Increasing volume of development and humanitarian aid provided by Slovakia

The year of 2008, marking the end of the first half of the period in which the Millennium Development Goals are to be accomplished, represented a milestone for the international development cooperation and the Slovak Aid. Pursuant to an amendment of the Competency Act and Act No. 617/2007 Coll. on Official Development Assistance (ODA), which entered into force on 1 February 2008, the Ministry of Foreign Affairs became Slovakia’s national coordinator for ODA. Being an active member of the donor community, the Slovak Republic has been providing, since 2003, bilateral programmes and projects within Slovak Aid to developing countries on the basis of the Medium-Term Strategy of Official Development Assistance of the Slovak Republic for 2003-08. Over the past five years the official development assistance has become an integral part of and an effective instrument of Slovakia’s foreign policy. Slovakia joined the club of those advanced countries of world, which are involved in tackling the most pressing social, health, economic and environmental problems in less developed countries. The bilateral aid supervised by the Ministry of Foreign Affairs is the flagship of Slovakia’s foreign policy and contributes the most to the Ministry’s image and bilateral relations with the beneficiary countries The Slovak public also started to perceive Slovak Aid as an important trademark.

In 2005 Slovakia committed to attempting to increase the volume of ODA expenditures to 0.17% of gross national income (GNI) in 2010 and 0.33 % of GNI in 2015. The need to increase Slovakia’s ODA budget was also stressed by Louis Michel, European Commissioner for Development and Humanitarian Aid, during his visit to Slovakia in November. According to preliminary estimates, the expected total ODA volume granted in 2008 stood at SKK 1 797 million /EUR 59.65 million, which accounts for 0.091% of GNI. A significant portion of Slovakia’s total ODA included a contribution to the EU budget (reported as ODA) and the cancellation Libya’s debt. In 2008, the ODA/GNI percentage ratio is expected to stand at approximately the level seen in 2007. The lower figures compared to the commitment from 2005 are, for the most part, attributable to the dynamic growth of GDP and GNI, to which ODA is referenced.

In 2008, Slovakia took part in the funding of the Multilateral Debt Relief Initiative (MDRI), contributing SKK 1.9 million. Within the framework of the World Bank group, Slovakia was one of the donor countries for the regular fund-raising of the International Development Association (IDA). Slovakia participated in the 14th Replenishment of the International Development Association aimed at the provision of financial aid to the poorest countries, providing EUR 690 048/some SKK 23 million.

The Western Balkans Fund of the European Bank for Reconstruction and Development (EBRD) received EUR 250 000 from Slovakia. The purpose of the Fund is to reduce disparities between the countries of the Western Balkans and their more advanced neighbours. The Fund focuses on Albania, Bosnia and Herzegovina, FYR Macedonia, Montenegro and Serbia (including Kosovo). The Fund was established by EBRD on 17 November 2006, and Slovakia’s total contribution currently represents EUR 500 000.

The Ministry of Foreign Affairs is keen to gradually and permanently increase ODA volume, and especially that of bilateral aid, therefore it considered doubling the bilateral aid volume to be an important priority during the preparation of the state budget in 2009. The positive thing about Slovakia’s 2009 budget is that the funds available for bilateral development aid under the Ministry of Foreign Affairs increased by almost 35% year-on-year (from SKK 171 million/EUR 5.67 million to SKK 230 million/ EUR 7.63 million).

After setting up its Slovak Agency for International Development Cooperation (SAMRS) as of 1 January 2007 as one of the Ministry’s budgetary organisation and following the adoption of Act No. 617/2007 Coll. on ODA, the Ministry continued to build institutional and legal environment for more effective provision of Slovak Aid. In this way the Ministry endeavoured to meet its ODA priorities defined in its strategy and in the Government’s Manifesto.

Slovakia’s key priorities of development cooperation included the strengthening of stability, good governance in the areas and countries of Slovakia’s priority interest and also of economic interests, contribution to the development and reduction of poverty and hunger in the developing countries through a more effective and targeted provision of development humanitarian aid. At the end of the year, the Ministry of Foreign Affairs prepared, for Government approval, a new innovative official development assistance strategy of the Slovak Republic for 2009-13 along with a revised list of priority countries for Slovak Aid.

As priority countries for the provision of Slovak Aid in 2008, it listed Serbia and Montenegro, whereas the project countries included Albania, Afghanistan, Belarus, Bosnia and Herzegovina, Kazakhstan, Kenya, Kirgizstan, Macedonia, Mongolia, Mozambique, Sudan, Tajikistan, Ukraine and Uzbekistan. Slovakia supported 34 development projects run by Slovak entities in 14 priority countries for a total of SKK 130 million /EUR 4.31 million.

Through the embassies in Belgrade and Sarajevo, the Ministry of Foreign Affairs provided funds (the so-called micro-grants) for minor development projects. They involve a flexible instrument that enhances Slovakia’s image and the position of the Slovak ambassador in the respective country. In 2009 the micro-grant scheme will apply to all Slovak Aid priority countries.

As part of the EU initiative “Aid for Trade”, the Ministry of Economy of the Slovak Republic earmarked from its own budget a contribution of CHF 60,000 to WTO’s Global Trust Fund in December 2008. This was Slovakia’s historically first contribution to this fund, the purpose of which is extra-budgetary funding of activities related to technical assistance for developing countries. WTO Director-General Pascal Lamy thanked for the contribution and appreciated that Slovakia joined the club of countries which decided to participate in the financing of these activities.

Considering the limited volume of funds and the capacity of Slovakia’s development entities, the Foreign Ministry sought new forms of cooperation with donors to facilitate the implementation of a higher number of development projects from extra-budgetary funds. Slovak Aid in cooperation with the Austrian Development Agency (ADA) prepared a memorandum of understanding, which is expected to be signed in January 2009. The new memorandum for 2009-11 will enable joint implementation of the Slovak and Austrian development assistance projects, hand in hand with the building and strengthening of Slovak Aid capacities through the training and study stays of its employees.

Slovakia took an active part in four high-level international conferences: High Level Forum on Aid Effectiveness (Accra, September 2-4), the UN General Assembly on Africa (New York, September 22) and on the Millennium Development Goals (New York, September 25) and the Financing for Development Conference in Doha (November 29 – December 2).

In the talks on the Outcome Document from the Forum on Aid Effectiveness, Slovakia actively supported EU’s effort to press ambitious commitments of the donors and aid beneficiaries. Slovakia stressed the need for effectiveness in the overall development of the countries in addition to aid effectiveness, including the need for reform agenda of the partner countries and donors (for instance good governance, anti-corruption measures, development of the private sector, coherence in the donor policies promoting development).

On 15-17 November 2008, the third edition of European Development Days (EDD) was held in Strasbourg. The role of EDD was to raise awareness with respect to development aid of the EU and its Member States. Slovak entities are eligible to apply for funds from the EC’s grant rounds for external relations. In order to co-finance Slovak entities’ development projects approved within EC’s grant rounds, funds amounting to SKK 5 million were earmarked by Slovak Aid in 2008.

Humanitarian aid

The number, scope and growing frequency of natural disasters and armed conflicts confirmed that Slovakia’s humanitarian aid is a necessary component of our international activities. In 2007, the Ministry of Foreign Affairs set up, within its budget for the development aid, a separate fund for the provision of urgent humanitarian aid in the amount of SKK 10 million for the first time ever. As this instrument lived up to its expectations, the Foreign Ministry allocated from its budget an equal amount of SKK 10 million for urgent humanitarian aid also in 2008.

In the same year, Slovakia provided humanitarian aid in a total volume of SKK 59.4 million /EUR 1.97 million to the people of Kyrgyzstan, Kenya, Myanmar/Burma, Sudan, China, Romania, Ukraine, Moldova, Georgia, Haiti, Cuba and Palestine. Of this volume, direct material assistance in the amount of SKK 49.4 million was provided from the reserves of the Ministry of the Interior of the Slovak Republic. Direct financial assistance from the Slovak Aid programme in the total amount of SKK 10 million was provided through international humanitarian organisations, or the Slovak Embassy in Nairobi (food purchase and distribution).