7. DANISH MULTILATERAL DEVELOPMENT COOPERATION AS OF 2009

Priorities and consequences of the allocation policy. In the concrete allocation of Danish development assistance, there is a need for continuously pinpointing where the funds will benefit the most. What organisations ensure concrete and desired results globally and at country level, how can the greatest efficiency be achieved – and how can the Danish development policy objectives in the multilateral area best be met? these questions are especially relevant to the distribution of development assistance between the multilateral organisations, which to a certain extent have overlapping mandates. There is a need for focusing in a determined manner on the comparative advantages and efficiency of individual organisations in relation to specific areas of assistance. There will be ongoing prioritising within the overall multilateral framework with reference to the principles for the multilateral development engagement. In the period 2009-2013, a reprioritisation is planned of the multilateral and bilateral assistance worth at least DKK 2.5 billion.

Focusing on the contributions to the UN. Denmark will implement a genuine focusing of the assistance to the UN system, among other things in accordance with the objective of implementing reforms of the UN operational activities in order to ensure stronger UN activities at country level and an effective international division of labour. The desired global division of labour in relation to development policy ought to be guidelines for the themes that the UN organisations, according to the Danish point of view, should prioritise in accordance with their mandates and comparative advantages. Overall, the UN system, in particular funds and programmes, should continue to give priority to achieving the UN Millennium Development Goals on the basis of a rights-based approach which combines the normative and operational roles of the organisations. Also the challenge of food security will require an effective and coordinated effort by the UN in the coming years.

This means, among other things, that the Danish support to the World Food Programme (WFP) over the period 2009-2011 is expected to be focused exclusively on humanitarian assistance (and thus a phasing out of allocations for development assistance worth DKK 680 million). Furthermore, an increased commitment is planned in 2009 to the next replenishment of the International Fund for Agricultural Development (IFAD).

From Denmark’s point of view, a special thematic priority will be increased efforts to strengthen the role of women as actors in development, especially in the economic field. In this matter, it will be important that the UN system works to strengthen its handling of gender equality and gives high priority to gender equality in its efforts to fulfil the Millennium Development Goals.

The UN system, and not least the UNDP, should furthermore play a special role in relation to fragile states, in particular to conflict and post-conflict countries. In addition to the continued development of the assistance in this area, it is important that the activities of the operational development organisations are linked more closely with the work and the decisions of the Security Council and the UN Peacebuilding Commission. Furthermore, Denmark will work for a better linkage between the UN and the World Bank in relation to assistance in fragile states.

High priority to low-cost loans to the poorest countries through the World Bank’s International Development Association (IDA). The development priorities of IDA correspond to the Danish priorities with the overall objective of effective poverty reduction in accordance with the Millennium Development Goals, focused mainly on Africa, and on the basis of the developing countries’ own strategies and systems. In addition, the World Bank has defined a number of priority areas, which are also central Danish priorities, for instance fragile states and climate change.

At country level, IDA is playing a challenging dual role, where the organisation partly is providing financial assistance and technical advice of a considerable magnitude and partly is expected to have a special role in relation to the debate on how to ensure greater effectiveness of development assistance. Overall, this makes IDA an important strategic and relevant partner for Denmark in relation to the promotion of Danish policy priorities vis-à-vis recipient countries and other development partners. In addition, there are thematic programmes such as the FTI (Fast-Track Initiative) in education. It is particularly important to work for greater synergy between IDA, the FTI and other thematic programmes and the bilateral engagement in the various policy areas. The limited Danish contribution to the World Bank’s organisation for development of the private sector (IFC) is expected to be phased out, as business development will be focused on bilateral assistance.

Africa-focus in the cooperation with regional development banks. The African Development Bank and Fund, with its ongoing modernisation process and its unique African character and knowledge, is an interesting development partner for Denmark. The Danish contribution helps to strengthen an African regional organisation which plays an important role in the architecture of African development cooperation. In light of Denmark’s increased focus on Africa, Denmark will have a close dialogue with the African Development bank and closely follow the reform process and seek to exploit the benefits that cooperation with the bank and the fund can offer.

The Inter-American Development Bank and the Asian Development Bank are generally considered to be well-functioning and effective development banks, which – in addition to being financially well-founded – enjoy considerable trust and respect in the regions. In light of the Government’s policy of prioritising poverty reduction in its development assistance and the geographical priority for Africa, no new commitments to the Inter-American Development Fund and the Asian Development Fund are planned after 2009.

Strategy for EU cooperation on development policy. When it comes to development policy, Denmark is among the significant players within the EU, and we have far greater influence than our economic allocations can justify. In absolute, financial terms Denmark is a relatively small donor to the European Union. The Danish contribution to the joint EU development assistance (the EU budget and the European Development Fund) is compulsory and will among other things depend on the growth of the Danish economy. The contribution is now about one fourth of the total Danish multilateral development assistance and it is the biggest single share of Danish multilateral assistance.

The joint EU development assistance will probably grow in the future. In addition, the EU will be a bigger player in the international development cooperation in a broad sense, both in multilateral forums and at country level. Against this background, there is a need for Denmark to further clarify its positions on the EU’s development cooperation and particularly to what areas we want to pay special attention. Therefore, in 2009 Denmark will draw up a strategy for the Danish priority of, and approach to, the EU development cooperation.

Poverty-oriented environment and climate assistance. Denmark will give high priority to the international environment and climate activities, also in light of the forthcoming hosting of the 15th Conference of the Parties under the United Nations’ Climate Change Convention (COP15) and the subsequent implementation of a new global climate agreement. Denmark will work to ensure that the use of resources is coordinated and integrated in the best possible way.

The international handling of the environmental challenges is characterised by a high degree of regulation of standards, by a thematic and institutional complexity and by being an issue for all countries in the world. In the years to come, there will continue to be a need for Denmark to use its global environment allocations to ensure that key international environmental players have the capacity to implement a poverty-oriented environment and climate agenda.

It will remain the aim that the majority of the global environmental allocations are granted as core contributions with no, very few or very soft earmarks. Instead, the accountability and efficiency of the organisations is to be strengthened through target and performance management. In the case of development organisations such as the World Bank and the UNDP, which do not have the environment as a core mandate, it will still be necessary to use earmarked contributions as an instrument, in part to ensure that the environment is integrated as a transversal consideration and in part to ensure increased involvement in selected areas.

Focusing the assistance to combat HIV/AIDS and promoting sexual and reproductive health and rights (SRSR) on fewer multilateral organisations. In 2006, the Government decided to double the assistance to the fight against HIV/AIDS to DKK 1 billion in 2010.

Hence, combating HIV/AIDS and the promotion of SRSR will also be a major Danish priority in the years ahead – not least within the multilateral assistance. A restructuring of the Danish assistance in 2009-2013 worth DKK 750 million will be implemented, and the assistance will be focused on core contributions to organisations with broad mandates such as the UN’s programme to fight AIDS (UNAIDS), the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFTAM) and the International Planned Parenthood Association (IPPF).

The humanitarian assistance: core contributions and flexibility. By providing significant core contributions, Danish influence on the work and strategic priorities of the organisations is secured. As an important core contributor, Denmark participates in the advisory donor committees and other working forums in which the strategic direction is set. At the same time, through core contributions Denmark supports the Good Humanitarian Donorship and the organisations’ need for financial predictability, planning and prioritisation of resources.