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Reform of aid management

The Government has now chosen the model that will be used for reforming Norway’s aid management structure. Norad (Norwegian Agency for Development Cooperation) will be given responsibility for much of Norway’s aid management, while the Ministry of Foreign Affairs will have specific responsibility for policy development, determining the main focus areas for Norway’s aid, and representing Norway in important international arenas.

‘This decision means that we will be able to make more effective use of our combined capacity in the area of international development. By strengthening and consolidating development policy expertise in the Ministry, we will be able to take a more strategic approach to development issues. At the same time, we will strengthen aid management expertise in Norad,’ said Minister of Foreign Affairs Ine Eriksen Søreide.

The aid funds that are currently the constitutional responsibility of the Foreign Minister, for example humanitarian aid and allocations to human rights efforts, will continue to be managed by the Ministry.

The reform is in line with the Government’s political platform, which states that the Government will ‘reform the administration of development policy with the aim of bringing together, maintaining and strengthening international development expertise in Norway, avoiding duplication of efforts, and ensuring that Norway’s diplomatic and consular missions also have a high level of expertise in this area.’

‘Development cooperation is changing, and the aid budget has increased substantially over the years. If we are to reach the SDGs and ensure that Norwegian aid reaches the poorest and most vulnerable groups, we need to make sure that we have the necessary expertise and that aid funds are managed effectively. The model we have chosen will enable us to take a more coherent approach and improve the follow-up of Norwegian aid funds,’ said Minister of International Development Dag-Inge Ulstein. 

The new structure will create a clearer division of responsibility between the Ministry and Norad. The Ministry will have responsibility for deciding the strategic focus of Norway’s aid, and for drawing up policy documents such as action plans. The Ministry will also represent Norway in various international arenas, and in governing bodies of international organisations. The responsibility for assessments, and for quality assurance, project implementation, follow-up, control and reporting will, as a rule, be delegated to Norad.

Phase two of the reform process will now begin. During this phase, the division of responsibility and tasks will be considered in detail, and an implementation plan will be drawn up. This work is to be completed in September 2019. The aim is that Norway’s reformed aid management structure will be in place on 1 January 2020.

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