Development cooperation appropriations

EUR 1,257 million is reserved for development cooperation appropriations under the state budget for 2021. The exclusive ODA budget item administered by the Ministry for Foreign Affairs is EUR 756 million.

Development assistance in 2021

It is estimated that the appropriations budgeted for development cooperation for 2021 – a total of EUR 1,257 million – will correspond to 0.50 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.

Finland’s development cooperation appropriations in 2021. The Ministry for Foreign Affairs will allocate EUR 756 million of the funds under its administration for development cooperation.  Out of this sum, EUR 241 million will be allocated for multilateral development cooperation, EUR 186 million for country- and region-specific cooperation, EUR 87 million for humanitarian assistance, EUR 80 million for civil society organisations, and EUR 62 million for the European Development Fund. The Ministry for Foreign Affairs will allocate EUR 65 million in funding for non-country specific development cooperation and EUR 35 million for other development cooperation administered by the Ministry. In addition to the exclusive ODA budget item administered by the Ministry for Foreign Affairs, Finland allocates funding for so-called other development cooperation. This funding will be distributed as follows: EUR 190 million for Finland’s contribution to the EU budget, EUR 96 million to costs arising from the reception of refugees, EUR 44 million to Finnfund, EUR 15 million to civilian crisis management and EUR 156 million to other development cooperation expenditure. Altogether, Finland’s development cooperation appropriations in 2021 amount to approximately EUR 1 257 million.

The graph updated September 1 2021. In the third supplementary budget (applicable from 1 July 2021), the Government proposes an increase of EUR 12.0 million in development cooperation appropriations. The official development cooperation (ODA) administered by the Ministry for Foreign Affairs is increased by EUR 10.0 million, allocated for the global COVAX mechanism, and by EUR 2.0 million, allocated for humanitarian assistance related to the COVID-19 pandemic.  Both sums are transfers from funds that are not included in the exclusive ODA budget item administered by the Ministry for Foreign Affairs. The funding for COVAX is transferred from the Ministry of Social Affairs and Health and the funding for humanitarian purposes is transferred from the funds reserved for losses in Finnfund’s special risk financing instrument. Additionally, two amendments will be made to items under development cooperation. The European Development Fund (EDF) resources in the EU's current multiannual financial framework (MFF) for 2021–2027 will be merged into the Neighbourhood, Development and International Cooperation Instrument (NDICI), which means that EUR 8.4 million will be transferred to an item managed by the Ministry of Finance. Furthermore, the current African Peace Facility (APF) will be merged into the new European Peace Facility, which means that EUR 5.0 million will be transferred away from the exclusive ODA budget item administered by the Ministry for Foreign Affairs. Due to these changes, the overall funds for ODA administered by the Ministry for Foreign Affairs will fall by EUR 3.4 million.

Development cooperation by country

The graphic presentation below illustrates the biggest ten recipient countries of Finland’s development cooperation appropriations in 2020. 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.

 

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 2020.

 

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 or 0.5 per cent of GNI.

 

The graphic presentation below illustrates Finland’s development cooperation appropriations as they are anticipated to grow in 2021–2025. The figures for 2021 are from the budget, and the figures for 2022–2025 are based on the spending limits decision.

 

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(Link to another website.).

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

Finland's development cooperation appropriations and disbursements 1989-2020 (PDF). The file includes the following tables:

  • Table 1: Development cooperation appropriations and disbursements in 1989–2020
  • Table 2: Public development cooperation disbursements in 2013–2020; 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 2013–2020.

Disbursements to the main partner countries, and multilateral partners and multilateral support 2015-2020 (PDF). The file includes the following tables:

  • Table 4: Development cooperation disbursements to the main partner countries in 2015–2020.
  • Table 5: Core funding to multilateral cooperation channels, disbursements counted as development cooperation in 2012–2020.

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.