Minister Väyrynen: Rural areas and microcredits focal areas in development cooperation with Afghanistan
In future, Finland’s development cooperation with Afghanistan will focus on development of rural areas and microcredits favoured by women, Minister for Foreign Trade and Development Paavo Väyrynen said on Friday. Reduction of poverty is the most effective way to prevent conflicts, the new document supplementing the Development Policy Programme states.
The lion’s share of Finland’s development cooperation to Afghanistan is channelled through the Afghanistan Reconstruction Trust Fund managed by the World Bank. So far about half of the support provided through the Fund has been directed to supporting government in Afghanistan. In future, 75 per cent of support through the Fund will be used for these programmes, Väyrynen said.
Other channels for Finland’s development cooperation include the Law and Order Trust Fund for Afghanistan (LOTFA) managed by the United Nations Development Programme, humanitarian aid, and the development cooperation of Finnish non-governmental organisations. Organisations’ development cooperation in Afghanistan might increase in future, he continued.
In Minister Väyrynen’s opinion, Finland’s civilian crisis management investment could be increased in Afghanistan. According to Väyrynen, resources could perhaps be transferred from the Balkans and Georgia.
Poverty reduction: the most effective crisis prevention
The Minister for Foreign Trade and Development also introduced two new development policy outlines; one is an outline for promoting wide-ranging security by means of development policy, and the other is the framework for Finland’s development cooperation in the Western Balkans for the years 2009–2013. Both programmes are based on the Development Policy Programme of 2007.
The document on development and security in Finland’s development policy for its part also supplements Finland’s comprehensive crisis management strategy.
“We wanted to compile a separate document from the perspective of development so that development policy coherence with respect to security would be highlighted clearly,” Väyrynen said.
Security a central theme of development cooperation in the Western Balkans
Stability and security also make up one priority of the framework programme for the Western Balkans. Finland’s cooperation focuses on regional cooperation and Kosovo, where the situation is the least stable of all the countries. Kosovo’s development would enhance stability throughout the Western Balkans.
Security in the Western Balkans is essentially linked with environmental issues. In accordance with the framework programme, Finland is currently preparing financing, among others, for ENVSEC (Environment and Security), a regional environmental and security programme. Research cooperation focusing on security and development is a new field of cooperation. Finland promotes stability and security in the region by supporting the countries in their mutual interaction.
From general budget support to sector-specific support
Väyrynen also brought up fresh plans on new policies concerning budget support. In future, according to the minister, Finland will shift the emphasis from general budget support granted directly to governments without earmarking to sector-specific budget support. A ceiling of 25 per cent of country-specific development aid is envisaged for general budget support.
“Zambia, for example, is developing into a middle-income country. As the standard of living rises, there is reason to consider shifting aid from general budget support to sector support,” Väyrynen stated.
“In public, when budget support is mentioned, it is usually left undefined what support is meant. It is crucial to know whether one is speaking about general budget support or sector support. I am a in favour of sector support, but I take a critical view of general budget support.”
A policy on budget support has been drafted in the Ministry for Foreign Affairs. The matter proceeds next to the Development Policy Committee and then the Finnish Parliament for discussion.