The long-term nature of development cooperation has improved

Evaluations praise Finland for clarifying the objectives and encourage improving the link between development cooperation, humanitarian assistance and peace actions as well as the monitoring of the results of climate finance.

In addition to independent evaluations, numerous external actors regularly assess Finland's development policy and cooperation. In Finland, recommendations are issued by the National Audit Office and the Development Policy Committee, a parliamentary and societal advisory body whose objective is to strengthen the effectiveness of development policy and dialogue in Finland. The members of the committee come from parliamentary parties, interest groups and civil society organisations, universities and various ministries and stakeholders. One of the key international actors is the OECD’s Development Assistance Committee (DAC), which performs peer reviews of the Member States.

Development Policy Committee: Funding must be provided to the poorest

In recent years, Development Policy Committee (DPC) reports have addressed climate finance(Link to another website.) (2022), the implementation of development policy entries in the Government Programme(Link to another website.) (2021), food security(Link to another website.) (2021), closer cooperation between development cooperation, humanitarian assistance and peace actions(Link to another website.) (2021) and biodiversity(Link to another website.) (2021).

In its 2021 report(Link to another website.), the DPC assessed the implementation of the Government Programme's development policy entries. According to the Committee, the Report on Development Policy across Parliamentary Terms(Link to another website.) reinforces the effectiveness of development cooperation. The continuation of development policy priorities from one government term to the next strengthens a long-term approach, and highlighting education as a priority makes use of Finland's strengths.

However, the DPC notes that in practice, uncertainty about the future level of Finland's development funding weakens the preconditions for the systematic implementation of development cooperation.

The official objective is still to raise the level of development funding from the current 0.5 per cent of the gross national income to the 0.7 per cent level recommended by the UN by 2030. However, the report does not specify any milestones or roadmap for achieving these.

A particular concern is the lacking allocation of finances to the poorest countries and the lack of complementarity between different funding channels. The DPC has also called for gender equality to be taken into consideration more effectively in all funding. The Committee emphasises that the Ministry for Foreign Affairs must allocate sufficient personnel resources to development policy priorities, other key themes and the monitoring of results and statistics. Where necessary, an increase in the number of personnel should also be considered.

The Development Policy Committee feels that it is important to strengthen the triple nexus approach that refers to closer collaboration between development cooperation, humanitarian assistance and peace actions. According to its report(Link to another website.), Finland is well prepared to support the coordination of strengths of triple nexus aspects in a more consistent manner. However, the implementation of the triple nexus approach requires such things as a new way of thinking and operating.

According to the DPC, the implementation of the OECD/DAC Recommendation on the Humanitarian-Development-Peace Nexus(Link to another website.)has begun in a promising manner, and Finland has taken the triple nexus approach into account not only in the Report on Development Policy Extending Across Parliamentary Terms but also, for example, in its policy concerning humanitarian assistance(Link to another website.). The work will also be supported by new guidelines.

The Development Policy Committee emphasises that funding between development cooperation, humanitarian aid and peace actions should be flexible so that the overall increase of cooperation can also be achieved in practice in the midst of the changing needs of fragile regions. Clear conditions should be developed for flexibility and specific guidance should be given to organisations on how to allocate funding to activities supporting the triple nexus approach.

Longevity to climate finance

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In recent years, Finland's public international climate finance has been assessed by the National Audit Office of Finland and the Development Policy Committee. In June 2021, the National Audit Office of Finland published an audit report on the steering and effectiveness of Finland's international climate finance, while the Development Policy Committee published its own climate finance analysis in January 2022. 

The National Audit Office of Finland recommended that the Ministry for Foreign Affairs draw up a public plan that contains the grounds for climate finance priorities and objectives. According to the National Audit Office of Finland, the ministry must also strengthen the monitoring of results, the compilation of statistics on these and reporting on results obtained with the funding. The Development Policy Committee also stated that Finland's international climate finance needs a long-term and transparent operating model and a plan for increasing and targeting funding. Both bodies note that the steering of climate finance has been fragmented and that there is a need to clarify the division of responsibilities between the actors. 

These recommendations were taken into account in Finland's climate finance implementation plan, which was published in March 2022.   

Quality of Finland's development cooperation improving

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In spring 2021, the OECD Development Assistance Committee (DAC) assessed how Finland has succeeded in following the recommendations it received in its 2017 development cooperation peer review. 
 
Finland received commendable feedback on the following factors: 
  • the quality and implementation of development cooperation
  • development cooperation reforms and the establishment of a strong performance culture in development cooperation
  • new indicative programmes and strategies it has drawn up for its long-term development partner countries
  • the implementation of development cooperation also in the midst of the COVID-19 pandemic. 
The low number of personnel at the Ministry for Foreign Affairs working on development cooperation was highlighted as a development area.

Coordination of multilateral development cooperation has improved

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In 2017, the National Audit Office of Finland conducted an audit on the coordination and management of multilateral development cooperation. The audit recommended that the Ministry for Foreign Affairs develop the coordination and information systems between its departments and the utilisation of information produced by development cooperation organisations. In addition, the National Audit Office of Finland recommended that the Ministry for Foreign Affairs concentrate on a strategically limited number of development cooperation objectives.

In its follow-up report on multilateral development cooperation in 2020, the National Audit Office of Finland stated that the Ministry for Foreign Affairs has succeeded in developing policy influencing plans and its case management system after the audit. Finland’s development policy objectives have been clarified through theories of change and aggregate indicators that aim to strengthen the long-term and strategic nature of development cooperation. The activities of organisations supported by Finland are monitored, for example, by utilising their performance and monitoring reports.