Ministry of Foreign Affairs of the Czech Republic

česky   english  

Advanced search

Skip to menu

Article notification Print Decrease font size Increase font size Twitter

 
Allocation of Funds for the Development Cooperation Programme

In the year 2000, according to the Government Decision no. 153 of 15 March 1995, the Czech Republic provided aid worth CZK 345 million (approx. 10 mil USD) which is 0.017% of the national GDP. In accordance with the set targets, principles and priorities of the aid programme, the long-term target should reflect the condition of the Czech economy and the State Budget but the amount of official foreign aid provided should come closer to the average amount of ODA provided by advanced donor countries, which is, at present, about 0.25% of the GDP. This is, nonetheless, still low given that long-term target of the international community (UN) is to spend 0.7% of the national GDP on ODA. An important part of the proposed system of foreign aid will be a full adoption and application of the OECD/DAC's statistical methods and evidence keeping system which are more exact to describe total volume of finance spent on the aid programme.

Development Cooperation Budget: A Medium-Term Outlook

The following table provides a summary of development cooperation budgets for the 1996-2000 period, as well as an overview of the excepted increases in foreign aid funding so that the ODA/GDP indicator would reach at least currently the lowest level of foreign aid budgets of aid-providing OECD countries (0.1% of the GDP). The projection is based on a realistic assumption to maintain the level of 'development aid' contributions of the Czech Republic to international organisations (about CZK 400 million in the year 2000) and the estimated figure of the development aid contribution which the Czech Republic will be required to pay after becoming a member of the EU (this is expected to be CZK 600 million starting from 2004 while no contributions are expected to be made to the EDF until 2007). At the same time the projection anticipates a gradual annual increase in the volume of foreign aid funding of projects (40-50% every year, with the exception being the year 2004 when it is expected to start making contributions to the EU budget) implemented in accordance with the Government Decision no. 153/1995. According to the Decision the multilateral projects should account for 10% of the funding, so that, eventually, the total proportion of multilateral aid (including contribution to international organisations and the EU) would be one-third of the total aid budget. It is estimated that annual growth of GDP will be 3%. All figures in the table below represent fixed prices for 2001 in million Czech crowns.

Development Cooperation Budgets: Projection for the 2002 - 2007 Period

Year

Foreign Aid Projects

Index

1996

531

-

1997

650

1,2

(reduction by 50 % during 1997)

1998

326

0,5

1999

326

1,0

2000

345

1,1

Contributions to

Czech ODA

of this

ODA/GDP

Intern. Org.

EU

Total

multilateral

Ratio

2001

350

1,1

400

-

750

58 %

0,037 %

2002*

350

1,0

400

-

750

58 %

0,036 %

2003*

500

1,4

400

-

900

50 %

0,042 %

2004*

500

1,0

400

600

1500

70 %

0,068 %

2005*

750

1,5

400

600

1750

61 %

0,077 %

2006*

1100

1,5

400

600

2100

53 %

0,090 %

2007*

1600

1,5

400

600

2600

45 %

0,108 %

* Only estimated figures. Factual medium-term financial outlook will be presented in a separate document.

Notes:

  • Development Projects - implemented in accordance with the Government Decision no. 153/1995.

  • Contributions - i.e. contributions of the Czech Republic to international organisations recorded in the evidence as ODA; figures in the column EU represent an estimated amount of annual 'development aid' contribution to the EU budget.

Financial and Administrative Costs

As the activities of the Development Centre are to be financed together (or as part of) with the ongoing multilateral programs implemented by the MFA, there are no additional financial requirements at this stage. In Stage 2, the amount of funds provided to the Development Agency should not be below the lower limit of average level of funding in other aid-providing countries; i.e. maximum 5% of the total funds spent on the foreign aid projects administered by the Development Agency. In accordance with the evidence keeping system of OECD/DAC, the administrative costs are included in the total funds for the official foreign aid.

.