As prepared for delivery

Excellencies,
ladies and gentlemen,

Now, more than ever before, we are aware of the realities of life for the poor people of the world. We know more about the conditions necessary for sustainable development and equitable distribution. We know more about the connection between poverty and conflict. We know more about the importance of proper nutrition for children’s development. We know more about the possibilities, and the dangers, that are inherent in globalization.

Currently, in the year 2001, around a quarter of the world’s population are living in extreme poverty. By the year 2015, the aim is to reduce this proportion by half. This is the most important development target agreed on by the international community. It has been adopted by the UN. And by the OECD. If we are to achieve this goal, it will call for a national effort on the part of the developing countries themselves. Supported by a favourable international framework. And supported by assistance from the rich countries of the world.

Development cooperation goes beyond aid!

We must not forget that this responsibility goes far beyond development assistance alone. Development cooperation policy is also concerned with debt, financial transactions and investment. And, not least, with private sector development, trade and market access.

In these fields, the Government believes it has found a formula that is beneficial for both development assistance and business. NORFUND, the Norwegian Investment fund for developing countries, has become a major instrument in supporting private sector development. NORFUND’s expanded cooperation with its British counterpart, the Commonwealth Development Corporation Capital Partners (CDC), which facilitates broad and active participation in the administration of local investment funds, is a significant step forward.

Promoting private sector development is of little value if developing countries are unable to find markets for their exports. Therefore the Government recently proposed giving the least developed countries duty-free and quota-free market access for all products except weapons. Our system will be fully operational as from 1 July 2002, compared to 2009 in the European Union.

As regards debt relief we are already at the forefront internationally. We were the first to implement 100 per cent unilateral debt relief to the poorest countries. Other creditors, like Britain and the USA, have since followed suit. Recently, Norway has been a driving force behind the negotiations on binding arrangements for financing of the Debt Initiative for Heavily Indebted Poor Countries (HIPC), launched by the World Bank and the IMF.

Norway has for many years been among the top donor countries with regard to development assistance. And we intend to stay there. The Government aims to increase Norwegian development assistance to one per cent of the gross national product. In addition, the Government is considering the possibility of establishing an additional Development Fund.

Fewer main partner countries

We are now in the process of reviewing the countries with which we cooperate. At present, we have 11 priority partner countries. In addition there are 30-odd countries that receive support through our regional allocations. We wish to concentrate on a smaller group of countries with which Norway can engage in long-term, comprehensive cooperation. The aim is to provide more focused, concentrated and effective bilateral assistance.

The Government will present its proposals in the budget for 2002. In the country selection process we will emphasize the following factors:

• The countries must be among the world’s least developed countries (LDCs). In other words, we are talking about a high degree of poverty, and about cooperation with those who need it most.
• The countries must demonstrate a clear political will to solve major national problems themselves. We wish to cooperate with countries that are making active efforts to promote good governance.
• As a development cooperation partner, we must emphasize the needs of the recipient country. Cooperation with Norway must give the country in question added value in relation to multilateral assistance or bilateral cooperation with other donor countries.

Most of the poor countries in the world today have fragile social structures. They are vulnerable to international economic fluctuations, political unrest and conflict. Our main partner countries must feel secure that Norway, through its development cooperation efforts, is also willing to stand by them in times of adversity.

Other partner countries

We must also have a category designated "other cooperation partners". Our cooperation with these countries should, as a general rule, cover a narrower range of fields and be less extensive than our cooperation with our main partner countries, and it will not necessarily have the same long-term perspective.

• In several countries and regions the most important contribution we can make is to support peace processes, directly or indirectly.

• Many countries are able to play an influential and constructive role in their regions. I am firmly convinced that regional cooperation between the countries of the South has great potential. We must help to realize this potential to an even greater degree than before.
• In some countries or regions it may be fruitful for Norway to focus more closely on selected areas, such as improving the situation of children, health, education, the environment, energy, good governance, or combating corruption.

Multilateral development cooperation

The Government will continue its efforts to strengthen the UN, and will, to an increasing degree, draw on the UN and the competence of the multilateral system in practical development assistance work. With Kofi Annan at the helm, the UN is definitely on the right track. The Secretary-General deserves high praise for his ongoing reform efforts.

We now see the contours of a closer cooperation between the UN and the development banks. We must intensify our support for this cooperation, both that between the multilateral institutions themselves and that between their "owners", i.e. the member countries.

Norway will continue to make substantial contributions to the basic financing of key international institutions, but will increasingly focus on the effectiveness of the institutions. The main priorities in Norwegian development policy, which are health, education, good governance and sustainable development, will also be given a more prominent place in multilateral assistance. We must target our multilateral assistance more precisely.

The voluntary organizations

About one quarter of our development assistance budget has in recent years been used in cooperation with NGOs, most of them Norwegian. In this respect Norway is one of the world’s leaders. Nowadays, we require greater efficiency from all the parties we work with – the NGOs being no exeption.

Much has been achieved by better coordination of state and multilateral efforts at country level. However, NGO activities still often consist of isolated, uncoordinated interventions. Despite the generally good results obtained for each project, the broader effect on development is thus limited. In some cases, NGO activities make it more difficult for national authorities to carry out their tasks in a rational manner. It is very important that the NGOs themselves get to grips with these challenges - and adjust their ways if need be.

We now intend to narrow the scope of the traditional allocation to NGOs so that the funding is reserved for measures that strengthen civil society. The NGOs will also be able to apply for further grants for their activities in priority areas for Norwegian development assistance, where thy have expertise and can provide added value.

The political parties

I also wish to draw the political parties in the national assembly into development cooperation. The parties provide a sound grass-roots basis for development policy, and they possess expertise in democracy-building. The parties that are represented in the Storting can make a greater contribution to the development of properly functioning, pluralistic party systems and democratic conditions in developing countries. In next year’s budget, I will therefore include a specific proposal for an allocation for supporting democracy-building measures.

Children’s welfare and rights

This brings me to our priority areas. And children – their welfare and their rights – must come first.

The UN Special Session on children in September must be used to formulate goals and strategies for the next ten years. Norway will give priority to children’s right to participate in processes and decisions that affect them and to children who are victims of exploitation and war, who are suffering from HIV/AIDS, or who are disabled. We will give special priority to improving the situation of girls.

Through the Global Alliance for Vaccines and Immunization (GAVI), the Government has shown that taking the lead in new initiatives can give results. With the funds allocated so far, we estimate that one and a half million children’s lives will be saved every year. Norway is allocating NOK 1 billion to GAVI over a five-year period.

Basic education for all, especially for women and girls, is one of the Government’s priorities. Other priority areas include the protection and rehabilitation of children traumatized by war, child labour and combating genital mutilation of women and young girls.

Combating hiv/aids

The global HIV/AIDS catastrophe threatens to undermine the results of many years of development cooperation. Thirty-six million people are infected by the virus. Over 13 million children have lost their parents. Six thousand Africans die of AIDS every day. The effects in Asia are worsening by the day. In terms of casualties, aids is fast approaching the horrifying numbers of the Black plague and the Spanish flu.

The struggle to combat this pandemic is a central part of Norwegian development cooperation policy. This year the Government has doubled the amount of multilateral development assistance allocated to HIV/AIDS – to NOK 130 million. The main focus of the Government’s AIDS efforts is on prevention, especially with regard to children and young people and measures that reduce risk behaviour, particularly among men. We have also made active efforts in two fields, medicines and peacekeeping operations.

Great progress has been made in the treatment of AIDS in recent years. But, as you very well know, the price of such treatment is still far beyond what most people in developing countries can afford. In April Norway hosted an international workshop under the auspices of the WHO and the WTO on the pricing of and access to important drugs. We made some progress, but surely much remains to be done in this field.

The UN Special Session on AIDS this summer will provide a good opportunity to tack stock of the aids pandemic and adapt our measures. At this point in time, no single development issue is more important than combating – and hopefylly rolling back - aids.

Fighting tuberculosis

We also wish to intensify our efforts in the fight against tuberculosis. This disease is closely linked with poverty. And it is closely linked with AIDS. The older generation in Norway still remembers the ravages wreaked by tuberculosis. Now the disease is increasing all over the world. It is spreading through the developing countries, as in Russia. The international Stop TB Initiative has gathered together many different bodies and organizations. We wish to contribute to this important movement. We will propose an increase in our allocations next year of NOK 100 million.

Access to energy

Access to energy is fundamental to development and poverty reduction, yet often an overlooked theme in the development debate. This puzzles me. All the major challenges in development cooperation are, in one way or another, associated with energy.

Norway is an important energy producer , both regionally and globally. We are expected to pursue a focused and consistent energy policy in all areas, including development.

I intend to intensify our efforts in the fields of energy, development and the environment, and will seek to substantially increase the funds for this purpose next year. We will also seek to ensure that energy and environmental issues occupy a central place on the agenda for the World Summit on Sustainable Development (the Rio+10 conference) to be held in South Africa next year.

Development in the form of peace-building

Development is closely linked with peace. The UN Security Council spends more than half its time on conflicts in Africa. The UN has only succeeded to a limited extent in dealing with these conflicts.

This has important consequences for Norwegian development cooperation policy. Development efforts must be part of a coordinated political effort. Our policy must not be hampered by "gaps" between humanitarian activities, political follow-up work and more long-term development assistance. In conflict areas it is essential to start reconciliation, democracy-building and economic and social development as rapidly as possible.

We intend to strengthen the link between, on the one hand, the targeted and often short-term support Norway allocates to conflict-ridden countries and areas and, on the other hand, long-term development assistance. In next year’s budget we will propose a so-called " gap allocation".

Looking ahead

Excellencies,

Development cooperation depends on binding international cooperation on an equal basis. Preparations are currently being made for a number of important international conferences. These include the Third United Nations Conference on the Least Developed Countries, to be held in Brussels next month, a High-level International Conference on Financing for Development, to be held in Mexico in March 2002, and the aformentioned Rio+10 Conference, which will take place in Johannesburg in September 2002. At the same time, efforts are under way to set up a new round of negotiations in the WTO.

In these conferences and processes, all countries - especially the developing countries - must raise their voices and make sure they are heard. But we must also make use of these opportunities to build partnerships between the North and the South. We, on our hand, certainly need more partners and allies from the South in key international processes. For too long, the focus of assistance has been one-sidedly directed at the South.

This we must change.

True partnership doesn’t work like that.

True partnership means "give-and-take" – both ways.

Thank you.