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Development Co-operation Reviews : No. 33: Denmark 1999. PDF

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C e 1999 e N . 33 o t t i m Development m Co-operation o C Review Series e A c Denmark n a t s i s s A D t n e m p o l e v e D Development Co-operation Reviews Denmark 1999 No. 33 Development Assistance Committee ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into force on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD) shall promote policies designed: – to achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy; – to contribute to sound economic expansion in Member as well as non-member countries in the process of economic development; and – to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance with international obligations. The original Member countries of the OECD are Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The following countries became Members subsequently through accession at the dates indicated hereafter: Japan (28th April 1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973), Mexico (18th May 1994), the Czech Republic (21st December 1995), Hungary (7th May 1996), Poland (22nd November 1996) and Korea (12th December 1996). The Commission of the European Communities takes part in the work of the OECD (Article 13 of the OECD Convention). In order to achieve its aims the OECD has set up a number of specialised committees. One of these is the Development Assistance Committee, whose Members have agreed to secure an expansion of aggregate volume of resources made available to developing countries and to improve their effectiveness. To this end, Members periodically review together both the amount and the nature of their contributions to aid programmes, bilateral and multilateral, and consult each other on all other relevant aspects of their development assistance policies. The Members of the Development Assistance Committee are Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom, the United States and the Commission of the European Communities. Publie´ en franc¸ais sous le titre : EXAMENS EN MATIE`RE DE COOPE´RATION POUR LE DE´VELOPPEMENT DANEMARK (cid:211) OECD 1999 Permission to reproduce a portion of this work for non-commercial purposes or classroom use should be obtained through the Centre franc¸ais d’exploitation du droit de copie (CFC), 20, rue des Grands-Augustins, 75006 Paris, France, Tel. (33-1) 44 07 47 70, Fax (33-1) 46 34 67 19, for every country except the United States. In the United States permission should be obtained through the Copyright Clearance Center, Customer Service, (508)750-8400, 222 Rosewood Drive, Danvers, MA 01923 USA, or CCC Online: http://www.copyright.com/. All other applications for permission to reproduce or translate all or part of this book should be made to OECD Publications, 2, rue Andre´-Pascal, 75775 Paris Cedex 16, France. TTHHEE DDEEVVEELLOOPPMMEENNTT AASSSSIISSTTAANNCCEE CCOOMMMMIITTTTEEEE DDeevveellooppmmeenntt CCoo--ooppeerraattiioonn RReevviieeww SSeerriieess HOW TO CONTACT US The Development Assistance Committee welcomes your comments and suggestions. Please contact us by email at [email protected], by telefax at 33 1 44 30 61 40 or by mail to: Organisation for Economic Co-operation and Development Development Co-operation Directorate Communications and Management Support Unit 2, rue André-Pascal 75775 Paris Cedex 16 France WORLD WIDE WEB SITE http://www.oecd.org/dac 3 FOREWORD The Development Assistance Committee (DAC) conducts periodic reviews to improve the individual and collective development co-operation efforts of DAC Members. The policies and efforts of individual Members are critically examined approximately once every three years. Some six programmes are examined annually. The Peer Review is prepared by a team, consisting of representatives of the Secretariat working with officials from two DAC Members who are designated as examiners. The country under review provides a memorandum setting out the main developments in its policies and programmes. Then the Secretariat and the examiners visit the capital to interview officials, parliamentarians, and NGO representatives of the donor country to obtain a first-hand insight into current issues surrounding the development co-operation efforts of the Member concerned. Brief field visits investigate how Members have absorbed the major DAC policies, principles and concerns, and examine operations in recipient countries, particularly with regard to sustainability, gender equality and other aspects of participatory development, and local aid co-ordination. Putting all this information and analysis together, the Secretariat prepares a draft report on the Member’s development co-operation which is the basis for the DAC review meeting. At this meeting senior officials from the Member under review discuss a series of questions posed in a brief document: “Main Issues for the Review”. These questions are formulated by the Secretariat in association with the examiners. The main discussion points and operational policy recommendations emerging from the review meeting are set out in the Summary and Conclusions section of the publication. This publication contains the Summary and Conclusions as agreed by the Committee following its review on 25 March 1999 in Paris, and the Report prepared by the Secretariat in association with the examiners, representing Luxembourg and Switzerland, on the development co-operation policies and efforts of Denmark. The report is published on the authority of the Secretary-General of the OECD. Jean-Claude Faure DAC Chairman 5 ACRONYMS AsDB Asian Development Bank BtB Business-to-Business Programme Denmark/South Africa CGIAR Consultative Group on International Agricultural Research CRS Creditor reporting system CSD Commission of Sustainable Development DAC Development Assistance Committee DANCED Danish Co-operation for Environment and Development DSI* Danish Council of Organisations of Disabled People DTA Danish transitional assistance EDF European Development Fund EDRF Environment and Disaster Relief Facility EKF* Danish Export Credit Fund EU European Union FEPS Facility for Environment, Peace and Stability GDP Gross domestic product GEF Global Environment Facility GNP Gross national product HIPC Heavily-indebted poor country HLM High Level Meeting ICB International competitive bidding IDA International Development Association IFAD International Fund for Agricultural Development IFC International Finance Corporation IFU Industrialisation Fund IHS International Humanitarian Service IIED International Institute for Environment and Development ILO International Labour Organization IMF International Monetary Fund IUCN International Union for the Conservation of Nature and Natural Resources JPO Junior Professional Officers KULU* Women in Development LICs Low-income countries LLDCs Least-developed countries 6 MFA Ministry of Foreign Affairs MIKA* Fund for Environment and Catastrophe Assistance NGOs Non-governmental organisations NSF National Sector Framework ODA Official development assistance OSCE Organization for Security and Co-operation in Europe PSD Private Sector Development Programme PSP Private Sector Programme SADC Southern African Development Community SDRs Special drawing rights SMEs Small and medium-size enterprises SPS Sector Programme Support UN United Nations UNCHS United Nations Conference on Human Settlements UNDP United Nations Development Programme UNEP United Nations Environment Programme UNESCO United Nations Educational, Scientific and Cultural Organization UNFPA United Nations Fund for Population Activities UNHCR United Nations High Commissioner for Refugees UNICEF United Nations Children’s Fund USAID United States Agency for International Development UNRWA United Nations Relief and Works Agency WFP World Food Programme WHO World Health Organization WID Women in development __________ * Denotes acronym in original language. Exchange rates (DKK per USD) were: 1994 1995 1996 1997 6.3597 5.6038 5.7982 6.6041 Signs used: () Secretariat estimate in whole or part - Nil 0.0 Negligible . . Not available ... Not available separately but included in total n.a. Not applicable P Provisional Slight discrepancies in totals are due to rounding 7 8 TABLE OF CONTENTS SUMMARY AND CONCLUSIONS..........................................................................................11 CHAPTER 1 DENMARK’S DEVELOPMENT POLICY FRAMEWORK.............................19 Overview of the Strategy 2000................................................................................................19 The Strategy.........................................................................................................................19 Assessment of the implementation of the Strategy’s main points........................................20 Policy focus and key goals.......................................................................................................20 Bilateral assistance...............................................................................................................20 Active multilateralism and the approach to multilateral co-operation.................................22 Sector Programme Support (SPS)........................................................................................24 Cross-cutting issues.................................................................................................................26 Poverty.................................................................................................................................26 Gender equality....................................................................................................................28 Environment.........................................................................................................................28 Human rights, democracy and good governance.................................................................30 Aid and the civil society: the Danish resource base and NGOs..............................................30 The Danish resource base.....................................................................................................30 The business and industry community.................................................................................31 The role of Danish NGOs.....................................................................................................31 Information, development education and public opinion........................................................33 CHAPTER 2 AID MANAGEMENT AND IMPLEMENTATION...........................................35 Policy responsibility and policy coherence..............................................................................35 Policy responsibility.............................................................................................................35 Policy coherence and untying..............................................................................................39 Country programming and sector concentration......................................................................41 Country programming..........................................................................................................41 Sector concentration............................................................................................................42 Private sector promotion..........................................................................................................43 Overview..............................................................................................................................43 The private sector development (PSD) programme.............................................................43 The mixed credit programme...............................................................................................44 The Industrialisation Fund for Developing Countries (IFU)................................................44 Aid evaluation, efficiency and performance measurement......................................................46 Objectives.............................................................................................................................46 Organisation of the evaluation process................................................................................46 Scope of the evaluation process...........................................................................................46 Implementation of evaluations.............................................................................................47 Follow up to the evaluations................................................................................................47 Performance measurement...................................................................................................47 Overall assessment...............................................................................................................48 Humanitarian assistance and transitional assistance................................................................48 9

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