Development assistance budget increases by NOK 1.9 billion

In the budget proposal for 2006, the Government proposes increasing development assistance by NOK 1.9 billion. It is proposed that a total of NOK 18.5 billion be allocated for development assistance in 2006. This brings development assistance funding up to 0.96 per cent of Norway’s estimated gross national income (GNI) for 2006, an increase from 0.95 per cent in 2005. The Government will thus have increased Norway’s development assistance by NOK 6.2 billion since 2001.

NOK 1 billion for the “aid boost for Africa”

The Government wishes to emphasise that 2006 will be the first year of the “aid boost for Africa”, which will entail a further escalation of development assistance to Africa. This assistance will be increased by NOK 1 billion according to the proposal. The increase will chiefly be used to strengthen bilateral co-operation with partner countries in Africa and to follow up the peace agreement in Sudan by means of increased transitional assistance. Assistance to Africa under other budget chapters would also be increased. The Government wishes to increase Africa’s share of Norway’s long-term bilateral development assistance to 65 per cent in by 2010.

More to the poorest

In 2006 even greater emphasis will be placed on ensuring that Norway’s development assistance should go to the poorest countries, i.e. the countries that pertain to the category low-income countries (LICs), including the least developed countries (LDCs). The Government wishes to increase the share of Norway’s long-term bilateral assistance that goes to LICs to 70 per cent by 2010.

NOK 300 million more to the fight against HIV/AIDS

The AIDS pandemic is one of the major obstacles to development, particularly in Sub-Saharan Africa. The Government proposes increasing allocations to HIV/AIDS efforts by NOK 300 million. The emphasis will be on preventive efforts in addition to care and treatment. Norway’s support allocated to UN agencies and other international organisations for the fight against HIV/AIDS will thus see a strong increase. The Government will also increase its support for the development of vaccines and protective measures for women and for strengthening African countries’ research capacity.

More for countries emerging from crisis and conflict

The proposal includes allocating an additional NOK 240 million for transitional assistance in 2006. A total of NOK 711.5 million will then go to this type of assistance, enabling Norway to better support countries emerging from conflict. Many countries experience that in this critical phase of a country’s development, international assistance dries up because attention turns to acute crises in other parts of the world. NOK 50 million of the additional allocation to transitional assistance will be earmarked for the UN fund for post-conflict peacebuilding. In addition areas such as DR Congo and Sudan will benefit from this assistance.

Education: Goal of doubling assistance is reached

Education is crucial to a country’s economic development and its capacity to eradicate poverty. The Government has had education as a main priority in development co-operation. The goal of doubling assistance for education from 2002 to 2005 will most likely be reached. During this period, assistance for education has increased by approximately NOK 1 billion, from NOK 890 million in 2002. Support for education will continue to have high priority. In 2006 the Government proposes to increase Norway’s support for education programmes in Africa and for education for all through UNICEF and the World Bank by a total of NOK 130 million.

The environment and sustainable development

The Government wishes to further strengthen its environmental efforts and proposes allocating NOK 1.6 billion to environment-related development assistance in 2006. In 2004 this assistance amounted to over NOK 1.3 billion. Efforts related to water will be intensified, for example by providing multilateral assistance for integrated water resources management and improving access to clean water and satisfactory sanitation in developing countries. Priority will also be given to promoting energy efficiency and more use of renewable energy sources.

At the same time more support will be given to developing countries’ efforts to address climate challenges. The Government also attaches importance to supporting measures aimed at significantly reducing the loss of biological diversity by 2010. Norway will increase its support for multilateral funds and programmes to protect the environment and promote sustainable development. The Government is working on a specific action plan for all environmental efforts in Norway’s development co-operation. It will most likely be completed by the end of 2005.

Private sector development and trade

The Government will increase assistance for private sector development and trade in 2006, among other things by intensifying efforts to create favourable institutional framework conditions for economic growth and private sector development, focusing particularly on areas where Norway has competence that is in demand. Support for agricultural development in Norway’s partner countries will increase by NOK 70 million next year. In line with the Government’s Plan of Action for Agriculture in Development Policy (2004), emphasis is placed on sustainable development of the agricultural sector as part of broader efforts to promote private sector development.

Great importance is attached to strengthening the rights of women and improving the opportunities to participate in agriculture, and to securing poor people’s user and property rights to land and water. Competence-building, increased productivity, trade, export and food security are all key target areas.

Increased co-operation in the petroleum sector

Petroleum management and good governance will be made a high priority focus area in Norwegian development co-operation. The intention is to make developing countries better able to make use of revenues from oil and gas operations to improve the living conditions for the population. The funds for technical assistance in connection with oil and gas management will therefore be significantly increased through an additional allocation of NOK 50 million in 2006. The assistance will be given based on demand from the recipient countries and will be adapted to their needs.

More to NGOs

The Government proposes to increase the allocations to NGOs by NOK 37 million in 2006. In all of its budget proposals, this government has increased allocations to NGOs and other civil society actors. The figures for 2004 show that NOK 3.25 billion, or 34 per cent of Norway’s bilateral development assistance, is channelled through NGOs and other civil society actors. This makes Norway the OECD country that channels the largest proportion of its bilateral assistance through NGOs.

Press contact: Acting Head of Information Odd Naustdal, tel. 91 14 94 90