Aid to children

- the best investment

Children are the must vulnerable group in all societies. At the same time, children hold the key to future developments. The use of sufficient resources for child development and the protection of children from danger may permit future generations to break out of the poverty circle. Children and young people are therefore given priority in the development aid budget for 2001.

Millions of children still die as a result of sickness and undernourishment. Many of these children could have been given the right to life through vaccination programmes or health measures. Health is a high-priority area in the development aid budget. Support is also being given to vaccination programmes in developing countries, partly through support to the Global Alliance for Vaccines and Immunization, GAVI. GAVI shall help to ensure the vaccination of poor children who would otherwise not have been given this opportunity and will also contribute to making new vaccines available in developing countries.

It is still not possible to control the HIV/AIDS epidemic by vaccines. It has reached enormous proportions and can no longer be considered a health problem alone. It is a development catastrophe. Both families and entire societies in many African countries are breaking down. We are also witnessing disturbing developments in Asia. Children and young people are those who are affected most severely. They become infected themselves. They lose their parents. They are forced to work in order to survive and therefore receive no schooling. The fight against AIDS is also a fight for children’s right to life and a dignified childhood. In the 2001 development aid budget, the efforts to combat HIV/AIDS have been increased considerably.

Support to education remains a fundamental pillar of development aid policy. Development and growth are inconceivable without a well educated population. It is thus not sufficient to contribute to the survival of children. Children must also be given an education to allow them to contribute to economic and social development in their own country. In this connection it is particularly important to ensure that girls receive an education. An active dialogue is being conducted with partner countries in order to give priority to girls in national education programmes supported by Norway.

Norway concentrates on multilateral aid

- and will strengthen the UN system

The UN is a cornerstone of Norwegian foreign and development aid policy. In 2001, Norway will increase the general contributions to the UN system by NOK 567.5 million. In addition, the allocation for debt measures channelled through multilateral organizations has been increased by NOK 100 million. The negotiated contributions to development banks will increase by NOK 169 million in relation to the final budget for 2000.

An approximately equal distribution between bilateral and multilateral aid has been an objective of Norway’s development aid policy for a long time. In reality, however, the multilateral portion has declined for a number of years. In 1999, the multilateral portion was reduced to 26.4 per cent. Total aid through multilateral channels, including earmarked contributions (multi-bilateral) accounted for 42.1 per cent. This trend shall now be reversed; for 2001, the plan is to increase the purely multilateral portion to about 32 per cent.

The multilateral system, comprising the UN and development banks, is probably more in agreement than ever in terms of having poverty alleviation as an overriding objective and the instruments to achieve this. The objectives and instruments of the multilateral system are largely the same as those of Norway.

It is an important objective to strengthen the UN and help ensure that the world organization maintains and further develops its position as a key participant in the international development arena. Through the strategic use of increased allocations, Norway will contribute to strengthening a number of organizations in the UN system that have been underfunded for a long time and which have carried out, or are in the process of carrying out, important reforms and efficiency-enhancing measures. It is important that UN organizations are in a position to make use of their advantages in a development context by way of the unique legitimacy they enjoy in relation to developing countries.

The increase in contributions to the UN system will be used for programmes that have been given high priority in Norway and internationally for combating poverty, including health, HIV/AIDS, education and measures for children, as well as skills upgrading and institution building.

Norway seeks to contribute to a strong and effective multilateral system, which is a precondition for coherence and consistency in development cooperation. By strengthening the UN and the multilateral system, the Government will contribute to improving the coordination and cooperation mechanisms in each country. The capacity of recipient countries must not be overburdened, and discussions are taking place in bilateral and multilateral fora concerning how we can arrive at simpler and more coherent reporting requirements and reduce the large number of donor-controlled projects.

Norwegian aid 2001

- key elements

Poverty alleviation is the overriding objective of Norwegian development aid and support is primarily provided in accordance with national poverty reduction strategies. The multilateral system is important as a negotiation forum and aid channel, and multilateral aid is now being increased. Coordination of multilateral and bilateral activities represents a main challenge. The relationship between health and social development in poor countries requires an increased focus on health. The vaccination initiative GAVI figures prominently here. Education is a basic pillar for development and continues to be given high priority. The plans also call for a substantial increase in efforts aimed at combating HIV/AIDS in the period ahead. Norway will intensify and accelerate the work on debt relief for the poorest developing countries. Social stability and peace are preconditions for economic growth and development. Norway has acquired considerable expertise and confidence in conflict resolution and conciliation, and this will continue to be a high-priority task in 2001. Humanitarian aid and aid in connection with natural disasters are being increased. Development requires economic growth and private sector development in the South is a priority area. Efforts will also be made to strengthen research and knowledge that are anchored in the situation prevailing in partner countries. Regional challenges must find regional solutions. Cooperation with regional organizations and institutions is therefore important.

Note: the budget figures in the text and tables for 2000 are the amounts approved by the Storting (Norway’s parliament) in December 1999 (some figures were changed during 2000) and the amounts for 2001 are the final figures following deliberations in the Storting in December 2000.

Total development aid amounts to NOK 12 345 500 in 2001, which is equivalent to 0.89 per cent of Norway’s gross national product (GNP). This is a nominal increase of NOK 1 523 million compared with the final 2000 budget.

Programme category 03 International aid

Strong support for development aid

Statistics Norway has conducted opinion surveys concerning the population’s support for Norway’s development cooperation since 1972. The May 2000 report showed that 88 per cent of the population supported this, which is an increase of 11 per cent since 1990.

Aid to priority countries and regions

Chap. 150 Aid to priority countries and regions

Aid to priority countries and regions

The main objective of long-term cooperation with priority countries and regions is to contribute to achieving the international goal of reducing by half the percentage of the world population living in extreme poverty by 2015. Other important objectives are contributing to peaceful conflict resolution and the transition of societies that have been destroyed by conflicts to a positive development process for reconstruction, the development of society and conciliation. It is Norway’s principle that partner countries must assume responsibility by developing national strategies to combat poverty and a framework for coordinating donors’ contributions.

Item 70 – Aid to Africa

The main objective of aid to Africa is poverty alleviation. This aspect figures prominently in bilateral agreements with our priority partner countries. Emphasis is also placed on regional cooperation as this can contribute to enhancing social and economic development, both in countries and in the region. Increased regional cooperation also makes a positive contribution in terms of preventing conflicts between countries. Africa is characterized by weak institutions, both in the public sector and the business sector. Norwegian aid is attempting to change this situation, partly through institutional development and training. The spread of HIV/AIDS is jeopardizing the development of many African countries. The work on curbing the harmful effects of the epidemic is being given priority at all levels of the cooperation.

Item 70 Aid to Africa

Item 71 - Aid to Asia

The objective of poverty alleviation is also important for aid to Asia. Another important objective is to promote peace, human rights and democracy. Measures to address the HIV/AIDS challenge will be given priority. An enhancement of regional cooperation will be of considerable importance with regard to economic, social and political development. It is therefore an objective to strengthen the regional dimension of the cooperation.

Item 71 Aid to Asia

Item 72 - Aid to Central America

The objective of aid to Central America is to support the peace and democratic processes in the region. This entails efforts aimed at contributing to poverty alleviation and priority for measures to increase the respect for human rights and strengthening security under the law. Nicaragua and Guatemala are our most important partner countries in Central America, but the regional allocation may include cooperation with Cuba and countries in the Caribbean.

Item 72 Aid to Central America

Item 73 – Aid to the Middle East

Development cooperation with the Palestinian area is based on Norway’s commitment to the peace process, with the objective of having the Palestinian population see the positive results of peace efforts. Cooperation shall continue to be an important factor in Norway’s political dialogue with the authorities. Aid to the region will be strengthened in 2001 as a result of the increased need for resources in the work now being carried out to achieve peace. In order to reduce the detrimental economic and social effects as a result of the unrest that started in September 2000, substantial emergency relief will continue to be required in 2001.

Item 73 Aid to the Middle East

Information campaigns, NGOs and people-to-people cooperation – many Norwegian groups must be involved

Active cooperation between Norwegian organizations, research institutions and NGOs and their counterparts in developing countries contributes to competence-building and institutional and organizational development. In this way Norway helps to strengthen the role of civil society in the work aimed at poverty alleviation. Support for democracy is part of this.

The direct allocation to NGOs’ long-term development cooperation amounts to NOK 765 million in 2001, i.e. a slight increase from 2000. NGOs also receive support from other allocations, for example in connection with emergency relief and refugee work. All in all, about a quarter of Norway’s aid is channelled through NGOs. The contribution of NGOs will be evaluated in 2001/2002.

The new Norwegian Volunteer Service was established towards the end of 2000 as a separate administrative body with special authorizations. The first participants will start their assignments in 2001.

Information campaigns concerning aid and North-South issues are carried out by the authorities and NGOs in order to generate interest in and knowledge about these questions among the Norwegian population.

Chap. 154 Information campaigns, NGOs and people-to-people cooperation

The environment and natural resource management

Sustainable use of resources is the fundamental principle underlying Norway’s participation in international cooperation in the field of the environment and resource management. Priority areas with regard to the environment in development cooperation include biological diversity, coastal zone management, water resource management, environment-friendly energy management and institution and capacity building. Emphasis is placed on strengthening the environmental aspects of national policies in developing countries and the work of multilateral organizations.

Chap. 155 Environment and natural resource management

Measures to improve the status of women and gender equality

One of the main objectives of Norwegian development cooperation is to contribute to strengthening women’s rights and their opportunity to participate actively and equally with men in economic, social, political and cultural activities. This objective can be achieved partly by including the gender equality aspect in all development cooperation and partly by supporting special measures that have a positive impact on the development of gender equality in society. In the budget for 2001, NOK 35 million has been allocated to special measures for improving the status of women and gender equality.

Chap. 156 Measures to improve the status of women and gender equality

Private sector development and economic development

Economic growth through private sector development shall be given a broader focus in Norwegian development cooperation. The goal is to reduce poverty through economic growth and jobs. Arrangements linked to investments on a commercial basis are now being combined in NORFUND (Norwegian State Investment Fund for the Private Sector in Developing Countries). The funding arrangement for development measures shall help countries to implement development projects that are not deemed sufficiently profitable for commercial financing. In this connection, the participation of internationally competitive Norwegian enterprises will be promoted.

Chap. 157 Private sector development and economic development

Programme category 03.30

Aid via international organizations

Increase in general contributions to the UNDP, UNICEF, UNFPA, WFP, multilateral health measures and multilateral education measures

The general contributions over the development aid budget to the UN Development Programme (UNDP) have been increased from NOK 560 million to NOK 620 million in 2001. The UNDP is particularly important for the coordination of the UN’s development activities at country level. The programme plays an important role in areas that are a precondition for development, such as good governance, institution building, the prevention of crises and support in post-conflict situations. Important reforms, which Norway has supported, are being carried out in the UNDP.

In the social area, the UN Children’s Fund (UNICEF) and the UN Fund for Population Activities (UNFPA) have key roles. This applies to core responsibilities in fields like health, population and education, not least in relation to children and youths. Norway is increasing the general contribution to UNICEF from NOK 280 million to NOK 310 million. The contribution to the UNFPA has been increased from NOK 200 million to NOK 220 million.

The contribution to the World Food Programme (WFP) has been increased from NOK 190 million to NOK 215 million. The WFP plays an important role in the area of food security in the least developed countries (LDCs). The programme has also reorganized its activities to provide a more targeted effort for the poor, particularly women and children.

Access to fundamental social services is a precondition for development. The allocations to multilateral health measures have been increased substantially by NOK 300 million to NOK 504 million, including NOK 200 million for the vaccination programme (GAVI). Moreover, the allocation for multilateral measures to combat HIV/AIDS has been doubled to NOK 130 million. Most of the above-mentioned NOK 504 million will be channelled through the World Health Organization (WHO), the UN Children’s Fund (UNICEF) and the UN’s joint AIDS programme (UNAIDS).

Similarly, education, particularly for girls, is an effective investment in development. Support for multilateral education measures has been increased from NOK 75 million to NOK 90 million. Extensive multi-bilateral programmes, particularly in cooperation with UNICEF, come in addition.

Chap. 161 General contributions – UN organizations

Item 70 Grants to UN organizations

General contributions – financial institutions

The World Bank is the most important source of funding for the poorest countries and plays a key role with regard to developing policy in areas such as debt, the environment, the development of human resources and promoting good governance, incuding the fight against corruption in all developing countries and countries in eastern Europe. Norway’s cooperation with the Bank is particularly marked by our efforts targeted on the social sector, the environment, debt relief, the development of the private sector and the work to achieve a general poverty orientation.

In recent years, the World Bank has taken a number of important initiatives to enhance the efficiency of and to coordinate aid. Governing bodies in the Bank are therefore today key arenas in the international development policy debate.

The African Development Bank must consolidate the reform process in order to become more effective in its development activities. Norway also emphasizes that lending activities should be poverty-oriented and that development issues in sectors such as the environment, gender equality, local participation, good governance and institution building are given priority.

Norway is seeking to improve the cooperation between parties in all financial institutions, not least with other development institutions in the multilateral system, such as UN institutions.

Chap. 163 General contributions – financial institutions

Item 70 Deposits in financial institutions

General contributions – other organizations

Under Chapter 164 the grant to the International Planned Parenthood Federation (IPPF) is the largest. The Federation is a sound channel for following up the priority assigned to population issues in Norwegian development aid. Norway is also encouraging the IPPF to increase its efforts in Africa, with an emphasis on training and institutional development. The budget for 2001 includes, among other things, measures to combat the genital mutilation of girls.

Chap. 164 General contributions - other organizations

Post 70 Grants to other organizations

Bilateral aid administered by international organizations (multi-bilateral)

Aid that is included under the designation multi-bilateral shall be labour-saving and cost-effective for the donor country. Programmes and projects are administered by the individual organization. The work takes place by means of framework agreements or individual agreements and the Ministry of Foreign Affairs receives reports about the work on a regular basis. In this way Norwegian professionals increase their insight into multilateral organizations, which has a positive influence on other Norwegian development aid activities. In 2001, earmarked contributions in multi-bilateral aid to education and health have been maintained at a high level. Efforts to combat child labour is another important focus. Sub-Saharan Africa will be given priority in the multi-bilateral cooperation.

Multi-bilateral activities are both a basis for and a supplement to the political work in the institutions’ governing bodies. Multi-bilateral projects provide in-depth knowledge about the institutions, and the various Norwegian multi-bilateral projects often follow up and enhance Norway’s position in the governing bodies.

Chap. 165 Bilateral aid administered by international organizations (multi-bilateral)

Debt relief measures

Grants to the debt fund shall contribute to easing developing countries’ debt burden and ensure higher transfers of resources to the poorest and most heavily indebted countries, particularly in sub-Saharan Africa. The Heavily Indebted Poor Country Debt Initiative (HIPC) is considered the most important international instrument for debt relief for these countries. Norway is an active driving force for this arrangement. Last year, an international negotiating process was adopted in order to ensure sufficient funding for this debt arrangement. It was also Norway which, along with the other Nordic countries, took the initiative for these negotiations, and according to plan the first round will take place in 2001. Grants for debt relief measures have now been increased by NOK 100 million to NOK 350 million, which will ensure that Norway can play an active role in these negotiations.

Chap. 166 Debt relief measures

Humanitarian aid in connection with natural disasters

As a result of new natural disasters such as earthquakes, droughts, floods or tropical storms, there will continue to be a substantial – and probably increasing – need for emergency relief in connection with natural disasters in different parts of the world. For the year 2001, NOK 190 million has therefore been allocated under the Chapter Humanitarian aid in connection with natural disasters.

In areas with persistent problems and recurring natural disasters, emphasis will be placed on supporting measures that increase local preparedness, and the focus will be on preventive measures. It is also important to contribute to coherent efforts in the period when the immediate emergency has passed and reconstruction work starts.

Chap. 190 Humanitarian aid in connection with natural disasters

Human rights, humanitarian aid and refugee measures

Norway shall continue to be a major contributor to international humanitarian aid efforts. For the year 2001, a little more than NOK 1.2 billion has been allocated under the Chapter Human rights, humanitarian aid and refugee measures.

High priority is given to preventing conflicts and consolidating "fragile peace" through strategic efforts to achieve peace, reconciliation and conflict resolution. The protection of human rights in all phases of a humanitarian crisis shall be strengthened. The focus will also be on the effective use of opportunities for peace and reconciliation initiatives generated by extensive humanitarian efforts. In addition to providing immediate emergency relief, the work will therefore focus on the causes of the conflict, with an emphasis on the need for reconciliation.

The close, but informal and flexible cooperation that has developed between the Norwegian authorities and Norwegian NGOs will be maintained. The organizations’ local knowledge and extensive contacts are essential supplements to the authorities’ development cooperation. The good cooperation with the multilateral system and the large Norwegian relief organizations will be used actively. Emphasis is placed on strengthening the role of the UN as coordinator of international humanitarian operations.

Chap. 191 Human rights, humanitarian aid and refugee measures

Peace, reconciliation and democracy

The past decade has been marked by conflicts in Southeast Europe. Norway attaches importance to providing aid that is optimally adapted to local requirements and which supports the reconciliation process and promotes democracy. The objective has been to provide humanitarian aid to conflict victims at an early stage. In addition to measures that provide food and shelter, humanitarian aid has included assistance for rebuilding homes, measures that contribute to providing a livelihood and land mine clearing. As soon as the situation permits, emphasis is placed on building and strengthening democratic institutions and more long-term measures that underpin the efforts of conflict victims to resume a normal life. This includes education, health, infrastructure and capacity building.

The Stability Pact for Southeast Europe constitutes the framework for aid to the region. Norway seeks to emphasize the regional dimension of the cooperation and therefore strongly supports the regional projects under the Stability Pact. In addition, many of the democracy-oriented projects that are supported are of a regional nature.

Chap. 192 Peace, reconciliation and democracy

Measures for refugees in Norway

According to the OECD/DAC’s guidelines, some expenditure relating to the accommodation of refugees in Norway and the return to their home country may be classified as official development aid (ODA). The expenditure is registered in the development aid budget even though the schemes are administered by the Ministry of Local Government and Regional Affairs. The allocation has been increased by NOK 228 million to NOK 857 million in 2001.

Chap. 195 Measures for refugees in Norway, approved as ODA

Item 21 Special operating expenses