Multilateral aid in 2010
31.08.2011 / 15:01
(This article expired 31.12.2012.)
Czech contributions to international organisations in 2010 (mil. USD):
|Volume (USD million)||Multilateral ODA Ratio (%)|
|UN programmes, funds and agencies||6.27||2.75|
|World Bank Group||11.04||4.85|
|Regional development banks||13.23||5.81|
Involvement in UN development activities
Multilateral development assistance provided by the Czech Republic within the United Nations has been significantly modified in recent years. In cooperation with the United Nations, the Czech Republic has adopted modernisation measures, bringing its assistance on par with that provided by developed countries. The year 2004 was significant, as the Czech Republic ceased to receive any assistance, instead becoming exclusively a donor country. Development cooperation projects carried out under the auspices of the United Nations are subject to strict audits, which make their benefits and effectiveness free from any doubts.
Similarly to previous years, assistance in 2010 was provided via mandatory contributions, arising directly from the membership in applicable organisations (UNIDO, FAO, WHO etc.) as well as targeted contributions towards specific UN funds and programmes (UNDP, UNV, UNHCR).
The amount of individual contributions is derived from a United Nations contribution scale valid for the given period. Targeted contributions enable the financing of activities pursued by the international community in those sectors that do not receive any funding, or that receive only the minimum funding from mandatory contributions of the member states. This method is applied especially within the United Nations, where dozens of programmes and funds financed exclusively by voluntary contributions of the member states exist alongside individual expert organisations.
In 2010, the Czech Republic provided the United Nations with contributions amounting to USD 6.27 million, qualifying as official development assistance in accordance with OECD methodology.
Involvement in EU development activities
The European Union is the most important collective provider of development assistance and a prominent advocate of the positive principles in its implementation. The Czech Republic participates in the drafting and implementation of EU policy. Pursuant to the Lisbon Treaty, development cooperation is among the shared responsibilities: EU activities are complementary to activities pursued by the member states.
Development cooperation funded from the EU budget and by the European Development Fund
External cooperation of the EU consists of seven instruments that receive funding from the EU budget, with additional funds, which go beyond the EU budget, being provided by the European Development Fund (EDF). The most important tools in terms of the amount of funding provided to EU development programmes are, besides the EDF, the three geographically focused instruments: Development Cooperation Instrument (DCI); the Instrument for Pre-Accession Assistance (IPA); and the European Neighbourhood and Partnership Instrument (ENPI). In terms of the Czech Republic’s foreign priorities, the European Instrument for Democracy and Human Rights (EIDHR) is also considered significant.
Within the committees for the individual instruments, the Czech Republic participated in the programming of EU development assistance for individual partner countries (approving strategic documents, multi-annual orientation programmes and annual plans of action). In 2010, a mid-term review was also initiated of the first three years of individual development programme implementation.
Contributions to the EU budget represent a significant part of multilateral development assistance, and a growing trend is expected in the future years. Just like any other EU member state, the Czech Republic counts a certain percentage of its member contribution towards the official development assistance total. In 2010, that percentage share amounted to approximately USD 110 million.
In terms of EU development assistance implementation, the Czech Republic has strived to increase the participation of Czech entities in the implementation of projects funded from the EU instruments for external assistance. To this end, the Ministry of Foreign Affairs of the Czech Republic, working closely with other government departments and business associations, promoted in 2010 the participation of Czech entities within EU projects. Based on the preliminary results of a survey carried out by the Czech Forum for Development Cooperation (FoRS), in 2010 Czech non-governmental organisations (members of the FoRS) received funding from the financial instruments for EU external assistance amounting to USD 5.24 million to implement various development projects.
Czech business entities also increasingly participate in the implementation of projects funded from the EU instruments. Their success rate within selection procedures so far has not corresponded to the capacities available in the Czech Republic and to the Czech expertise in the relevant sectors of industrial production, services and research. The Czech Republic, nevertheless, remains one of the most successful EU- 12 states in this respect. The increased involvement of Czech entities could open up a host of interesting economic and diplomatic opportunities.
Involvement in OECD development activities
Development Assistance Committee (DAC)
The OECD’s Development Assistance Committee (DAC) represents the most developed countries of the world (development cooperation donors) and is considered the most important international forum for the coordination of development cooperation. The Committee monitors global development in a wider context and ensures the coherence of rules, while also providing strategic and statistical inputs necessary for the drafting and implementation of development cooperation rules and effectiveness. In 2010, the DAC assisted in the monitoring and assessment of the impacts of the global financial and economic crisis.
The Czech Republic actively participates in the activities of selected OECD/DAC working groups. For now, the Czech Republic maintains its “observer” status within the DAC. Due to historical reasons, only 23 OECD countries out of the total 34 and the European Union are members of the DAC. The Ministry of Foreign Affairs of the Czech Republic takes part in the DAC’s activities, having full access to OECD/DAC statistics, as well as Peer Review methodology and results. In 2010 the Czech Republic contributed USD 0.14 million in the form of targeted technical assistance.
International financial institutions
International Development Association (IDA)
The International Development Association (IDA) is one of the member institutions of the World Bank Group. Founded in 1960, its principal mission is to provide assistance to the poorest developing countries in education, health, drinking water, the social network, the fight against HIV/AIDS and so on. A total of 79 countries whose GNP per capita in 2009 did not exceed 1,135 USD are presently entitled to receive IDA funding. Since 1990, the Czech Republic has been one of the donor countries.
Multilateral Debt Relief Initiative (MDRI)
Founded in 2006, the MDRI’ aim is to completely relieve selected developing countries of their debts vis-à-vis the International Development Association. The government of the Czech Republic approved an unconditional commitment to provide, between 2007 and 2019, funds totalling USD 5.8 million and, for 2020 to 2044, it approved a conditional commitment to provide a total of USD 14.6 million.
Global Environment Facility (GEF)
The GEF is administered by the International Bank for Reconstruction and Development, part of the World Bank Group. Financing of GEF activities is provided for by the GEF Trust Fund. The budget period consists of four years, with GEF-5 currently in progress (1 July 2010 – 30 June 2014).
International Bank for Reconstruction and Development (IBRD)
The Articles of Agreement of the International Bank for Reconstruction and Development were drafted at the Bretton Woods Conferences in 1944 and 1946. The IBRD strives to reduce poverty in middle-income countries as well as in creditworthy countries through the provision of loans, guarantees and other assistance, including analytical and consultancy services on behalf of sustainable development.
European Bank for Reconstruction and Development (EBRD)
The EBRD was founded in 1991 to assist the countries of Central and Eastern Europe and Central Asia as they transitioned to a market economy.
In 2007 the Czech Republic was the first, and so far the only country, to have been promoted within EBRD operations to an official economically developed country and, as a developed EBRD member, has successfully participated in a number of projects. The Czech Republic has built a respected position among the new EU member states as an active partner due to, inter alia, the timing of its joining of the Western Balkans Fund in 2006, and due to founding its own Czech Technical Assistance Fund.