Ministry for Foreign Affairs Strives for Globalisation Management; Development Cooperation Appropriations Increasing
Press Release 193/2004
14 September, 2004
The draft State Budget for the year 2005 allocates appropriations totalling 822,019 million euros to the administrative sector of the Ministry for Foreign Affairs. Compared against the State Budget proper for the year 2004, this amounts to a rise of 55,972 million euros, the bulk being appropriations for development cooperation. In line with the Government’s framework decision and the development policy programme approved by the Government, development cooperation appropriations are increasing by 48,067 million euros.
The draft budget proposes the sum of 174,985 million euros for the Ministry’s operational expenditure, a rise of 2,957 million euros on the present year. Since development cooperation appropriations are to increase, administrative expenditure for development cooperation will also increase.
Based on the Ministry’s strategy outlines extending to 2010, administration of the foreign service is being developed more clearly than ever from the departure points of operations and objectives. Personnel resources are shifted to preparation of policy by a reduction in administration amounting to 25 person-years. This shift makes it possible for the network of foreign missions to be maintained at its current scope. Investment will be made in personnel skill and wellbeing. In this connection, from the start of 2005 the Ministry for Foreign Affairs will introduce a revised compensation scheme for service abroad, the aim being to ensure that the Ministry’s civil servants are willing to accept transfers.
The draft budget presents an increment of 54.5 million euros in total financing for development cooperation. Finland is committed to the goals of the United Nations Millennium Declaration, the most important of which is alleviation of extreme poverty and hunger. This commitment means obligations for Finland; obligations which are realised, among others, by increasing appropriations for development cooperation. These appropriations are to rise each year so that in the year 2007 they are expected to reach 0.44 per cent of gross national income.
Proposed appropriations for 2005 amount to 600.1 million euros, which is 0.39 per cent of predicted gross national income. In the proposal, authorisations for development cooperation commitments, in turn, total 540 million euros. These authorisations mean the possibility to make development cooperation commitments for a period longer than the financial year.
The effectiveness of development cooperation is being increased by concentrating it on ever fewer countries, on major international organisations and on more extensive programmes. Alongside development cooperation, efforts are made to improve the position of developing countries by taking account of their best interests in all segments of foreign policy as well as in trade, environment, agriculture and forestry policies, and in social, immigration and information society policies.
The sum of 24.2 million euros is proposed for neighbouring area cooperation; this is 1,166 million euros less than in this year’s State Budget. The Government approved a new neighbouring area cooperation strategy on 22 April 2004. The goals of neighbouring area cooperation are to enhance stability in the region and to support balanced economic and social development in neighbouring areas. The primary target of neighbouring area cooperation is the Northwestern Federal District of Russia, especially the Karelian Republic, Leningrad Region, Murmansk Region and St Petersburg. Neighbouring area cooperation is carried out particularly in the following sectors: the environment; agriculture and forestry; social welfare and health care; the juridical system; transport and communications; energy; nuclear safety; education; and civil society.
Finland’s foreign and security policy will be developed in accordance with the Security and Defence Policy Report to be submitted to the Finnish Parliament in autumn 2004. The appropriations proposed for maintaining Finland’s peacekeeping forces and for civilians’ participation in crisis management are in line with the Government’s framework decision. These appropriations include an untargeted sum of EUR 16.3 million for potential new projects, or for additional expenditure or continuation of ongoing projects. Appropriations for peacekeeping forces have been dimensioned in accordance with the strength of peacekeeping forces and the requirements of the tasks involved. An estimate of about 1,000 troops will participate in peacekeeping missions.
Additional information:
Deputy Director General for Finance Pekka Mattila, tel. +358 9 160 55850,Development cooperation: Sinikka Antila, Head of Unit, tel. +358 9 160 56283, and Neighbouring area cooperation: Chief Administrator Sari Kantola, tel. + 358 9 160 55610