Finland

Total aid in 2011: €1,013m

About Finland's aid commitments:

Changes in 2011

2011 was a contradictory year regarding the quantity of Finland’s ODA. On one hand the commitment to raise ODA to 0,7% by 2015 was renewed in Finland’s new government program. On the other, Finland’s ODA level dropped from 0,55% in 2010 to 0,52% in 2011. Finland is no longer on track to achieve the 0.7% target. Finland’s share of the EU climate finance promise in Copenhagen for the years 2010-2012 is €110 million. All of the fast start climate finance will come from the development cooperation funds and none is additional to the 0.7% target. It is vital that the long-term climate finance will not be part of the ODA budget and that Finland’s plans for the necessary resources are made public.

2011 was also a year during which Finland got a new government and a new Development Policy Programme was drafted (endorsed in February 2012). Preparatory work on the Programme was very inclusive and thus provided CSOs and the MFA an opportunity for good dialogue. Many of CSOs' demands and views are reflected in the new Programme, including a strong shift towards a human rights-based approach to development.

Aid Quantity

In 2011 Finland’s ODA flows amounted to €1013 million. The GNI percentage fell from 0,55% to 0,52% – meaning a -4,3% drop in real terms. The final disbursements were about €60 million less than the total aid budgeted for 2011.

System

Finland has a Minister for International Development as one of the three Ministers of the Ministry for Foreign Affairs. Development cooperation is managed by the MFA’s Department for Development Policy which divides into several separate units. MFA’s actions are guided by Finland’s Development Policy Programme, and are thus in general well focused on reducing poverty.

Countries and sectors

Finland’s long-term partner countries were Ethiopia, Kenya, Mozambique, Nepal, Nicaragua, Tanzania, Vietnam and Zambia. Partner countries and areas recovering from crises were Afghanistan, the Palestinian Territories, Sudan, South Sudan and Somalia. The main sectors of ODA are forestry, water, environment, energy, education and training, health and regional and rural development.

Challenges in 2012 and beyond

The main challenge for aid quantity is the government’s decisions to freeze the 2013-2014 ODA funds to 2012 euro level and to cut ODA by €30 million in 2015. These actions mean that Finland will most probably not achieve the 2015 target of 0,7%, even though it was stated in the 2012 March budget decision that funds from the upcoming European emission auction revenues will be channeled to ODA.

Recommendations

 Meet its commitments to raise its ODA level to 0.7% by 2015.  Earmark a necessary share of the future European emission auction revenues for ODA.  Make climate financing transparent and truly additional to its aid promises and the 0.7% target.  Make public its plans on long-term climate finance sources.  Direct a larger share of its aid to the long-term partner countries and the poorest countries.