Evaluation: Finland’s support helps create success stories in partner countries – Stronger economies, more jobs and better livelihoods

A new evaluation of Finland’s cooperation with partner countries to strengthen their economies, create jobs and improve livelihoods shows that Finland’s work has yielded good results in the energy sector, taxation, innovation and the economic empowerment of women.

The evaluation examined how Finland’s cooperation has contributed to economic development, job creation and the strengthening of livelihoods in its partner countries for development cooperation. The evaluation assessed the strengths and weaknesses of cooperation and proposed measures to improve its effectiveness. In addition, best practices of peer countries were evaluated for learning purposes.

The evaluation was presented at a webinar on 27 January 2021. In his speech, Minister for Development Cooperation and Foreign Trade Ville Skinnari stressed that the foundation for prosperity in all countries is a well-functioning economic system with strong institutions and a dynamic private sector.

“People need economic opportunities and decent jobs where they can earn a sufficient livelihood and where their rights are protected,” Skinnari said.

He also emphasised the role of the private sector in the implementation of Agenda 2030.

“Public funds alone cannot cover the need to finance sustainable development and the combat against climate change. The private sector needs to be actively involved not only as a donor but also as an important source of innovation and solutions.”

Comprehensive approach to strengthen partner countries’ economies and private sector participation

Finland’s support has led to many success stories in the three countries evaluated: Kenya, Tanzania and Zambia. They include bilateral innovation projects in Tanzania and new livelihood opportunities for young people and rural residents in Zambia.

On the other hand, the evaluation highlighted that the Ministry for Foreign Affairs still has untapped potential to achieve better results. For example, there were gaps in the funding mechanisms that limit the possibilities of creating successful business models with significant development impacts.

Best practices of peer countries were evaluated for learning purposes. Global trends and experiences of other Nordic countries show that the strengthening of partner country economies and cooperation with the private sector require a holistic approach. In this regard, clarifying the role of companies is of paramount importance to Finland’s development policy, according to the evaluation. The ways of strengthening the economies and private sector cooperation have not been adequately defined, which in turn has resulted in fragmentation of activities.

The evaluation recommended that the Ministry for Foreign Affairs formulate a clear policy for strengthening the economic development of partner countries and improving private sector participation. Guidelines on private sector instruments can also be drawn up to support this policy. In addition, the Ministry should adopt an approach based on ecosystems, which would make its activities more integrated.

“Private sector participation is in everyone’s interest”

Commentators invited to the event considered the evaluation’s forward-looking approach and concrete proposals to develop activities useful. They also emphasised the role of the private sector in sustainable development.

“It is important to create good conditions for cooperation between different actors. Private sector participation is in everyone’s interest,” said Pekka Voutilainen, Ambassador for Trade and Development.

Steen M. Andersen, CEO of FCG Global Goals, also discussed this topic.

“Sustainable development goals are an excellent framework for cooperation between different actors. These goals show how different issues, such as education, women’s economic activities and solutions to environmental problems, are linked and remind us of the importance of the global perspective,” Andersen said.

Andersen also spoke about how Denmark has succeeded in combining the desired changes in development cooperation with the conditions for business. According to him, the long-term objectives of development cooperation and the short-term performance targets of companies should be taken into account so that “we understand each other and speak a common language”.

Meanwhile, the Finnish Ambassador to Zambia, Pirjo Suomela-Chowdhury, stressed the importance of bilateral relations:

“The diversification of relations between countries from development-oriented to commercial and economic relations requires strategic approach, time and consistency. For that, we need resources and human capital.”

Evaluation report: Evaluation of Economic Development, Job Creation and Livelihoods (Opens New Window)