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Development cooperation appropriations

EUR 886 million is reserved for development cooperation appropriations under the state budget for 2018. The appropriations consist of the exclusive ODA budget item administered by the Ministry for Foreign Affairs and other development cooperation funding.  The ODA administered by the Foreign Ministry is EUR 544 million.

The Ministry for Foreign Affairs is responsible for Finland’s exclusive ODA budget item

In 2018, Finland’s development cooperation appropriations total EUR 886 million and represent 0.38% of the gross national income (GNI). The appropriations will be used to fund the ODA administered by the Ministry and for other development cooperation activities.

The Ministry for Foreign Affairs is responsible for Finland’s exclusive ODA budget item. Examples of how these funds are used in­clude bilateral development cooperation between Finland and its partner countries, support for work done by the UN agencies, development banks and Finnish CSOs, and humanitarian aid.

In statistics, other development cooperation funding covers costs arising from the reception of refugees, Finland's contribution to the European Union’s development cooperation budget, and other disbursements falling under development assistance in various administrative sectors. It also includes an estimate of the investments made by the Finnish Fund for Industrial Cooperation Finnfund in 2018, which are considered to fall under development cooperation activities and an estimate of other development policy investments.

Development cooperation appropriations 2018
Development cooperation appropriations 2018

pdfInfographic: Finlands development cooperation appropriations 2018 (pdf, 2 pages, 0,5 Mb)

pdfInfographic: Finlands development cooperation appropriations 2017

In development cooperation, the appropriations allocated for a given year differ from the funds actually used (i.e. the disbursements), because the appropriations are so-called deferrable appropriations. This means that if, for some reason, all the allocated appropriations cannot be used in the first year, they will remain available during the next two years.

Development cooperation is conducted in difficult conditions. It is therefore important allow flexibility in the use of the appropriations. On the other hand, it takes years to achieve lasting development results, which is why a long-term commitment to cooperation is needed.

Finland has pledged to reach the ODA target level of 0.7% as a proportion of GNI.

Development cooperation appropriations in previous years

In 2017, Finland’s development cooperation appropriations were EUR 881 million and represented 0.40% of the gross national income (GNI). The ODA administered by the Foreign Ministry was EUR 528 million.

In 2016, Finland used EUR 956 million for development cooperation.This accounted for 0.44 per cent of gross national income. In 2015, the share was 0,55 of GDI.

Altogether, appropriations countable as development cooperation decreased from the previous year by 18 per cent. The exclusive ODA (official development assistance) administered by the Ministry for Foreign Affairs fell by 35 per cent. In percentage terms, the greatest decreases in this occurred in multilateral cooperation assistance (-59%) and support for CSOs (-39%). The share of humanitarian aid out of all exclusive ODA increased to 14 per cent.

Other public development cooperation disbursements rose by 50 per cent. In 2016, costs arising from the reception of refugees, included in development cooperation funding, came to EUR 118 million, which represented approximately 12 per cent of Finland’s total disbursements for development cooperation.

Statistics on Finland's development assistance disbursements in 2016

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Disbursements to the largest recipient countries

The ten biggest partner countries or regions in 2016 were Afghanistan, Nepal, Ethiopia, Tanzania, Mozambique, Kenya, Myanmar, South-Sudan, Vietnam and Somalia.

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Statistics on the use of development cooperation funds

On the international level, the OECD Development Assistance Committee (DAC) monitors the ODA performance of its member countries, which submit their reports to it. Statistics showing the OECD/DAC member countries' development cooperation funds can be accessed on the DAC website.

Finland promotes the transparency of development cooperation internationally

Finland is committed to the promotion of the transparency of development cooperation and also supports this objective internationally. Finland is one of the founders of the International Aid Transparency Initiative (IATI).

IATI's mission is to collect and publish development cooperation information in an easily accessible and comparable form. More than 130 development cooperation actors from governmental donors to foundations and CSOs have committed to it. The aim is to create a common open standard for different development actors. When the various parties report their data in a uniform format, it is easier to make comparisons and exchange of information is more transparent.

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