The Flemish ODA Report 2017 10 graphs on official development assistance by the Government of Flanders in 2017
Table of contents Introduction: What is Flemish ODA? Page 3 -
Broader international framework: Sustainable Development Goals
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Digital access: Faster access to more information
Overview of ODA trends on the basis of 10 graphs 1.
Evolution of total ODA: Breakdown between development cooperation policy and other ODA Page 4
2.
Contributions for developing countries, Flanders and administrative costs
3.
Evolution of ODA-able climate finance in proportion to total ODA
4.
Breakdown of ODA by policy area
5.
Global composition of Flemish ODA Page 8
6.
Geographical focus of Flemish ODA, broken down between development cooperation policy and other ODA
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Page 6
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Page 9
7.
Cooperation with multilateral organisations
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8.
Development cooperation policy: Explanations for the falling trend
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9.
Breakdown of development cooperation policy expenditure by sector
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10. Spending channel of development cooperation policy expenditure
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Introduction: What is Flemish ODA? The Flemish ODA report 2017 gives an overview of all expenditure incurred by the Government of Flanders for development cooperation. ODA is the abbreviation of Official Development Assistance. Official development assistance is defined as those flows to countries and territories on the DAC List of ODA Recipients (available at www.oecd.org/dac/stats/daclist) and to multilateral development institutions which are: A. provided by official agencies, including state and local governments, or by their executive agencies; and B. each transaction of which: 1. is administered with the promotion of the economic development and welfare of developing countries as its main objective; and 2. is concessional in character and conveys a grant element of at least 25 per cent. Under the terms of the Framework Decree on Development Cooperation, the annual ODA report is a report required to be delivered to the Flemish Parliament. The report lists the measures taken by the Government of Flanders which go towards meeting the international target of spending 0.7% of the Gross National Income on ODA (Framework Decree, Art. 23, 24).1 The Government of Flanders delivers this report to the federal authorities, more specifically the Directorate-General for Development Cooperation and Humanitarian Aid (DGD). This Directorate then bundles together all ODA originating from the Belgian territory and submits a complete report to the Organisation for Economic Cooperation and Development (OECD).
Broader international framework: Sustainable Development Goals Flanders wants to commit actively to the 2030 Agenda for Sustainable Development. The expenditure included in this report contributes to the realisation of sustainable development in developing countries. On 16 March 2018, the Government of Flanders ratified the Decree modifying the Framework Decree on Development Cooperation.2 The objective of this Decree is to optimally align the legal framework with the Global 2030 Agenda for Sustainable Development.
Digital access: Faster access to more information This report documents global trends in Flemish ODA in 2017 on the basis of 10 graphs. The underlying detailed project data are made available online via the website of the Flanders Department of Foreign Affairs on Flemish ODA (www.fdfa.be/oda). The website provides a hyperlink to the ODA database.
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Framework Decree of 22 June 2007 on Development Cooperation
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More information: http://docs.vlaamsparlement.be/pfile?id=1378548
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1. Evolution of total ODA: Breakdown between development cooperation policy and other ODA {Data set: Total ODA} .
Total ODA is composed of two large flows: 1. Expenditure under the development cooperation policy, managed by the Flanders Department of Foreign Affairs of the Flanders Foreign Affairs policy area (IV). In 2017, this expenditure originates from two financing sources: the cooperation development budget and the Flemish Climate Fund. 2. Other ODA: Other policy areas of the Flemish public administration also appropriate resources for projects, programmes or funds that have a positive impact on developing countries. Graph 4 indicates the source for each policy area. The text between brackets at the top of each chapter of this report clarifies the data set which the analysis refers to. Graphs with ‘Total ODA’ as data set can be further split into ‘development cooperation policy’ and ‘other ODA’. The key of each graph shows where the given data originate from. • In 2017, total ODA amounts to €50.2 million, which is a 10% decrease compared to 2016. • The expenditure for development cooperation policy rises by €3 million compared to 2016. • Other ODA drops by €8.5 million compared to 2016.
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2. Contributions for developing countries, Flanders and administrative costs {Data set: Total ODA}
In 2017, Flemish ODA amounts to €50,206,733, of which €28 million or 56% is allocated to projects, programmes and funds that are focused on developing countries (blue surface in the graph). This is the geographical breakdown of this expenditure: - €20.8 million to Southern Africa - €5.1 million to other regions in the world - €2.2 million is not earmarked geographically Contributions in Flanders (red surface in the graph) amount to €20.9 million or 42% of total ODA in 2017 (red surface in the graph). These contributions benefit domestic actors who play an important role in the field of development cooperation. It concerns, inter alia, enhancement of support for development cooperation or unearmarked aid to NGOs and scientific institutes that are relevant for developing countries. In the first instance, these funds do not leave the country. Still, they may have an indirect effect on the socio-economic development in developing countries. Finally, the Flanders Department of Foreign Affairs also charges administrative costs (green surface in the graph) that need to be incurred to realise the development cooperation policy and the implementation thereof. In 2017, these costs accounted for 2.7% of total ODA. • In 2017, ODA expenditure to developing countries dropped by 18% compared to 2016. • ODA expenditure in Flanders in absolute figures remained more or less constant in 2016 and 2017.
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3. Evolution of ODA-able climate finance in proportion to total ODA {Data set: Total ODA}3
In 2017, the Government of Flanders spent €5,691,634 within the framework of international climate finance, €5,072,901 of which meets the international criteria for ODA. The table below offers more information about the source of ODA-able climate finance:
Development cooperation policy Other ODA Total
Total ODA-able climate finance €4,162,989 €909,912 €5,072,901
Amount financed by the Flemish Climate Fund €750,000 €0 €750,000
In 2017, €2.5 million in international climate finance was committed on the Flemish Climate Fund. It concerned additional funds on top of the development cooperation budget. In 2017, €750,000 of these commitment appropriations was already paid out. • The share of climate finance in total ODA decreased from 33% in 2016 to 10% in 2017. • The decrease in total other ODA from €30.6 million in 2016 to €22.1 million in 2017 can be explained by the one-off contribution to the Green Climate Fund and the Adaptation Fund (jointly totalling €12.5 million in 2016).
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Methodological footnote: -
This comparison on the basis of payments starts from 2013 as, prior to 2013, climate finance was reported on the basis of commitments. In order not to compare apples and oranges, this graph only contains contributions that meet the ODA criteria. Detailed information on the composition of Flemish international climate finance is available on the website http://www.fdfa.be/en/climate
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4. Breakdown of ODA by policy area {Data set: Total ODA}
The Flanders Foreign Affairs policy area (IV) is responsible for implementing the development cooperation policy. The share of IV rose to 58% again in 2017. In absolute figures, the expenditure of IV increased from €25.5 million in 2016 to €29.1 million in 2017. Other policy areas of the Flemish public administration also reported expenditure that meets the ODA criteria. ➢ Education and Training accounts for 26% of the expenditure. The contribution of €10.7 million to the Institute of Tropical Medicine Antwerp represents a large part of this expenditure. ➢ Economy, Science and Innovation invests in scientific research for developing countries. The policy area collaborates with the Institute of Tropical Medicine Antwerp, UNESCO and UNU-CRIS, amongst others. ➢ The share of the Environment policy area grew to 24% in 2016 following a one-off investment in climate funds which totalled €12.5 million. The share of this area fell back to 2% of total ODA in 2017. Four policy areas account for 98% of ODA in 2017: Flanders Foreign Affairs (IV), Education and Training (OV), Economy, Science and Innovation (EWI) and Environment.
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5. Global composition of other ODA {Data set: Other ODA}
Over the past years, the financing of scientific institutes and universities has remained fairly constant at approximately €16 million (red bar chart). This aid is largely committed in agreements that provide for an annual indexing, which leads to a more stable progression of expenditures. The grants originate primarily from the policy areas of Education and Training (OV) and Economy, Science and Innovation (EWI). In 2017, this category of expenditure grew following an additional investment by EWI in the establishment of an Outbreak Research Team within the Institute of Tropical Medicine Antwerp. The remit of this team is to perform research in the event of rapidly spreading tropical diseases, like the Ebola outbreak in West Africa in 2014. The rise in this ODA was also owing to the first ODA reporting by the Royal Zoological Society of Antwerp and the Botanic Garden Meise. The green bar chart refers to unearmarked aid to multilateral organisations. This data bar mainly flares up in the years 2014 to 2016, as a result of unearmarked contributions to the Green Climate Fund and the Adaptation Fund. In 2017, €379,945 in unearmarked aid was allocated to multilateral environmental conventions. Scholarships and aid to NGOs (purple bar chart) accounted for €1.6 million, which is a slight increase compared to 2016. The share of concrete projects and programmes rises by €1.7 million in 2017 compared to 2016 (turquoise bar chart). This rise can be attributed to projects within the framework of the cooperation with UNESCO (EWI and IV) and the International Labour Organisation (IV) and to human rights projects (IV). • Other ODA dropped in 2017 compared to 2016. This is owing to the falling expenditure for unearmarked aid to multilateral organisations (in this case the climate funds). • Other ODA mostly consists of structural financing to scientific institutes. • The expenditure for scholarships and aid to NGOs has remained constant over the past three years. • ODA for concrete projects and programmes in developing countries is increasing again compared to 2016, following a long decline in the period between 2009 and 2016.
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6. Geographical focus of Flemish ODA, broken down between development cooperation policy and other ODA {Data set: Total ODA}
• The development cooperation policy is strongly focused on Southern Africa. Only expenditure for humanitarian actions is open to other regions in order to be able to meet emergency needs worldwide. • Other ODA mainly consists of geographically unearmarked contributions, including general aid to scientific institutes and NGOs.
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7. Cooperation with multilateral organisations {Data set: Total ODA}4
Cooperation with multilateral organisations takes place in part via unearmarked (multilateral) and in part via earmarked (Bi-Multi) contributions. Multilateral contributions - which is core support to the general budget of a multilateral organisation - total €1.6 million (green bar chart). Unearmarked aid affords these organisations flexibility when utilising Flemish contributions to meet ever-changing needs in the organisation and the developing countries. The difference in multilateral financing between 2016 and 2017 corresponds with the contributions to climate funds in 2016 (€12.5 million). The Bi-Multi category (EUR 14.4 million) includes all contributions to multilateral institutions which are earmarked either geographically or thematically. Earmarked contributions consist of targeted financing for projects or programmes (blue bar chart), as well as financing for existing funds managed by multilateral institutions (red bar chart). The financing of concrete projects amounts to almost €12 million, which is the highest amount ever in the history of Flemish development cooperation. This increase is due to the contribution to the World Bank (€5 million) which manages the agricultural sector fund in Malawi. Below, an overview is given of the expenditure to multilateral institutions. The overview is broken down between unearmarked and earmarked contributions. .
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More information about OECD types of aid is available online: http://www.oecd.org/dac/stats/44479737.pdf
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Multilateral cooperation (unearmarked contributions) Central Emergency Response Fund (OCHA) Financing for environmental conventions (UNFCCC, UNEP, UNECE)
€1,629,945 €600,000 €293,752
UNICEF International
€250,000
Joint United Nations Programme on HIV/AIDS (UNAIDS)
€250,000
United Nations Relief and Works Agency for Palestine Refugees (UNRWA)
€150,000
International Renewable Energy Agency (IRENA)
€43,639
World Tourism Organisation
€37,615
International Seed Testing Association (ISTA)
€4,939
Bi-Multi: Earmarked funds by international organisation in 2017 International Bank for Reconstruction and Development (World Bank)
€14,434,674 €5,000,000
Food and Agriculture Organisation of the United Nations (FAO)
€2,426,539
World Health Organisation (WHO)
€1,750,000
United Nations Educational, Scientific and Cultural Organisation (UNESCO)
€1,648,482
International Labour Organisation (ILO)
€694,364
One UN Fund Malawi United Nations University Institute on Comparative Regional Integration Studies (UNU-CRIS) Joint United Nations Programme on HIV/AIDS (UNAIDS)
€659,666
€500,000
UNICEF
€500,000
€599,400
United Nations Population Fund (UNFPA)
€329,656
United Nations World Food Programme (WFP)
€264,067
Office of the United Nations High Commissioner for Human Rights (OHCHR)
€42,500
Organisation for Economic Cooperation and Development (OECD)
€20,000
• 32% of Flemish ODA in 2017 is allocated to multilateral organisations. • Unearmarked, multilateral aid drops substantially in 2017 compared to the three previous years. • Bi-Multi aid (earmarked aid) amounts to €11.9 million, which is a record high.
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8. Development cooperation policy: Evolution in time {Data set: Development cooperation budget)5
The budgetary scope (commitment appropriations) for development cooperation increased once by €1.7 million in 2017. These funds were used, inter alia, to finance a contribution of €1 million to Consortium 12-12 following the famine in South Sudan, Nigeria, Somalia and Yemen. The total liquidation appropriations amount to EUR 24.5 million in 2017. More than 99% of these appropriations were actually spent. Total ODA from the development cooperation policy amounts to €28 million in 2017, which is 4 million more than the available appropriations. Below, an explanation is given for the difference between the ODA and the available appropriations for development cooperation in 2017: - 1 million in administrative appropriations for the functioning of the development cooperation service is ODA-able, but is not included in the expenditure budget. - €750,000 for the climate project of the Red Cross (on reducing climate risks during humanitarian actions in Malawi and Mozambique) was paid from the budget of the Flemish Climate Fund. - €2.5 million for the Malawi agricultural sector fund (ASWAp) was paid with budget appropriations for 2016. This payment was actually made in January 2017. As a result, it comes under ODA 2017. • The budget for development cooperation increased once by €1.7 million in 2017. • Between 2016 and 2018, this budget has stagnated around €23 million.
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Methodological footnote: -
The budget appropriations for development cooperation are exclusive of administrative appropriations (personnel and operating costs). The variable appropriations - €50,000 on an annual basis - have not been included for practical reasons (graph scale). This is a recurring amount which does not undergo any evolutions throughout the years.
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9. Breakdown of development cooperation policy expenditure by sector in the Flemish partner countries {Data set: Development cooperation policy) .
In the 2014-2019 policy memorandum the Minister for Development Cooperation chooses to concentrate aid on a limited number of sectors in each partner country, whenever possible. The graph above shows that these sectoral and geographical policy choices are also reflected in the actual expenditure. The third country strategy paper Flanders-South Africa (2012-2016) focuses on employment policy and job creation through the promotion of entrepreneurship. The contributions in 2017 follow on from ongoing commitments from this country strategy paper. Three projects in the sector ‘government and civil society’ focussed on themes ranging from - knowledge sharing and citizen participation to climate adaptation policy and - participation by citizens and local authorities in policies at national level. Health is the main sector within the cooperation with Mozambique. The funds are mainly allocated to the health sector fund (SWAp), €2 million) and to technical support for the financial management of this fund (€444,810). In addition, aid is allocated to projects regarding sexual and reproductive health and rights (€1,272,482). Apart from health, €200,000 has been earmarked for the COSACA Coordination Unit (CU). This Unit ensures the timely release of funds when humanitarian crises occur in Mozambique. Agriculture & food security is the sector that is concentrated on within the bilateral cooperation with Malawi. A large part of the aid, €5 million, is allocated to the Multi Donor Trust Fund under the Agriculture Sector Wide Approach Support Project (ASWAp-SP) of which Flanders is the lead donor for agricultural extension services. Apart from agriculture, a contribution of €159,666 is made to the Malawi Humanitarian Emergency Response Fund. This fund works closely together with the authorities and reinforces the coordination of humanitarian actions in Malawi.
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The cooperation in the extended region of Southern Africa reflects the bilateral focus sectors. - €1.43 million is allocated to FAO for integrated adaptation planning and implementation within smallholder farming systems in Malawi, Mozambique and Zambia. - €0.5 million is destined for cooperation with UNAIDS in 8 countries in Southern Africa. - €0.5 million is used for the implementation of priority 6 of UNICEF around child protection in Malawi and Mozambique. - €0.75 million is allocated to Red Cross-Flanders for reducing the impact of climate risks (disaster risk reduction) in Malawi and Mozambique. • The development cooperation policy is strongly focused on a limited number of sectors in each partner country, in line with the priorities which Flanders has determined in mutual agreement with the partner countries concerned. • Accompanying initiatives in the region of Southern Africa are as closely in line as possible with the bilateral development priorities.
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10. Spending channel of development cooperation policy expenditure in the Flemish partner countries {Data set: Development cooperation policy) .
Multilateral institutions represent 47% of development cooperation policy expenditure in 2017. These actors operate as implementers in all partner countries and the focus region Southern Africa. Authorities in Mozambique and South Africa received 14.2% of all expenditure from the development cooperation budget in 2017. The aid to the Multi Donor Trust Fund under the Agriculture Sector Wide Approach Support Project (ASWAp-SP) in Malawi goes to the authorities. However, the funds are managed by the World Bank which is acknowledged as a multilateral institution. Scientific institutes promote a good understanding of public healthcare in Mozambique and sound evidence surrounding effective strategies for social entrepreneurship in South Africa. NGOs both at home and abroad jointly take up around 30.5% of total expenditure. In addition to being the implementing body in the partner countries and the focus region, the NGOs also received grants for emergency aid projects, general aid and grants for the implementation of awareness projects in Flanders. Administrative costs (4.7%) are displayed in the category ‘Other’. The Flemish development cooperation policy uses the portfolio approach, with several actors playing a role in the implementation of the priority development goals in the partner countries and the focus region.
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Published by Koen Verlaeckt, Secretary-General, Flanders Department of Foreign Affairs Boudewijnlaan 30, 1000 Brussel Editing Simon Calcoen, Flanders Department of Foreign Affairs Depot number D/2018/3241/064 Edition March 2018 16