Norwegian Development Assistance in 2008 - Priority Areas

Extract from the Ministry of Foreign Affairs’ budget proposal for 2008

(part of Proposition No. 1 (2007–2008) to the Storting)

Programme area 03 – international development assistance, part 8

Expenditure by programme category

					(in NOK 1 000)
Cat.	Description	Accounts 2006	Final budget 2007	Budget status as of June	Proposed budget 2008
03.00	Administration of development assistance	937 021	971 354	990 354	1 048 354
03.10	Bilateral development assistance	3 351 732	3 908 100	3 887 700	4 149 100
03.20	Global mechanisms	8 036 757	8 804 302	8 830 575	9 656 576
03.30	Multilateral development assistance	6 430 751	7 066 261	7 054 061	7 436 261
03.50	Other development assistance (non-ODA)	32 374
	Total for programme area 03	18 788 635	20 750 017	20 762 690	22 290 291

8.1 Overall guidelines

The Government’s efforts to fight poverty are based on the Government’s policy platform, the Government’s inaugural address to the Storting and the development policy addresses to the Storting of May 2006 and June 2007. They are also guided by the Storting’s deliberations on Report No. 35 (2003–2004) to the Storting, Fighting Poverty Together, A Comprehensive Development Policy. The Government is working to ensure success in the fight against poverty, but recognises that this depends on the interplay of many factors.

Development assistance alone cannot lift large groups of people out of poverty. Global and regional frameworks are decisive factors in relation to peace and stability, economic development, investment, trade, migration, and dealing with environmental problems, climate change and health challenges. The three most important national factors that affect development and the level of poverty in a country are:

• a well-functioning state that safeguards peace, security and human rights, delivers basic services to the population, and ensures that there are good conditions for healthy economic activity and trade;
• an active business sector; and
• a vibrant civil society, with free media and active pressure groups.

Norwegian development policy is intended to influence all of these factors. Much of the work that is done takes the form of political dialogue, at both international and national level. Development assistance is one important tool that is used actively in implementing the policy.

All countries are responsible for their own development. The effectiveness of development assistance depends primarily on the efforts of political leaders, public institutions, the private sector and civil society in each country. By supporting these actors in their efforts to promote pro-poor development, Norwegian development assistance can help to ensure that development goes in the right direction. Norway has a responsibility to provide humanitarian assistance to meet people’s need for protection and essential supplies in countries marked by war, conflict, natural disasters or combinations of these.

Many developing countries have experienced significant economic growth in recent years. The comprehensive restructuring of the economy, successful macroeconomic stabilisation and an increased focus by the government on the importance of providing good business regulations, trade and economic growth, have been important factors in this development. Wealth-creation and growth are still being hampered by poor management of natural resources, a lack of capital, expertise and infrastructure, and trade barriers of different kinds. Norwegian development assistance is one of several tools for securing improvements in these areas.

The Government will be a driving force in the international effort to increase allocations to development cooperation. Government’s policy platform states that allocations are to be increased to one per cent of gross national income (GNI) and thereafter increased further during the rest of the current parliamentary period. In the 2008 government budget, it is proposed that the development assistance allocation be increased by NOK 1.5 billion. This would bring the total for 2008 to NOK 22.3 billion, or 0.98 per cent of GNI.

The Government will continue to increase the focus on assuring the quality of development cooperation. Norway is participating in international efforts and efforts led by the authorities in a number of partner countries to improve knowledge about the impacts of development and to ensure that public funds are managed for results. It is important to ensure results of the development cooperation, and that money reaches its intended destination. This is a particular challenge in poor countries where the needs are great, but the institutions that are supposed to promote development and report on the results, as well as the media, are weak. Managing aid to countries that are affected by conflict and corruption and have weak formal structures is demanding, and there will at times be setbacks. Measuring the results of this aid is therefore particularly challenging.

Corruption drains many developing countries of amounts larger than what they receive in aid. The Government wants Norway to take a lead in the international fight against corruption, money-laundering and capital flight facilitated by tax havens. The fight against corruption is a job for strong international actors such as the World Bank and the UN, and Norway will work in international forums to strengthen the implementation of the UN Convention against Corruption (2003), particularly in relation to the return of flight capital and opportunities to conceal financial crime.

The Government is focusing on ensuring a coherent Norwegian policy for development, and therefore established a commission in December 2006 to explore opportunities for making Norwegian policy even more effective at fighting poverty. The commission will deliver its report during the first quarter of 2008.

The Government wants Norway to continue to advocate UN reform. This involves strengthening the role of the UN as a promoter of peace and development, by supporting the UN Peacebuilding Commission and the UN Peacebuilding Fund, strengthening the UN’s gender equality efforts, supporting the implementation of pilot projects to establish “One UN” at country level, promoting efforts to improve the integration of humanitarian aspects and development considerations into UN peacekeeping operations, and supporting the continuation of reforms already begun in the humanitarian field.

In Proposition No. 1 (2006–2007) to the Storting, the Government announced that it would provide the Storting with an assessment of whether or not it would be appropriate to continue classifying countries as main partner countries and partner countries. These terms were introduced in 2002 for countries with which Norway wants long-term development cooperation. The term “main partner country” was to be used for countries with which Norway wants long-term, predictable and robust development cooperation. The term “partner country” was to be used for other countries with which Norway wants long-term cooperation, but for which it has lower ambitions as regards participation in the development cooperation dialogue. In practice, the distinction between main partner countries and partner countries is no longer valid. While the cooperation with some main partner countries has been limited by political developments in those countries, dialogue with and development cooperation to certain other countries has been expanded. This particularly applies to countries in which Norwegian and international development cooperation constitutes an important contribution to stability and lasting peace, as in Afghanistan and Sudan. The Government therefore no longer considers it appropriate to maintain the distinction between main partner countries and other partner countries.

Norway is working to secure greater clarity about the role of the UN system and the international development banks in development work, and to ensure that the division of labour between them and with other development partners is improved. Emphasis is being given to implementing the objectives of the 2005 Paris Declaration on Aid Effectiveness at both international and national level. This means that Norway’s development cooperation work will be guided by the principles of national ownership, alignment with recipient countries’ systems, harmonisation among donors, results-based management and mutual accountability. An important aspect of these efforts is to increase predictability in long-term development assistance by entering into agreements with selected partner countries and UN organisations that contain multi-year commitments.

Norway will maintain its strong commitment to assisting vulnerable, fragile states emerging from conflict, and will provide extensive humanitarian assistance to alleviate suffering, provide protection and give vulnerable groups prospects of a better and safer future. In most countries affected by war and conflict, development is not a linear process from humanitarian disaster via reconstruction to long-term development. In practice, it has often been necessary to provide assistance tailored to all of these situations in a given country simultaneously. Therefore, countries like Afghanistan, Sudan and the Palestinian Territory are concurrently receiving humanitarian assistance, assistance aimed at peace and reconciliation, transitional assistance and long-term development assistance. The Government believes it is important to consider the different activities in context, and is focusing on coordination and effective division of labour as means to maximise the effect of the assistance.

The international community has committed itself to increasing development assistance to Africa, and the G8 countries have agreed to double development assistance to Africa in the period 2005–2010. Norway intends to increase its allocations to Africa by a similar factor during the period.

Norway will contribute to the achievement of the UN Millennium Development Goals. The UN’s status report shows that significant progress has been made in a number of areas, and that subsidiary objectives can still be achieved in many parts of the world if extra determination and resources are mobilised. A particular challenge will be to achieve noticeable improvements in the poorest countries and in countries that are in conflict or in the process of finding a political solution to a conflict. Norway has taken the initiative to launch a special international drive for the health-related Millennium Development Goals; for reducing child and maternal mortality and combating aids and other diseases.

The Government wants to promote a better division of labour between donors, and focus more strongly on areas in which Norway has particular expertise. Accordingly, the increase in development assistance introduced by the present Government will primarily be allocated to five main priorities areas where Norway has comparative advantages.

8.2 The Government’s priority areas

The Government wants to promote a better division of labour between donors, and focus more strongly on areas in which Norway has particular advantages and expertise. The five areas in which Norway can contribute most are climate change, environment and sustainable development; peacebuilding, human rights and humanitarian assistance; oil and clean energy; women and gender equality; and good governance and fight against corruption.

Climate change, environment and sustainable development

The greatest threat facing the world today is climate change. The Government intends to take a leading role in the international effort to deal with the large-scale changes involved. The Government is launching a wide range of activities totalling some NOK 400 million, aimed at reducing harmful emissions and helping poor countries to adapt to the effects of climate change. Moreover, the Government wants to use these funds to stimulate developing countries’ determination and increase their ability to join a future emissions reduction scheme after 2012, when the first Kyoto period expires. In addition to this strengthening of climate-related efforts, environmental development cooperation will be strengthened by the allocation of a further NOK 80 million for the implementation of the Action Plan for Environment in Development Cooperation.

It is the poorest countries, which contribute least to global warming, that will be hardest hit by climate change. Development policy efforts in relation to climate change must therefore include both measures to reduce harmful emissions and measures to assist developing countries in adapting to the effects of climatic change. Efforts related to sustainable management, the use and preservation of natural resources and biological diversity are important with a view to preventing natural disasters and reducing the vulnerability of poor people to climate change. NGOs play an important role in these efforts.

It is envisaged that the proposed increase in the allocation for climate change measures in 2008 be split between three main areas: 

• NOK 130 million for the stepping-up of bilateral cooperation, with a focus on adaptation measures and clean energy in Africa. Climate change measures in Central America (regional activities) and the Amazon region will also be key. Climate change cooperation with China, India and Indonesia will be strengthened.
• NOK 100 million for an increased focus on climate-related research, technical cooperation and private sector development. Measures aimed at clean energy, the Clean Development Mechanism and cooperation on carbon capture and storage in developing countries will be key. An assessment of potential cooperation projects will be launched.
• NOK 170 million to support new multilateral climate change and clean energy initiatives, for example through the UN system and the development banks, including carbon partnerships to combat deforestation and new types of carbon financing initiatives. It is proposed that allocations to climate funds established under the UN Framework Convention on Climate Change be increased.

Massive support for climate change measures is also important to increase developing countries’ willingness and ability to join a future emissions reduction scheme after 2012, when the first Kyoto period expires. Focusing on climate change in development cooperation is part of the implementation of the Government’s international climate change strategy.

There is further discussion of the focus on climate change, the environment and sustainable development in Chapter 10.

Peacebuilding, human rights and humanitarian assistance

The Government wants Norway to have a clear profile as a nation of peace. Norway’s efforts to prevent, reduce and resolve conflicts must be seen in connection with its significant humanitarian commitments, the assistance it provides for transition from war to peace, its commitment to long-term development cooperation and its promotion of human rights. Norway’s strengths are its flexibility, which enables it to respond rapidly to challenges in volatile situations, and the close link between its foreign and development policies.

The Government wants to continue providing support for the UN’s peacebuilding efforts, prevention of armed conflicts, and increased integration of peace operations. Support for the new UN Peacebuilding Commission, in which Norway has a seat on the Organizational Committee, will be given high priority.

Norway will give particular emphasis to implementing UN Security Council resolution 1325 on women, peace and security, and resolution 1612 on children and armed conflict. Human rights conventions will be used methodically to identify the obligations of States towards their populations.

Major political progress has been made in recent years in some of the countries most ravaged by conflict, where the UN, the development banks and bilateral actors are playing a key role in the reconstruction phase. Nevertheless, the danger of a return to armed conflict remains. Norway will therefore continue its peacebuilding efforts in several of these countries, and seek to help to bolster and secure a fragile peace. The efforts aimed at making peacebuilding operations more integrated, i.e. to improve interaction between the security, humanitarian and development elements, will be important here. Funds will be set aside to help prevent the reversal of the positive developments that have taken place in a number of countries. It is crucial that the populations in countries that are transitioning out of conflict experience real improvements in their living conditions as a result of the transition from war to peace. The more people participate in and feel ownership of a peace process, the more stable peace becomes. A broad-based political approach, mobilisation of civil society, cooperation with the local business sector, and international coordination are all important elements in the process. The Government will continue cooperating with NGOs, research institutions and others who are involved in work related to peace, conflict resolution and peacebuilding.

There is a great and continuing need for substantial humanitarian efforts. The Government will work actively to strengthen the international humanitarian response system, including by continuing to contribute to the UN Central Emergency Response Fund (CERF) and country-specific humanitarian funds. The purpose of CERF is to ensure that the UN has access to rapid, sufficient, flexible and balanced funding for humanitarian efforts, with a particular focus on crises and conflicts that do not attract particular international notice – the “forgotten crises”, such as those in Colombia and Burma. The Government will emphasise the need to integrate the gender perspective into humanitarian efforts, and will make this an important topic in its dialogue with humanitarian actors. The Government will work to make international humanitarian efforts more coordinated, effective and harmonised and will focus particularly on prevention, protection and the interaction between different activities. A white paper dealing specifically with the prevention of humanitarian disasters, also in the context of environmental and climate change, will be presented in 2007.

Women and gender equality

A new Action Plan for Women’s Rights and Gender Equality in Development Cooperation was launched on 8 March 2007.

The action plan has four thematic priority areas:

• women’s political empowerment
• women’s economic empowerment
• sexual and reproductive health and rights, and
• violence against women

The Government considers it important that the support given to promoting women’s rights must not only encompass activities specifically directed at women as a target group , but must also be integrated with other aspects of development cooperation. Adopting just one of these approaches is not sufficient.

Norway intends to be a bold champion of women’s rights and gender equality, including in relation to controversial issues. On the basis of national experience, Norway will advocate the decriminalisation of abortion, take a leading role in the fight against genital mutilation, combat all discrimination and stigmatisation on the basis of sexual orientation, and seek to increase understanding of the fact that investing in women’s rights and economic participation also contributes to economic growth.

Due to the scale of Norway’s efforts in this area, the Government will submit a white paper on women and gender equality in development cooperation in the course of 2007.

Oil and clean energy

Norwegian expertise is much sought after in the petroleum sector and in relation to hydropower and other sources of clean energy.

The Oil for Development programme, which was launched in the autumn of 2005, has attracted great international attention. Its core themes are governance, petroleum management, environmental issues and, not least, financial management. The objective of the programme is to transfer Norwegian expertise to enable developing countries to manage their petroleum resources in a way that contributes to a lasting reduction of poverty and takes environmental concerns into account. Long-term cooperation has been established with 10 countries, and limited assistance is being provided to around 20 more. The long-term assistance requires extensive planning, coordination and quality assurance. The challenge now is therefore to establish priorities for the use of limited resources as regards technical expertise.

The Oil for Development programme is led by the Ministry of Foreign Affairs and is based on cooperation between the Ministry of Petroleum and Energy, the Ministry of Finance and the Ministry of the Environment. These three ministries play an important role as regards planning and coordination, and as providers of the experts needed the implementation of the programme.

The Clean Energy for Development initiative was launched as part of the process of intensifying Norway’s efforts in the field of clean energy. Its purpose is to ensure that full use is made of Norway’s considerable expertise in this field. Norwegian expertise and industry are world leaders in the management of energy resources, the construction and operation of hydropower plants, the development and use of other clean energy sources, and energy-related research and higher education. Moreover, Norway has advanced expertise as regards integrated planning for the use and protection of water resources and as regards the links between energy and the environment.

Global warming and climate change issues have further highlighted the need to assist developing countries by providing expert input and financial resources to support investment in and the development of clean energy. The main priority areas are the development of national institutions that will encourage investment in the production of clean energy and energy efficiency, regional and national energy planning, facilitating and providing funding for investments in national and regional energy production and power trading, small-scale energy production from a variety of energy sources such as the sun, biomass and wind, and the development of knowledge and technology. The main focus of the initiative will be on Africa, where many countries still only meet the electricity needs of a small percentage of the population. However, efforts will also be stepped up in Asia, particularly as regards technological cooperation with populous countries where there is significant potential for reducing emissions.

Good governance and the fight against corruption

The Government wants to support state-building in fragile states, strengthen the public sector in selected partner countries by means of budget support, strengthen independent media, and step up anti-corruption efforts.

Efforts will continue to step up longer-term support for state-building in selected fragile states actively seeking a peaceful way out of conflict. The emphasis will be on activities that have the potential to consolidate peace and reconciliation processes and support the development of democratic and socially inclusive governance.

A fundamental principle of Norway’s long-term development cooperation is to support the growth of strong, democratic states that are able and willing to fight poverty and respect human rights. The Government will increase budget support to selected partner countries to strengthen their ability to develop well-functioning states with greater capacity to deliver public welfare services. Norway will continue to make significant efforts in developing the dialogue between donors and partners receiving budget support, with a special emphasis on monitoring the development of good governance and improving the underlying conditions for economic development, the business sector and trade.

Norway will seek to strengthen watchdogs that can hold governments to account. This involves providing support for the development of well-functioning judicial systems, parliaments and political parties, independent media and an active civil society. The development of the Nordic welfare model is valuable in this context, and will be a reference in the dialogue.

Norway will step up its support for the fight against corruption at both international and country level. This will include providing support for building up developing countries’ financial management and auditing capacities. 

Supporting the health-related Millennium Development Goals

In addition to the five main priority areas in which Norway has particular expertise, the Government has chosen to take particular responsibility for ensuring that the international community achieves the health-related Millennium Development Goals (MDGs). Norway’s leadership role relates particularly to MDG 4 on reducing child mortality and MDG 5 on improving maternal health. In addition, Norway is very active in the effort to achieve MDG 6 on combating HIV/AIDS, malaria and other diseases.

Every year, more than 10 million children die before reaching the age of five. Of these, 4 million die before reaching the age of one month. Of the remaining 6 million, 2.5 million die of diseases for which vaccines already exist, or for which vaccines will become available in the next few years. The most important other, non-vaccine related causes of child mortality are respiratory infections, diarrhoea, malaria and HIV/AIDS.

Every year, half a million women die of preventable and treatable complications related to pregnancy and birth. Efforts to reduce maternal mortality are closely related to the effort to reduce child mortality.

The Government is working hard to ensure that all the world’s children and women have access to vaccination and other health services, so as to prevent high illness and mortality rates due to diseases and complications that are preventable and treatable. An important element in these efforts is a global campaign initiated by Norway, which has the aim of ensuring that these MDGs are achieved and more lives are saved. Norway is working with, among others, the British authorities and the Gates Foundation. A further element is the establishment of bilateral cooperation at political level with some of the countries in the world with the highest child mortality rates, including India, Pakistan, Nigeria and Tanzania. This cooperation includes significant Norwegian support for the effort to reduce child and maternal mortality in these countries.

Norway’s fight against child mortality will continue to include support for vaccination through the GAVI Alliance and support for vaccine research in which Norwegian institutions are participating. Support to the Global Fund to fight AIDS, Tuberculosis and Malaria (GFATM) will also be increased.

Other important priority areas

Although the increase in the development assistance budget will primarily be allocated to the main priorities, the Government will maintain a high level of support for other areas that have traditionally been important in Norwegian development cooperation, as well as focusing on new areas where Norway can promote important international initiatives. In its efforts, the Government will take into account the experience gained from development cooperation thus far.

Norway will continue giving significant support to public welfare services, particularly in the health and education sectors, both directly through multilateral and bilateral channels and through budget support to selected countries. Education is one of the most powerful tools for fighting poverty and developing democratic societies. International support for education has secured a major increase in the number of children who attend school. The greatest lack of education opportunities is now experienced by children who are refugees and/or live in countries in conflict. The Government wants to focus particular attention on the education of young girls and of children in war and conflict areas. The Government is also giving particular priority to efforts to protect women’s sexual and reproductive health and rights, reduce pregnancy-related mortality, strengthen efforts to combat genital mutilation and promote safe abortion on demand.

The Government will, in implementing its development strategy for children and young people, continue to focus on a few selected global and country-based initiatives related to children’s rights and protection, and on synergies with other global initiatives and main priorities. The relevant areas are children and young people in peacebuilding, their involvement in peace and reconciliation efforts, the protection of their rights in armed conflicts and humanitarian disasters, follow-up on the UN Study on Violence against Children, and strengthening the right of children and young people to participate and have their say.

Human trafficking involves gross violations of human rights and is the second-largest source of income in international organised crime. The Government is giving particular emphasis to activities to prevent the recruitment of new victims in countries of origin. Key activities include providing assistance to and protection for victims, for example measures aimed at returning victims to their home countries and reintegrating them.

Efforts to combat HIV/AIDS, which were consolidated in a new position paper in 2007, will be continued at a high level. The Government will give priority to the effort to ensure universal access to medicines by 2010, and to providing support for vulnerable groups that experience double discrimination and stigmatisation, particularly men who have sex with men, sex workers and intravenous drug abusers.

The Government will seek to increase investment by the business sector in developing countries. The fight against poverty in developing countries cannot be won without investments by the business sector. Corporate social responsibility and the business sector’s role in climate efforts must play a central role in these efforts. The Government wants development funds and funds from the commercial actors to be used for co-financing in a public-private partnership for development. The aim is to mobilise funds and expertise that would not otherwise be invested in poor countries. Norfund is the Government’s most important tool for supporting business development in developing countries, and the company’s place and role in development cooperation efforts remain the same following last year’s changes in strategy and management.

In 2007, planning started on a new Norwegian public-private initiative aimed at increasing access to capital and providing expert advice to microfinance operators. The initiative is expected to be ready to launch early in 2008, assuming that the private investors provide capital and expertise.

Efforts have also been launched with the aim of strengthening cooperation with Norwegian hydropower companies to increase investment in clean energy, particularly in Africa. Further, the Government wants to strengthen trade-related development cooperation through multilateral and bilateral channels, and sees this in connection with international efforts in this area, including in the World Trade Organisation (WTO).

The Government is an active participant in international efforts to develop new and innovative financing mechanisms for development purposes. It is desirable that more countries introduce such schemes, in order to increase the total amount of available resources for development.

Norway will continue to spearhead efforts to cancel the debts of the poorest countries, by actively cancelling debts on a bilateral basis, by being a strong supporter of multilateral debt cancellation schemes, and by promoting innovative thinking in relation to debt policy. The strategic cooperation with the World Bank on debt management and “illegitimate debt” is particularly important. Norway has financed two studies on “illegitimate debt” through the World Bank and the UN. The fact that the World Bank and the UN are working on this difficult topic is important in itself, but the main aim is to generate practicable recommendations on how to advance efforts in this area.

Norway has cancelled the remaining debts of Egypt, Ecuador, Peru and Jamaica from the Norwegian ship export campaign of 1976–1980 by means of unilateral declarations and without imposing any conditions. There is no question about the legal basis for these debts. Nor is there any reason to describe these debts as “illegitimate”. However, there is broad agreement that the ship export campaign was a development policy failure. As creditor, Norway shares responsibility for the resulting debt. By cancelling the debts, Norway has shown that it takes this responsibility seriously. In accordance with the established financial solution for the Norwegian Plan of Action, Debt Relief for Development, the cancellation of the ship export campaign debt was carried out without allocations from the development assistance budget and without reporting the cancelled debts to the OECD/DAC as official development assistance (ODA).

Norway will continue to support the work of the Global Forum on Migration and Development. Efforts in these areas will be carried out in close contact and cooperation with other ministries. The Ministry of Foreign Affairs will place emphasis on involving immigrants living in Norway.

8.3 Report on Norway’s development cooperation in 2006

Results at the national level in countries that receive support from Norway can generally not be attributed to specific activities funded by Norway or other individual donors. Results are achieved through joint efforts by the developing countries themselves and bilateral and multilateral donors. Assessments of whether Norwegian development cooperation is contributing effectively to reducing poverty must therefore be based on reviews and evaluations of individual countries, organisations and sectors. To a significant degree, such assessments have to focus on the policies adopted by partner countries and to what extent these policies have been implemented. The Ministry of Foreign Affairs has published an annual report on Norway’s bilateral development cooperation in 2006, and the Norwegian Agency for Development Cooperation (Norad) is in the process of drawing up a report on the results of Norway’s total development efforts.

Official development assistance in 2006

In 2006, Norway disbursed official development assistance (ODA) totalling NOK 18.950 billion, up NOK 1.004 billion (5.6%) from 2005. In 2006, the ODA disbursed by Norway was equivalent to 0.89% of Norway’s gross national income (GNI) as compared with 0.93% of GNI in 2005.

Table 8.1 Total ODA by type of assistance, 2003–2006 (million NOK)

	2003		2004		2005		2006
Multilateral assistance	4107	28.4%	4463	30.1%	5144	28.7%	5268	27.8%
Multi-bilateral assistance	2440	16.9%	2629	17.7%	4067	22.7%	4141	21.9%
Bilateral assistance	7205	49.8%	6932	46.8%	7850	43.7%	8488	44.8%
Administration	704	4.9%	793	5.4%	885	4.9%	1053	5.6%
Total	14456		14817		17946		18950

The table shows that the split between assistance through multilateral channels and bilateral assistance has changed over time. Bilateral assistance has a decreasing share, whereas the share provided through multilateral organisations is increasing. Within the multilateral assistance there has been a shift towards more earmarked multi-bilateral assistance.

Norway follows the rules established by the OECD Development Assistance Committee (DAC) for reporting official development assistance. Only bilateral assistance and earmarked support channelled through multilateral organisations (multi-bilateral assistance) can be split by country and region.

Bilateral assistance by region, country, organisation and sector

Table 8.2 Total bilateral assistance by main region, 2003–2006 (million NOK)

	2003		2004		2005		2006
Africa	4 098	42.5%	4 227	44.2%	4 607	38.7%	4 983	39.5%
Asia and Oceania	1 771	18.4%	1 872	19.6%	3 251	27.3%	2 211	17.5%
Europe	1 009	10.5%	863	9.0%	818	6.9%	804	6.4%
Middle East	940	9.7%	639	6.7%	749	6.3%	952	7.5%
Latin America	478	5.0%	610	6.4%	581	4.9%	606	4.8%
Global unspecified	1 350	14.0%	1 351	14.1%	1 910	16.0%	3 072	24.3%
Total	9 646		9 562		11 917		12 629

2005 was an exceptional year as regards geographical distribution due to large, extraordinary disbursements to countries is Asia following the tsunami and the earthquake in Pakistan. Apart from this, the table shows a steady increase in the assistance provided to Asia and Africa in monetary terms, whereas it has remained relatively unchanged over time in the other regions. Africa’s share has declined from 2003 to 2006. Global measures, which have been given much higher priority, have seen the largest increase. However, a significant share of the cooperation registered as global is carried out in Africa.

Table 8.3 Total bilateral development assistance split by channel, 2003–2006 (million NOK)

 

Channel	2003	2004	2005	2006
Government-to-government, private sector, etc.1	3 939	3 620	3 930	4 273
Multi-bilateral assistance	2 440	2 629	4 067	4 141
Norwegian NGOs	2 460	2 482	2 975	3 098
Regional, local and international NGOs	572	593	693	778
Nordic research institutions	235	237	252	337
Total	9 646	9 562	11917	12 629

1 Includes government-to-government cooperation, cooperation with the private sector, business and industry, consultants, etc.

This overview shows that in 2006 approximately one third of Norway’s bilateral assistance was channelled through multilateral organisations, one third through the government and private sectors, and nearly one third through NGOs. Over time, the share channelled through Norwegian NGOs (about 25%) has been relatively stable, whereas the share channelled through the government and private sectors has decreased and the share channelled through multilateral organisations has increased.

Table 8.4 Countries: the six largest recipients of Norwegian bilateral assistance in 2006, split by type of assistance (million NOK)

 

	Long-term bilateral assistance Budget chapters 150-151-152	Transitional assistance Budget item 162.70	Emergency relief, humanitarian assistance Budget chapter 163	Assistance for peace and reconciliation efforts Budget chapter 164	Other assistance, including assistance channelled through civil society	Total
Sudan	9	320	237	64	56	686
Palestinian Territory	136	100	195	85	46	563
Tanzania	414	0	1	0	68	483
Afghanistan	150	103	102	41	51	447
Zambia	369	0	0	0	56	425
Mozambique	366	0	0	0	46	412

 

The table shows that among the six largest recipients there are three countries with which Norway has been engaged in long-term development cooperation – Tanzania, Mozambique and Zambia – that mainly receive assistance under the allocation for long-term bilateral assistance in addition to some assistance under global allocations such as support for civil society. Sudan, the Palestinian Territory and Afghanistan are countries/areas in or transitioning out of conflict, and receive assistance mainly under the global allocations for transitional assistance and humanitarian assistance.

Table 8.5 Multilateral organisations: the five largest recipients of Norwegian development assistance, 2003–2006 (million NOK)

	2003	2004	2005	2006
World Bank1	1 046	1 067	1 523	1 526
UNDP	1 129	1 106	1 350	1 293
UNICEF2	584	890	1 328	1 152
Global funds3	343	505	721	970
World Food Programme	334	315	607	539

1 Includes support for the IBRD, IDA and IFC, but debt relief and assistance channelled through the Fast Track initiative (education) and the Global Fund to fight AIDS, Tuberkulosis and Malaria (GFATM) have been deducted

2 Assistance channelled through the Global Alliance for Vaccines and Immunization (GAVI) has been deducted

3 Includes GFATM, GAVI and Education for All

As can be seen in the table, there has been an increase in the support provided to the five largest multilateral recipients in the period 2003–2006. The biggest increase has been in support to global funds, particularly those related to health. In 2006, the largest recipients among the global funds were GAVI (NOK 499 million), GFATM (NOK 271 million) and Fast Track (NOK 200 million). The global funds channel funding through multilateral organisations such as the World Bank, UNICEF and WHO, but this funding is managed by the board of the fund in question.

Assistance channelled through multilateral organisations is provided in two ways: either as core support for programmes adopted by the board of the organisation or as earmarked support for specific programmes and projects (multi-bilateral assistance). The core support is considered as multilateral support, whereas the earmarked support is considered to be bilateral assistance. It is particularly the earmarked support, i.e. the multi-bilateral assistance, that has increased in recent years.

Tabell 8.6 Norwegian NGOs: the five largest recipients of Norwegian development assistance, 2003–2006 (million NOK)

	2003	2004	2005	2006
Norwegian Church Aid	361	342	392	467
Norwegian Refugee Council	296	300	344	434
Norwegian People’s Aid	266	311	357	419
Norwegian Red Cross	350	353	447	417
Save the Children Norway	181	162	187	167

The table shows that in 2006 four Norwegian NGOs received more than NOK 400 million each. A very large part over of these funds were provided under global allocations for humanitarian assistance. These four organisations received 56% of the total development assistance funds channelled through Norwegian NGOs.

Table 8.7 Norwegian bilateral development assistance split between the five largest sectors, 2003–2006 (million NOK)

 

	2003		2004		2005		2006
Education	932	9.7%	1018	10.6%	1 227	10.3%	1 276	10.1%
Health, including HIV/AIDS	952	9.9%	775	8.1%	990	8.3%	1 119	8.9%
Governance and Human Rights	1310	13.6%	1571	16.4%	1 763	14.8%	1 764	14.0%
Peacebuilding and emergency relief	2990	31.0%	2200	23.0%	3 137	26.3%	3 481	27.6%
Economic development and trade	977	10.1%	1217	12.7%	1 156	9.7%	1 392	11.0%

The percentages are calculated in relation to total bilateral assistance, which includes more sectors than the ones shown here. Multilateral assistance that is not earmarked for a specific sector comes in addition to these funds.

The largest sector in Norwegian bilateral assistance is peacebuilding and emergency relief, to which nearly NOK 3.5 billion was allocated in 2006. Governance and human rights is the second largest sector at nearly 14%. As can be seen in the table, the split between the various sectors has been relatively stable over time. In monetary terms, the largest increase has been in the allocation for peacebuilding and emergency relief.

Cross-cutting issues and target groups

In 2006, the total support for activities that had environment-related main or subsidiary goals amounted to more than NOK 1.55 billion. Of these funds NOK 273 million was provided for the development of sustainable production systems (main goal 1), NOK 65 million for conservation and sustainable use of biological diversity (main goal 2), NOK 130 million for reduction of pollution of soil, air and water (main goal 3), NOK 6 million for protection of the cultural heritage and management of the cultural value of the natural environment (main goal 4), and NOK 471 million for strengthened environmental policy and management (main goal 5).

The remaining NOK 608 million of the environment-related development assistance was used for the integration of environmental concerns in activities that have other main goals than those mentioned above. It also includes contributions to the Global Environment Facility (the part that counts as ODA) and support for the United Nations Environment Programme (UNEP).

The Ministry of Foreign Affairs established a working group made up of representatives from the ministry and the Norwegian Agency for Development Cooperation (Norad) to assess a scheme for reporting on the use of resources in connection with the Action Plan for Environment in Development Cooperation, which was launched in 2006. The working group concluded that using the current statistics based on DAC codes, it would not be possible to compile exact information as regards spending in each individual priority area. There is also a relatively high degree of inaccuracy in the statistics on poorly delimited or undefined areas such as climate change measures (emission reductions and adaptation). In future, the ministry therefore intends to report on its total environment-related development efforts in connection with its budget proposals. Furthermore, it envisages that Norad’s annual reports will contain reporting on the individual thematic areas of the Norwegian Action Plan for Environment in Development Cooperation.

Bilateral support for activities that have women and gender equality as their main or subsidiary goal has increased in recent years, both in monetary terms and as a share of total bilateral development assistance, amounting to about NOK 2.7 billion (21.4%) in 2006, compared with NOK 2.4 billion (19.7%) in 2005. Of these activities, those that had women and gender equality as their main goal received about NOK 0.6 billion (4.5%) in 2006.

In 2006, support for activities that had refugees as their target group amounted to about NOK 1.4 billion, or 11.1% of total bilateral development assistance. The corresponding figures for activities targeted at indigenous peoples were NOK 377 million (3%), for activities targeted at children, just under NOK 2 billion (15.5%), and for activities targeted at disabled persons, NOK 238 million (1.9%).