proposal to make a comprehensive assessment of the 
feasibility  of  a  Financial  Activity  Tax  (FAT)  and  Financial  Transactions  Tax  (FTT). 
Finland  also  recognises  that  it  is  essential  to  study  further  innovative  financing 
mechanisms in the context of reaching its ODA target, since public aid will not be enough. 
Finland’s  Minister  for  Foreign  Trade  and  Development  set  up  a  Working  Group  on 
Financing for Development in April 2010. The WG handed over the report to the Minister 
in December 2010. The WG gave recommendations for the Finnish Government on how 
to expand the base of development funding and enhance cooperation among various actors 
in society. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

Foreign Direct Investment 

EN 

47 

   EN 

 
 
FDI to Developing Countries

600 

500 

400 

300 

200 

100 

-

)
s
e
c
i
r
p
9
0
0
2
(

s
o
r
u
E
f
o

s
n
o

i
l
l
I

M

-100 

Finland

2003

69 

2004

483 

2005

120 

2006

320 

2007

8 

2008

-22 

2009

568 

-  Financial tools to support private investment: 

Source: OECD/ DAC  

Investment guarantees: Yes 
Improvement of the overall banking system: Yes 

• 
• 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: Yes 
•  Blending: No 
•  Private public partnerships: Yes 
•  Business and investment climate: Yes 
• 
•  Export credits: Yes 

Investment facilities: Yes 

-  Finland promotes the adoption of internationally agreed principles and standards on 
Corporate Social and Environmental Responsibility by European companies. Finland 
promotes  CSER  principles  in  its  cooperation  with  the  private  sector,  most  notably  as 
eligibility criteria of Finnpartnership. Finland also supports the UN Global Compact with 
ODA funds to the amount of EUR 200,000 per year (latest contribution in 2010).  

-  Finland  has  ratified  the  agreement  of  the  Kimberley  Process  and  participates  in  the 
Kimberley Process as a Member State of the European Union. Finland supports the EITI 
Multi-Donor Trust Fund to the amount of EUR 1.3 million during 2009–2011 

-  New  initiatives  in  relation  to  including  social  and  environmental  clauses  in  ODA-
financed  public  procurements:  Social  and  environmental  aspects  are  included  in 
development  of  new  case  management  process software within the Ministry for Foreign 
Affairs. 

-  Finland  has  currently  no  plans  to  implement  solutions  internally  or  in  cooperation 
with  third  countries  to  overcome  barriers  to  migrants  and  their  families'  access  to 
financial services. The share of remittance services of the overall payment transmission 
from  Finland  is  minor,  the  bulk  of  payments  are  transferred  via  banking  channels. 

EN 

48 

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Furthermore, there are no indications that the current payment services would not satisfy 
the needs of migrants. Thus, no further action is considered necessary.  

-  Finland  has  not  implemented  the  General  Principles  for  International  Remittances 
Services" agreed by the Committee on Payments and Settlements Systems (CPSS). 

5.  AID FOR TRADE 

Finland, AfT Commitments (EUR million) 

Trade-Related Assistance 

Trade Policy and Regulations 
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

2006 

2007 

2008 

2009 

3 340 

1 603 

9 141 

8 448 

29 484 

N/A 

42 304 

82 501 

0 

0 

0 

0 

Total Trade-Related Assistance

32 824

1 603

51 445 

90 950

Wider Aid for Trade Agenda 

Trade Policy and Regulations 
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

3 340 

1 603 

9 141 

8 448 

20 897 

8 070 

14 443 

123 189 

39 858 

74 762 

111 764 

124 280 

0 

0 

0 

0 

0 

0 

0 

0 

Total Aid for Trade 

64 095

84 436

135 347 

255 917

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

Source: OECD CRS Database (latest update) 

-  Finland  has  delivered  on  its  commitments  to  the  HIPC  and  MDRI  initiatives, 

including commitments towards IDA and the African Development Bank. 

-  Finland  sees  no  need  for  reform  of  the  international  architecture  for  the 

restructuring of sovereign debts.  

-  Finland  has  planned  no  specific  interventions  to  prevent  aggressive  litigation  against 

HIPCs. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

EN 

49 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-  On  Ownership.  Finland  supported  country  ownership  in  2010  through  consultation  and 
coordination with partner countries, guidance and incentives for staff in partner countries 
and by supporting partner capacity development. 

-  On  Conditionality.  Finland  has  carried  out  the  following  actions  on  conditionalities  in 

2010: harmonisation with other donors and making conditionalities public.  

such  a  mechanism  exists,  data 

-  On  Transparency  and  Predictability.  Finland  publicly  discloses  information  on  aid 
volume  on  the  internet  both  at  headquarters  and  at  the  field  level.  Disclosure  of 
information at country level depends on the existence of an appropriate common database. 
(e.g.  public  webpage 
When 
www.odamoz.org.mz in Mozambique, local Ministry homepages in Kenya). The Ministry 
for Foreign Affairs launched in December 2010 a publication on Finland’s ODA statistics, 
which serves to provide information to domestic stakeholders on the use of public ODA. 
-  On Alignment. Finland has partially integrated the principles of the Code of Conduct on 
Complementarity  and  Division  of  Labour  in  strategies,  staff  guidance  and  programming 
processes/guidelines.  The  Ministry  for  Foreign  Affairs  is  currently  revising  the 
cooperation manuals and guidelines.  

is  provided 

-  On  Harmonisation.  Within  the  Nordic  Plus  group,  arrangements  are  in  place  to  enable 
delegated  cooperation.  As  regards  the  EC,  Finland’s  assessment  procedure  for  indirect 
centralised  management  was  finalised  in  June  2010,  providing  a  framework  for 
cooperation between the MFA and the EC in this regard. There is a mechanism in place to 
track cases of delegated cooperation. The following list covers the delegated cooperation 
arrangements, whereby other donors’ funds are included into MFA/Finland’s ODA budget 
for 2010: 

Recipient country  Partner  for  delegated 

Modality/explanation 

Nicaragua 

Mekong 

Southern  and  East-
Africa  

Mozambique 

Mozambique 

Nicaragua 

cooperation 
UK/DFID 

Nordic  Development 
Fund (NDF) 
Austrian  Development 
Agency (ADA) 

Embassy  of    Denmark 
in Maputo 
Embassy  of  Canada  in 
Maputo 
MFA of Norway  

Trade, Promoviendo la Equidad Mediante el 
Crecimiento Económico  (PROPEMCE)  
Energy 
and  Environment 
programme 
Energy 
programme 

and  Environment 

partnership 

partnership 

Education sector 

Rural development, PROAGRI II  

Rural development, PRORURAL 

-  On  Mutual  Accountability.  Finland  has  established  a  joint  framework  for  monitoring 

joint commitments in Kenya, Mozambique, Nicaragua, Tanzania and Zambia. 

-  On  Managing  for  Development  Results.  Finland  provides  capacity  support  for 

Managing for Development Results. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Finland does not share the view that EU27 should speak with one voice in the IMF, 
World  Bank  and  the  main  multilateral  development  banks'  governing  bodies,  since  the 
current governance system based on constituency groups, some of which consist of both 
EU and non-EU countries, does not favour such an objective. 

-  Finland  supports stronger Brussels based  coordination on a regular basis on  issues 

related to the World Bank and MDBs.  

EN 

50 

   EN 

 
 
 
 
FRANCE  

AT A GLANCE  

POLICY FRAMEWORK  

Responsibilities and tools are shared among the three main players: The Directorate-General 
for  International  Co-operation  and  Development  (DGCID)  of  the  Ministry  of  Foreign  and 
European  Affairs  (MAEE),  the  Directorate-General  of  the  Treasury  and  Economic  Policy 
(DGTPE)  which  of  the  Ministry  of  Economy, Finance and Employment  (MINEFE) and  the 
French  Development  Agency  (AFD),  a  government  agency  that  reports  to  these  two 
ministries; in addition there are several entities and co-ordination structures to ensure overall 
coherence. The DGTPE has institutional responsibility for the multilateral development banks 
and  certain  thematic  funds,  while  the  MAEE  manages  funds  earmarked  for  United  Nations 
institutions and health sector funds.  

AFD  Group’s  three-year  Business  Plan  for  2011-2013  is  in  line  with  France’s  new  budget 
framework,  which  now  presents  State  missions,  including  official  development  assistance 

EN 

51 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
(ODA), for a three-year period. This ensures greater visibility for France’s aid. This Business 
Plan is based on the forecasts of the three-year Finance Law for 2011-201330.  

The CICID (Comité interministériel de la Coopération internationale et du Développement or 
French  Interministerial  Committee  for  International  Cooperation  and  Development)  defines 
the  sector  strategic  orientations  of  France’s  public  economic  development  assistance  policy 
and  geographic  priorities.  The  CICID  meeting  on  June  5th,  2009  voted  a  set  of  measures 
designed  to  improve  French  assistance’s  effectiveness  and  targeting  in  a  context  marked  by 
the contagion of the global crisis’ effects on countries in development31. 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax administrations in developing countries: France provides aid in these fields to EU 
candidate countries, EU Neighbourhood Policy countries, Asia, Latin America and ACP 
Countries (support to administrations and policy of: Customs, Semi-autonomous Revenue 
Authorities and Ministries of Finance).  

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since 2010: (i) Double Taxation Conventions signed with Uruguay, Antigua and Barbuda, 
Grenada, St Kitts et Nevis, St Lucia, Saint-Vincent et Grenadines, Antilles néerlandaises, 
Cook  Islands,  Belize,  Costa Rica,  Dominique, Brunei, Anguilla, Hong Kong ; (ii) under 
negotiation with Aruba, Liberia, (iii) planned with Philippines, Nauru. 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

Yes 

Yes 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
Yes 
•  Extractive Industry Transparency Initiative (EITI):  
Yes 
• 
Yes 
IMF Regional Technical Assistance Centres:  
• 
Yes 
International Tax Dialogue:  
• 
Yes 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
Yes 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   Yes 
• 
Yes 

IMF Topical Trust Fund on Tax policy and administration:  

2.  SCALING UP ODA 

ODA Individual commitments and gap to target 

30 Le Budget Pluriannuel De L’Etat 2011-2013, 
www.budget.gouv.fr/themes/finances_publiques/document_dofip2010.pdf  and  Plan d’Affaires 2009-2011 
,http://www.afd.fr/jahia/Jahia/lang/en/home/publications/Publications-institutionnelles/programme-d-activite  
31 

http://www.diplomatie.gouv.fr/en/france-priorities_1/development-and-humanitarian-

action_2108/institutions-and-issues-of-development-economic-assistance_7404/index.html 

EN 

52 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
-  France has increased the share of its GNI dedicated to Official Development Assistance 
(ODA)  from  0.47%  of  GNI  in  2009  to  EUR  9751  million  (preliminary),  i.e.  0.50%  in 
2010, nearly meeting the EU target. 

-  Debt relief made up 25% of French ODA during the period 2004 – 2009, the largest 

debt reduction operations being for Nigeria (2005-2006) and Iraq (2005-2008).  

France - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

2015 Target: 0.70

0,55

0,48

0,44

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

2010 Target: 0.51

0,47

0,47

0,47

0,38

0,38

0,40

0,41

0,37

0,38

0,39

0,30

0,31

0,63

0,67

0,70

0,59

0,54

0.52 (*)

0,47

0,48

0,42

0,50

0,50

ODA gap to 2015 target from 2010 level 
(EUR million)
6,339
Average annual increase needed:
1,268

(*)  France submitted a range between 
0 42 and 0 52% of GNI as its estimate for 2013

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

France - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,10 

0,09 

0,11 

0,44 

0,39 

0,06 

0,11 

0,17 

0,17 

0,10 

0,04 

0,07 

0,08 

0,08 

0,11 

0,17 

0,06 

0,05 

0,33 

0,30 

0,30 

0,31 

0,30 

0,30 

0,31 

0,25 

0,26 

0,27 

0,24 

0,44 

0,34 

0,36 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

EN 

53 

   EN 

 
 
 
 
 
 
 
 
 
 
-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 

- 

2015" taken in 2010: None. 
In  2009,  ODA  (bilateral  and  multilateral)  attributed  to  Africa  has  increased  and 
represents 55.8% of total net ODA. France has formally reaffirmed its commitment to 
Africa,  during  the  meeting  of  the  Interministerial  Committee  for  International 
Cooperation and Development. The 14 priority countries for the geographic concentration 
of French Aid are all sub-Saharan countries: these countries will receive 50% of grants 
allocated  to  helping  to  achieve  the  MDGs  (not  including  interventions  in  countries 
emerging from crisis and subsidies). 

-  France  will  not  meet  the  target  of  0.15%-0.20%  ODA/GNI  to  LDCs  by  2010  and 
onwards,  though  total  French  ODA  (bilateral  and  multilateral)  for  LDCs  has  increased 
from 0.11% in 2008 to 0.12% of GNI in 2009 and 0.13% in 2010. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

–  Innovative  source  of  financing:  Airline  Ticket  Tax/contribution,  ETS  auctioning 
revenues,  International  Financing  Facility  for  Immunisation  (IFFIm),  Advance  Market 
Commitments (AMCs), Debt2Health 

–  France intends to step up efforts for innovative financing mechanisms with significant 
revenue  generation  potential.  Among  the  avenues  explored  by  the  Leading  Group  on 
Innovative  Financing  (63  countries  and  the  European  Commission),  France  supports  the 
idea of taxing financial transactions 32. Next steps: UN, G20 and Europe. 

–  Further  work  on  innovative  financing  mechanism:  One  of  the  challenges  is  to 
distinguish  between  technical  issues  and  political  opportunity.  The  Leading  Group  has 
entrusted a study on activities that have benefited from globalisation in order to determine 
how such activities can contribute to Development. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries:  

Foreign Direct Investment: 

32 Groupe pilote sur les financements innovants pour le développement, 

http://www.leadinggroup.org/rubrique1.html 

EN 

54 

   EN 

 
 
 
 
                                                 
FDI to Developing Countries

18,000 

16,000 

14,000 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

)
s
e
c
i
r
p
9
0
0
2
(

s
o
r
u
E
f
o

s
n
o

i
l
l
I

M

-

France

2003

603 

2004

1,235 

2005

5,516 

2006

8,436 

2007

10,473 

2008

17,061 

2009

11,705 

-  Financial tools to support private investment 

Source: OECD/ DAC  

Investment guarantees: Yes 
Improvement of the overall banking system: Yes 

• 
• 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: Yes 
•  Blending: Yes 
•  Private public partnerships: Yes 
•  Business and investment climate: Yes 
• 
•  Export credits: Yes 

Investment facilities: Yes 

-  France promotes the adoption of internationally agreed principles and standards on 
Corporate Social and Environmental Responsibility by European companies. France 
supports initiatives such as the Global Compact, the recently adopted ISO 26000, or the 
EITI in the mining industry and mining. France is implementing the OECD guidelines for 
multinational companies. France promotes the adoption of regional/ sectoral commitments 
such as the Declaration adopted by African and French companies after the France-Africa 
Summit of 2010. 

-  No  new  initiatives  were  started  in  2010  to  include  social  and  environmental  clauses  in 

ODA-financed public procurement 

-  France  has  implemented  solutions  internally  or  in  cooperation  with  third  countries 
to  overcome  barriers  to  migrants  and  their  families'  access  to  financial  services. 
Though there are no monitoring indicators for measuring the impact of these solutions on 
migrants'  access  to  financial  services,  remittance  transfer  costs  and  remittance  transfers 
volumes. 

-  France 

implemented  the  "General  Principles  for  International  Remittances 
Services" agreed by the Committee on Payments and Settlements Systems (CPSS). In 

EN 

55 

   EN 

 
 
 
 
 
 
 
the meanwhile, France does not have robust and reliable data concerning the amounts and 
destination of remittances from France 

5.  AID FOR TRADE 

France, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

2006 

2007 

2008 

2009 

400 

3 295 

2 671 

2 036 

105 774 

211 646 

13 809 

81 534 

0 

0 

0 

0 

Total Trade-Related Assistance

106 174

214 941

16 479 

83 571 

Wider Aid for Trade Agenda 

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

400 

3 295 

2 671 

2 036 

412 237 

412 657 

1 142 527 

576 485 

331 759 

600 822 

593 016 

511 581 

0 

0 

0 

0 

0 

0 

0 

0 

Total Aid for Trade 

744 395

1 016 774

1 738 213 

1 090 103

Source: OECD CRS Database (latest update) 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  France  delivered  on  its  HIPC/  MDRI  commitments  (including  vis-à-vis  IDA/  AfDB) 

without delay 

-  Actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-
income  countries:  implementing  a  lending  policy  that  respects  existing  international 
commitments  to  maintain  a  sustainable  medium-term  debt  of  recipient  countries  (under 
the  Debt  Sustainability  IMF  and  the  World  Bank,  Principles  and  Guidelines  OECD  on 
export  credit  sustainable).  France  also  supports  international  efforts  to  improve  debt 
management by Developing Countries (such as the African Legal Support Facility and the 
DMFAS Programme, UNCTAD) 

-  France  favours  reform  of  the  international  architecture  for  restructuring  of 
sovereign debts in order to deal with potential future cases of  debt distress in low-income 
countries (through the Paris Club with a role for International Financial Institutions, and 
through collective action clauses in debt contracts) 

-  Specific interventions to prevent aggressive litigation against HIPCs (in particular to 

prevent the actions of "vulture funds"): No. 

EN 

56 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  France  supported  ownership  through  consultations  and 
coordination  with  partner  countries  in  particular  through  the  Partnership  Framework 
Document (DCP)  

-  On  Conditionality.  In  2010,  France  progressed  by  reducing 

the  number  of 

conditionalities. 

-  On  Transparency  and  Predictability.  France  publicly  discloses  information  on  aid 
volumes  through  the  site  "performance-publique.gouv"  providing  the  citizen  all  budget 
documents,  including  the  Policy  Document  section  on  French  politics  for  development 
(inc. ODA forecasts 2011-2013) 33 

-  On  Alignment.  France  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy. 

-  On Harmonisation. The French Development Agency (AFD) was certified in June 2009 
with  the  European  Commission  to  qualify  for  management  delegations  of  the  European 
Commission.  At  the  end  of  November  2010,  eleven  management  delegations  were  in 
progress  for  the  benefit  of  the  AFD,  for  a  total  of  EUR  53,9  million.  The  funds  were 
disbursed  for  five  of  them  in  a  variety  of  sectors  and  countries:  Mali  agriculture,  food 
security in Haiti and Senegal, to support the Economic Partnership Agreements (EPAs) in 
Senegal… 

-  On  Mutual  Accountability.  France  established  a  joint  framework  for  monitoring  joint 

commitments. 

-  On  Managing  for  Development  Results.  France  does  not  provide  capacity  building 

support for this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International Financial Institutions. France does not support a single EU Chair for the 
IMF in order for the EU27 to speak with one voice. 

-  France favours stronger Brussels based coordination on issues related to the World 

Bank and MDBs 

33 http://www.performance-publique.gouv.fr/ 

EN 

57 

   EN 

 
 
                                                 
GERMANY   

AT A GLANCE 

POLICY FRAMEWORK  

Germany’s  development  co-operation  policy  is  underpinned  by  the  budgetary  procedure  (in 
particular the budget act passed by the Bundestag each year) and the Coalition Agreement that 
covers each legislative period.34 The latest Coalition Agreement (2009) defines the following 
key sectors  for  German development  cooperation: good governance, education and training, 
health,  rural  development,  protection  of  the  climate,  the  environment  and  natural  resources, 
and  economic  cooperation.35  The  Agreement  expresses  a  willingness  to  work  towards 
achieving  the  0.7%  ODA/GNI  target.  Policy  making  and  oversight  of  German  development 

34 OECD DAC Peer Reviews Germany 2010 
35 http://www.bmz.de/en/what_we_do/principles/koalitionsvertrag/index.html  

EN 

58 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
cooperation  is  vested  in  the  Federal  Ministry  for  Economic  Co-operation  and  Development 
(BMZ),  with  implementation  carried  out  by  a  range  of  different  ministries,  federal  states 
(Länder), agencies and organisations. The government intends to carry out organisational and 
structural reforms of the German aid structure, a first step being the consolidation of German 
technical cooperation organisations36. 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support  to  reform  programmes  for  capacity  development  of  custom,  judiciary  and 
tax  administrations  in  developing  countries:  Germany  provides  support  to  developing 
countries'  tax  policy  and  administration,  tax  consultancy,  tax  procedures,  exchange  of 
information,  double  taxation  agreements,  tax  harmonisation  in  EU  candidate  countries, 
Asia,  Latin  America  and  ACP  countries.  Supported  administrations  include  customs, 
revenue  authorities,  ministries  of  finance  and  regional  fora  including  the  African  Tax 
Administration  Forum  (ATAF),  EAC,  ECOWAS,  OLACEFS  (Organization  of  Latin 
American and Caribbean Supreme Audit Institutions), ECLAC (United Nations Economic 
Commission  for  Latin  America  and  the  Caribbean).  In  addition,  support  is  provided  to 
national  parliaments,  governments,  audit  institutions,  civil  society  organisations  and 
regional organisations to strengthen public financial management.  
-  Promotes the principles of good governance in tax matter: Yes 
-  New  Bilateral  Tax  Information  Exchange  Agreements  and  Double  Taxation 
Conventions of 2010: Current information concerning TIEAs and DTCs – not only with 
developing countries – is regularly published in the official German Federal Law Gazette 
(Bundesgesetzblatt). 

-  Support to/ratification of/adherence to international conventions/initiatives on tax issues: 

IMF Regional Technical Assistance Centres: Yes 
International Tax Dialogue: Yes 
International Tax Compact: Yes 

• 
• 
• 
•  African Tax Administration Forum (ATAF): Yes 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT): Yes 
• 
IMF Topical Trust Fund on Tax policy and administration: Yes 
•  South-South Sharing of Successful Tax Practices (S4TP): Yes 
•  United Nations Convention against Corruption (Merida): Yes 
•  OECD  Convention  on  Combating  Bribery  of  Foreign  Officials  in  International 

Business Transactions: Yes 

•  Stolen Assets Recovery initiative (STAR): No 
•  Extractive Industry Transparency Initiative (EITI): Yes 
•  OECD  Convention  on  Combating  Bribery  of  Foreign  Officials  in  International 

Business Transactions: Yes 

2.  SCALING UP ODA 

ODA individual commitments/gap to agreed targets 

36 OECD DAC Peer Reviews Germany 2010 

EN 

59 

   EN 

 
 
                                                 
-  Germany  is  working  towards  the  goal  of  meeting  the  2015  0.7%  ODA/GNI  target 
according  to  the  latest  Coalition  Agreement  (2009).  spent  EUR  9606  million 
(preliminary),  reaching  0.38%  in  2010  compared  to  0.35%  in  2009,  a  9.9%  increase  in 
real terms compared to 2009.   

-  Debt  relief  made  up  21%  of  German  ODA  during  the  period  2004  –  2009,  fourth 

highest among Member States. 

Germany - ODA as a % of GNI 
Historical data and scenario for reaching 2015 targets

Historical

Linear increase in ODA volume

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

2015 Target: 0.70

2010 Target: 0.51

0,31

0,32

0,28

0,26

0,26

0,27

0,27

0,27

0,28

0,28

0,70

0,59

0,64

0,52

0,45

0,38

0,38

0,36

0,36

0,37

0,38

0,35

ODA gap to 2015 target from 2010 level 
(EUR million)
11,245
Average annual increase needed:
2,249

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

Germany Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,02 

0,03 

0,10 

0,14 

0,02 

0,01 

0,00 

0,01 

0,01 

0,06 

0,03 

0,06 

0,29 

0,29 

0,26 

0,25 

0,26 

0,26 

0,26 

0,21 

0,23 

0,25 

0,26 

0,22 

0,00 

0,00 

0,09 

0,09 

0,37 

0,35 

0,28 

0,29 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

EN 

60 

   EN 

 
 
 
 
 
 
 
 
-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 
2015" taken in 2010: As part of the budget process for the financial year 2012 and the 
medium-term  financial  plan  until  2015,  the  German  government  will  define  its  intended 
budgets for development cooperation. Regardless of which the government and parliament 
will discuss the actual annual budgets 2013-2015 and how to attain the ODA goal in the 
annual budget processes each year. 

-  Have you taken or do you plan to take measures to ensure that at least 50% of EU 
collective  aid  increases  of  ODA  resources  are  channelled  to  Africa?  This  is  a 
confirmed  objective  of  the  German  government  and  is  taken  into  account  in  the  annual 
allocation of the development cooperation budget. 
It is an objective of the German government to strengthen development cooperation 
with  LDCs,  but  the  ODA  share  to  LDCs  depends  on  the  allocation  made  during  the 
annual budget process. 

- 

3.  SUPPORT  FOR/  USE  OF  INNOVATIVE  SOURCES  AND  MECHANISMS  OF 

FINANCING DEVELOPMENT  

-  Germany supports the following innovative financing mechanisms: 

•  ETS auctioning revenues (EUR 230 million in 2009) 
•  Debt2Health (EUR 20 million in 2010) 

-  Germany is open to engaging with IFMs in future. Germany is setting up a new special 
fund under public law (Sondervermögen “Energie- und Klimafonds”) to finance national 
and  international  programmes  in  the  fields  of  energy  efficiency,  renewable  energies  and 
climate change. The fund is  in operation since 2011 onwards, with a smaller amount of 
funding  available  from  contractually  agreed  payments  by  energy  utilities.  From  2013 
onwards,  additional  revenues  from  auctioning  EU  emissions  allowances  (revenues 
additional  to  the  level  of  revenues  in  2008  =  EUR  915  million;  excluding  emissions 
trading  in  the  aviation  sector)  will  be  channelled  to  the  special  fund.  It  is  expected  that 
hundred  million  Euros  of  climate  and  environment  related  ODA  will  be  committed 
annually through this fund from 2013 onwards, subject to parliamentary budget approval. 
In  2011,  EUR  31.5  million  will  be  committed  as  climate  and  environment  related  ODA 
from this fund. 

-  Germany  is  currently  considering  innovative  financing  mechanisms  that  use  general 
budget funds to leverage capital market funds (“blending”) as well as private investors for 
the benefit of sustainable development. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

EN 

61 

   EN 

 
 
 
Foreign Direct Investment 

FDI to Developing Countries

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

)
s
e
c
i
r
p
9
0
0
2
(

s
o
r
u
E
f
o

s
n
o

i
l
l
I

M

-

Germany

2003

1,689 

2004

5,442 

2005

11,320 

2006

8,600 

2007

8,503 

2008

8,321 

2009

6,984 

-  Financial tools to support private investment: 

Source: OECD/ DAC 

Investment guarantees: Yes 
Improvement of the overall banking system: Yes 

• 
• 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: Yes 
•  Blending: No 
•  Private public partnerships: Yes 
•  Business and investment climate: Yes 
• 
•  Export credits: No 

Investment facilities: Yes 

-  Germany promotes the adoption of internationally agreed principles and standards 
on Corporate Social and Environmental Responsibility by European companies. See 
Box. 

Box: German support to Corporate Social and Environmental Responsibility  

- Definition of a government CSR Strategy and a CSR Action Plan 
- Application of and support to the OECD Guidelines for Multinational Enterprises 
- Support to the UN Special Representative for Business and Human Rights, John Ruggie 
- Support to the Global Reporting Initiative 
- Support to the Business Anti-Corruption Portal 
- Technical Cooperation in partner countries concerning the implementation of the UNCAC 
and the improvement of the framework for CSR. 
- Development Partnerships with business companies (develoPPP.de) 
- Signatory of the Kimberley process 

EN 

62 

   EN 

 
 
 
 
 
 
 
-  New  initiatives  in  relation  to  including  social  and  environmental  clauses  in  ODA-

financed public procurements: None 

-  Germany  has  implemented  the  "General  Principles  for  International  Remittances 
Services" agreed by the Committee on Payments and Settlements Systems (CPSS). In 
addition,  the  German  government  has  set  up  a  remittances  price  comparison  website 
(www.geldtransfair.de)  in  cooperation  with  the  Frankfurt  School  of  Finance  and 
Management. The objective is the reduction of transfer costs for formal remittances from 
migrants living in Germany to their countries of origin.  

5.  AID FOR TRADE 

Germany, AfT Commitments (EUR million) 

2006 

2007 

2008 

2009 

Trade-Related Assistance 

Trade Policy and Regulations 
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

14.333 

30.770 

33.762 

33.857 

16.489 

207.240 

646.247 

666.561 

0 

0 

0 

0 

Total Trade-Related Assistance

30.822

238.010

680.008 

700.418

Wider Aid for Trade Agenda 

2006

2007

2008 

2009

Trade Policy and Regulations 
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

14.333 

30.770 

33.762 

33.857 

634.741 

406.768 

1,037.126 

746.676 

846.121 

775.445 

965.506 

1,108.401 

0 

0 

0 

0 

0 

0 

0 

0 

Total Aid for Trade 

1,495.196

1,212.984

2,036.394 

1,888.934

Source: OECD CRS Database (latest update) 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Germany  has  delivered  on  its  commitments  to  the  HIPC  and  MDRI  initiatives, 

including commitments towards IDA and the African Development Bank. 

-  Germany  would  like  to  see  a  reform  of  the  international  architecture  for  the 
restructuring  of  sovereign  debts,  based  on  the  Paris  Club,  IFIs  and  collective  action 
clauses in debt contracts. The German government supports the creation of a debt workout 
mechanism and wants to promote any relevant discussions. 

EN 

63 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-  Germany  has  taken  no  specific  measure  to  prevent  aggressive  litigation  against 

HIPCs, but welcomes the activities of the African Legal Support Facility (ALSF). 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On Ownership. Germany supported country ownership in 2010 through consultation and 
coordination with partner countries and support to partner capacity development. German 
development cooperation is based on partner countries’ demands which are expressed in 
regular bilateral consultations and negotiations. 

-  On Conditionality. Germany supported harmonisation with other donors in 2010.  
-  On  Transparency  and  Predictability.  Germany  publicly  discloses  information  on  aid 

volume on the internet centrally and through some field offices.  

-  On  Alignment.  Germany  has  integrated  the  principles  of  the  Code  of  Conduct  on 
Complementarity  and  Division  of  Labour  in  strategies,  staff  guidance  and  programming 
processes/guidelines.  

-  On  Harmonisation.  Germany  has  arrangements  in  place  for  delegated  cooperation  and 
there  is  a  mechanism  in  place  at  headquarters  level  to  track  cases  of  delegated 
cooperation. Cases of delegated cooperation agreed to in 2010 in table below. 

-  On Mutual Accountability. Germany has established a joint  framework  for  monitoring 
joint  commitments  in  Burkina  Faso,  Ghana,  Mali,  Malawi,  Mozambique,  Peru,  Zambia, 
Tanzania and Uganda. 

-  On  Managing  for  Development  Results.  Germany  provides  capacity  support  for 

Managing for Development Results. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Germany does not share the view that EU27 should speak with one voice in the IMF, 
World  Bank  and  the  main  multilateral  development  banks'  governing  bodies.  Germany 
believes the EU should speak with one voice according to its responsibilities, such as Art. 
IV consultations of the EURO AREA; this is ensured through efficient EU coordination 
within  the  IMF  and  the  World  Bank  (regular  meetings  of  all  EU  Executive  Directors 
(EURIMF meetings)) as well as through close cooperation between the EURIMF and the 
SCIMF (subcommittee of the EFC) on all relevant EU matters. All other matters outside 
the responsibility of the EU are represented by each country in its own interest. 

-  Germany does not support stronger Brussels based coordination on a regular basis 

on issues related to the World Bank and MDBs.  

EN 

64 

   EN 

 
 
GREECE 

AT A GLANCE 

POLICY FRAMEWORK  

Greece’s  development  assistance  is  guided  by  five-year  Development  Cooperation  and 
Assistance  Programmes.37  The  financial  crisis  has  caused  a  fundamental  rethink  of  Greek 
development  activities  and  a  revision  of  the  current  five-year  programme,  which  is  not  yet 
finalised.38 The process to achieve international ODA target levels has had to be abandoned.39 
Hellenic Aid, a general directorate within the Ministry of Foreign Affairs, is the coordinating 
agency  of  Greek  development  cooperation.  The  role  of  the  Ministry  of  Foreign  Affairs  in 

37 OECD DAC Peer Review Greece 2006 
38 Reply to the questionnaire for the 2011 Accountability Report 
39 http://www.hellenicaid.gr/appdata/documents/report-2009-eng-final.pdf  

EN 

65 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
implementation  is  limited  with  the  bulk  of  the  funds  being  managed  by  the  Ministry  of 
Economy and Finance for multilateral aid and a larger number of line ministries for bilateral 
aid.40 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Greece does not provide support to reform programmes for capacity development of 

custom, judiciary and tax administrations in developing countries. 

-  Promotes the principles of good governance in tax matters: N/A 
-  New  Bilateral  Tax  Information  Exchange  Agreements  and  Double  Taxation 

Conventions of 2010: N/A  

-  State  of  ratification  of/  adherence  to  international  conventions/  initiatives  on  tax 

issues: N/A 

2.  SCALING UP ODA 

ODA individual commitments/gap to agreed targets 

-  Greece  spent  EUR  378  million  on  ODA  in  2010  (preliminary),  corresponding  to 
0.17%  of  GNI  in  2010,  down  from  0.19%  in  2009.  Consequently  Greece  is  far  from 
reaching the 2010 0.51% target. 

-  No debt relief was included in Greek ODA during the period 2004 – 2009. 

Greece - ODA as a % of GNI 
Historical data and scenario for reaching 2015 targets

Historical

Linear increase in ODA volume

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

2015 Target: 0.70

2010 Target: 0.51

ODA gap to 2015 target from 2010 level 
(EUR million)
1,401
Average annual increase needed:
280

0,70

0,62

0,52

0,42

0,30

0,15

0,14

0,15

0,15

0,20

0,17

0,21

0,21

0,16

0,17

0,17

0,16

0,21

0,19

0,17

0,17

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

40 OECD DAC Peer Review Greece 2006  

EN 

66 

   EN 

 
 
 
 
 
 
 
                                                 
Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

Greece - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

-

-

-

-

-

-

-

-

-

-

0,00 

-

-

-

-

0,20 

0,21 

0,21 

0,15 

0,14 

0,15 

0,15 

0,17 

0,17 

0,17 

0,16 

0,16 

0,21 

0,19 

0,17 

-
-
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 
2015" taken in 2010: Projected ODA volumes for the years 2011-2015 are not available 
for the time being since they are pending the 5-year National Development Plan, which is 
under review because of the financial crisis and budgetary constraints. Greece undertook 
its  international  commitments  under  the  supposition  that  fiscal  circumstances  would  be 
favourable  and  would  allow  for  the  anticipated  significant  increase  in  ODA.  However, 
despite the relevant efforts, the expected increase of ODA proved not to be feasible, due to 
fiscal  restraints.  Furthermore,  the  current  international  financial  crisis  had  a  negative 
influence on the economic situation of Greece. Consequently, it is not likely that Greece 
will fulfil its quantitative commitments as regards ODA grants in the near future.  

-  Greece will concentrate the allocation of its resources on a core group of partner-countries 

– including some LDCs. 

-  Greece has taken measures to ensure that at least 50% of EU collective aid increases 

are channelled to Africa.  

-  Greece  will  not  reach  the  target  of  0.15%-0.20%  ODA/GNI  to  LDCs  by  2010  and 
onwards. It would be extremely difficult for Greece to reach the target of 0.15%-0.20% 
ODA/GNI to LDCs in 2010 or 2011, due to budgetary constraints. There will be targeted 
actions to LDCs (i.e. climate change adaptation projects) as these countries will constitute 
part of our geographical priorities in the 5-year National Development Plan. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Greece does not support any innovative financing mechanisms and has no plans to 

do so.  

EN 

67 

   EN 

 
 
 
 
 
4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

Foreign Direct Investment 

FDI to Developing Countries

2,500 

2,000 

1,500 

1,000 

500 

-

)
s
e
c
i
r
p
9
0
0
2
(

s
o
r
u
E
f
o

s
n
o

i
l
l
I

M

-500 

Greece

2003

29 

2004

-11 

2005

261 

2006

1,955 

2007

2,104 

2008

-

2009

173 

-  Financial tools to support private investment: 

Source: OECD/ DAC  

Investment guarantees: No 
Improvement of the overall banking system: No 

• 
• 
•  Microfinance/ access to financial services: No 
•  Risk management initiatives: No 
•  Blending: No 
•  Private public partnerships: No 
•  Business and investment climate: No 
• 
•  Export credits: No 
•  Other: Greece provides subsidies to private productive investments in the framework 
of  implementation  of  the  “Hellenic  Plan  for  the  Economic  Reconstruction  of  the 
Balkans” (HiPERB) 

Investment facilities: No 

-  Greece  does  not  promote  the  adoption  of  internationally  agreed  principles  and 
standards  on  Corporate  Social  and  Environmental  Responsibility  by  European 
companies.  

-  Greece does not provide support to the Kimberley Process and FAO Code of Conduct 

for Responsible Fisheries. 

-  New  initiatives  in  relation  to  including  social  and  environmental  clauses  in  ODA-

financed public procurements: None. 

EN 

68 

   EN 

 
 
 
 
 
 
 
-  Greece  has  not  implemented  solutions  internally  or  in  cooperation  with  third 
countries  to  overcome  barriers  to  migrants  and  their  families'  access  to  financial 
services.  However,  a  plan  for  improving  the  impact  of  remittances  on  development  is 
under consideration  by  Greek  authorities to improve local  growth within  the  developing 
country. 

-  Greece  has  implemented  the  General  Principles  for  International  Remittances 
Services" agreed by the Committee on Payments and Settlements Systems (CPSS). 

5.  AID FOR TRADE 

Greece, AfT Commitments (EUR million) 

2006 

2007 

2008 

2009 

Trade-Related Assistance 

Trade Policy and Regulations 
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

Total Trade-Related Assistance

0 

31 

1 353 

509 

3 513 

5 944 

2 594 

4 148 

0 

3 513

0 

5 974

0 

0 

3 947 

4 657 

Wider Aid for Trade Agenda 

2006

2007

2008 

2009 

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

0 

31 

1 353 

509 

11 592 

1 544 

4 359 

7 237 

10 113 

9 293 

4 178 

5 283 

0 

0 

0 

0 

0 

0 

0 

0 

Total Aid for Trade 

21 705

10 868

9 891 

13 030 

Source: OECD CRS Database (latest update) 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Greece  has  delivered  on  its  commitments  to  the  HIPC  and  MDRI  initiatives, 

including commitments towards IDA and the African Development Bank. 

-  Greece sees a need for reform of the international architecture for the restructuring 
of  sovereign  debts,  based  on  the  Paris  Club  and  involving  International  Financial 
Institutions. 

-  Greece  has  planned  no  specific  interventions  to  prevent  aggressive  litigation  against 

HIPCs. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

EN 

69 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-  On  Ownership.  Greece  supported  country  ownership  in  2010  through  consultation  and 
coordination with partner countries and by supporting partner capacity development. 

-  On Conditionality. Greece has carried out no actions on conditionalities in 2010.  
-  On  Transparency  and  Predictability.  Greece  publicly  discloses  information  on  aid 
volume  on  the  internet  and  upon  request  of  developing  partner  or  civil  society 
organisations. 

-  On Alignment. Integration of the principles of the Code of Conduct on Complementarity 
and  Division  of  Labour 
and  programming 
strategies, 
processes/guidelines is subject to the forthcoming 5-year National Development Plan. 
-  On  Harmonisation.  Greece  has  legal  and/or  administrative  arrangements  in  place  for 
delegated  cooperation  and  there  is  a  mechanism  in  place  to  track  cases  of  delegated 
cooperation.  There  is  ad  hoc  delegated  cooperation  (managing  Greek  funds)  with  EU 
Member States for implementing projects in Afghanistan. 

staff  guidance 

in 

-  On Mutual Accountability. Greece has not established a joint framework for monitoring 

joint commitments. 

-  On  Managing  for  Development  Results.  Greece  does  not  provide  capacity  support  for 

Managing for Development Results. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Greece  shares  the  view  that  EU27  should  speak  with  one  voice  in  the  IMF,  World 
Bank and the main multilateral development banks' governing bodies by reaching a 
common position within the EU before discussing important issues in these institutions. 
-  Greece  supports  stronger  Brussels  based  coordination  on  a  regular  basis  on  issues 

related to the World Bank and MDBs.  

EN 

70 

   EN 

 
 
HUNGARY    

POLICY FRAMEWORK  

The  Hungarian  Government  approved  the  concept  paper  of  the  Hungarian  Development 
Cooperation in 2001. Resolution 1/2008 of the International Development Cooperation (IDC) 
Governmental Committee41, approved by the Government in spring 2008, acknowledges the 
fact that IDC is identified as one of the important activities in Hungary’s External Relations 
Strategy.  It  determines  the  principles,  the  goals  and  the  means  of  Hungary’s  international 
activity. 

The Ministry of Foreign Affairs of the Republic of Hungary is responsible for planning and 
coordinating  the  Hungarian  international  development  cooperation  and  humanitarian  aid 
activities  via  the  International  Development  Cooperation  Department.  In  2008,  a  Tendering 
Unit was formed to deal with the management of all the legal and financial issues related to 
project implementation.  

The main decision-making body related to the development cooperation policy and strategy is 
the Development Cooperation Governmental Committee, which is an inter-ministerial forum, 
chaired by the Minister for Foreign Affairs. The work of  the Committee is supported by an 
inter-ministerial  Working  Group  of  Experts.  The  Ministry  of  Foreign  Affairs  is  also 
responsible  for  coordinating  the  work  of  the  Inter-ministerial  Working  Group  for  the 
Coordination of Humanitarian Aid. The expert-level working group coordinates humanitarian 
aid  issues  between  the  relevant  line  ministries  and  the  National  Directorate  for  Disaster 
Management and is chaired by the state secretary of the Ministry of Foreign Affairs. 

HUN-IDA,  a  not-for-profit  company  contracted  by  the  Ministry  of  Foreign  Affairs  is  the 
implementing  agency  of  the  Hungarian  development  cooperation  activities.  It  is  mainly 
responsible  for  organising  and  implementing  technical  assistance  programmes  with  our 
partner  countries  and  for  preparing,  monitoring  the  calls  for  tender,  providing  advice  and 
taking part in the capacity building activities.42 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax administrations in developing countries: Hungary provides aid in these fields to EU 
candidate countries, EU Neighbourhood Policy countries, Asia, Latin America and ACP 
Countries  (support 
to  administrations  and  policy  of  Semi-autonomous  Revenue 
Authorities and Ministries of Finance).  

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since 2010: (i) Signed with Hong Kong, Taiwan, San Marino, USA; (ii) under negotiation 

41 http://www.mfa.gov.hu/kum/en/bal/foreign_policy/international_development/ 
42 http://www.mfa.gov.hu/NR/rdonlyres/09524B2E-76D7-4DCC-ADF6-

67D3E1A14FA7/0/InspiredByExperience.pdf 

EN 

71 

   EN 

 
 
 
 
 
 
 
 
 
 
 
                                                 
with  Bahrain,  Jordan;  (iii)  planned  with  Bermuda,  British  Virgin  Islands,  Gibraltar, 
Guernsey, Jersey, Isle of Man, Liechtenstein. 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

No 

Yes 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
No 
•  Extractive Industry Transparency Initiative (EITI):  
No 
• 
No 
IMF Regional Technical Assistance Centres:  
• 
Yes 
International Tax Dialogue:  
• 
No 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

2.  SCALING UP ODA 

ODA Individual commitments and gap to target  

-  Hungary did not reach the ODA target to provide 0.17% of GNI by 2010, spending 
EUR 85 million (preliminary), i.e. 0.09% of GNI in 2010, down from 0.10% in 2009. 

Hungary - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

2015 Target: 0.33

2010 Target: 0.17

ODA gap to 2015 target from 2010 level 
(EUR million)
294
Average annual increase needed:
59

0,24

0,29

0,19

0,14

0,09

0,13

0,11

0,07

0,08

0,08

0,10

0,09

0,09

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

EN 

72 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-  No realistic, verifiable actions for meeting individual ODA commitments until 2015 
taken  in  2010:  Hungary’s  goal  is  to  overcome  the  difficulties  caused  by  the  annual 
budget planning, where Hungary would strive to give better projections to our partners on 
funds available for multi-year cooperation. 

-  No measure taken nor planned to contribute to the EU27 target to channel at least 
50%  of  EU  collective  ODA  increase  to  Africa.  Hungary  “takes  into  account  its  
commitments in the planning process” 

-  Hungary will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010.  

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Hungary did not use innovative financing mechanisms for development. 
-  Hungary  intends  to  step  up  efforts  for  innovative  financing  mechanisms  with 
significant revenue generation potential. Hungary would consider supporting innovative 
financial mechanisms, which are applied globally. Hungary has been working very closely 
with  the  Ministry  of  National  Economy  to  analyse  the  feasibility  of  the  various  IFM 
initiatives.  Apart  from  this,  the  annual  national  budget  for  2011  will  reallocate  the 
contribution for 2011 (EUR 2,000,000) to the area of climate financing by selling carbon 
emission quotes. 

-  No other work on innovative financing mechanisms. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Financial tools to support private investment 

Investment guarantees: No 
Improvement of the overall banking system: No 

• 
• 
•  Microfinance/ access to financial services: No 
•  Risk management initiatives: No 
•  Blending: No 
•  Private public partnerships: No 
•  Business and investment climate: No 
• 
•  Export credits: Yes 
•  Hungary also provides concessional loans through bilateral agreements. 

Investment facilities: No 

-  Hungary  does  not  promote  the  adoption  of  internationally  agreed  principles  and 

standards on Corporate Social and Environmental Responsibility.  

-  No reported information on Remittances. 

5.  AID FOR TRADE 

-  No information available  

EN 

73 

   EN 

 
 
 
6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Hungary delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) 

without delay. 

-  Hungary  favours  reform  of  the  international  architecture  for  restructuring  of 
sovereign debts in order to deal with potential future cases of debt distress in low-income 
countries (involving a role for International Financial Institutions). 

-  Specific interventions to prevent aggressive litigation against HIPCs (in particular to 

prevent the actions of "vulture funds"): No 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Hungary  supported  ownership  through  consultations  and 
coordination  with  partner  countries,  through  guidance  and  incentives  for  staff  in  partner 
countries, by supporting partner capacity development. 

-  On Conditionality. No action. 
-  On  Transparency  and  Predictability.  Hungary  publicly  discloses  information  on  aid 
volumes on the Ministry of Foreign website43 and through a database at country level.  
-  On  Alignment.  Hungary  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy. 

-  On  Harmonisation.  No  legal  and/or  administrative  arrangements  in  place  to  manage 
funds for another Member States or the EU , and/ for another Member States or the EU to 
manage Hungarian funds (delegated cooperation). 

-  On Mutual Accountability. No joint framework for monitoring joint commitments. 
-  On  Managing  for  Development  Results.  Hungary  does  not  provide  capacity  building 

support for this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International Financial Institutions. Hungary supports a single EU Chair for the IMF in 
order for the EU27 to speak with one voice on common positions. 

-  Hungary  favours  stronger  Brussels  based  coordination  on  issues  related  to  the 

World Bank and MDBs. 

43 http://www.mfa.gov.hu/kum/en/bal/foreign_policy/international_development/ 

EN 

74 

   EN 

 
 
                                                 
IRELAND  

AT A GLANCE  

POLICY FRAMEWORK  

Irish  Aid  is  the  Government  of  Ireland’s  programme  of  assistance  to  developing  countries. 
Ireland’s  2006  White  Paper  on  Irish  Aid  provides  the  vision  and  orientation  for  the 
development  programme.  Irish  Aid’s  Operational  Plan  2008-2012  lays  out  the  roadmap  for 
managing  and  implementing  that  programme.  In  2008  Irish  Aid’s  headquarters  was  moved 
from  Dublin  to  Limerick  as  part  of  the  government-wide  effort  to  decentralise  the  public 
administration. It has proven a major challenge for Irish Aid in particular as a result of loss of 
expertise  and  institutional  memory,  and  the  need  to  maintain  close  linkages  with  other 
government departments, embassies and other organisations and NGOs based in Dublin.  

Responsibility  for  Irish  foreign  policy,  including  assistance  to  developing  countries  (Irish 
Aid)  lies  in  the  first  instance  with  the  Minister  for  Foreign  Affairs.  However,  particular 
responsibility for policy on Overseas Development Assistance is assigned to the Minister of 
State  for  Overseas  Development  at  the  Department  of  Foreign  Affairs.  The  Development 

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Cooperation Directorate, a Division of the Department of Foreign Affairs, is responsible for 
administering the Irish Aid programme. It also has a coordinating role in relation to Overseas 
Development Assistance by other Government Departments. 

In  2009,  the  Government  established  the  Irish  Aid  High  Level  Steering  Group  which  is 
chaired by the Secretary General of the Department of Foreign Affairs and includes the Heads 
of  the  Corporate  Services,  Political  and  Promoting  Ireland  Abroad  Divisions,  as  well  as  the 
Director  General  and  the  deputy  Director  General  of  the  Development  Cooperation 
Directorate 44. 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax administrations in developing countries: Ireland provides aid in these fields to ACP 
countries (support to administrations and policy of: Customs, Semi-autonomous Revenue 
Authorities and Ministries of Finance). 

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since 2010: (ia) Double Taxation Conventions signed with Hong Kong, Albania, Kuwait, 
Montenegro, Morocco, Singapore, United Arab Emirates; (ib) Tax Information Exchange 
Agreements  were  concluded  with  St.  Lucia,  The  Marshall  Islands,  Belize;  (ii)  under 
negotiation with Saudi Arabia, Thailand, Armenia, Azerbaijan, Panama, (iii) planned with 
Algeria, Jordan, Libya. 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

No 

Yes 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
No 
•  Extractive Industry Transparency Initiative (EITI):  
No 
• 
No 
IMF Regional Technical Assistance Centres:  
• 
No 
International Tax Dialogue:  
• 
No 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
Yes 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

2.  SCALING UP ODA 

ODA Individual commitments and gap to target  

–  Ireland’s  ODA  grew  steadily  over  the  years  to  2008  from  modest  beginnings.  ODA  in 
2010 was EUR 676 million (preliminary), 0.53% of GNI, a decline from 0.54% in 2009. 
Ireland still exceeded the minimum ODA target of 0.51% for 2010. 

- 

Ireland did not have any debt relief operations during the period 2004 – 2009 

44 http://www.irishaid.gov.ie/about.asp  

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Ireland - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

2015 Target: 0.70

2010 Target: 0.51

0,29

0,31

0,31

0,30

0,31

0,29

0,33

0,40

0,39

0,39

0,42

0,63

0,58

0,68

0,66

0,70

0,59

0,53

0,54

0,55

0,54

0,53

0,52

ODA gap to 2015 target from 2010 level 
(EUR million)
345
Average annual increase needed:
69

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

Ireland - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

-

-

-

-

-

0,00 

-

0,00 

0,00 

-

0,00 

-

-

-

-

0,01 

0,59 

0,54 

0,55 

0,54 

0,53 

0,29 

0,31 

0,31 

0,30 

0,31 

0,29 

0,32 

0,40 

0,39 

0,39 

0,42 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

-  "Realistic, verifiable actions for meeting individual ODA commitments until 2015" 
taken in 2010: Ireland’s target for ODA as a percentage of national income is aligned to 
the  EU  target  of  reaching  0.7%  by  2015.  Annual  allocations  are  negotiated  during  the 

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annual budget estimates process. The provisional outturn for 2010 (ODA/GNI of 0.53%) 
means that Ireland has met its 2010 EU interim target. 

-  Sub-Saharan  Africa  remains  the  primary  geographic  focus  for  Ireland’s 
development  programme.  Seven  of  Ireland’s  nine  programme  countries  are  in  Africa: 
Tanzania,  Zambia,  Lesotho,  Mozambique,  Uganda,  Ethiopia  and  Malawi,  with  almost 
50%  of  the  bilateral  aid  programme  directed  to  those  countries  alone.  In  total,  almost 
80% of our bilateral ODA is directed to African countries. 
Ireland  has  reached  the  target  of  0.15%-0.20%  ODA/GNI  to  LDCs  by  2010  and 
onwards, being already above 0.20%. 

- 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

- 
- 

Ireland did not use innovative financing mechanisms for development. 
Ireland does not intend to step up efforts for innovative financing mechanisms with 
significant revenue generation potential.  

-  No other work on innovative financing mechanisms. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

- 
- 

- 

- 

Ireland does not provide financial tools to support private investment. 
Ireland promotes the adoption of internationally agreed principles and standards on 
Corporate  Social  and  Environmental  Responsibility  by  European  companies; 
including:  OECD  Guidelines  for  Multilateral  Enterprises,  OECD  Convention  on  bribery 
of  foreign  public  officials,  International Labour Organisation (ILO) core  conventions on 
labour standards, UN Global Compact. 
Ireland does not support the Kimberley process and the FAO Code of Conduct for 
Responsible Fisheries. 
Ireland  did  not  implement  the  "General  Principles  for  International  Remittances 
Services"  agreed  by  the  Committee  on  Payments  and  Settlements  Systems  (CPSS), 
neither  plan  to  implement  solutions  to  improve  the  impact  of  remittances  on 
development.  As  migrants  in  Ireland  do  not  originate  primarily  in  less  developed 
countries,  relatively  little  research  has  been  carried  out  into  obstacles  to  financial 
inclusion. 

-  No  other  initiatives  to  increase  competition  and  transparency  in  the  remittance 
market  and  to  reduce  remittance  transfers  costs:  At  present,  the  Financial  Regulator 
does  not  have  a  mandate  to  provide  information  to  consumers  comparing  the  costs  of 
using  different  money  transmission  businesses.  While  there  is  a  desire  to  reduce 
remittance costs, there is no specific action planned at this stage. 

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5.  AID FOR TRADE 

Ireland, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

Total Trade-Related Assistance

Wider Aid for Trade Agenda 

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

2006 

2007 

2008 

2009 

103 

16 

2 500 

295 

4 761 

8 150 

13 325 

0 

4 864

0 

8 166

0 

15 825 

295 

0 

0 

103 

16 

2 500 

3 127 

1 493 

2 088 

295 

664 

26 099 

28 588 

47 742 

43 310 

0 

0 

0 

0 

0 

0 

0 

0 

Total Aid for Trade 

29 329

30 097

52 330 

44 269 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

Source: OECD CRS Database (latest update) 

- 

Ireland delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) 
without delay. 

-  Actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-

- 

income countries: providing support to the UNCTAD DMFAS programme. 
Ireland  favours  reform  of  the  international  architecture  for  restructuring  of 
sovereign  debts,  but  such  reform  will  have  to  be  preceded  by  a  period  of  extensive 
reflection  on  the  achievements  so  far  and  issues  remaining  before  deciding  on  which 
mechanism would be the most appropriate. 

-  Specific interventions to prevent aggressive litigation against HIPCs (in particular to 

prevent the actions of "vulture funds"): Yes 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Ireland  supported  ownership  through  consultations  and 
coordination  with  partner  countries,  through  guidance  and  incentives  for  staff  in  partner 
countries, and through partner capacity development.  

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-  On  Conditionality.  In  2010,  Ireland  progressed  by  harmonising  conditionalities  with 

other donors. 

-  On  Transparency  and  Predictability.  Ireland  publicly  discloses  information  on  aid 

volumes through the Irish Aid web site 45 and through a database at country level. 

-  On  Alignment.  Ireland  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy. 

-  On  Harmonisation.  Irish  Aid’s  guidance  note  on  division  of  labour  notes:  “Before 
undertaking  a  delegated  cooperation  agreement  Heads  of  Missions  must  seek  prior 
approval  from  the  relevant  Head  of  Programme  Countries.  It  is  the  responsibility  of 
Programme  Countries  to  get  no  objections  from  the  Director  General,  Evaluation  and 
Audit and Legal Division to ensure the proposed memorandum of understanding satisfies 
Irish Aid management and audit requirements”. 

-  On  Mutual  Accountability.  Ireland  established  a  joint  framework  for  monitoring  joint 
commitments with some of its priority countries. Though Ireland has not established any 
‘new’ mutual accountability mechanisms in 2010, it has fully engaged with mechanisms 
in-country,  where  they  exist.  Mozambique  uses  a  performance  assessment  framework, 
Vietnam  has  a  regional  peer  review  and  Tanzania  in  2010  conducted  its  independent 
monitoring group report. Ireland believes this should be a country led process if possible. 
-  On Managing for Development Results. Ireland provides capacity building support for 

this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International Financial Institutions. Ireland does not support a single EU Chair for the 
IMF  in  order  for  the  EU27  to  speak  with  one  voice.  For  some  years,  Ireland  has 
continuously supported calls by the EU for better coordination of common positions at the 
IMF, WB and other multilateral development banks governing bodies. Progress has been 
made  on  coordination  in  this  area.  Ireland  believes,  however,  it  would  be  premature  to 
reach  agreement  on  this  issue  in  advance  of  further  detailed  proposals  on  how  it  would 
work  in  practice  and  negotiation  on  individual  EU  Member  State's  positions  being  best 
protected in the future. For example, Ireland would need to reflect on how their internal 
processes  and  mechanisms  in  the  EU  can  ensure  that,  in  areas  like  fiscal  policy,  an 
individual  Member  State’s  position  is  best  conveyed  in  an  effective  manner  in  any 
changed external representation arrangements. 

- 

Ireland favours stronger Brussels based coordination on issues related to the World 
Bank and MDBs 

45 http://www.irishaid.gov.ie/publications_report.asp 

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ITALY  

AT A GLANCE  

POLICY FRAMEWORK  

Law  49/1987  provides  the  legal  and  political  foundations  for  Italian  Co-operation, 
establishing development co-operation as an integral part of Italian foreign policy, and giving 
the Ministry of Foreign Affairs (MFA) responsibility for development co-operation while the 
Ministry of Foreign Affairs (MFA) and the Ministry of Economy and Finance (MEF) are the 
main providers of Italian ODA. The 2009 DAC peer review considered the law outdated and 
constraining for Italian Co-operation.46 

According  to  the  MFA,  the  multi-annual  Programming  Guidelines  and  Directions  (2009-
2011)  serve  this  purpose  of  reform.  At  the  end  of  June  2010,  both  the  Ministry  of  Foreign 
Affairs  and  the  Ministry  of  Finance  (MEF)  invited  all  Italian  stakeholders  in  international 

46 DAC Peer Review 2009 

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81 

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development cooperation (NGOs, foundations and all ministries) to a round table to discuss 
the creation of a regular coordination mechanism.47  

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax  administrations  in  developing  countries:  Italy  provides  aid  in  these  fields  to  ACP 
countries administrations (support to: Ministries of Finance). 
-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since  2010:  (i)  Double  Taxation  Conventions  signed  Cuba,  (ii)  under  negotiation  with 
Bahamas,  Barbados,  Bosnia-Herzegovina,  Chile,  Colombia,  Costa  Rica,  Iraq,  Kosovo, 
Philippines,  S.A.R.  Hong-Kong,  Yemen;  (iii)  planned  with  The  Isle  Of  Man,  Anguilla, 
The  British  Virgin  Islands,  The  Cayman  Islands,  Montserrat,  The  Turks  and  Caicos 
Islands. 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

Yes 

Yes 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
Yes 
•  Extractive Industry Transparency Initiative (EITI):  
Yes 
• 
Yes 
IMF Regional Technical Assistance Centres:  
• 
No 
International Tax Dialogue:  
• 
No 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

2.  SCALING UP ODA 

ODA Individual commitments and gap to target  

–  Italy’s  ODA  of  EUR  2349  million  (preliminary)  corresponded  to  0.15%  of  GNI  in 
2010, down from 0.16% in 2009, a decrease of 1.5% in real terms compared to 2009. The 
2011  Italian  Budget  proposal  from  the  Government  is  a  further  cut  to  the  ODA  after  the 
56%  reduction  in  2009  48  (due  to  a  decrease  in  overall  aid  and  reduced  debt  relief).  The 
official  directorate  of  Development  and  Cooperation  is  currently  drafting  a  mid-term 
budget plan to ensure required new ODA will be available to maintain ODA/GNI around 
0.7% after 2010 49. 

-  Debt relief made up 22% of Italian ODA during the period 2004 - 2009 

47 http://actionaiditaly.blogspot.com/ 
48 http://actionaiditaly.blogspot.com/ 
49 Quote from this year survey : EU Development Accountability and Monitoring, Questionnaire for the 2011 
Report. 

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Italy - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

2015 Target: 0.70
2015 Target: 0.70

2010 Target: 0.51
2010 Target: 0.51

ODA gap to 2015 target from 2010 level 
(EUR million)
9,600
Average annual increase needed:
1,920

0,70

0,60

0,49

0,20

0,20

0,20

0,15

0,11

0,15

0,13

0,15

0,17

0,15

0,29

0,20

0,19

0,22

0,38

0,20

0,27

0,15

0,16

0,15

0,16

0,12

1,00

0,80

I

N
G

f
o
%
a
s
a
A
D
O

0,60

0,40

0,20

0,00

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

Italy - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,02 

0,03 

0,06 

0,01 

0,00 

0,04 

0,01 

0,04 

0,03 

0,09 

0,01 

0,01 

0,04 

0,11 

0,18 

0,01 

0,10 

0,16 

0,15 

0,02 

0,11 

0,15 

0,14 

0,14 

0,13 

0,11 

0,18 

0,16 

0,15 

0,14 

0,10 

0,19 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

-  "Realistic, verifiable actions for meeting individual ODA commitments until 2015" 
taken in 2010: In 2010, the Italian Government – in the run up to the High Level Event 

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on MDGs, held in New York last September -  has been called on by the Parliament to 
give a renewed attention towards ODA commitments. Nevertheless, the need for Italy to 
curb its public deficit has delayed so far the process to define the plan for realigning the 
ODA/GNI in order to reach the international commitments by 2015.  

-  50% of the amount available for new bilateral grant aid initiatives in the 2010-2012 
budget  of  the  Italian  Cooperation  will  be  devoted  to  Africa,  as  specified  in  the 
guidelines  on  the  Italian  Development  Cooperation  adopted  by  the  Ministry  of  Foreign 
Affairs  in  December  2009.  Moreover,  Africa  remains  a  priority  also  as  far  as  finalised 
contributions to multilateral donors, agencies and development banks are concerned. 
-  Will you reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010 and onwards: 

No, but Italy provides an important share of its ODA to some LDC countries. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

- 

- 

Innovative sources of financing: International Financing Facility for Immunisation 
(IFFIm), Advance Market Commitments (AMCs). 
Italy intends to step up efforts for innovative financing mechanisms with significant 
revenue generation potential.  

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

Foreign Direct Investment 

FDI to Developing Countries

1,200 

1,000 

800 

600 

400 

200 

)
s
e
c
i
r
p
9
0
0
2
(

s
o
r
u
E
f
o

s
n
o

i
l
l
I

M

-

Italy

2003

447 

2004

650 

2005

765 

2006

917 

2007

989 

2008

1,070 

2009

92 

Source: OECD/ DAC  

-  Financial tools to support private investment 

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Investment facilities: Yes 

Investment guarantees: Yes 
Improvement of the overall banking system: Yes 

• 
• 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: Yes 
•  Blending: No 
•  Private public partnerships: Yes 
•  Business and investment climate: Yes 
• 
•  Export credits: Yes 
Italy  promotes  the  adoption  of  internationally  agreed  principles  and  standards  on 
Corporate Social and Environmental Responsibility by European companies. Italy is 
implementing – among others – the following multilateral initiatives:  (i) the UN Global 
Compact,  (ii)  the  ongoing  revision  of  the  “OECD  Guidelines  for  Multinational 
Enterprises”,  through  a  National  Contact  Point  –  PCN  and  a  multi-stakeholder 
consultation  extended  to  the  major  enterprises  federations;  Italian  industrial  districts; 
SMEs and agencies specialised on the internationalisation of the Italian economy;  (iii) the 
OECD initiative concerning a “Due Diligence Guidance for Responsible Supply Chains of 
Minerals  from  Conflict-Affected  and  High-Risk  Areas”;    (iv)  the  Extractive  Industry 
Transparency  Initiative–EITI,  (v)  the  various  “CSR  Europe”  Initiatives;  and  (vi)  Global 
Reporting Initiative (UNEP). 
Italy supports the Kimberley process and the FAO Code of Conduct for Responsible 
Fisheries. 
Italy  implemented  solutions  internally  or  in  cooperation  with  third  countries  to 
overcome  barriers  to  migrants  and  their  families'  access  to  financial  services; 
including monitoring indicators for measuring the impact of these solutions on migrants' 
access to financial services, remittance transfer costs 
Italy implemented the "General Principles for International Remittances Services" 
agreed by the Committee on Payments and Settlements Systems (CPSS). 

- 

- 

- 

- 

-  There  are  other  initiatives  to  increase  competition  and  transparency  in  the 
remittance  market  and  to  reduce  remittance  transfers  costs:  The  Bank  of  Italy  has 
actively collaborated in the elaboration of the General Principles. In 2009 Italy promoted 
the  adoption  of  a  quantified  and  ambitious  objective  in  the  field  of  remittances  and  in 
particular  the  reduction  of  the  cost  of  sending  remittances.  At  the  L’Aquila  Summit  G8 
leaders set for the first time at international level a significant and quantified commitment: 
the reduction of the average global cost of sending remittances from the present 10% to 
5%  in  5  years  (the  so  called  “5x5”  objective).  Italy  launched  in  November  2009  the 
“Rome Road Map for Remittances” and an International Conference. A dedicated website 
on the costs of remittances has been elaborated by stakeholders and co-funded by Ministry 
of Foreign Affairs and is operating since 2009 (www.mandasoldiacasa.it) and has been the 
first  certified  by  the  World  Bank  as  compliant  to  current  applicable  standards.  Italy 
together  with  other  partners  is  providing  support  to  competent  organisations  such  as  the 
World Bank - Global Remittances Working Group. Italy in 2010 has proposed with other 
partners  the  enlargement  and  enhancement  of  the  “5x5”  adopted  at  the  G20  Summit  in 
Seoul. 

-  Meanwhile, Italy has robust and reliable data concerning the amounts and destination 

of remittances from Italy. 

-  Finally,  Italy  adopted  the  operational  definitions,  recommendations  and  best 
practices on improving the quality and coverage of data on remittances according to 
the compilation guide drafted by the "Luxembourg Group" 

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5.  AID FOR TRADE 

Italy, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

2006 

2007 

2008 

2009 

338 

13 

577 

84 

5 554 

15 055 

28 905 

32 452 

Total Trade-Related Assistance

5 892

15 067

29 482 

0 

0 

0 

5 200 

37 736

Wider Aid for Trade Agenda 

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

338 

13 

577 

84 

170 731 

58 366 

37 070 

34 168 

68 297 

52 701 

148 546 

162 624 

0 

0 

0 

0 

0 

0 

0 

5 200 

Total Aid for Trade 

239 365

111 079

186 194 

202 076

Source: OECD CRS Database (latest update) 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

- 

Italy  delivered  on  its  HIPC/  MDRI  commitments  (including  vis-à-vis  IDA/  AfDB) 
without delay. 

-  Actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-
income countries:  (i) Italy  has been  in the lead, as a co-sponsor, of the  “Principles and 
Guidelines  to  promote  sustainable  lending  practices  in  the  provision  of  official  export 
credits  to  LICs”.  By  internal  regulation  Italian  Development  cooperation  decides  the 
concession  of  loans  according  to  Debt  Sustainability  Framework  /Debt  Sustainability 
Analysis.  (ii)  In  addition,  Italy  is  fully  involved  in  all  initiatives  aimed  at  fostering  the 
dialogue with other creditors and helping borrowers, mainly within the OECD/ECG and 
the Paris Club. In this framework, Italy has supported the decision not to sell on claims on 
HIPC countries and encourages the provision of IFI’s technical assistance to low-income 
debtor  countries  facing  litigating  creditors  or  needing  assistance  to  receive  comparable 
treatment by non-PC and commercial creditors. Italy has adhered to the PC publication of 
data  on  its  debt  stock  and  supports  moves  by  the  IFIs  to  adapt  the  Debt  Sustainability 

EN 

86 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Framework  to  rapidly  evolving  debt  patterns  in  LICs.  It  is  financially  supporting  the 
World Bank Debt’s Debt Management Facility and also participating in the African Legal 
Support Facility. 
Italy  is  open  to  discuss  improvements  in  the  international  architecture  for  the 
restructuring of sovereign debt, provided that principles followed so far in multilateral 
fora (i.e. Paris Club) are retained, as they have proven to be effective. 

- 

-  Specific interventions to prevent aggressive litigation against HIPCs (in particular to 

prevent the actions of "vulture funds"): Yes, within the Paris Club.  

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Italy  supported  ownership  through  consultations  and 

coordination with partner countries and supporting partner capacity development. 

-  On  Conditionality.  In  2010,  Italy  progressed  by  harmonising  with  other  donors  and  by 

reducing the number of conditionalities. 

-  On  Transparency  and  Predictability.  Italy  publicly  discloses  information  on  aid 
volumes through the Italian Development Cooperation web site 50 and through two annual 
reports (according to Law 49/87 for the Italian Development Cooperation (DGCS). 

-  On  Alignment.  Italy  partially  integrated  the  principles  of  the  Code  of  Conduct  on 
Complementarity  and  Division  of  Labour  in  its  development  strategy.  Italy  is  gradually 
implementing a more effective concentration of its aid, in consistency with the principles 
of the EU Code of Conduct and DAC recommendations. 

-  On  Harmonisation.  Italy  recently  adopted  the  necessary  legislative  and  administrative 
changes to allow its Development Cooperation to sign transfer and delegation agreements 
both  with  the  European  Commission  and  EU  Member  States,  in  the  framework  of 
delegated  cooperation.    In  August  2010  Italy  officially  expressed  its  interest  to  start 
cooperating  with  the  European  Commission  in  the  Indirect  Centralised  Management 
mode,  and  it  is  waiting  for  the  assessment  procedure  (so-called  “6  pillars  audit”)  to  be 
confirmed eligible for delegated cooperation. 

-  On Mutual Accountability. Italy did not establish a joint framework for monitoring joint 

commitments. 

-  On  Managing  for  Development  Results.  Italy  does  not  provide  capacity  building 

support for this.  

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International  Financial  Institutions.  Italy  supports  a  single  EU  Chair  for  the  IMF  in 
order  for  the  EU27  to  speak  with  one  voice.  Though,  in  the  short  term,  improved 
coordination  mechanisms  can  be  preferred,  also  considering  the  different  institutional 
arrangements in the various MDBs. 
Italy  favours  stronger  Brussels  based  coordination  on  issues  related  to  the  World 
Bank and MDBs.  

- 

50 http://www.cooperazioneallosviluppo.esteri.it/pdgcs/inglese/intro.html 

EN 

87 

   EN 

 
 
                                                 
LATVIA  

POLICY FRAMEWORK  

The Development Cooperation Policy Programme of the Republic of Latvia 2006-2010 was 
prepared taking into account Latvia's growing role in the resolution of global problems. It is in 
accordance with the foreign policy guidelines of the Republic of Latvia as of 2005 and "The 
Basic Principles for the Development Cooperation Policy of the Republic of Latvia".  

The  Ministry  of  Foreign  Affairs  is  responsible  for  forming  the  development  cooperation 
policy  and  for  coordination  of  the  Programme.  Individual  tasks  require  the  involvement  of 
other governmental institutions as well (pursuant to Cabinet of Ministers Order No. 107 of 19 
February  2003  "On  the  "Basic  Principles  for  the  Development  Cooperation  Policy  of  the 
Republic of Latvia")51. 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax administrations in developing countries: Latvia provides aid in these fields to EU 
Neighbourhood  Policy  countries  (support  to  administrations  and  policy  of:  Ministries  of 
Finance).  

-  Support to promote good governance in tax matters: Yes 
-  Bilateral  Tax  Information  Exchange  Agreements  and  Double  Taxation  Conventions 
since  2010:  (i)  Double  Taxation  Conventions  signed  with  Egypt  (discussion  on  good 
governance in tax  policy during tax  treaty negotiations); (ii) under negotiation with  India, 
Pakistan, (iii) planned with Thailand (DTC), Philippines (DTC), Chile (DTC), Peru (DTC). 
-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

Yes 

No 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
Yes 
•  Extractive Industry Transparency Initiative (EITI):  
No 
• 
No 
IMF Regional Technical Assistance Centres:  
• 
No 
International Tax Dialogue:  
• 
No 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

51 http://www.mfa.gov.lv/en/DevelopmentCo-operation/BasicDocuments/Programme/ 

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88 

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2.  SCALING UP ODA 

Latvia’s ODA/GNI was EUR 12 million (preliminary), i.e.0.06% in 2010, down from 0.07% 
in 2009. Latvia spent EUR 12 million on ODA in 2010.  

Latvia - ODA as a % of GNI 
Historical data and scenario for reaching 2015 targets

Historical

Linear increase in ODA volume

1,00

0,80

I

N
G

f
o
%
a
s
a
A
D
O

0,60

0,40

0,20

0,00

ODA gap to 2015 target from 2010 level 
(EUR million)
62
Average annual increase needed:
12

2015 Target: 0.33

2010 Target: 0.17

0,24

0,29

0,33

0,19

0,13

0,06

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

0,06

0,07

0,06

0,06

0,07

0,07

0,06

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

-  No realistic, verifiable actions for meeting individual ODA commitments until 2015 

taken in 2010.  

-  Latvia  has  been  providing  assistance  to  Africa  through  multilateral  channels.      In 
2010  and  also  in  2011  Latvia’s  priority  partner  countries  remain  the  same  (Georgia, 
Moldova,  Ukraine  and  Belarus)  and  at  this  stage  it  is  not  planned  to  change  the 
geographical focus of Latvia’s bilateral development cooperation policy. 

-  Latvia will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Latvia did not use innovative financing mechanisms for development. 
-  Latvia  does  not  intend  to  step  up  efforts  for  innovative  financing  mechanisms  with 

significant revenue generation potential.  

- 

In the context of the current economic and financial crisis, Latvia is cautious regarding the 
introduction of new innovative sources of financing. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Latvia does not provide financial tools to support private investment. 

EN 

89 

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-  Latvia promotes the adoption of internationally agreed principles and standards on 
Corporate  Social  and  Environmental  Responsibility  by  European  companies; 
Signature  of  “Memorandum  of  CSR  principles  of  Latvia”  in  February  2010  with 
Employers’  Confederation  of  Latvia  (LDDK)  together  with  social  partners,  NGOs, 
ministries and governmental institutions. 

-  Latvia  does  not  support  the  Kimberley  process  and  the  FAO  Code  of  Conduct  for 

Responsible Fisheries.  

-  No  new  initiatives  in  relation  to  the  inclusion  of  social  and  environmental  clauses  in 
ODA-financed  public  procurement  as  already  included  in  the  government  regulations 
(updated in 2009). 

Remittances 

-  Latvia  did  not  implement  the  "General  Principles  for  International  Remittances 
Services"  agreed  by  the  Committee  on  Payments  and  Settlements  Systems  (CPSS), 
neither does it plan to implement solutions to improve the impact of remittances on 
development.  Due  to  the  small  number  of  migrants  in  Latvia,  at  this  stage  it  is  not 
planned to implement solutions to improve the impact of remittances on development. 
-  Other initiatives in order to increase competition and transparency in the remittance 
market  and  to  reduce  remittance  transfers  costs:  Yes.  As  cross  –  border  remittance 
flows are not regulated in Latvia, there is no special handling for migrant remittances. All 
payments,  including  cross-border  credit  transfers,  are  handled  according  to  common 
standards set out in the Latvian legislation. 

5.  AID FOR TRADE 

Latvia, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations 
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

Total Trade-Related Assistance

Wider Aid for Trade Agenda 

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

Total Aid for Trade 

2006 

2007 

2008 

2009 

n/a 

n/a 

257 

38 

n/a 

n/a 

80

n/a 

n/a 

n/a 

n/a 

n/a 

80

n/a 

n/a 

77

n/a 

n/a 

n/a 

n/a 

n/a 

77

0 

0 

257 

0 

0 

38

257 

38 

0 

0 

0 

0 

257 

0 

0 

0 

0 

38

ource: OECD CRS Database (latest update) 

EN 

90 

S

   EN 

 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Latvia has not delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ 
AfDB).  Outstanding  balance  for  IDA  15  and  MDRI  for  FY  2009-2010  is  EUR  0.52 
million.  Latvian  authorities  are  resolving  the  issue  and  negotiating  on  postponement  of 
payment schedule. 

-  No  actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-

income countries. 

-  Latvia does not favour reform of the international architecture for restructuring of 

sovereign debts. 

-  No specific interventions to prevent aggressive litigation against HIPCs (in particular 

to prevent the actions of "vulture funds"). 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Latvia  supported  ownership  through  consultations  and 
coordination with partner countries, through partner capacity development and guidance / 
incentives for staff in partner countries. 

-  On Conditionality. No action. 
-  On  Transparency  and  Predictability.  Latvia  publicly  discloses  information  on  aid 

volumes through the web site of Ministry of Finance. 52 

-  On  Alignment.  Latvia  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy. 

-  On  Harmonisation.  Latvia  has  special  government  regulations  in  place  for  delegated 

cooperation. 

-  On Mutual Accountability. No joint framework for monitoring joint commitments. 
-  On  Managing  for  Development  Results.  Latvia  provides  capacity  building  support  for 

this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International Financial Institutions. Latvia  supports  a  single EU Chair for  the IMF in 
order  for  the  EU27  to  speak  with  one  voice.  In  respect  to  IMF,  main  issues  are  already 
discussed  within  SCIMF  (Subcommittee  on  IMF  matters),  and  sometimes  also  WB 
(World Bank) issues were discussed within SCIMF, therefore we believe that creation of 
similar committee for WB issues would be valuable. 

-  Latvia favours stronger Brussels based coordination on issues related to the World 

Bank and MDBs.  

52 http://www.mfa.gov.lv/en/DevelopmentCo-operation/BasicDocuments/Programme/ 

EN 

91 

   EN 

 
 
 
                                                 
 
LITHUANIA  

POLICY FRAMEWORK  

The  first  legal  framework  for  Lithuanian  development  cooperation  and  humanitarian 
assistance was set in May 2003 when the government adopted a concept paper on Lithuania’s 
development  cooperation  for  2003-2005.  Lithuanian  development  cooperation  is  based  on 
Government resolution No.561 of 8 June 2006  Decision No. 561 on Policy Guidelines for 
Development  Cooperation  in  2006-201053  (Official  Journal,  2006,  No.  106-3910).  This 
document  provides  the  framework  for  Lithuania’s  current  development  cooperation  policy 
and  outlines  its  mission,  main  objectives,  principles  and  priorities  as  well  as  coordination, 
financial commitments and measures for ensuring effectiveness.54 A concept of a new Law on 
development cooperation should be worked out by 2012. 

Lithuania’s Ministry of Foreign Affairs is the central institution implementing the country’s 
foreign  policy  and  development  cooperation.   Within  the  Ministry,  the  Department  of 
Development  Cooperation  and  Democracy  Promotion  administers  the  country’s  bilateral 
ODA programmes, i.e. Lithuanian Development Cooperation. 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Lithuania does not promote the principles of good governance in tax matters. But it 
does  assess  the  level  of  commitment  of  the  beneficiary  to  the  principles  of  good 
governance in tax matters. 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

Yes 

in International Business Transactions:    
No 
•  Stolen Assets Recovery initiative (STAR):  
No 
•  Extractive Industry Transparency Initiative (EITI):  
No 
• 
IMF Regional Technical Assistance Centres:  
No 
• 
International Tax Dialogue:  
No 
• 
International Tax Compact:  
No 
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

53 http://www.lrv.lt/main_en.php   
54 Development Cooperation in LITHUANIA, Country Study, Annika Kool, on behalf of TRIALOG, December 
2007 

EN 

92 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
2.  SCALING UP ODA 

ODA Individual commitments and gap to target  

–  Lithuania’s  ODA  was  EUR  28  million  in  2010  (preliminary),  0.10%  of  GNI  –  a  small 

decrease from 0.11% in 2009.  

Lithuania - ODA as a % of GNI 
Historical data and scenario for reaching 2015 targets

Historical

Linear increase in ODA volume

1,00

0,80

I

N
G

f
o
%
a
s
a
A
D
O

0,60

0,40

0,20

0,00

ODA gap to 2015 target from 2010 level 
(EUR million)
89
Average annual increase needed:
18

2015 Target: 0.33

2010 Target: 0.17

1995

1996

1997

1998

1999

2000

2001

2002

2003

0,04
2004

0,25

0,29

0,21

0,16

0,11

0,11

0,11

0,08

0,06

0,10

0,10

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

-  No realistic, verifiable actions for meeting individual ODA commitments until 2015 

taken in 2010. 

-  No measures taken nor planned to contribute to the EU27 target to channel at least 

50% of EU collective ODA increase to Africa. 

-  Lithuania will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Lithuania did not use innovative financing mechanisms for development. 
-  Lithuania  does  not  intend  to  step  up  efforts  for  innovative  financing  mechanisms  with 

significant revenue generation potential.  

-  No other work on innovative financing mechanisms. 

EN 

93 

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4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Lithuania does not provide financial tools to support private investment. 
-  Lithuania does not promote the adoption of internationally agreed principles and standards 

on Corporate Social and Environmental Responsibility by European companies. 

-  Lithuania  does  not  support  the  Kimberley  process  and  the  FAO  Code  of  Conduct  for 

Responsible Fisheries. No new initiative taken in 2010 in this field.  
Immigrant communities in Lithuania are very small with no significant remittances. 

- 

5.  AID FOR TRADE 

Lithuania, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

Total Trade-Related Assistance

Wider Aid for Trade Agenda 

Trade Policy and Regulations 
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

2006 

2007 

2008 

2009 

60 

273 

232 

74 

0 

0 

60

60 

77 

39 

0 

0 

0 

0 

273

273 

4 

183 

0 

0 

60 

0 

292 

232 

426 

114 

0 

0 

144 

0 

218

74 

87 

144 

0 

0 

Total Aid for Trade 

176

460

772 

305

Source: OECD CRS Database (latest update) 

EN 

94 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Lithuania did not deliver on its HIPC/ MDRI commitments (including vis-à-vis IDA/ 
AfDB).  After  graduation  from  the  IBRD  borrower  status  in  2006,  Lithuania  is  in  the 
process of becoming an IDA member and donor. Although the formal procedures for IDA 
membership  are  postponed  until  2011,  Lithuania  will  make  a  decision  with  regards  to 
MDRI when the membership in IDA is finalised. Lithuania is planning to join the HIPC 
initiative through IDA. 

-  Lithuania  favours  reform  of  the  international  architecture  for  restructuring  of 

sovereign debts based on collective action clauses in debt contracts. 

-  No specific interventions to prevent aggressive litigation against HIPCs (in particular 

to prevent the actions of "vulture funds"). 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Lithuania  supported  ownership  through  consultations  and 

coordination with partner countries. 
-  On Conditionality. No action in 2010. 
-  On  Transparency  and  Predictability.  Lithuania  publicly  discloses  information  on  aid 

volumes through the web site of Ministry of Foreign Affairs.55 

-  On  Alignment.  Lithuania  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy. 

-  On  Harmonisation.  According  to  the  Agreement  on  delegated  cooperation  between 
Lithuania’s  MFA  and  Sweden’s  SIDA,  Lithuanian  is  leading  the  programme  “Belarus: 
Delegated cooperation with Lithuania 2008-2011”. 

-  On Mutual Accountability. No joint framework for monitoring joint commitments. 
-  On  Managing  for  Development  Results.  Lithuania  does  not  provide  capacity  building 

support for this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International  Financial  Institutions.  Lithuania  does  not  support  a  single  EU  Chair  for 
the  IMF  in  order  for  the  EU27  to  speak  with  one  voice.  Lithuania  acknowledges  the 
importance of coordination within the EU but that does not mean that the EU should speak 
with one voice. 

-  Lithuania  favours  stronger  Brussels  based  coordination  on  issues  related  to  the 

World Bank and MDBs. 

55 http://www.urm.lt/index.php?-450921326 

EN 

95 

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LUXEMBOURG 

AT A GLANCE 

POLICY FRAMEWORK  

legal  framework  of  Luxembourg’s  development  cooperation  activities 

the 
The 
Development  Co-operation  Act  (1996).  The  key  policy  document  is  the  one  page  "strategy 
and principles" statement on development co-operation from the Ministry of Foreign Affairs. 
The statement includes commitments to reach 1% ODA/GNI and to concentrate on 10 priority 
countries  in  Central  America,  Western  and  Southern  Africa  and  South-East  Asia.  Focus 
sectors  are  the  social  sectors:  health,  education  and  local  development  and  water  and 
sanitation in particular). Responsibility for co-operation policy is vested in the Development 
Cooperation  Directorate  of  the  Ministry  of  Foreign  Affairs.  The  Development  Co-operation 
Directorate  is  responsible  for  multilateral  ODA  (excluding  the  Bretton  Woods  institutions) 

is 

EN 

96 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
and  uses  an  executing  agency,  Lux-Development,  to  design  and  implement  bilateral 
projects.56  

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support  to  reform  programmes  for  capacity  development  of  custom,  judiciary  and 
tax  administrations  in  developing  countries:  Luxembourg  provides  support  to 
developing countries' tax systems in Asia, Latin America and ACP countries. In addition, 
support is provided to national governments in public financial management.  
-  Luxembourg promotes the principles of good governance in tax matters. 
-  New  Bilateral  Tax  Information  Exchange  Agreements  and  Double  Taxation 

Agreements 
planned 
(country):  

with 

1.  Burkina 
Faso 
2.  Kenya 
3.  Liberia 
4.  Mali 
5.  Nigeria 
6.  Zambia 

TBD 

TBD 
TBD 
TBD 
TBD 
TBD 

Conventions of 2010:  

Agreements 
concluded 
(country) 

1.  Armenia 

with 

Assistance 
provided 
(Yes/No) 
No 

2.  Azerbaijan  
3.  Georgia 
4.  India 
5.  Moldova 

Agreements 
negotiation 
(country): 

under 
with 

1.  Botswana 
2.  Laos 
3.  Mexico 
4.  Pakistan 
5.  Philippines 
6.  Senegal 
7.  Seychelles 

No 
No 
No 
No 

No 
No 
No 
No 
No 
No 
No 

-  State of support to/ ratification of/ adherence to international conventions/ initiatives 

on tax issues: 

IMF Regional Technical Assistance Centres: No 
International Tax Dialogue: No 
International Tax Compact: No 

• 
• 
• 
•  African Tax Administration Forum (ATAF): No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT): No 
• 

IMF Topical Trust Fund on Tax policy and administration: No 

56 OECD DAC Peer Review Luxembourg 2008 

EN 

97 

   EN 

 
 
 
 
 
 
 
                                                 
•  United Nations Convention against Corruption (Merida): Yes 
•  OECD  Convention  on  Combating  Bribery  of  Foreign  Officials  in  International 

Business Transactions: Yes 

•  Stolen Assets Recovery initiative (STAR): Yes 
•  Extractive Industry Transparency Initiative (EITI): No 

2.  SCALING UP ODA 

ODA individual commitments/gap to agreed targets 

-  Luxembourg  has  since  long  reached  the  EU  2015  0.7%  ODA/  GNI  target.  The 
country’s ODA reached EUR 301 billion (preliminary), i.e.1.09% in of GNI in 2010, up 
from 1.04% in 2009.  

-  Luxembourg spent EUR 301 million on ODA in 2010, virtually unchanged compared 

to 2009.   

-  There was no debt relief in Luxembourg’s ODA during the period 2004 – 2009. 

Luxembourg - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

National Path

1,20

1,00

0,80

0,60

I

N
G

f
o
%
a
s
a
A
D
O

2015 Target: 0.70

0,65

0,66

2010 Target: 0.51

0,55

0,40

0,44

0,36

0,20

0,00

1,09

1,09

1,04

1,00

1,00

1,00

1,00

1,00

1,00

1,00

1,00

1,00

0,72

0,73

0,73

0,79

0,86

0,89

0,79

0,97

0,92

ODA gap to 2015 target from 2010 level 
(EUR million)
65
Average annual increase needed:
13

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

EN 

98 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
Luxembourg - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

-

-

-

-

-

1,09 

1,04 

0,89 

0,92 

0,97 

-

-

-

-

-

0,00 

-

-

0,77 

0,78 

0,79 

0,79 

0,86 

0,65 

0,66 

0,69 

-

0,55 

-

-

0,44 

0,36 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 
2015" taken in 2010: Luxembourg reached an ODA/GNI level of 1% in 2009 and intends 
to maintain this level for the years to come. The government programme for 2009-2014 
provides for ODA volume equivalent to 1.0% of GNI during the period.57  

-  More than half of Luxembourg’s assistance is channelled to Africa. 
-  Luxembourg will continue to exceed the target of 0.15%-0.20% ODA/GNI to LDCs 

by 2010 and onwards. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Luxembourg  supports  UNITAID’s  Airline  Ticket  Tax/contribution  with  500 000 
EUR in 2009 and 2010 (not reported as ODA). There are no plans to step up efforts in 
this area.  

57  http://www.gouvernement.lu/gouvernement/programme-2009/programme-2009/programme-gouvernemental-

2009.pdf  

EN 

99 

   EN 

 
 
 
 
 
                                                 
4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Financial tools to support private investment: 

Investment guarantees: No 
Improvement of the overall banking system: Yes 

• 
• 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: No 
•  Blending: No 
•  Private public partnerships: No 
•  Business and investment climate: Yes 
• 
•  Export credits: NO 

Investment facilities: No 

-  Luxembourg  promotes  the  adoption  of  internationally  agreed  principles  and 
standards  on  Corporate  Social  and  Environmental  Responsibility  by  European 
companies.  The  government  set  up  a  coordination  committee  for  corporate  social 
responsibility  in  2008.  It  associates  the  relevant  actors  at  the  state  level  -  including  the 
Directorate  of  Development  Cooperation  of  the  Ministry  of  Foreign  Affairs  -  and  the 
private sector (companies and associations). 

-  Luxembourg is not supporting the Kimberley Process and the FAO Code of Conduct 

for Responsible Fisheries. 

-  New  initiatives  in  relation  to  including  social  and  environmental  clauses  in  ODA-
financed public procurements: Lux-Development is examining the possibility to include 
environmental clauses in its calls for tenders in partner countries. 

-  Luxembourg  has  implemented  solutions  internally  or  in  cooperation  with  third 
countries  to  overcome  barriers  to  migrants  and  their  families'  access  to  financial 
services. There is also a monitoring system in place. Luxembourg launched a 2009-2010 
action  plan  to  develop  microfinance  and  remittances  from  migrants  in  Cape  Verde  in 
collaboration with the NGO Appui au Développement Autonome (ADA) has. This Action 
Plan contains indicators.  

-  Luxembourg  has  not  implemented  the  General  Principles  for  International 
Remittances  Services"  agreed  by  the  Committee  on  Payments  and  Settlements 
Systems (CPSS). 

EN 

100 

   EN 

 
 
 
5.  AID FOR TRADE 

Luxembourg, AfT Commitments (EUR million) 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

Total Trade-Related Assistance

Wider Aid for Trade Agenda 

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

2006 

2007 

2008 

2009 

345 

128 

300 

N/A 

N/A 

N/A 

0 

345

0 

128

N/A 

0 

300 

N/A 

N/A 

N/A

345 

128 

300 

0 

2 197 

6 344 

3 456 

590 

9 513 

20 717 

24 292 

21 215 

0 

0 

0 

0 

0 

0 

0 

0 

Total Aid for Trade 

12 056

27 189

28 048 

21 805

Source: OECD CRS Database (latest update) 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Luxembourg  has  delivered  on  its  commitments  to  the  HIPC  and  MDRI  initiatives, 

including commitments towards IDA and the African Development Bank. 

-  Luxembourg  believes  that  questions  on  the  international  architecture  for  the 

restructuring of sovereign debts do not apply to Luxembourg. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On Ownership. Luxembourg supported country ownership in 2010 through consultation 
and  coordination  with  partner  countries,  guidance  and  incentives  for  staff  in  partner 
countries and by supporting partner capacity development. 

-  On Conditionality. Luxembourg has carried out the following actions on conditionalities 

in 2010: harmonisation with other donors.  

EN 

101 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-  On Transparency and Predictability. Luxembourg publicly discloses information on aid 

volume on the internet and in an annual report of development cooperation. 

-  On  Alignment.  Luxembourg  has  integrated  the  principles  of  the  Code  of  Conduct  on 
Complementarity  and  Division  of  Labour  in  strategies,  staff  guidance  and  programming 
processes/guidelines. 

-  On  Harmonisation.  Luxembourg  has  legal  and/or  administrative  arrangements  in  place 
for  delegated  cooperation  and  there  is  a  mechanism  in  place  to  track  cases  of  delegated 
cooperation.  Lux-Development  is  allowed  to  manage  community  funds  under  delegated 
cooperation  since  June  2009.  There  is  a  monitoring  system  in  place  to  track  delegated 
cooperation. Cases of delegated cooperation agreed to in 2010: 

Recipient country  Partner  for  delegated 

Modality/explanation 

Laos 

cooperation 
Belgium 

Montenegro 

EU Delegation 

Nicaragua 

EU Delegation 

Health Sector (implementation through Lux-
Development) 
Forestry 
Development) 
Tourism 
Development) 

(implementation 

(implementation 

through  Lux-

through  Lux-

-  On  Mutual  Accountability.  Luxembourg  has  established  a  joint  framework  for 
monitoring  joint  commitments  in  all  ten  priority  countries:  El  Salvador,  Nicaragua, 
Burkina Faso, Cape Verde, Mali, Namibia, Niger, Senegal, Laos, and Vietnam. 

-  On Managing for Development Results. Luxembourg does not provide capacity support 

for Managing for Development Results.  

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Luxembourg  shares  the  view  that  EU27  should  speak  with  one  voice  in  the  IMF, 
World Bank and the main multilateral development banks' governing bodies. Luxembourg 
believes that there is no clear cut answer to this question. Speaking with one voice may 
definitely  enhance  the  EU’s  position  in  these  governing  bodies  but  may  at  the  same 
further  polarise  the  Boards  of  these  institutions.  Whether  the  latter  would  be  in  the 
interests of the concerned institutions (and their mandates) remains debatable. Now to the 
question how to bring this about, the straightforward answer would be the establishment 
of  a  single  European  seat.  But  the  answer  may  differ  according  to  the  institution 
concerned.  The  IMF,  for  instance,  is  first  and  foremost  a  financial  institution  and  one 
EU27  voice  might  make  little  sense  in  this  context;  a  Euro  zone  representation  maybe 
more sensible in this particular case. 

-  Luxembourg  supports  stronger  Brussels  based  coordination  on  a  regular  basis  on 
issues related to the World Bank and MDBs. However, Luxembourg believes that it is 
important  to  clarify  what  Brussels  based  coordination  means.  If  it  is  meant  to  be  a 
Commission-run exercise, we would strongly beg to differ. If it means that EU countries 
would  be  coordinating  along  the  lines  of  the  Brussels-based  IMF  coordination  (IMF 
coordination is taking place in the context of the Ecofin) the answer is definitely yes. Of 
course, since (unlike in the case of IMF coordination) development aid matters are often a 
shared  Ministerial  responsibility,  coordination  is  likely  to  become  an  institutional 
challenge. 

EN 

102 

   EN 

 
 
 
 
MALTA  

POLICY FRAMEWORK  

Significant  progress  can  be  seen  in  the  short  span  of  five  years  (2004–2009)  immediately 
following the country’s accession to the EU and its consequent shift to donor-country status. 
The  Government  established  a  written  policy  regarding  overseas  aid  and  enhanced 
transparency in showing how the ODA funds are being distributed. 
In October 2007 the Government launched its first Overseas Development Policy document58, 
based on the values that underlie Malta’s Foreign Policy ( Strategic Objective 18 of Malta’s 
Foreign Policy) which states that the Ministry of Foreign Affairs will “Elaborate and action a 
Policy and Work Programme of humanitarian and development assistance59. 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Malta  does  not  provide  concrete  development  cooperation  to  support  developing 

countries’ tax systems due to resources constraints. 

•  No support to reform programmes for capacity development of customs, judiciary 

and tax administrations in developing countries. 

•  No support to promote good governance in tax matters. 

-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since 2010: (i) Double Taxation Conventions signed with Jersey (ratified by both parties); 
(ii) under negotiation with Belgium, Bahrain, China, Germany (awaiting ratification). 
-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

Yes 

No 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
No 
•  Extractive Industry Transparency Initiative (EITI):  
No 
• 
No 
IMF Regional Technical Assistance Centres:  
• 
No 
International Tax Dialogue:  
• 
No 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

58 http://www.foreign.gov.mt/Library/PDF/Malta%27s%20Overseas%20Development%20Policy%20eng.pdf 
59 http://www.foreign.gov.mt/default.aspx?MDIS=21&NWID=664 

EN 

103 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
2.  SCALING UP ODA 

ODA Individual commitments and gap to target  

–  In 2010, Malta spent €7 million as ODA  (preliminary), i.e. 0.11% of its GNI, down from 

EUR 10 million, i.e. 0.18% of GNI in 2009.  

Malta - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

2015 Target: 0.33

2010 Target: 0.17

ODA gap to 2015 target from 2010 level 
(EUR million)
16
Average annual increase needed:
3

0,18

0,18

0,15

0,15

0,20

0,18

0,33

0,30

0,29

0,27

0,25

0,24

0,22

0,20

0,16

0,11

0,11

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

-  "Realistic, verifiable actions for meeting individual ODA commitments until 2015" 
taken in 2010: The Government is committed to the objective to reach the ODA targets 
and  is  allocating  more  funds  within  its  budget  so  as  to  increase  its  ODA/GNI  ratio  to 
meet its commitments by 2015. Priority is given to public support for the MDG agenda, 
with a particular focus on areas of public interest where common development goals with 
development are important like education, health, trade, environment and climate change 
and migration. 

-  The Ministry of Foreign Affairs has been co-funding projects implemented by local 
NGOs in Africa. In its multilateral contributions, Malta will also try to earmark its funds 
to Africa. 

-  Malta will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010. Malta 

supports EU initiatives to this effect. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Malta is currently not implementing any innovative source of financing, although 

this might be considered in the future. 

EN 

104 

   EN 

 
 
 
 
 
 
 
 
 
 
 
4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Malta does not provide financial tools to support private investment. 
-  Malta  does  not  promote  the  adoption  of  internationally  agreed  principles  and 
standards  on  Corporate  Social  and  Environmental  Responsibility  by  European 
companies.  As  yet,  there  are  no  social  and  environmental  clauses  included  in  Malta’s 
public procurement regulations. 

-  Malta does not support the Kimberley process and the FAO Code of Conduct for 

Responsible Fisheries. 

Remittances 

-  Malta  did  not  implement  the  "General  Principles  for  International  Remittances 
Services"  agreed  by  the  Committee  on  Payments  and  Settlements  Systems  (CPSS), 
neither  plan  to  implement  solutions  to  improve  the  impact  of  remittances  on 
development.  As  local  institutions  have  no  data  on  remittances  as  these  are  treated  like 
any other transactions 

5.  AID FOR TRADE 

No information available on Malta's commitments for Aid for Trade.  

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Malta  has  not  delivered  on  its  HIPC/  MDRI  commitments  (including  vis-à-vis  IDA/ 

AfDB). 

-  No  actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-

income countries. 

-  Malta favours reform of the international architecture for restructuring of sovereign 
debts in order to deal with potential future cases of debt distress in low-income countries 
(through the Paris Club with a role for International Financial Institutions). 

-  No specific interventions to prevent aggressive litigation against HIPCs (in particular 

to prevent the actions of "vulture funds"). 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Malta  supported  ownership  through  consultations  and 
coordination with partner countries, through Guidance and incentives for staff in partner 
countries and through partner capacity development.  

-  On Conditionality. No action. 
-  On  Transparency  and  Predictability.  Malta  publicly  discloses  information  on  aid 

volumes through Press release. 

-  On  Alignment.  Malta  did  not  integrate  the  principles  of  the  Code  of  Conduct  on 
Complementarity  and  Division  of  Labour  in  its  development  strategy.  Still  undergoing 
further internal study. 

EN 

105 

   EN 

 
 
 
 
 
-  On  Harmonisation.  No  legal  and/or  administrative  arrangements  in  place  to  manage 
funds for another Member States or the EU and for another Member States or the EU to 
manage Malta’s funds (delegated cooperation). 

-  On Mutual Accountability. No joint framework for monitoring joint commitments. 
-  On  Managing  for  Development  Results.  Malta  does  not  provide  capacity  building 

support for this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International  Financial  Institutions.  Malta  supports  a  single  EU  Chair  for  the  IMF  in 
order for the EU27 to speak with one voice. One common position on a single EU seat, or 
failing that, of a single euro zone seat. 

-  Malta  favours  stronger  Brussels  based  coordination  on  issues  related  to  the  World 

Bank and MDBs. 

EN 

106 

   EN 

 
THE NETHERLANDS  

AT A GLANCE 

POLICY FRAMEWORK  

The  Government  presented  a  major  overhaul  of  Dutch  development  policy  in  a  letter  to 
Parliament  in  November  2010.60  Aid  spending  will  be  reduced  permanently  from  0.8%  to 
0.7% of GNI and the number of partner countries will be reduced from 33 to 16. The number 
of themes will also  be reduced in parallel with a shift from social to economic sectors. The 
administration  of  Dutch  development  cooperation  is  integrated  into  the  Ministry  of  Foreign 
Affairs, with the Directorate General for International Cooperation as the leading unit.61  

60 

http://www.minbuza.nl/en/Key_Topics/Development_Cooperation/Dutch_development_policy/Less_fr
agmentation_means_more_effective_aid  

61 DAC Peer Review 2006  

EN 

107 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
                                                 
I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support  to  reform  programmes  for  capacity  development  of  custom,  judiciary  and 
tax  administrations  in  developing  countries:  The  Netherlands  provides  support  to 
developing  countries'  tax  policy  and  administration  (customs,  semi-autonomous  revenue 
authorities  and  ministries  of  finance)  in  EU  candidate  and  Neighbourhood  Policy 
countries, Asia and ACP countries.  

-  Promote the principles of good governance in tax matter: Yes 
-  New  Bilateral  Tax  Information  Exchange  Agreements  and  Double  Taxation 
Conventions  of  2010:  Agreements  concluded  with  Andorra,  Anguilla,  Antigua  & 
Barbuda,  Bahamas,  Belize,  Bermuda,  British  Virgin  Islands,  Cayman  Islands,  Cook 
Islands,  Dominica,  Gibraltar,  Grenada,  Guernsey,  Isle  of  Man,  Jersey,  Liberia, 
Liechtenstein,  Marshall  Island,  Monaco,  Montserrat,  Saint  Kitts  and  Nevis,  Samoa,  San 
Marino,  Seychelles,  Singapore,  Saint  Lucia,  Saint  Vincent  and  Grenadines,  Turks  & 
Caicos  Islands.  Agreements  under  negotiations  with  Brunei,  Costa  Rica,  Guatemala, 
Mauritius, Nauru, Niue, Uruguay, Vanuatu.  

-  State of ratification of/ adherence to international conventions/ initiatives on tax issues:  

IMF Regional Technical Assistance Centres: Yes 
International Tax Dialogue: Yes 
International Tax Compact: Yes 

• 
• 
• 
•  African Tax Administration Forum (ATAF): Yes 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT): Yes 
• 
•  United Nations Convention against Corruption (Merida): Yes 
•  OECD  Convention  on  Combating  Bribery  of  Foreign  Officials  in  International 

IMF Topical Trust Fund on Tax policy and administration: Yes 

Business Transactions: Yes 

•  Stolen Assets Recovery initiative (STAR): Yes 
•  Extractive Industry Transparency Initiative (EITI): Yes 

2.  SCALING UP ODA 

ODA individual commitments/gap to agreed targets 

-  The  ODA  levels  of  the  Netherlands  have  been  consistend  at  or  above  0.7%  ODA/ 
GNI since many years.. The new Dutch Government, in its coalition agreement of 2010 
ODA, while confirming a spending level of 0.7% of GNI for development aid until 2015, 
at the same time decided to scale down from the > 0.8% foreseen for 2010 to 0.75% in 
2011 and 0.7% from 2012 onwards. 

- 

In 2010 the Netherlands spent EUR 4795 million as ODA (preliminary), 0.81% of its 
GNI. This was an increase by 2.2% in real terms compared to 2009.  

-  Debt relief made up only 4% of Dutch ODA during the period 2004 - 2009 

EN 

108 

   EN 

 
 
Netherlands - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast or 2005-2010 Trend

National Path

0,81

0,81

0,81

0,80

0,84

0,82

0,81

0,80

0,82

0,81

0,81

0,80

0,82

0,81

2015 Target: 0.70

0,73

0,73

0,76

0,71

0,70

0,70

0,70

0,70

2010 Target: 0.51

ODA gap to 2015 target from 2010 level 
(EUR million)
264
Average annual increase needed:
53

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

The Netherlands - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,04 

0,05 

0,04 

0,04 

0,04 

0,04 

0,04 

0,08 

0,05 

0,04 

0,06 

0,05 

0,05 

0,01 

0,01 

0,06 

0,77 

0,76 

0,76 

0,76 

0,75 

0,80 

0,78 

0,73 

0,74 

0,69 

0,76 

0,76 

0,76 

0,79 

0,81 

0,75 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 
2015" taken in 2010: The ODA commitments until 2015 are agreed upon in the coalition 
agreement and in the government budget for 2011. The current plan is to commit 0.8% in 
2010, 0.75% in 2011 and 0.7% from 2012 onwards. 

EN 

109 

   EN 

 
 
 
 
 
 
 
 
 
 
 
-  No  specific  measures  are  needed  to  ensure  that  at  least  50%  of  EU  collective  aid 
increases of ODA resources are channelled to Africa. Overall monitoring ensures that 
at least 50% of total ODA is spent on Africa. Netherlands’ choice of partner countries is 
largely focused on Sub Sahara Africa and Netherlands’ bilateral regionally focused ODA 
has already met the 50% target.  

-  The  Netherlands  will  continue  to  exceed  the  target  of  0.15%-0.20%  ODA/GNI  to 

LDCs by 2010 and onwards. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  The  Netherlands  supports  the  International  Financing  Facility  for  Immunisation 
(IFFIm).  The  contribution  to  IFFIm  is  EUR  80  million  for  8  years  (2009-2016),  but  is 
expected to continue thereafter. 

-  The Netherlands plans to step up efforts for innovative financing mechanisms, i.a. by 
exploring the potential of financial instruments to leverage private investments in sectors 
that  directly  relate  to  development  (water,  energy,  health,    financing).  In  contrast  to  the 
currently applied levy type of instruments, these mechanisms are characterised by linking 
revenue  generation  directly  with  utilisation/investment  (guarantee  type  of  interventions). 
The  Netherlands  are  to  some  extent  involved  with  these  types  of  instruments  but  in  a 
modest way.  

-  The  Netherlands  is  also  ready  to  further  research  into  initiatives  concerning 
innovative finance for education, especially at a time when the education sector is hard 
hit by budget cuts from donor agencies.   

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: Foreign Direct Investment 

FDI to Developing Countries

10,000 

5,000 

-

-5,000 

-10,000 

-15,000 

)
s
e
c
i
r
p
9
0
0
2
(

s
o
r
u
E
f
o

s
n
o

i
l
l
I

M

-20,000 

Netherlands

2003

3,052 

2004

1,599 

2005

1,889 

2006

5,060 

2007

-751 

2008

-17,002 

2009

388 

EN 

110 

   EN 

 
 
 
 
 
 
 
 
 
-  Financial tools to support private investment: 

Source: OECD/ DAC  

Investment guarantees: Yes 
Improvement of the overall banking system: Yes 

• 
• 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: Yes 
•  Blending: No 
•  Private public partnerships: Yes 
•  Business and investment climate: Yes 
• 
•  Export credits: No 

Investment facilities: Yes 

-  The  Netherlands  promotes  the  adoption  of  internationally  agreed  principles  and 
standards  on  Corporate  Social  and  Environmental  Responsibility  by  European 
companies.  The  Netherlands  has  formulated  eligibility  criteria  for  companies  that  apply 
for grants to invest in developing countries. These criteria prevent child and forced labour 
(including  the  first  supplier).  In  assessing  the  social  and  environmental  aspects  of  the 
applications,  the  Dutch  government  has  formulated  criteria  which  are  related  to 
international  standards  such  as  the  OECD  Guidelines,  ILO  Conventions  (Core  Labour 
Standards) and the IFC Performance Standards 

-  The Netherlands supports the Kimberley process and the FAO Code of Conduct for 

Responsible Fisheries.  

-  The  Netherlands  has  taken  new  initiatives  in  relation  to  including  social  and 
the 
environmental  clauses 
Netherlands’  started  to  implement  its  new  policy  on  sustainable  public  procurement. 
Environmental  criteria  have  been  applied  from  January  2010  and  social  criteria  will  be 
applied from 2011. See Box for details. 

in  ODA-financed  public  procurements.  In  2010 

Box.  In  the  Netherlands,  public  procurement  is  used  to  pursue  various  policy  objectives, 
including  development  objectives.  The  government  links  its  public  procurement  policy  to 
economic  diplomacy,  activities  of  multilateral  organisations  (e.g.  ILO)  and  supply  chain 
initiatives  (e.g.  the  Dutch  Sustainable  Trade  Initiative  and  ‘fair  trade  municipalities’).  The 
government has chosen to apply fundamental labour standards and human rights on a generic 
basis (i.e. in a uniform manner in all public procurement). The development aim is to realise 
improvements in the entire supply chain (a process-oriented approach). For a limited number 
of  products,  for  which  community-supported  supply  chain  initiatives  exist,  supplementary 
standards apply. These standards relate to living wages/income (or fair trade), working hours, 
and  occupational  health  and  safety.  The  system  is  designed  to  be  as  simple  as  possible  for 
both contracting parties and suppliers, and to be consistent with actual practice. It only applies 
to  large  contracts  (above  EUR  133,000  for  goods  and  services).  Companies  will  be  held 
accountable  for  the  way  they  fulfil  their  supply  chain  responsibilities  with  regard  to  the 
product, work or service they deliver. 

-  The Netherlands have implemented solutions internally or in cooperation with third 
countries  to  overcome  barriers  to  migrants  and  their  families'  access  to  financial 
services.  The  focus  is  on  reinforcing  a  positive  link  between  remittances  and 
development.  The  Netherlands  gives  support  to  a  remittances  comparison  website 
www.geldnaarhuis.nl (evaluated in 2010), which provides information in eight languages 
on  money  transfer  costs  charged  by  banks  and  money  transfer  offices.  The  Netherlands 

EN 

111 

   EN 

 
 
contributes  to  financial  sector  development  in  countries  of  origin.  The  aim  is  a  more 
sustainable development impact of remittances. Finally, the Netherlands aims to increase 
the poverty alleviation effect of money transfers through promoting small scale initiatives 
of migrants. 

5.  AID FOR TRADE 

The Netherlands, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

2006 

2007 

2008 

2009 

50 206 

35 779 

62 356 

40 348 

146 221 

90 305 

N/A 

N/A 

Total Trade-Related Assistance

196 428

126 084

62 356 

0 

0 

0 

33 100 

73 448

Wider Aid for Trade Agenda 

Trade Policy and Regulations 
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

50 206 

35 779 

62 356 

40 348 

107 106 

69 461 

237 787 

204 559 

528 650 

405 096 

165 495 

237 193 

0 

0 

0 

0 

0 

0 

0 

33 100 

Total Aid for Trade 

685 962

510 337

465 638 

515 200

Source: OECD CRS Database (latest update) 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  The  Netherlands  delivered  on  its  commitments  to  the  HIPC  and  MDRI  initiatives, 

including commitments towards IDA and the African Development Bank. 

-  The  Netherlands  has  taken  new  actions/steps  to  help  restore  and  preserve  debt 
sustainability  in  low-income  countries  by  supporting  the  World  Bank's  Debt 
Management  Facility  (DMF),  UNCTAD  Debt  Management  and  Financial  Analysis 
System (DMFAS) and the Macroeconomic and Financial Management Institute of Eastern 
and Southern Africa (MEFMI). 

-  The  Netherlands  sees  a  need  for  reform  of  the  international  architecture  for  the 
restructuring  of  sovereign  debts  based  on  the  Paris  Club  and  the  creation  of  an 
International Arbitration Court. 

-  No specific interventions to prevent aggressive litigation against HIPCs have been taken. 

EN 

112 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  The  Netherlands  supported  country  ownership  in  2010  through 
consultation and coordination with partner countries, guidance and incentives for staff in 
partner countries and by supporting partner capacity development. 

-  On  Conditionality.  The  Netherlands  have  carried  out  the  following  actions  on 
conditionalities in 2010: reduction of the number of conditionalities, harmonisation with 
other donors and making conditionalities public.  

-  On Transparency and Predictability. The Netherlands publicly discloses information on 
aid volume on central and field office websites. An important tool to disclose information 
on aid volume is the biannual Results Report, which reports on aid policy and results. The 
report is meant to inform parliament, stakeholders and the public and is a coproduction of 
the Ministry of Foreign Affairs and Dutch CSOs. 

-  On Alignment. The Netherlands has integrated the principles of the Code of Conduct on 
Complementarity  and  Division  of  Labour  in  strategies,  staff  guidance  and  programming 
processes/guidelines.  

-  On  Harmonisation.  The  Netherlands  agreed  on  the  following  cases  of  delegation  in 

2010: 
Recipient country 

Partner for delegated 
cooperation
UNDP 
Royal Danish Embassy 
IBRD 
Care International 
CIDA Canada 

Bangladesh 
Benin 
Georgië 
Jemen 
Nicaragua 
Palestinian Administered Areas  DFID 
DFID 
Sudan 
NORAD 
Zambia 

Modality/explanation 

Project 
Basket Funding 
General Budget Support 
Project 
Basket Funding 
Project 
Project 
Project 

-  On  Mutual  Accountability.  The  Netherlands  has  established  a  joint  framework  for 
monitoring joint commitments in Mozambique, Rwanda, Burkina Faso, Tanzania, Uganda 
and Zambia. 

-  On Managing for Development Results. The Netherlands provides capacity support for 

Managing for Development Results (MfDR). 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  The  Netherlands  believes  that  the  EU27  should  speak  with  one  voice  in  the  IMF, 

World Bank and the main multilateral development banks' governing bodies. 

-  The  Netherlands  supports  stronger  Brussels  based  coordination  on  issues  related  to 

the World Bank and multilateral development banks.  

EN 

113 

   EN 

 
 
 
POLAND  

AT A GLANCE 62 

POLICY FRAMEWORK  

Poland’s development cooperation is guided by a strategy that was approved by the Council 
of Ministers in 2003.  
The main focal point for development cooperation strategy and policy leadership within the 
national  system  is  the  Development  Co-operation  Department  of  the  Ministry  of  Foreign 
Affairs (DCDMFA). DCDMFA manages only 15% of Poland’s ODA. The delivery of Polish 
aid is very much a team effort involving other departments of MFA, the Ministry of Finance 
(EU and multilateral channels), the Ministry of Science and Higher Education (scholarships), 
the  Ministry  of  Defence  (Afghanistan),  Ministry  of  the  Interior  and  Administration  (aid  to 
refugees) and a range of other ministries, government agencies and NGOs. MFA is therefore 

62 Poland DAC Special Review 2010: http://www.oecd.org/dataoecd/58/43/45362587.pdf 
http://www.oecd.org/document/56/0,3343,en_2649_34603_45367800_1_1_1_37413,00.html 

EN 

114 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
both  the  policy  maker  for  development  co-operation  and  also  the  co-ordinator  of  a  host  of 
actors and agencies that are not always under its direct control but which are responsible for 
delivering Poland’s aid. 

Poland plans legislation to strengthen the legal basis for development co-operation and a draft 
law is being prepared for approval by Parliament. The law, as currently drafted, will create an 
agency  for  development  co-operation  implementation  from  the  existing  institutional 
structures. 

The  government  intends  to  maximise  the  opportunity  presented  by  the  recent  merger  of  the 
Office  of  the  Committee  for  European  Integration  (UKIE)  with  MFA  which  more  than 
doubles  the  Ministry’s  capacity  for  development  cooperation  and  has  put  in  place  a  new 
DCDMFA  structure  in  anticipation  of  the  creation  of  the  agency  envisaged  in  the  new 
legislation63 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax administrations in developing countries: Poland does not provide aid in these fields.  

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since  2010:  (ii)  under  negotiation  with  Turkmenistan;  (iii)  planned  with  Antigua  and 
Barbuda,  Dominica,  Grenada,  Saint  Kitts  and  Nevis,  Saint  Lucia,  Saint  Vincent  and  the 
Grenadines, Marshall Islands, Nauru, Samoa, Vanuatu, Seychelles, The Bahamas, Liberia. 
-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

No 

in International Business Transactions:    
Yes 
•  Stolen Assets Recovery initiative (STAR):  
No 
•  Extractive Industry Transparency Initiative (EITI):  
No 
• 
IMF Regional Technical Assistance Centres:  
No 
• 
International Tax Dialogue:  
No 
• 
International Tax Compact:  
No 
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

63 Poland DAC Special Review 2010: http://www.oecd.org/dataoecd/58/43/45362587.pdf 
http://www.oecd.org/document/56/0,3343,en_2649_34603_45367800_1_1_1_37413,00.html 

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115 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
2.  SCALING UP ODA 

ODA Individual commitments and gap to target  

–  Poland's ODA spent EUR 285 million as ODA in 2010 (preliminary), i.e. 0.08% of GNI 
in  2010,  down  from  0.09%  in  2009,  falling  short  of  the  commitment  to  reach  0.17%  of 
GNI by 2010.  

–  A  recent  DAC  Peer  review  noted  Poland’s  commitment  to  reach  an  ODA/GNI  ratio  of 

0.33% by 2015 is looking increasingly problematic. 64 

Poland - ODA as a % of GNI 
Historical data and scenario for reaching 2015 targets

Historical

National Path

I

N
G

f
o
%
a
s
a
A
D
O

1,00

0,80

0,60

0,40

0,20

0,00

ODA gap to 2015 target from 2010 level 
(EUR million)
1,256
Average annual increase needed:
251

2015 Target: 0.33

2010 Target: 0.17

0,25

0,29

0,20

0,14

0,09

0,10

0,08

0,09

0,080,08

0,07

0,05

0,01

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

-  No realistic, verifiable actions for meeting individual ODA commitments until 2015 
taken in 2010: Having in mind meeting the accepted EU commitment of 0.33 % GNI of 
Polish  ODA  in  2015  when  reporting  annually  to  the  Parliament  on  issues  of  Polish 
foreign  affairs,  the  Minister  of  Foreign  Affairs  recalls  the  relevant  commitment  and 
underlines the importance of scaling up of Polish ODA volumes. 

-  Poland participates in co-financing of the 10th European Development Fund that is   
the  main  instrument  of  financing  cooperation  between  the  European  Union  and 
African, Caribbean and Pacific countries. Majority of assistance is directed to Africa. 
As far as bilateral assistance is concerned, Poland is going to continue to provide ODA to 
African  countries  through  Polish  embassies  that  are  responsible  for  implementing 

64 Poland DAC Special Review 2010: http://www.oecd.org/dataoecd/58/43/45362587.pdf 
http://www.oecd.org/document/56/0,3343,en_2649_34603_45367800_1_1_1_37413,00.html 

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116 

   EN 

 
 
 
 
 
 
 
 
 
 
                                                 
projects  financed  from  the  so-called  Small  Grant  Fund  in  these  countries.  Moreover 
Poland  will  continue  to  realise  projects  in  Angola  that  is  the  priority  country  of  Polish 
foreign aid in Africa according to Polish comparative advantages. 

-  Poland will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010. Poland 
finances  EDF10,  provides  contributions  to  the  EU  ODA  budget  and  continues  to  assist 
LDCS bilaterally. All these efforts taken together should contribute to achieving the EU 
target on LDCs after 2010. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Poland did not use innovative financing mechanisms for development. 
-  Poland  does  not  participate  in  international  cooperation  in  the  field  of  innovative 
financing sources and mechanisms. However, Poland considers them very useful in the 
context of supporting international efforts of  scaling up volumes of ODA and  achieving 
Millennium  Development  Goals.  Therefore  Poland  seriously  takes  into  consideration  its 
future engagement in international cooperation as far as innovative financing sources and 
mechanisms are concerned. 

-  No other work on innovative financing mechanisms. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Financial tools to support private investment 

Investment guarantees: No 
Improvement of the overall banking system: No 

• 
• 
•  Microfinance/ access to financial services: No 
•  Risk management initiatives: No 
•  Blending: No 
•  Private public partnerships: No 
•  Business and investment climate: No 
• 
•  Export credits: Yes 

Investment facilities: No 

-  Poland  does  not  promote  the  adoption  of  internationally  agreed  principles  and 

standards on Corporate Social and Environmental Responsibility. 

-  No reported information on Remittances. 

5.  AID FOR TRADE 

-  No information available on Poland’s commitments for Aid for Trade.  

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Poland  delivered  on  its  HIPC/  MDRI  commitments  (including  vis-à-vis  IDA/  AfDB) 

without delay. 

-  No  actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-

income countries. 

-  Poland does not favour reform of the international architecture for restructuring of 

sovereign debts. 

EN 

117 

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-  Specific interventions to prevent aggressive litigation against HIPCs (in particular to 

prevent the actions of "vulture funds"): None 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Poland  supported  ownership  through  consultations  and 
coordination  with  partner  countries,  through  guidance  and  incentives  for  staff  in  partner 
countries, by supporting partner capacity development. 

-  On Conditionality. No action. 
-  On  Transparency  and  Predictability.  Poland  publicly  discloses  information  on  aid 
volumes  on  Polish  aid  web  site65  (annual  reports  enclosing  complete  information  on 
Polish  ODA  volumes  and  covering  all  activities  undertaken  in  the  field  of  development 
cooperation).  Moreover  Poland  publishes  analyses,  booklets  and  leaflets  and  cooperates 
with press and media.  

-  On  Alignment.  Poland  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy. 

-  On  Harmonisation.  No  legal  and/or  administrative  arrangements  in  place  to  manage 
funds for another Member States or the EU , and/ for another Member States or the EU to 
manage Polish funds (delegated cooperation). 

-  On Mutual Accountability. No joint framework for monitoring joint commitments. 
-  On Managing for Development Results. N/A 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International Financial Institutions. Poland does not support a single EU Chair for the 
IMF in order for the EU27 to speak with one voice. Whereas Poland sees some merit in 
EU27 speaking with one voice on particular issues raised in the IMF, Poland also believes 
that  the  current  size  of  the  Executive  Board  in  the  Fund  reasonably  strikes  the  right 
balance  between  legitimacy  and  an  effective  functioning  of  the  Fund.  Lowering  the 
number of chairs would be unlikely to yield efficiency gains, while reducing notably the 
variety  of  views  of  the  Fund’s  membership.  Poland  is  therefore  not  in  favour  of  a 
reduction of the size of the Board and a single EU chair. Poland believes that the current 
EU system of coordinating positions and of representation in the IMF works well. 

-  Poland favours stronger Brussels based coordination on issues related to the World 
Bank  and  MBB’s.  With  regard  to  the  World  Bank  and  other  MDBs  issues,  Poland 
supports  the  concept  of  coordination  of  the  EU  Member  States’  positions.  It  might 
significantly enhance governance process of the aforementioned institutions and make the 
EU more visible at international fora. 

65 http://www.polishaid.gov.pl/Assistance,in,figures,184.html 

EN 

118 

   EN 

 
 
 
                                                 
PORTUGAL  

AT A GLANCE 

POLICY FRAMEWORK  

In 2003, Portugal established IPAD (Instituto Português de Apoio ao Desenvolvimento) with 
the  legal  mandate  to  coordinate  development  cooperation66.  Since  then,  Portugal  has  made 
significant  progress  in  building  an  overall  strategic  framework  for  its  development  co-
operation.  The  “2005  Strategic  Vision  for  Portuguese  Development  Co-operation”  has 
provided  a  solid  foundation  for  this  change,  on  which  other  policies  have  been  built.  The 
Strategic Vision  sets  out some  guiding principles and  priorities  for Portuguese  development 
co-operation,  by  drawing  on  Portugal’s  own  experiences,  foreign  policy  priorities  and 

66 Portugal Development Assistance Committee (DAC) Peer Review 2010 
http://www.oecd.org/dataoecd/33/19/46552896.pdf 

EN 

119 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
international  obligations.  Thus,  it  emphasises  Portugal’s  commitment  to  the  Millennium 
Development  Goals,  human  security,  sustainable  economic  development,  contributing  to 
international  development  discussions,  and  also  promoting  the  Portuguese  language.  It  also 
acknowledges  some  of  the  challenges  for  Portugal,  including  the  fragmentation  of  the 
Portuguese  development  co-operation  programme  and  the  importance  of  co-ordination.  As 
such, it has been a useful tool for IPAD as it seeks to fulfil its co-ordination mandate. While 
there  are  still  16  ministries  involved  in  development  co-operation,  they  are  now  officially 
obliged to obtain IPAD’s approval for all new ODA-funded activities.  

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax  administrations  in  developing  countries:  Portugal  provides  aid  in  these  fields  to 
ACP  Countries  (support  to  administrations  and  policy  of:  Customs  and  Ministries  of 
Finance).  

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since  2010:  (i)  Bilateral  Tax  Information  Exchange  Agreements  signed  with:  Antigua 
Barbuda,  Belize,  Andorra,  Gibraltar,  Bermuda,  Cayman  Islands,  Dominican  Republic, 
Guernsey, Isle of Man, Jersey, Liberia, Santa Lucia, St. Kitts, (iia) under negotiation with: 
Aruba, Cook Islands, Marshall Islands, Samoa, Vanuatu, Montserrat, Monaco, St. Vincent 
& Grenadines,  (iib)  DTAs under negotiation  with  Botswana, East  Timor, Egypt, Kenya, 
Malaysia, Thailand, Vietnam, Hong Kong (iii) planned with Angola, Bosnia Herzegovina, 
Cameroon,  Ethiopia,  Georgia,  Mauritius,  Peru,  Senegal,  Serbia,  Sao  Tomé  &  Principe, 
Turkmenistan. 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

Yes 

in International Business Transactions:    
Yes 
•  Stolen Assets Recovery initiative (STAR):  
No 
•  Extractive Industry Transparency Initiative (EITI):  
No 
• 
IMF Regional Technical Assistance Centres:  
No 
• 
International Tax Dialogue:  
No 
• 
International Tax Compact:  
No 
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

2.  SCALING UP ODA 

ODA Individual commitments and gap to target 

-  Portugal missed the ODA target to provide 0.51% of GNI by 2010. Portugal’s ODA 
reached  EUR  489  million,  i.e.0.29%  of  GNI  in  2010  (preliminary),  up  from  0.23%  in 
2009 – an increase in real terms of 31.5%. 

-  Portuguese  development  co-operation  is  strongly  focused  on  six  partner  countries  with 
which  it  has  historical  connections,  a  shared  language  and  close  relationships:  Angola, 
Cape  Verde,  Guinea  Bissau,  Mozambique,  Sao  Tome  and  Principe,  and  Timor-Leste. 
Five of these countries are least developed countries (LDCs) and four are fragile states. 

EN 

120 

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Portugal - ODA as a % of GNI 
Historical data and scenario for reaching 2015 targets

Historical

Linear increase in ODA volume

ODA gap to 2015 target from 2010 level 
(EUR million)
851
Average annual increase needed:
170

0,70

0,57

0,64

0,63

0,49

0,39

0,29

0,29

1,00

0,80

I

N
G

f
o
%
a
s
a
A
D
O

0,60

0,40

2015 Target: 0.70

2010 Target: 0.51

0,20

0,25

0,21

0,25

0,24

0,26

0,26

0,25

0,27

0,22

0,21

0,21

0,22

0,27

0,23

0,00

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

Portugal - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,43 

0,10 

0,07 

0,09 

0,06 

0,11 

0,15 

0,14 

0,15 

0,18 

0,14 

0,01 

0,02 

0,26 

0,23 

0,17 

0,10 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,22 

0,20 

0,21 

0,21 

0,22 

0,27 

0,25 

0,29 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

-0,01 
2009

2010

Source: OECD/DAC data for 2002-2010 

EN 

121 

   EN 

 
 
 
 
 
 
 
 
 
 
-  "Realistic, verifiable actions for meeting individual ODA commitments until 2015" 
taken in 2010: Even with a restrictive budget stemming from the international financial 
crisis, it was possible at a Cabinet level to avoid any restrictions in the cooperation state 
budget for 2011. Portugal is committed to accelerating progresses towards its aid volume 
commitments as soon as the economic situation improves. 

-  Portugal  will  remain  committed  to  channelling  the  majority  of  its  aid  to  Africa, 

which represents, since 2003, around 64% of bilateral ODA on average. 

-  Portugal will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010. Due 
to  the  effort  of  fiscal  consolidation  in  Portugal,  it  is  difficult  to  set  out  a  precise  date. 
Nevertheless,  Portugal  is  firmly  committed  to  maintaining  LDCs  as  the  main 
beneficiaries of Portuguese aid and thereby strives to achieve the 0.15%-0.20% of ODA/ 
GNI. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Portugal does not use innovative sources of financing. 
-  Portugal intends to step up efforts for innovative financing mechanisms through 

Political Support to a Transaction Tax. 

-  No further work on innovative financing mechanisms. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: Foreign Direct Investment 

FDI to Developing Countries

1,200 

1,000 

800 

600 

400 

200 

-

)
s
e
c
i
r
p
9
0
0
2
(

s
o
r
u
E
f
o

s
n
o

i
l
l
I

M

-200 

Portugal

2003

602 

2004

150 

2005

447 

2006

35 

2007

1,132 

2008

236 

2009

-2 

Source: OECD/ DAC  

-  Financial tools to support private investment 

• 
• 

Investment guarantees: Yes 
Improvement of the overall banking system: No 

EN 

122 

   EN 

 
 
 
 
 
 
 
 
 
•  Microfinance/ access to financial services: No 
•  Risk management initiatives: No 
•  Blending: Yes 
•  Private public partnerships: Yes 
•  Business and investment climate: Yes 
• 
•  Export credits: Yes 

Investment facilities: Yes 

-  Portugal  promotes  the  adoption  of  internationally  agreed  principles  and  standards 
on  Corporate  Social  and  Environmental  Responsibility  by  European  companies. 
Legislation  and  advocacy,  namely  through  the  National  Strategy  for  Development 
Education, the Development Cooperation Forum (joining public and private entities, such 
as  NGOs,  Foundations  and  Private  Sector  Associations),  as  well  as  through  policy 
coherence for development work. 

-  No  new  initiatives  were  started  in  2010  to  include  social  and  environmental  clauses  in 

ODA-financed public procurement. 

-  On Remittances, Portugal’s Central Bank (Banco de Portugal) has established regulations 
according to which a list of all fees and charges applied by credit institutions and payment 
institutions,  when  selling  their  products  and  services,  must  be  easily  accessible  to 
customers  in  all  branches  and  internet  sites.  This  initiative  ensures  full  transparency 
regarding  the  cost  of  products  and  services,  including  the  remittance  costs  charged  by 
each institution.  

-  Portugal  has  robust  and  reliable  data  concerning  the  amounts  and  destination  of 
remittances from Portugal. Portugal adopted/ intends to adopt the operational definitions, 
recommendations  and  best  practices  on  improving  the  quality  and  coverage  of  data  on 
remittances according to the compilation guide drafted by the "Luxembourg Group".  

EN 

123 

   EN 

 
5.  AID FOR TRADE 

Portugal, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

Total Trade-Related Assistance

Wider Aid for Trade Agenda 

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

2006 

2007 

2008 

2009 

43 

150 

33 

91 

974 

N/A 

1 483 

3 910 

0 

1 017

0 

150

0 

0 

1 516 

4 001

43 

150 

33 

91 

4 759 

44 239 

9 845 

61 515 

2 352 

2 715 

2 957 

4 189 

0 

0 

0 

0 

0 

0 

0 

0 

Total Aid for Trade 

7 153

47 104

12 835 

65 795

Source: OECD CRS Database (latest update) 

EN 

124 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Portugal delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) 

without delay. 

-  Actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-
income  countries:  Bilateral  technical  assistance  and  training  to  strengthen  debt 
management capacities of low income countries. 

-  Portugal  does  not  favour  reform  of  the  international  architecture  for  restructuring 
of  sovereign  debts  in  order  to  deal  with  potential  future  cases  of  debt  distress  in  low-
income countries. 

-  Specific interventions to prevent aggressive litigation against HIPCs (in particular to 

prevent the actions of "vulture funds"): None. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Portugal  supported  ownership  through  consultations  and 

coordination with partner countries.  

-  On Conditionality. In 2010, Portugal progressed by harmonising with other donors. 
-  On  Transparency  and  Predictability.  Portugal  publicly  discloses  information  on  aid 

volumes through IPAD website67 and through a database at country level. 

-  On  Alignment.  Portugal  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy. 

-  On  Harmonisation.  Portuguese  Institute  for  Development  Cooperation  was  recently 

certified by the EC to manage EC funds in the external field. 

-  On Mutual Accountability. Portugal established a joint framework for monitoring joint 

commitments with two of its priority countries. 

-  On Managing for Development Results. Portugal provides capacity building support for 

this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International Financial Institutions. Portugal does not support a single EU Chair for the 
IMF  in  order  for  the  EU27  to  speak  with  one  voice.  There  are  not  yet  appropriate 
mechanisms for EU coordination and preparation of EU common positions on IFI issues 
(apart  from  IMFWG).  Portugal  believes 
the 
representativeness  of  MDBs  concerning  their  member  countries  is  paramount.  There  is 
scope to improve the voice and participation of EU-27 in the BWIs and other MDBs by 
close and constructive coordination, and dialogue. 

the  diversity  of  viewpoints  and 

-  Portugal favours stronger Brussels based coordination on issues related to the World 

Bank and MDBs. 

67 http://www.ipad.mne.gov.pt/index.php?option=com_content&task=view&id=200&Itemid=220 

EN 

125 

   EN 

 
 
 
                                                 
ROMANIA    

POLICY FRAMEWORK  

Romania’s development cooperation policy was first defined in the National Strategy on the 
International Development Cooperation Policy adopted in 2006.  

The  Romanian  Ministry  of  Foreign  Affairs  (MFA)  is  the  main  institution  in  charge  of 
managing and implementing the national development cooperation policy. The development 
assistance, including humanitarian assistance, is financed from the MFA’s budget, through a 
separate budgetary line, in accordance with the existing legal framework. The Development 
Assistance Unit (UAsD) that manages development cooperation. UAsD is part of the General 
Directorate for Economic Diplomacy (DGDE), subordinated to the State Secretary for Global 
Affairs.68 

The  main  framework  for  inter-institutional  dialogue  is  the  Commission  for  Economic 
Cooperation  and  International  Development,  established  through  the  GD  747/2007.  The 
Commission  is  a  forum  for  analysis,  debate  and  planning  in  terms  of  the  implementation 
process. The Commission’s chairmanship and the secretariat are provided by the MFA69. 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax  administrations  in  developing  countries:  Romania  provides  aid  in  these  fields 
through technical consultations on tax administration with the Ministries of Finance from 
Bosnia-Herzegovina, Uruguay and the Republic of Moldova. 
-  Support to promote good governance in tax matters: Yes. 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since 2010: (i) Double Taxation Conventions signed with Bosnia and Herzegovina (to be 
signed in 2011, depending of the conclusion of the domestic procedures in both countries 
for signature), (ii) under negotiation with Uruguay (to be signed in February 2011), (iii) 
planned with Republic of Moldova (preliminary consultation concerning the conclusion of 
a TIEA already took place). 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
•  Extractive Industry Transparency Initiative (EITI):  
• 
IMF Regional Technical Assistance Centres:  
• 
International Tax Dialogue:  

Yes 

No 
No 
No 
No 
No 

68 http://www.mae.ro/en/node/2062 
69 http://www.mae.ro/sites/default/files/file/2010/brosura_(4).pdf 

EN 

126 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
International Tax Compact:  

• 
No 
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

2.  SCALING UP ODA 

ODA Individual commitments and gap to target  

- 

In  2010,  Romania  spent  EUR86  million  as  ODA,  0.07%  of  its  GNI  (preliminary), 
down from 0.09% in 2009 missing the interim target of 0.17% ODA/GNI in 2010. 

Romania - ODA as a % of GNI 
Historical data and scenario for reaching 2015 targets

Historical

Linear increase in ODA volume

1,00

0,80

I

N
G

f
o
%
a
s
a
A
D
O

0,60

0,40

0,20

0,00

2015 Target: 0.33

2010 Target: 0.17

ODA gap to 2015 target from 2010 level 
(EUR million)
 424
Average annual increase needed:
85

0,24

0,29

0,19

0,14

0,09

0,09

0,07

0,07

0,07

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

-  "Realistic, verifiable actions for meeting individual ODA commitments until 2015" 
taken  in  2010.  Romania  is  making  efforts  to  annually  increase  its  ODA  budget.  In 
addition,  the  government  announced  the  engagement  to  contribute  EUR  100  million  to 
the development of the Republic of Moldova, for the period 2010-2012, that would also 
add  to  the  total  ODA  contribution.  The  debut  of  payment  of  Romania’s  contribution  to 
the 10th EDF since 2011 (EUR 84 million in total) will also reinforce its commitments.  
-  No measure taken nor planned to contribute to the EU27 target to channel at least 

50% of EU collective ODA increase to Africa. 

-  Romania did not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Romania did not use innovative financing mechanisms for development. 

EN 

127 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-  Romania  intends  to  step  up  efforts  for  innovative  financing  mechanisms  with 
significant revenue generation potential. In May 2009, Romania became an observer to 
the  Pilot  Group  for  Innovative  Financing.  Internal  consultations  at  government  level  are 
currently  on-going  concerning  the  opportunity  of  introducing  the  airline  ticket  levy  (the 
UNITAID mechanism). 

-  No other work on innovative financing mechanisms. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Financial tools to support private investment 

• 
Investment guarantees:  
• 
Improvement of the overall banking system:  
•  Microfinance/ access to financial services:   
•  Risk management initiatives:  
•  Blending:  
•  Private public partnerships:    
•  Business and investment climate:  
• 
•  Export credits:  

Investment facilities:   

No 
No 
No 
No 
No 
No 
Yes 
No 
Yes 

-  Romania  promotes  the  adoption  of  internationally  agreed  principles  and  standards 
on  Corporate  Social  and  Environmental  Responsibility  by  European  companies. 
During 2010, the Ministry of Environment and Forests of Romania carried out promotion 
activities (workshops, seminars, participation at the different conferences) in EMAS (Eco-
Management and Audit Scheme) field and initiated the legislation establishing measures 
for the application of EMAS at national level. 

-  No  new  initiatives  were  started  in  2010  to  include  social  and  environmental  clauses  in 

ODA-financed public procurement. 

-  Romania  has  not  implemented  solutions  internally  or  in  cooperation  with  third 
countries  to  overcome  barriers  to  migrants  and  their  families'  access  to  financial 
services. No specific solution has been implemented beside that provided by the relevant 
acquis i.e. Directive 2007/64 (Payment services Directive) and further action in this field 
has not yet been considered. 

-  Romania  implemented  or  plans  to  implement  other  initiatives  in  order  to  increase 
competition  and  transparency  in  the  remittance  market  and  to  reduce  remittance 
transfers costs. Romania implemented  Directive 2007/64 (Payment Services Directive) 
which transposed partially CPSS principles.70 

70 'General principles for international remittance services', published by the Committee on Payment and 
Settlement Systems (CPSS) 

EN 

128 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
5.  AID FOR TRADE 

Romania, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations 
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

Total Trade-Related Assistance

Wider Aid for Trade Agenda 

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

Total Aid for Trade 

2006 

2007 

2008 

2009 

n/a 

n/a 

n/a 

n/a 

n/a

n/a 

n/a 

n/a 

n/a 

n/a 

n/a

n/a 

n/a 

100

n/a 

n/a 

n/a 

n/a 

n/a 

100

0 

93 

0 

93 

0 

0 

93 

0 

0 

93 

n/a 

n/a 

n/a 

n/a

n/a 

n/a 

n/a 

n/a 

n/a 

n/a

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

Source: OECD CRS Database (latest update) 

-  Romania delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) 

without delay. 

-  No  actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in 

low-income countries. 

-  Considering  its  limited  experience  on  the  issue  of  international  architecture  for 
restructuring  of  sovereign  debts,  Romania  is  not  in  the  position  to  make  any 
assessment on it. 

-  No specific intervention to prevent aggressive litigation against HIPCs (in particular 

to prevent the actions of "vulture funds"). 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Romania  supported  ownership  through  consultations  and 

coordination with partner countries.  

-  On Conditionality. No action. 

EN 

129 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-  On  Transparency  and  Predictability.  Romania  publicly  discloses  information  on  aid 

volumes through the website of Ministry of Foreign Affairs site.71 

-  On  Alignment.  Romania  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy. 

-  On  Harmonisation.  Romania  established  legal  and/or  administrative  arrangements  in 
place to manage funds for another Member State or the European Commission, and/ for 
another  Member  State  or  the  European  Commission  to  manage  Romanian  funds 
(delegated cooperation). 

-  On Mutual Accountability. No joint framework for monitoring joint commitments. 
-  On  Managing  for  Development  Results.  Romania  does  not  provide  capacity  building 

support for this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International  Financial  Institutions.  Romania  does  not  deem  it  necessary  for  the  EU 
countries  to  speak  with  one  voice  as  long  as  the  positions  are  well  coordinated.  The 
current system of constituencies has proven to work efficiently.  

-  Romania  favours  stronger  Brussels  based  coordination  on  issues  related  to  the 

World Bank and MDBs. 

71 http://www.mae.ro/en/node/2062 

EN 

130 

   EN 

 
                                                 
SLOVAK REPUBLIC 

POLICY FRAMEWORK  

Slovakia’s  development  aid  is  regulated  by  the  Official  Development  Aid  Law  from  5th 
December 2007. The overall planning of the assistance is determined by the Midterm Strategy 
of Development Aid for years 2009 – 2013, which focuses Slovak aid on Afghanistan, Serbia 
and  Kenya,  in  addition  to  16  project  countries  mainly  in  the  Balkans  and  Eastern  Europe. 
Each  year  the  Ministry  of  Foreign  Affairs  prepares  a  Yearly  National  Program  on  ODA 
priorities  and  spending  for  government  authorisation.72  The  2011  National  Programme  was 
adopted in January 2011; it reduces the number of priority countries and narrows the scope of 
sectors  addressed  in  order  to  increase  the  effectiveness  of  Slovak  aid.73  The  Ministry  of 
Foreign  Affairs  coordinates  Slovak  aid,  while  the  Slovak  Agency  for  International 
Development Cooperation is in charge of the implementation of bilateral assistance.74 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support  to  reform  programmes  for  capacity  development  of  custom,  judiciary  and 
tax  administrations  in  developing  countries:  Slovakia  provides  support  to  developing 
countries'  customs,  ministries  of  finance  and  tax  administration  in  EU  candidate  and 
Neighbourhood Policy countries. In addition, support is provided to national governments 
to strengthen public financial management.  

-  Promotes  the  principles  of  good  governance  in  tax  matter:  Yes,  by  analysing  the 
situation of the country concerned with regard to its commitment and implementation of 
international standards of transparency and exchange of information. 

-  New  Bilateral  Tax  Information  Exchange  Agreements  and  Double  Taxation 
Conventions  of  2010: i) Agreements concluded: Protocol to the DTC with Switzerland, 
DTC  with  Oman  and  DTC  with  Iran;  ii)  Agreements  under  negotiation:  TIES  with 
Guernsey  and  TIES  with  British  Virgin  Islands;  iii)  Agreements  planned:  TIES  with 
several countries under the South Caribbean Project.  

-  State of ratification of/ adherence to international conventions/ initiatives on tax issues: 

IMF Regional Technical Assistance Centres: No 
International Tax Dialogue: No 
International Tax Compact: No 

• 
• 
• 
•  African Tax Administration Forum (ATAF): No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT): No 
• 
•  OECD Global Forum: Yes 
•  United Nations Convention against Corruption (Merida): Yes 
•  OECD  Convention  on  Combating  Bribery  of  Foreign  Officials  in  International 

IMF Topical Trust Fund on Tax policy and administration: No 

Business Transactions: Yes 

72 http://www.mvro.sk/en/development-aid/development-aid-slovakia?start=1  
73 http://www.mzv.sk/App/WCM/main.nsf?Open  
74 http://www.mvro.sk/en/development-aid/development-aid-slovakia?start=1  

EN 

131 

   EN 

 
 
 
 
 
 
 
 
 
 
 
                                                 
•  Stolen Assets Recovery initiative (STAR): No 
•  Extractive Industry Transparency Initiative (EITI): No 

2.  SCALING UP ODA 

ODA individual commitments/gap to agreed targets 
-  Slovakia missed the ODA target to provide 0.17% of GNI by 2010. Slovakia’s ODA 
reached  only  EUR  56  million  0.09%  of  GNI  in  2010  (preliminary),  unchanged  since 
2009. 

-  Slovakia spent EUR 56 million on ODA in 2010, a 4% rise in nominal terms.   
-  Share of debt relief in ODA: N/A. 

Slovak Republic - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

1,00

0,80

I

N
G

f
o
%
a
s
a
A
D
O

0,60

0,40

0,20

0,00

ODA gap to 2015 target from 2010 level 
(EUR million)
242
Average annual increase needed:
48

2015 Target: 0.33

2010 Target: 0.17

0,04

0,03

0,04

0,02

0,05

0,12

0,07

0,10

0,09

0,10

0,09

0,09

0,10

0,09

0,08

0,26

0,21

0,15

0,09

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 
2015"  taken  in  2010:  The  Ministry  of  Foreign  Affairs  is  constantly  involved  in 
negotiations primarily with the Ministry of Finance with the aim of increasing financing. 
It  has  been  doing  so  also  in  the  light  of  the  preliminary  observations  prepared  by  the 
OECD/DAC  following  the  Special  Peer  Review  of  the  Slovak  aid  in  December  2010 
stipulating  that  the  whole  of  the  government  approach  to  financing  the  development 
assistance  is  crucial.  Further  consultations  will  follow  with  the  Governmental  Office  as 
well as with the Ministry of Finance.   

-  No  measure  have  been  taken  or  are  being  taken  to  ensure  that  at  least  50%  of  EU 

collective aid increases of ODA resources are channelled to Africa. 

-  Slovakia will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010 and 
onwards.  Slovakia’s  Medium  Term  Strategy  for  ODA  includes  one  least  developed 
country  -  Afghanistan  -  as  a  programme  country  and  Sudan  and  Ethiopia  as  project 
countries. As Serbia, which is currently a programme country, progresses towards joining 
the  EU,  Slovakia’s  support  will  decrease  and  the  financial  savings  will  supposedly  be 

EN 

132 

   EN 

 
 
 
 
 
 
 
 
redirected  to  LDCs.  This  shift  will  be  reflected  in  the  National  Programmes  for 
subsequent years.   

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Slovakia does not support any innovative financing mechanisms and has no plans to 

do so.  

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support  to  private  investment  in  developing  countries  -  Financial  tools  to  support 
private investment: 

Investment guarantees: Yes 
Improvement of the overall banking system: No 

• 
• 
•  Microfinance/ access to financial services: No 
•  Risk management initiatives: No 
•  Blending: No 
•  Private public partnerships: No 
•  Business and investment climate: No 
• 
•  Export credits: Yes 

Investment facilities: NO 

-  On Corporate Social and Environmental Responsibility: N/A  
-  On the Kimberley Process and FAO Code of Conduct for Responsible Fisheries: N/A 
-  New  initiatives  in  relation  to  including  social  and  environmental  clauses  in  ODA-

financed public procurements: N/A 

-  Slovakia has currently no plans to implement solutions internally or in cooperation 
with  third  countries  to  overcome  barriers  to  migrants  and  their  families'  access  to 
financial services.  

-  Slovakia has not implemented the General Principles for International Remittances 
Services" agreed by the Committee on Payments and Settlements Systems (CPSS). 

5.  AID FOR TRADE: No information available.  

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Slovakia  has  delivered  on  its  commitments  to  the  HIPC  and  MDRI  initiatives, 

including commitments towards IDA and the African Development Bank. 

-  Slovakia  sees  no  need  for  reform  of  the  international  architecture  for  the 

restructuring of sovereign debts.  

-  Slovakia  has  planned  no  specific  interventions  to  prevent  aggressive  litigation  against 

HIPCs. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On Ownership. Slovakia supported country ownership in 2010 through consultation and 

coordination with partner countries. 

-  On Conditionality. N/A  
-  On  Transparency  and  Predictability.  Slovakia  publicly  discloses  information  on  aid 

volume on the internet and through printed documents. 

EN 

133 

   EN 

 
 
 
 
 
 
 
-  On  Alignment.  Slovakia  has  integrated  the  principles  of  the  Code  of  Conduct  on 
Complementarity  and  Division  of  Labour  in  strategies,  staff  guidance  and  programming 
processes/guidelines.  

-  On Harmonisation. Slovakia has no legal and/or administrative arrangements in place for 

delegated cooperation.  

-  On  Mutual  Accountability.  Slovakia  has  not  established  any  joint  frameworks  for 

monitoring joint commitments in priority countries. 

-  On Managing for Development Results. Slovakia does not provide capacity support for 

Managing for Development Results. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Slovakia considers it premature that EU27 should speak with one voice in the IMF, 

World Bank and the main multilateral development banks' governing bodies. 

-  Slovakia supports stronger Brussels based coordination on a regular basis on issues 

related to the World Bank and MDBs.  

EN 

134 

   EN 

 
SLOVENIA    

POLICY FRAMEWORK  

International  development  cooperation  is  regulated  by  the  International  Development 
Cooperation  of  the  Republic  of  Slovenia  Act  (Official  Gazette  of  the  Republic  of  Slovenia 
No. 70/06), adopted in June 2006. The Act defines the objectives and methods of long-term 
planning,  financing  and  implementation  of  international  development  cooperation  of 
Slovenia. 

In  2008  the  National  Assembly  adopted  the  Resolution  on  international  development 
cooperation for the period until 2015, which defines the geographical and content priorities of 
Slovenia’s development cooperation and determines the mechanisms for its implementation.75 

The  Ministry  of  Foreign  Affairs  is  the  national  coordinator  for  international  development 
cooperation.  In  terms  of  expertise,  this  field  is  covered  by  the  Department  for  International 
Development Cooperation and Humanitarian Assistance within the Directorate for Economic 
Diplomacy and Development Cooperation. 

At  the  Government  level,  an  Inter-ministerial  Working  Body  for  International  Development 
Cooperation has been set up and tasked with the following76: 

•  Planning,  coordinating  and  monitoring 

the 

implementation  of 

international 

development cooperation;  

•  Discussing estimated funds to be allocated to international development cooperation; 
•  Collaborating in the performance assessment of the Resolution's implementation. 

In  Slovenia,  the  majority  of  non-governmental  organisations  that  work  in  the  field  of 
international development co-ordination formed an umbrella platform in 2005 called SLOGA 
(Slovenian Global Action77). 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax administrations in developing countries: Slovenia provides aid in these fields to EU 
candidate countries, EU Neighbourhood Policy countries (support to administrations and 
policy  of:  Customs,  Ministries  of  Finance,  Government  Supervisory  Office,  Office  of 
Prevention of money Laundering).  

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since  2010:  (i)  Double  Taxation  Conventions  signed  with  Armenia,  Belarus;  (ii)  under 
negotiation with Morocco. 

75 

http://www.slovenia.si/en/slovenia/state/slovenia-in-the-world/slovenias-international-development-co-
operation-and-humanitarian-aid/ 

76 Sloven'Aid: 
http://www.mzz.gov.si/en/foreign_policy/international_development_cooperation_and_humanitarian_assistance/

slovenaid/ 
77 www.sloga-platform.org 

EN 

135 

   EN 

 
 
 
 
 
 
 
 
 
 
                                                 
-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

Yes 

Yes 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
No 
•  Extractive Industry Transparency Initiative (EITI):  
No 
• 
Yes 
IMF Regional Technical Assistance Centres:  
• 
No 
International Tax Dialogue:  
• 
No 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   No 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

2.  SCALING UP ODA 

ODA Individual commitments and gap to target  

-  Slovenia's  ODA  was  0.13%  of  GNI  or  EUR  48  million  in  2010  (preliminary),  down 
from  0.15%  in  2009,  missing  the  ODA  target  to  provide  0.17%  of  GNI  by  2010.  This 
marks  a  decrease  in  comparison  to  the  2009  level  for  multilateral  as  well  as  bilateral 
contributions.78 

Slovenia- ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

1,00

0,80

I

N
G

f
o
%
a
s
a
A
D
O

0,60

0,40

0,20

0,00

ODA gap to 2015 target from 2010 level 
(EUR million)
96
Average annual increase needed:
19

2015 Target: 0.33

2010 Target: 0.17

0,26

0,30

0,23

0,18

0,13

0,10

0,11

0,12

0,12

0,13

0,15

0,13

0,17

0,17

0,17

0,17

0,17

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

78 Annex 2 Monterrey Survey 2011: Slovenia Development cooperation, Background note. Submitted in March  
2011 

EN 

136 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

-  "Realistic, verifiable actions for meeting individual ODA commitments until 2015" 
taken in 2010: The central strategic document on development cooperation (Resolution 
on  International  development  cooperation  of  the  Republic  of  Slovenia  until  2015),  that 
was  adopted  by  the  Parliament  only  entails  a  vague  commitment  on  reaching  the  ODA 
targets: “Slovenia will endeavour to allocate 0.17 per cent of GNI for ODA by 2010 and 
0.33 per cent of GNI by 2015.” So far, those commitments have been maintained. As a 
reaction  to  recent  budgetary  constraints,  the  MFA  has  (this  year,  for  the  first  time) 
requested the Government to give more exact (budget) indications on ODA expenditure 
until 2015 in order to secure the predictability of ODA funds and increase overall ODA 
volumes,  as  opposed  to  rather  pessimistic  projections  until  2015.  This  is  to  be  done  as 
part of negotiating the Stability and Growth Pact (2012-2014(2015)), which is to serve as 
a  reference  document  for  future  biannual  budget  allocations.  The  Stability  and  Growth 
Pact should be finished by 15 April 2011.  

-  Slovenia will double its disbursements to Africa in 2011 by starting to contribute to the 
EDF.  Slovenia  is  also  actively  engaged  in  establishing  a  bilateral  development 
programme in Cape Verde. 

-  Slovenia  will  not  reach  the  target  of  0.15%-0.20%  ODA/GNI  to  LDCs  by  2010. 
Slovenia  will  endeavour  to  comply  with  its  commitment  of  reaching  0.33%  of  GNI  for 
ODA by 2015, hence increasing its share to the LDCs as part of overall Slovenia’s ODA 
disbursements.  In  addition,  Slovenia  will  continue  to  support  the  poverty  focus  of  the 
EDF,  as  part  of  its  general  policy  to  channel  most  of  its  aid  to  LDCs  via  multilateral 
channels. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  Slovenia does not use innovative sources of financing. 
-  Slovenia does not intend to step up efforts for innovative financing mechanisms with 

significant revenue generation potential. 

-  No further work on innovative financing mechanisms. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries: 

-  Financial tools to support private investment 

Investment guarantees: No 
Improvement of the overall banking system: No 

• 
• 
•  Microfinance/ access to financial services: No 
•  Risk management initiatives: No 
•  Blending: Yes 
•  Private public partnerships: No 
•  Business and investment climate: No 
• 
•  Export credits: No 

Investment facilities: Yes 

-  Slovenia  promotes  the  adoption  of  internationally  agreed  principles  and  standards 
on Corporate Social and Environmental Responsibility by European companies. By 
voluntary codes. 

EN 

137 

   EN 

 
 
 
 
-  Regarding  Remittances,  Slovenia  did  not  plan  to  implement  solutions  to  improve  the 
impact  of  remittances  on  development  as  there  are  very  small  amounts  of  remittances 
transferred from Slovenia. 

5.  AID FOR TRADE 

Slovenia, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations 
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

Total Trade-Related Assistance

Wider Aid for Trade Agenda 

Trade Policy and Regulations 
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category6) 

Total Aid for Trade 

2006 

2007 

2008 

2009 

0 

0 

634 

350 

1 000 

1 200 

900 

n/a 

1 000

n/a 

1 200

0 

1 534 

n/a 

n/a 

n/a 

n/a 

n/a 

n/a 

n/a 

n/a 

n/a 

1 000

n/a 

1 200

634 

0 

900 

0 

0 

1 534 

388

N/A 

N/A 

350

350 

38 

0 

0 

0 

Source: OECD CRS Database (latest update) 

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Slovenia delivered on its HIPC/ MDRI commitments (including vis-à-vis IDA/ AfDB) 

without delay. 

-  No  actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in 

low-income countries. 

-  Slovenia  favours  reform  of  the  international  architecture  for  restructuring  of 
sovereign debts in order to deal with potential future cases of debt distress in low-income 
countries  (involving  a  role  for  International  Financial  Institutions).  EU  should  support 
discussion regarding a united approach within the IFIs. 

-  Specific interventions to prevent aggressive litigation against HIPCs (in particular to 

prevent the actions of "vulture funds"): No. 

EN 

138 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Slovenia  supported  ownership  through  consultations  and 
coordination with partner countries, through Guidance and incentives for staff in partner 
countries and supporting partner capacity development. 

-  On  Conditionality.  In  2010,  Slovenia  carried  out  actions  on  conditionality  (reported  as 

unspecified in Slovenia answer to Monterrey Questionnaire). 

-  On  Transparency  and  Predictability.  Slovenia  publicly  discloses  information  on  aid 

volumes through the Ministry of Finance website.79 

-  On  Alignment.  Slovenia  did  not  integrate  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy. 

-  On  Harmonisation.  There  are  no  legal  and/or  administrative  arrangements  in  place  to 
manage funds for  another Member States or the EU, and/ for another Member States or 
the EU to manage Slovenian funds (delegated cooperation). 

-  On Mutual Accountability. No joint framework for monitoring joint commitments. 
-  On Managing for Development Results. Slovenia provides capacity building support for 

this. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International Financial Institutions. Slovenia does not support a single EU Chair for the 
IMF in order for the EU27 to speak with one voice. In the World Bank, Slovenia supports 
EU27  speaking  with  common  statements  (terms  of  reference)  on  the  basis  of  good 
coordination  (especially  for  important  issues).  However,  Slovenia  does  not  support  the 
creation  of  the  single  EU  Chair  in  the  Board  of  directors  for  fear  that  for  important 
decisions it (like many other small EU member states) would be outvoted by the big EU 
member  states.  Even  if  not  outvoted,  Slovenia  fears  that  its  relative  influence  on  taking 
EU positions would weaken under a single EU chair. For a small country like Slovenia, 
representation at the IFIs in a form of a permanent position is crucial. 

-  Slovenia favours stronger Brussels based coordination on issues related to the World 

Bank and MDBs. 

79 http://www.mf.gov.si/en/areas_of_work/state_aid_monitoring/ 

EN 

139 

   EN 

 
                                                 
SPAIN  

AT A GLANCE  

POLICY FRAMEWORK  

Spain’s  Law  23/1998  on  International  Development  Cooperation  provides  the  main  legal 
framework for Spanish aid. The Master Plan, updated every four years, sets a comprehensive 
framework  for  development  policy,  including  strategic  objectives,  geographic  and  sectoral 
priorities,  and  the  roles  of  various  players  and  instruments.  Parliament  provides  oversight, 
particularly through the International Cooperation for Development Commission, a permanent 
body in the Congress and - since the last legislature - also in the Senate. 

The  Secretariat  of  State  for  International  Co-operation  (SECI)  is  part  of  the  Ministry  of 
Foreign Affairs and Cooperation (MAEC) – and has the primary responsibility for Spanish aid 
policy and implementation. In 2011 there is going to be a change in the institutional setup of 
Spanish  cooperation,  in  response  to  demands  stemming  from  civil  society.  A  new  tool  –the 
Development  Promotion  Fund-  will  be  managed  by  the  Spanish  Agency  for  International 
Development Cooperation –AECID-. SECI also houses the Spanish Agency for International 
Development  Cooperation  (AECID)  that  manages  Spanish  Aid.  AECID  is  the  main 

EN 

140 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
implementing agency for bilateral assistance; the agency is undergoing a reform since 2009 to 
increase its capacity for bilateral aid delivery. The Ministry of Economy and Finance (MEH) 
manages  Spanish  contributions  to  international  financial  institutions  and  the  European 
Commission. 
Spain  has  set  itself  ambitious  goals  for  its  development  cooperation  through  to  2012  (3rd 
Master  Plan  2009-2012)80.  The  previous  Master  Plan  (2005-2008)  set  out  major 
improvements on past policy and practice, and Spain now faces the challenge of putting the 
overall  vision  into  practice.  Political  support  and  the  framework  for  policy  coherence  are 
strong,  yet  further  progress  depends  on  their  more  strategic  and  systematic  use.  Spain  is 
among  the  few  DAC  members  to  include  policy  coherence for development in its legal and 
planning framework 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support to reform programmes for capacity development of customs, judiciary and 
tax  administrations  in  developing  countries:  Spain  provides  aid  in  these  fields  to  EU 
candidate countries, EU Neighbourhood Policy countries, Asia, Latin America and ACP 
Countries (support to administrations and policy of: Customs, Semi-autonomous Revenue 
Authorities and Ministries of Finance).  

-  Spain  has  been  actively  involved  in  the  Task  Force  on  Taxes  on  International 
Financial  Transactions  for  Development  and  in  the  Secretariat  of  the  Experts 
Committee of Taxes on International Financial Transactions. In his speech at the General 
Assembly of United Nations (September 2010), the President of the government of Spain 
announced its support to this mechanism and its coordinated implementation worldwide. 

-  Support to promote good governance in tax matters: Yes 
-  Bilateral Tax Information Exchange Agreements and Double Taxation Conventions 
since  2010:  (i)  Signed  with  Andorra  (TIEA),  The  Netherlands  Antilles(TIEA), 
Aruba(TIEA),Bosnia  and  Herzegovina  (DTC),Costa  Rica(DTC),Luxembourg  (DTC), 
Serbian  (DTC);  (ii)  under  negotiation  with  Bahamas  (TIEA),  San  Marino  (TIEA), 
Albania(DTC),  Barbados  (DTC),  Georgia  (DTC),  Pakistan  (DTC),  Panama  (DTC), 
Uruguay (DTC), Singapore (DTC), Switzerland (DTC) 

-  State  of  ratification  of/adherence  to  international  conventions/initiatives  on  tax 

issues:  

•  United Nations Convention against Corruption (Merida):  
•  OECD Convention on Combating Bribery of Foreign Officials  

Yes 

Yes 
in International Business Transactions:    
•  Stolen Assets Recovery initiative (STAR):  
Yes 
•  Extractive Industry Transparency Initiative (EITI):  
Yes 
• 
Yes 
IMF Regional Technical Assistance Centres:  
• 
Yes 
International Tax Dialogue:  
• 
Yes 
International Tax Compact:  
•  African Tax Administration Forum (ATAF):  
Yes 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT):   Yes 
• 
No 

IMF Topical Trust Fund on Tax policy and administration:  

80 http://www.maec.es/es/Home/Documents/PLANAFRICA09_12EN.pdf 

EN 

141 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
•  OECD’s Centre for Tax Policy and Administration (CTPA) 
• 

Intra European Organisation of Tax Administration (IOATA)   

Yes 
Yes 

2.  SCALING UP ODA 

ODA Individual commitments and gap to target  

-  Spain's  ODA  was  0.43%  of  GNI  or  EUR  4467  million  in  2010  (preliminary),  a 
decrease by 5.9% in real terms from 0.46% in 2009, thereby missing the ODA target to 
provide 0.51% of GNI by 2010. 

Spain - ODA as a % of GNI 
Historical data and scenario for reaching 2015 targets

Historical

Linear increase in ODA volume

1,00

0,80

0,60

0,40

I

N
G

f
o
%
a
s
a
A
D
O

2015 Target: 0.70

2010 Target: 0.51

0,20

0,24

0,24

0,24

0,22

0,23

0,22

0,30

0,26

0,23

0,24

0,27

0,62

0,67

0,56

0,50

0,45

0,46

0,43

0,43

0,37

0,32

ODA gap to 2015 target from 2010 level 
(EUR million)
 4,043
Average annual increase needed:
809

0,00

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

Spain - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,01 

0,02 

0,02 

0,03 

0,01 

0,01 

0,02 

0,03 

0,08 

0,07 

0,02 

0,23 

0,20 

0,22 

0,21 

0,22 

0,21 

0,23 

0,24 

0,21 

0,21 

0,19 

0,01 

0,04 

0,03 

0,45 

0,40 

0,40 

0,02 

0,05 

0,34 

0,27 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

EN 

142 

   EN 

 
 
 
 
 
 
 
 
 
 
-  "Realistic, verifiable actions for meeting individual ODA commitments until 2015" 
taken  in  2010:  At  the  beginning  of  February  2011  the  Spanish  Parliament  adopted  a 
resolution urging the government to develop a multiannual plan by the end of this year, in 
order to ensure timely accomplishment of the 0.7% target by 2015. 

-  Due to the fact that EU collective aid increases of ODA towards Africa include all efforts 
made by individual member states, it should be highlighted that between 2005 and 2009 
40% of the whole Spanish geographically specified ODA was channelled to Africa. 

-  Spain will not reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010.  

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

- 

FINANCING DEVELOPMENT  
Innovative source of financing: Airline Ticket Tax/contribution, International Financing 
Facility  for  Immunisation  (IFFIm).  Spain  implemented  other  initiatives:    Debt  for 
development  projects  (Tanzania  and  Ghana  in  2009),  and  Debt4Education  (El  Salvador 
2005-2010). 

-  Spain intends to step up efforts for innovative financing mechanisms with significant 
revenue  generation  potential.  Spain  has  been  actively  involved  in  the  Task  Force  on 
International  Transaction  for  Development  and  in  the  Secretariat  of  the  Experts 
Committee of Taxes for International Financial Transactions. In his speech at the General 
Assembly of United Nations (September 2010), the President of the government of Spain 
announced the support to this mechanism and to its coordinated implementation all over 
the world. 

-  Further  work  on  innovative  financing  mechanism:  Spain  committed  to  holding  the 
Presidency  for  the  Leading  group  on  innovative  finance  for  development  the  second 
semester of 2011. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries - Foreign Direct Investment  

FDI to Developing Countries

18,000 

16,000 

14,000 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

)
s
e
c
i
r
p
9
0
0
2
(

s
o
r
u
E
f
o

s
n
o

i
l
l
I

M

-

Spain

2003

4,193 

2004

8,454 

2005

3,346 

2006

6,061 

2007

12,145 

2008

16,177 

2009

4,520 

EN 

Source: OECD/ DAC  

143 

   EN 

 
 
 
 
 
 
 
 
-  Financial tools to support private investment 

• 
Investment guarantees: Yes 
• 
Improvement of the overall banking system: No 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: Yes 
•  Blending: Yes 
•  Private public partnerships: No 
•  Business and investment climate: Yes 
• 
•  Export credits: No 

Investment facilities: Yes 

-  2010  has  been  the  first  year  when  Spain  has  conducted  financial  operations,  other 
than microfinance, in order to contribute to its development goals.  Spain is investing in 
Private Equity Funds which in turn invest in development countries specifically in SMEs, 
targeting Spain investment (when the capital of the Funds is structured) in the First Loss 
or  the  Mezzanine  categories.    The  recently  approved  FONPRODE  act  (Development 
Fund)  contemplates  the  development  of  fully  untied  credit  and  investment  operations  in 
order to contribute to achieving goals established in Spain’s 3rd Master Plan 

-  Spain  promotes  the  adoption  of  internationally  agreed  principles  and  standards  on 
Corporate Social and Environmental Responsibility. Within the 3rd Master Plan of the 
Spanish  Cooperation,  the  promotion  of  the  adoption  by  Spanish  Companies  of  the  CSR 
standards  is  a  guideline.  A  Working  Group  set  up  within  the  Spanish  Development 
Cooperation  Council  in  2010  was  created  for  better  following  up  the  adoption  of  CSR 
policies within the private sector and for enhancing complementarity between private and 
public  policies  in  this  regard.    Spain  is  one  of  the  long  term  supporters  of  the  Global 
Compact,  and  Spain’s  Local  Network  of  Spanish  Companies  which  are  committed  with 
GC principles, is one of the largest in the world 

-  Spain  supports  the  EITI  and  the  Global  Compact  and  has  also  developed  a  tool  to 

work with companies that only meet certain criteria of Corporate Responsibility. 

-  The  Spanish  Master  Plan  includes  a  guideline  to  establish  CSR  conditions  for 
companies that may agree partnerships with other actors to manage ODA resources in a 
Public  Private  modality.  During  2010  the  Ministry  for  Foreign  Affairs  and  Cooperation 
worked to define a methodology for the eligibility of private companies as partners of the 
public  development  policy  which  includes  CSR  and  specifically  Human  Rights, 
Environment  and  social  conditions.  As  regards  the  new  financial  instruments  that  the 
Spanish Cooperation put in place during 2010, the Spanish investment policy will include 
a specific Environment and Social governance of the financial operations as a necessary 
prerequisite. 

Remittances 

-  Spain implemented solutions internally and in cooperation with third countries to 

overcome barriers to migrants and their families' access to financial services 

-  The Spanish Central Bank developed monitoring indicators in its latest annual report 
81 , indicating that the number of registered operators at the end of July had grown from 43 
to  47,  the  number  of  offices  from  130  to  153,  and  the  number  of  total  agents  with 

81http://www.bde.es/webbde/es/Secciones/Publicaciones/InformesBoletinesRevistas/BoletinEconomico/10/Jul/Fi

ch/art8.pdf) 

EN 

144 

   EN 

 
 
 
                                                 
authorisation  for  providing  remittances  sending  services  from  9760  to  11869  persons. 
Regarding remittance transfers volume in 2009, it registered a slight increase in relation to 
2008, with no significant difference in relation to the main recipient countries 

-  Spain implemented the "General Principles for International Remittances Services" 

agreed by the Committee on Payments and Settlements Systems (CPSS). 

-  Other initiatives to increase competition and transparency in the remittance market 
and to reduce remittance transfers costs. Yes.  The new Spanish regulation for Payment 
Services,  which  entered  into  force  on  December  4th  2009,  following  the  European 
Directive on Payment Services, will allow greater liberalisation of markets. According to 
the  new  regulation,  the  amount  of  capital  needed  to  start  operating  as  MTO  has  been 
reduced from EUR 300000 to EUR 20000, which will make it possible for some migrants’ 
associations to create their own businesses. 

-  Spain  has  robust  and  reliable  data  concerning  the  amounts  and  destination  of 
remittances  from  Spain.  Spain  adopted/  intends  to  adopt  the  operational  definitions, 
recommendations  and  best  practices  on  improving  the  quality  and  coverage  of  data  on 
remittances according to the compilation guide drafted by the "Luxembourg Group". 

5.  AID FOR TRADE 

Spain, AfT Commitments (in EUR thousands) 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

2006 

2007 

2008 

2009 

633 

5 475 

4 535 

2 692 

56 829 

67 955 

128 800 

214 101 

0 

0 

0 

98 198 

Total Trade-Related Assistance

57 462

73 430

133 335 

314 992

Wider Aid for Trade Agenda 

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

633 

5 475 

4 535 

2 692 

471 993 

244 132 

301 918 

329 370 

88 473 

224 538 

315 529 

327 205 

0 

0 

0 

0 

0 

0 

0 

98 198 

Total Aid for Trade 

561 098

474 145

621 982 

757 465

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

Source: OECD CRS Database (latest update) 

EN 

145 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-  Spain  delivered  on  its  HIPC/  MDRI  commitments  (including  vis-à-vis  IDA/  AfDB) 

without delay. 

-  Actions/steps  taken  in  2010  to  help  restore  and  preserve  debt  sustainability  in  low-
income  countries:  The  Spanish  debt  policy  with  low  income  countries  goes  beyond 
regular  Highly  Indebted  Poor  Countries  Initiative  (HIPC)  relief.  In  particular,  Spain 
provides full relief of debts contracted before 2003 by these countries towards Spain. This 
debt relief is partially carried out through Debt Swap Agreements, which devote the debt 
resources to finance development projects in these countries. In 2009 and 2010, Spain has 
signed  Debt  Swaps  Programmes  with  LICs  and  HPCs,  including:  Mozambique,  Ghana 
and Bolivia. 

-  Spain favours reform of the international architecture for restructuring of sovereign 
debts in order to deal with potential future cases of  debt distress in low-income countries 
(through the Paris Club and through collective action clauses in debt contracts) 

-  Specific interventions to prevent aggressive litigation against HIPCs (in particular to 
prevent the actions of "vulture funds"): Yes. Spain does not sell debt of these countries. 
Besides,  Spain  participates  actively  in  all  forums,  including  the  Paris  Club,  which  is 
working towards a coordinated fight against the implications of the actions of the “vulture 
funds” for debtor countries 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On  Ownership.  In  2010,  Spain  supported  ownership  through  consultations  and 
coordination with partner countries, guidance and incentives for staff in partner countries 
and by supporting partner capacity development 

-  On  Conditionality.  In  2010,  Spain  progressed  by  harmonising  with  other  donors  and 

making conditionalities public. 

-  On  Transparency  and  Predictability.  Spain  publicly  discloses  information  on  aid 
volumes through website and through a database at country level. The PACI (Annual Plan 
for  International  Cooperation)  reflects  the  expenditure  plans  of  all  actors  of  the  Spanish 
Cooperation  System  per  year.  The  “PACI  Follow  Up”  (also  annual)  reflects  the  actual 
disbursements of every actor in a given year. Both the PACI and the PACI Follow Up for 
every year are public and available in the following website: www.maec.es. They are also 
published and distributed among all Spanish cooperation actors 

-  On  Alignment.  Spain  partially  integrated  the  principles  of  the  Code  of  Conduct  on 

Complementarity and Division of Labour in its development strategy 

-  On  Harmonisation.  Currently  Spain  is  managing  funds  on  delegated  cooperation  as  a 
leader  donor  in  Cape  Verde,  Afghanistan  and  Peru.  As  silent  donor,  Spain  delegates  to 
other  donors  in  Cambodia  (2010)  and  in  Mali  (from  May,  2009);  Spain  delegates  its 
responsibilities  in  Mali  to  The  Netherlands  through  technical  cooperation.    Certification 
by EC is currently under process to allow AECID manage funds from the EU. 

-  On  Mutual  Accountability.  Spain  established  a  joint  framework  for  monitoring  joint 
commitments with its priorities countries through their Country Partnership Frameworks 
(CPF) 

-  On  Managing  for  Development  Results.  Spain  provides  capacity  building  support  for 

this 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Position  on  improving  the  voice  of  the  EU  and  its  Member  States  within 
International  Financial  Institutions.  Spain  does  not  support  a  single  EU  Chair  for  the 
IMF in order for the EU27 to speak with one voice. In the short term, given the amount of 

EN 

146 

   EN 

 
national  resources  EU  countries  contribute  to  replenishments  of  IDA  and  other  soft 
financial windows of the MDBs, EU countries need to maintain a degree of autonomy in 
building their national position in order to be truly accountable to their constituencies back 
home regarding such contributions.   Since the mandate and contributions to the IFIs are 
still  national  (for  instance,  surveillance  is  undertook  at  the  national  level),  one  EU  27 
voice  is  not  a  viable  option  in  the  short-run.  There  should  be,  however,  enhanced 
coordination and consistency among EU countries positions through ad-hoc coordination 
by  European  Board  representatives  before  Board  meetings  at  the  MDBs,  although  not 
through  a  Brussels  based  mechanism.  The  current  coordination  system  through  EFC-
SCIMF and EURIMF provides a good ground to channel shared views on the key issues. 
-  Spain does not favour stronger Brussels based coordination on issues related to the 

World Bank and MBB’s 

EN 

147 

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SWEDEN 

AT A GLANCE 

POLICY FRAMEWORK  

The foundation of Swedish development policy is the Policy for Global Development that was 
adopted by Parliament in 2003. It requires all policy areas to cooperate toward the same goal: 
fair  and  sustainable  global  development.  Sweden  is  determined  to  dedicate  1%  of  GNI  to 
ODA and the latest annual Budget Bill (autumn 2010) establishes this level for 2011 and as a 
prognosis for the years 2012-14.82 In 2007 Sweden reduced the number of partner countries to 
33. There has also been a thematic focus, with priority given to democracy and human rights, 
gender  equality  and  climate  and  environment.83  The  Ministry  of  Foreign  Affairs  manages 

82 http://www.sweden.gov.se/sb/d/2798  
83 http://www.sweden.gov.se/sb/d/11962  

EN 

148 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
                                                 
most  of  Sweden’s  core  contributions  to  multilaterals,  while  Sida,  an  independent  agency 
under the Ministry, manages 80% of Sweden’s bilateral aid.84  

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support  to  reform  programmes  for  capacity  development  of  custom,  judiciary  and 
tax  administrations  in  developing  countries:  Sweden  provides  support  to  developing 
countries'  tax  administration  (semi-autonomous  revenue  authorities  and  ministries  of 
finance)  in  Asia  and  ACP  countries.  In  addition,  support  is  provided  to  national 
parliaments,  governments,  audit  institutions  and  civil  society  organisations  to  strengthen 
public financial management.  

-  Promotes the principles of good governance in tax matter: Yes 
-  New  Bilateral  Tax  Information  Exchange  Agreements  and  Double  Taxation 

Conventions of 2010: None  

-  State of ratification of/ adherence to international conventions/ initiatives on tax issues: 

IMF Regional Technical Assistance Centres: Yes 
International Tax Dialogue: No 
International Tax Compact: No 

• 
• 
• 
•  African Tax Administration Forum (ATAF): No 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT): No 
• 
IMF Topical Trust Fund on Tax policy and administration: No 
•  United Nations Convention against Corruption (Merida): Yes 
•  OECD  Convention  on  Combating  Bribery  of  Foreign  Officials  in  International 

Business Transactions: Yes 

•  Stolen Assets Recovery initiative (STAR): Yes 
•  Extractive Industry Transparency Initiative (EITI): Yes 

-  Sweden finances, together with the governments of Denmark, Norway and others, an anti-

corruption portal, www.business-anti-corruption.com.  

2.  SCALING UP ODA 

ODA individual commitments/gap to agreed targets 

-  Sweden  is  already  meeting  the  2015  0.7%  ODA/GNI  target.  The  Government  will 
maintain Swedish development assistance at the level of 1% GNI. ODA/GNI was 0.97% 
in 2010 compared to 1.12% in 2009.   

-  Sweden spent EUR 3418 million on ODA in 2010 (preliminary), a decrease of 7.1% in 

real terms on 2009.   

-  Debt relief made up only 2% of Swedish ODA during the period 2004 – 2009. 

84 OECD DAC Peer review Sweden 2009 

EN 

149 

   EN 

 
 
 
 
                                                 
Sweden - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

National Path

1,12

1,02

0,94

0,93

0,98

0,97

1,00

1,00

1,00

1,00

1,20

1,00

0,84

0,80

0,73

0,84

0,80

0,78

0,73

0,72

0,72

0,73

0,73

2015 Target: 0.70

2010 Target: 0.51

I

N
G

f
o
%
a
s
a
A
D
O

0,60

0,40

0,20

0,00

ODA gap to 2015 target from 2010 level 
(EUR million)
1,321
Average annual increase needed:
264

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

Sweden - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,01 

0,00 

0,02 

0,00 

0,02 

0,02 

0,05 

0,01 

0,00 

0,01 

0,82 

0,79 

0,74 

0,71 

0,68 

0,78 

0,75 

0,84 

0,74 

0,77 

0,01 

0,08 

-

0,01 

0,02 

-

0,93 

0,95 

0,92 

0,98 

0,97 

1,12 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 

2015" taken in 2010: Sweden reached its 1% target in 2006. 

EN 

150 

   EN 

 
 
 
 
 
 
 
 
 
-  The  Swedish  Government  has  focused  its  development  cooperation  to  fewer 
countries and this has led to a stronger focus on Africa. Over time the Sweden expects 
this to lead to increased relative allocations to Africa. 

-  Sweden has exceeded the target of 0.20% ODA/GNI to LDCs since 2000.  

3.  SUPPORT  FOR/  USE  OF  INNOVATIVE  SOURCES  AND  MECHANISMS  OF 

FINANCING DEVELOPMENT  

-  Sweden  supports  the  International  Financing  Facility  for  Immunisation  (IFFIm) 
with  SEK17.9  million  in  2009  and  2010.  Sweden  has  no  intention  to  step  up  efforts  for 
innovative financing mechanisms.   

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries - Foreign Direct Investment: 

FDI to Developing Countries

2,000 

1,500 

1,000 

500 

-

)
s
e
c
i
r
p
9
0
0
2
(

s
o
r
u
E
f
o

s
n
o

i
l
l
I

M

-500 

Sweden

2003

-298 

2004

478 

2005

346 

2006

266 

2007

1,631 

2008

-217 

2009

635 

Source: OECD/ DAC  

-  Financial tools to support private investment: 

• 
Investment guarantees: Yes 
• 
Improvement of the overall banking system: No 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: Yes 
•  Blending: No 
•  Private public partnerships: Yes 
•  Business and investment climate: Yes 
• 
•  Export credits: Yes 

Investment facilities: Yes 

-  Sweden promotes the adoption of internationally agreed principles and standards on 
Corporate  Social  and  Environmental  Responsibility  by  European  companies.  See 
Box. 

EN 

151 

   EN 

 
 
 
 
 
 
 
Box.  Activities  supported  by  Sweden  in  the  area  of  Corporate  Social  and  Environmental 
Responsibility 

- the UN Global Compact centrally and various country initiatives). 

- the OECD’s Risk Awareness tool for Multinational Enterprises – distribution of the tool to a large number 
of companies, translations into Chinese, and so on. 

- Realising Rights: the Ethical Globalisation Initiative (EGI) spearheaded by Mary Robinson. CSR is one of 
the core activities of EGI with a focus on a few countries (e.g. Liberia and Ghana) in Sub-Saharan Africa. 

-  Financial  contribution  to  the  UN  Secretary-General  on  the  issue  of  human  rights  and  transnational 
corporations and other business enterprises, for which John Ruggie is Special Representative. John Ruggie 
has  published  draft  guiding  principles  for  the  implementation  of  the  UN  Protect,  Respect,  Remedy 
Framework on business and Human Rights, November 2010. 

-  New  initiatives  in  relation  to  including  social  and  environmental  clauses  in  ODA-

financed public procurements: None 

-  Sweden  has  currently  no  plans  to  implement  solutions  internally  or  in  cooperation 
with  third  countries  to  overcome  barriers  to  migrants  and  their  families'  access  to 
financial services. The issue of migration is one of the global challenges identified in a 
restart of Sweden’s Policy for Global Development (2008), but activities so far have been 
limited.  The  initiative  lies  with the  Minister  of  Finance,  but  at  the  moment  there  are  no 
plans to work on the issue.  

5.  AID FOR TRADE 

Sweden, AfT Commitments (in EUR million) 

Trade-Related Assistance 

Trade Policy and Regulations  
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

2006 

2007 

2008 

2009 

20.470 

27.640 

25.359 

36.256 

4.254 

1.778 

10.261 

38.750 

0 

0 

0 

0 

Total Trade-Related Assistance

24.724

29.418

35.621 

75.006

Wider Aid for Trade Agenda 

2006

2007

2008 

2009

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

20.470 

27.640 

25.359 

36.256 

69.671 

57.641 

78.993 

32.032 

168.957 

181 315 

121 107 

179.013 

0 

0 

0 

0 

0 

0 

0 

0 

Total Aid for Trade 

259.098

266.597

225.459 

247.302

Source: OECD CRS Database (latest update) 

EN 

152 

   EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

-  Sweden  has  delivered  on  its  commitments  to  the  HIPC  and  MDRI  initiatives, 

including commitments towards IDA and the African Development Bank. 

-  Sweden  sees  no  need  for  reform  of  the  international  architecture  for  the 

restructuring of sovereign debts.  

-  No specific interventions to prevent aggressive litigation against HIPCs have been taken 

since there have been no cases under Swedish legislation. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On Ownership. Sweden supported country ownership in 2010 through consultation and 
coordination with partner countries, guidance and incentives for staff in partner countries 
and by supporting partner capacity development. 

-  On  Conditionality.  Sweden  has  carried  out  the  following  actions  on  conditionalities  in 

2010: harmonisation with other donors and making conditionalities public.  

-  On  Transparency  and  Predictability.  Sweden  publicly  discloses  information  on  aid 
volume  on  the  internet.  Sweden  is  currently  preparing  a  public  aid  database  including 
activity level information in an open format. A website will open shortly. Parallel to this, 
work  is  underway  to  implement  the  International  Aid  Transparency  Initiative  (IATI) 
standard and to prepare a database to deliver information to the IATI registry.   

-  On  Alignment.  Sweden  has  integrated  the  principles  of  the  Code  of  Conduct  on 
Complementarity  and  Division  of  Labour  in  strategies,  staff  guidance  and  programming 
processes/guidelines.  

-  On  Harmonisation.  A  general  legal  mandate  has  been  given  to  Sida  from  the  Swedish 
government in the annual letter of  appropriation to enter into delegated cooperation, but 
there  is  no  mechanism  in  place  at  headquarters  level  to  track  cases  of  delegated 
cooperation. 

-  On  Mutual  Accountability.  Sweden  has  established  a  joint  framework  for  monitoring 
joint  commitments  in  Burkina  Faso,  Mozambique,  Rwanda,  Tanzania,  Uganda  and 
Zambia. 

-  On  Managing  for  Development  Results.  Sweden  provides  capacity  support  for 

Managing for Development Results. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  Sweden does not share the view that EU27 should speak with one voice in the IMF, 
World  Bank  and  the  main  multilateral  development  banks'  governing  bodies.  Sweden 
believes that adequate Board representation is a pre-requisite for EU countries to continue 
to  channel  substantial  sums  of  non-earmarked  core  funding  through  the  IFIs.  One  EU 
voice  would  weaken  individual  countries’  influence  and  might  affect  their  ability  to 
continue channelling such substantial amounts through the IFIs. 

-  Sweden does not support stronger Brussels based coordination on a regular basis on 
issues related to the World Bank and MDBs. However, Sweden believes that in some 
cases Brussels based coordination may be both relevant and useful, e.g. as was  the  case 
during the voice reform negotiations and the discussions on capital increases for MDBs in 
2009-2010. 

EN 

153 

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UNITED KINGDOM 

AT A GLANCE 

POLICY FRAMEWORK  

The  legal  basis  of  the  UK  development  co-operation  programme  is  the  International 
Development  Act  2002  that  stipulates  that  poverty  reduction  should  be  the  purpose  of 
development  assistance.  The  most  recent  white  paper  on  development  (2009)  sets  four  key 
priorities:  (i)  achieving  sustainable  growth  in  the  poorest  countries;  (ii)  combating  climate 
change;  (iii)  supporting  conflict  prevention  and  fragile  states;  and  (iv)  reinforcing  the 
international  aid  system’s  efficiency  and  effectiveness.  The  Department  for  International 
Development (DFID) manages 86% of the UK’s ODA.85 

85 OECD DAC Peer Review UK 2010 

EN 

154 

   EN 

 
 
 
 
 
 
 
 
 
 
                                                 
The  UK  is  committed  to  reaching  a  GNI/ODA  target of 0.7% by 2013. Reviews  of UK  aid 
were published in 2011, and on that basis the UK has decided to reduce the number of partner 
countries from 43 to 27 and focus its multilateral contributions.86 

I.  INCREASING  FINANCIAL  RESOURCES  FOR  DEVELOPMENT  AND  GLOBAL 
CHALLENGES 

1.  IMPROVING DOMESTIC RESOURCE MOBILISATION 

-  Support  to  reform  programmes  for  capacity  development  of  custom,  judiciary  and 
tax  administrations  in  developing  countries:  The  UK  provides  support  to  developing 
countries'  tax  policy  and  administration  (customs,  semi-autonomous  revenue  authorities 
and ministries of finance) in EU candidate and EU Neighbourhood Policy countries, Asia, 
Latin  America  and  ACP  countries.  In  addition,  support  is  provided  to  national 
parliaments,  governments,  audit  institutions  and  civil  society  organisations  to  strengthen 
public financial management.  

-  Promotes the principles of good governance in tax matter: Yes 
-  New  Bilateral  Tax  Information  Exchange  Agreements  and  Double  Taxation 
Conventions of 2010: i) Agreements concluded: Antigua and Barbuda, Belize, Dominica, 
Georgia, Grenada, Liberia, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, 
South Africa; ii) Agreements under negotiation: Albania, Armenia, Brazil, China, Croatia, 
Ethiopia,  Malawi,  Marshall  Islands,  Mauritius,  Peru,  Thailand;  iii)  Agreements  planned: 
Barbados, Belarus, Costa Rica, Panama. 

-  Support/ratification of/adherence to international conventions/initiatives on tax issues: 

IMF Regional Technical Assistance Centres: Yes 
International Tax Dialogue: Yes 
International Tax Compact: No 

• 
• 
• 
•  African Tax Administration Forum (ATAF): Yes 
•  Centro Inter-Americano de Administraciones Tributarias (CIAT): No 
• 
IMF Topical Trust Fund on Tax policy and administration: No 
•  United Nations Convention against Corruption (Merida): Yes 
•  OECD  Convention  on  Combating  Bribery  of  Foreign  Officials  in  International 

Business Transactions: Yes 

•  Stolen Assets Recovery initiative (STAR): Yes 
•  Extractive Industry Transparency Initiative (EITI): Yes 

2.  SCALING UP ODA 

ODA individual commitments/gap to agreed targets 

-  The  UK  is  committed  to  meeting  the  2015  0.7%  ODA/GNI  target.  The  most  recent 
Spending Review (2010) supports this target, but maintains the level to 0.56 until 2012. 
This means that the UK aid budget would have to increase some 0.16 percentage points 
or GBP 3 billion between 2012 and 2013 for the 0.7% target to be achieved.87 ODA/GNI 
was 0.56% in 2010 compared to 0.52% in 2009.   

-  The UK spent EUR 10391 million on ODA in 2010 (preliminary), a 19.4% increase in 

real terms compared to 2009.   

86 http://www.dfid.gov.uk/Media-Room/Speeches-and-articles/2011/BAR-MAR-oral-statement/  
87 http://cdn.hm-treasury.gov.uk/sr2010_chapter2.pdf  

EN 

155 

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-  Debt relief made up 13% of British ODA during the period 2004 – 2009. 

United Kingdom  - ODA as a % of GNI 
Historical data, Member State forecasts and scenario for reaching 2015 targets

Historical/MS Forecast

Linear increase in ODA volume

1,00

0,80

0,60

0,40

I

N
G

f
o
%
a
s
a
A
D
O

2015 Target: 0.70

2010 Target: 0.51

0,29

0,20

0,27

0,26

0,27

0,24

0,32

0,32

0,31

0,36

0,34

0,51

0,47

0,43

0,36

0,70

0,70

0,70

0,70

0,65

0,61

0,56

0,56

0,56

0,56

0,52

ODA gap to 2015 target from 2010 level 
(EUR million)
5,917
Average annual increase needed:
1,183

0,00

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: OECD/ DAC data for 1995 – 2010; Commission simulation based on information provided by EU Member 
States or based on agreed EU commitments for 2010 and 2015. ODA in current prices. 

UK - Share of debt relief in ODA volumes 

ODA without debt relief

Debt Relief

0,14 

0,02 

0,16 

0,01 

0,04 

0,00 

0,01 

0,01 

0,02 

0,03 

0,01 

0,01 

0,03 

0,04 

0,27 

0,27 

0,24 

0,24 

0,23 

0,31 

0,29 

0,27 

0,34 

0,33 

0,32 

0,41 

0,37 

0,35 

0,01 

0,00 

0,56 

0,51 

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: OECD/DAC data for 2002-2010 

EN 

156 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
-  "Realistic,  verifiable  actions  for  meeting  your  individual  ODA  commitments  until 
2015"  taken  in  2010:  The  UK  Government  has  set  out  its  commitment  to  increase 
Official  Development  Assistance  (ODA)  to  0.56  per  cent  in  2011  and  2012  and  0.7  per 
cent  of  Gross  National  Income  (GNI)  from  2013  in  line  with  the  UK's  international 
commitments to help the very poorest in the world. The Spending Review 2010, published 
on 20 October 2010 sets out the figures for each year up to 2014 in clear spending plans. 
The UK's ODA budget will increase every year between now and then. In addition the UK 
government will enshrine in law during the first session of parliament (before April 2012) 
its commitment to spend 0.7 per cent of GNI as ODA from 2013. 

-  Have you taken or do you plan to take measures to ensure that at least 50% of EU 
collective aid increases of ODA resources are channelled to Africa? The UK’s overall 
resource allocation process is currently taking place and will be completed by mid-March. 
-  The  UK  will  reach  the  target  of  0.15%-0.20%  ODA/GNI  to  LDCs  by  2010  and 

onwards. 

3.  SUPPORT FOR/ USE OF INNOVATIVE SOURCES AND MECHANISMS OF 

FINANCING DEVELOPMENT  

-  The UK supports the following innovative financing mechanisms: 

International Financing Facility for Immunisation (IFFIm) - GBP 34.5 million in 2010 

• 
•  Advance Market Commitments (AMCs) - GBP 15.5 million in 2010 
•  Private Infrastructure Development Group – USD 13.1 million in 2010  

-  The  UK  is  open  to  engaging  with  IFMs  in  future  and  supports  the  exploration  of 
possible routes. The UK engaged in such discussions via a number of international policy 
fora  including  EU  discussions  and  the  Leading  Group  on  Innovative  Financing  for 
Development. 

4.  LEVERAGING PRIVATE FLOWS FOR DEVELOPMENT 

Support to private investment in developing countries - Foreign Direct Investment: 

FDI to Developing Countries

)
s
e
c
i
r
p
9
0
0
2
(

s
o
r
u
E
f
o

s
n
o

i
l
l
I

M

45,000 

40,000 

35,000 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

-

United Kingdom

2003

8,626 

2004

14,563 

2005

11,918 

2006

5,999 

2007

18,247 

2008

16,489 

2009

40,175 

EN 

157 

   EN 

 
 
 
 
 
 
 
 
 
-  Financial tools to support private investment: 

Source: OECD/ DAC  

Investment guarantees: No 
Improvement of the overall banking system: Yes 

• 
• 
•  Microfinance/ access to financial services: Yes 
•  Risk management initiatives: No 
•  Blending: No 
•  Private public partnerships: Yes 
•  Business and investment climate: Yes 
• 
•  Export credits: No 

Investment facilities: Yes 

-  The UK promotes the adoption of internationally agreed principles and standards on 
Corporate  Social  and  Environmental  Responsibility  by  European  companies  through 
adherence  to  the  OECD  Guidelines  on  Multinational  Enterprises  and  the  Kimberley 
process. 

-  New  initiatives  in  relation  to  including  social  and  environmental  clauses  in  ODA-

financed public procurements: None 

-  The  UK  has  implemented  the  "General  Principles  for  International  Remittances 
Services" agreed by the Committee on Payments and Settlements Systems (CPSS).   

5.  AID FOR TRADE 

UK, AfT Commitments (in EUR million) 

2006 

2007 

2008 

2009 

Trade-Related Assistance 

Trade Policy and Regulations 
(category 1) 

Building Productive Capacity  
(Focus on Trade Development, 
category 2) 

Other Trade Development  
(category 6) 

64.311 

21.449 

62.741 

152.932 

41.491 

10.805 

29.647 

625.265 

0 

0 

0 

6.506 

Total Trade-Related Assistance

105.803

32.254

92.388 

784.702

Wider Aid for Trade Agenda 

2006

2007

2008 

2009

Trade Policy and Regulations  
(category 1) 

Economic Infrastructure  
(category 3) 

Building Productive Capacity 
(category 4) 

Trade related adjustment  
(category 5) 

Other Trade Related Needs  
(category 6) 

64.311 

21.449 

62.741 

152.932 

85.951 

90.252 

226.262 

347.122 

330.075 

268.643 

950.580 

828.817 

0 

0 

0 

0 

0 

0 

0 

6 506 

Total Aid for Trade 

480.337

380.344

1,239.583 

1,335.377

6.  REDUCING THE DEBT BURDEN OF DEVELOPING COUNTRIES 

Source: OECD CRS Database (latest update) 

EN 

158 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-  The  UK  has  delivered  on  its  commitments  to  the  HIPC  and  MDRI  initiatives, 

including commitments towards IDA and the African Development Bank. 

-  The  UK  sees  no  need  for  reform  of  the  international  architecture  for  the 

restructuring of sovereign debts.  

-  The UK has taken a specific measure to prevent aggressive litigation against HIPCs 
through the Debt Relief (developing countries) Act (2010) that prevents litigation against 
HIPCs in UK courts. 

II. IMPROVED EFFECTIVENESS OF SUPPORT TO DEVELOPING COUNTRIES 

7.  MORE EFFECTIVE EU AID  

-  On Ownership. No additional actions were taken in 2010. Support for country ownership 

is already integrated into DFID’s policies and procedures.   

-  On  Conditionality.  The  UK  has  carried  out  the  following  actions  on  conditionalities  in 

2010: harmonisation with other donors and making conditionalities public.  

-  On  Transparency  and  Predictability.  The  UK  publicly  discloses  information  on  aid 
volume on the internet and through databases at country levels. In addition, the UK will 
start  to  publish  information  through  the  International  Aid  Transparency  Initiative  online 
registry by end January 2011. 

-  On  Alignment.  The  UK  has  integrated  the  principles  of  the  Code  of  Conduct  on 
Complementarity  and  Division  of  Labour  in  strategies,  staff  guidance  and  programming 
processes/guidelines.  

-  On  Harmonisation.  The  UK  has  arrangements  in  place  for  delegated  cooperation  with 
members  of  the  Nordic+  group  and  with  the  European  Commission.  Cases  of  delegated 
cooperation are tracked informally. Some examples: 

Recipient country  Partner for delegated cooperation 
Sudan 
Sierra Leone 
Mozambique 

Netherlands, Norway, Canada and others  Basic Services Fund 
Sweden 
Netherlands 

Basic Education 
Water and Sanitation 

Modality/explanation 

On  Mutual  Accountability.  The  UK  works  with  joint  frameworks  for  monitoring  joint 
commitments together with other development partners and partner countries. In 2010 mutual 
accountability frameworks were established and reviewed in a number of countries including 
Bangladesh  (joint  cooperation  strategy),  Ghana  (through  aid  policy  and  joint  donor 
transparency  and 
Performance  Assessment  Framework),  Nepal 
accountability initiative with the UN and a number of bilateral donors), Uganda (supporting 
development  of  an  aid  policy  and  joint  MOU),  and  Zambia  (development  of  a  new  Joint 
Assistance Strategy).  

(through 

joint 

the 

-  On  Managing  for  Development  Results.  The  UK  provides  capacity  support  for 

Managing for Development Results. 

8.  SUPPORTING BETTER GLOBAL GOVERNANCE 

-  The UK does not share the view that EU27 should speak with one voice in the IMF, 
World  Bank  and  the  main  multilateral  development  banks'  governing  bodies.  The  UK 
believes there are significant advantages to our current informal coordination on strategic 
policy  issues,  and  sees  no  need  for  changes:  the  EU  subcommittee  on  IMF  matters 
(SCIMF) and the EU coordination in relation to the Executive Board meetings of the IMF 
(EURIMF) are effective ways of coordinating EU positions on IMF issues and work well. 
The  best  way  to  strengthen  this  coordination  is  to  build  on  existing  arrangements,  by 
strengthening the accountability of EU Executive Directors to their capitals.  

EN 

159 

   EN 

 
 
-  The UK does not support stronger Brussels based coordination on a regular basis on 

issues related to the World Bank and MDBs.  

- 

EN 

160 

   EN