Development cooperation appropriations

EUR 1,082 million is reserved for development cooperation appropriations under the state budget for 2020. The exclusive ODA budget item administered by the Ministry for Foreign Affairs is EUR 725 million.

Development assistance in 2020

It is estimated that the appropriations budgeted for development cooperation for 2020 – a total of EUR 1,082 million – will correspond to 0.46 per cent of Finland’s gross national income (GNI). The appropriations are divided into two categories: the exclusive ODA budget item administered by the Ministry of Foreign Affairs and other development cooperation.

Examples of the use of the ODA administered by the Foreign Ministry include bilateral development cooperation between Finland and its partner countries, support granted to UN agencies, development banks and Finnish CSOs, and humanitarian assistance. In statistics, funding for other development cooperation covers costs arising from the reception of refugees, Finland's contribution to the European Union’s development cooperation budget, and other disbursements counted as development assistance in various administrative sectors. It also includes an estimate of investments considered to fall under development cooperation by Finnfund, which is a Finnish development financier, and an estimate of other development policy investments.

Update on 27 November 2020: The seventh supplementary budget for 2020, adopted by Parliament on 27 November 2020, will be applied starting on 3 December 2020. In the supplementary budget, an additional appropriation of EUR 100 million is allocated to development cooperation. The appropriation for the exclusive ODA budget item administered by the Ministry for Foreign Affairs was raised by EUR 50 million. The additional appropriation will be used for the following purposes: strengthening the poorest countries capacity to adapt to climate change and preventing the loss of biodiversity (EUR 18 million); increasing humanitarian assistance due to the critical situation caused by the COVID-19 pandemic (EUR 24.5 million); increasing funding allocated to the World Health Organization (WHO) for fighting the pandemic in the developing countries (EUR 5 million); and channelling funding for global innovation activities via UN agencies that are of strategic importance to Finland (EUR 2.5 million). In the seventh supplementary budget for 2020, EUR 50 million is allocated to increasing the capital of the Finnish Fund for Industrial Cooperation (Finnfund). In the second and fourth supplementary budgets for the current year, the Government reallocated development cooperation appropriations administered by the Ministry for Foreign Affairs as a response to the needs caused by the COVID-19 pandemic..

 

Infographics

Finland's development cooperation appropriations 2020 (PDF)
Finland's development cooperation appropriations 2019 (PDF)
Finland's development cooperation appropriations 2018 (PDF) 
Finland's development cooperation appropriations 2017 (PDF) 

Funding decisions on core contributions to UN agencies in 2020

Agency

EUR million

UN Women, core funding

19

UNFPA, core funding

33

UNDP, core funding

2

UNEP, core funding

2,5

UNIDO, membership fee

n. 0,5

Development cooperation by country

The graphic presentation below illustrates the biggest ten recipient countries of Finland’s development cooperation appropriations in 2019 (preliminary information). It presents the total amount of funding channelled through intergovernmental development cooperation, multilateral organisations and civil society organisations as well as investments made by Finnfund.

 

Other important partner countries for Finland and countries that are supported are located mainly in eastern Africa and in Asia.

 

Core funding to UN agencies and development finance institutions

The chart illustrates Finland’s ODA-eligible core funding to UN agencies and development finance institutions in 2019 (preliminary information).

 

Trends in funding

Finland has expressed its commitment to raising its development cooperation appropriations to 0.7 per cent of GNI both in the UN and in the EU. During the economic recession in the early 1990s combined with the collapse of GNI, the goal was reached for a short while. In recent years, the share has remained at approximately 0.4 per cent of GNI.

 

The graphic presentation below illustrates Finland’s development cooperation appropriations as they are anticipated to grow in 2021–2024. The figures describing the year 2021 are based on the Government's draft budget that is currently under consideration in Parliament. The draft budget includes the EUR 50 million, which is part of the funding for the second phase of future-oriented investments. The figures illustrating the years 2022–2024 are based on the decision on spending limits.

 

Monitoring of development cooperation disbursements

Internationally, the OECD Development Assistance Committee (DAC) monitors its member countries’ ODA performance based on the reports submitted to it. Statistics showing OECD/DAC member countries' development cooperation funding on DAC’s website at oecd.org/dac/financing-sustainable-development.

Statistics on Finland's development assistance disbursements in the past decades:

Finland's development cooperation appropriations and disbursements 1989-2019 (PDF). The file includes the following tables:

  • Table 1: Development cooperation appropriations and disbursements in 1989–2019
  • Table 2: Public development cooperation disbursements in 2012–2019; exclusive ODA budget item administered by the Ministry for Foreign Affairs by budget allocation tables, and other development cooperation instalments.
  • Table 3: Development cooperation disbursements to the least developed countries in 2012–2019:

Disbursements to the main partner countries, and multilateral partners and multilateral support 2012-2019 (PDF). The file includes the following tables:

  • Table 4: Development cooperation disbursements to the main partner countries in 2014–2019.
  • Table 5: Core funding to multilateral cooperation channels, disbursements counted as development cooperation in 2012–2019.

In statistics on development cooperation, it is typical that disbursements vary by the year even if the budgeted amounts were unchanged.

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 allocated appropriations cannot be used in the first year, they will remain available during the next two years.

Development cooperation is often conducted in difficult circumstances. It is therefore important that the timeframes are flexible when it comes to the use of the appropriations. On the other hand, it takes years to achieve lasting development results, which is why long-term commitment to cooperation is essential.