Economy and jobs
Boosting development with sustainable business and innovations
Developing country economies grew steadily at the end of the last decade, but the COVID-19 pandemic caused a significant dip in growth, especially in least developed countries. Although economies are expected to recover to their growth path relatively soon, the pandemic has increased unemployment, poverty and inequality in developing countries.
There is an enormous need for decent jobs and livelihoods in developing countries. For example, in Africa, the working-age population will grow by about 20 million a year, and finding a sufficient livelihood is a significant challenge. There are not enough new jobs, and there are shortcomings in the quality of jobs in general.
The pandemic has affected in particular the rights of women, young people and those living in poverty to decent work and livelihoods. Women, young people and migrants are amongst those who often find employment in the informal sector and other sectors most affected by the economic crisis caused by the pandemic. It is estimated that there are still 13 million fewer women in the labour markets of developing countries than before the pandemic. Access to education and employment has become even more difficult for young people.
The pandemic has tested the resilience and sustainability of economies, international trade, the sustainability of public finances and the private sector of developing countries. Recovery will require long-term investments in industrialisation, diversification of economies and strengthening responsible business conduct and innovation in the private sector. Questions related to the digital, green and just transition are also highlighted in recovery efforts.
The international community, regional actors and governments, together with the private sector, play a key role in advancing structural changes in economies. They promote responsible business, regional integration and sustainable trade and innovation.
An increasing number of consumers, financiers and partners require companies to act responsibly on human rights, the environment /mark> and good governance all over the world. The extent to which countries have committed to the UN Guiding Principles on Business and Human Rights has been uneven globally. However, during the monitoring period, countries such as Thailand, Kenya, Uganda and Pakistan have published National Action Plans on Business and Human Rights.
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Finland supports decent work
Finland promotes responsible business conduct and innovation activities
Finland influences the international community's policies
Finland improves the business environment in developing countries
The ITC promoted women and youth entrepreneurship
Responsible fish farming and good jobs in Zambia
Plan International Finland strengthened the economic safety net
Creating business activities and jobs in developing countries
Business and decent jobs created with Finland’s support create sustainable economic development and stable societies.
The private sector in developing countries plays a key role in creating new jobs, entrepreneurship and livelihoods, and developing products and services for the needs of those living in poverty. A strong, responsible and innovative private sector supports sustainable economic development and societal stability.
Finland's support has helped to create private sector jobs, especially for women and young people, and improve the quality of jobs so that they are decent and more productive. Support for civil society has strengthened women's labour rights and their leadership in the workplace, promoted occupational health and safety, ensured maternity leave and prevented violence and harassment in the workplace. These results have reduced obstacles preventing women's employment in developing countries.
Finland has supported the business enabling environment of the private sector in developing countries and expanded and strengthened services for the private sector. The role of women in the economy has been promoted with measures such as supporting the access of micro, small and medium-sized enterprises owned by women to business support services such as finance, training and networks. In addition, Finnfund's operations and development policy investments have been used to focus investments especially on companies owned or managed by women.
Development-financed forms of private sector assistance have produced innovations, new know-how, jobs and investments in developing countries. Innovation cooperation and business partnerships between developing countries and Finnish actors have played an important role. Sustainable investments in developing countries have been significantly increased through development policy investments. All of these have leveraged external financing parallel to Finnish financing.
Finland has also contributed to regional economic integration. For example, Trademark East Africa has streamlined regional trade connections in East Africa, reducing trade costs. Multilateral trade and development organisations funded by Finland have strengthened the national and global business environment, improved trade policy expertise and contributed to sustainable industrial development in developing countries. Assistance to UNIDO resulted in 121 legislative or policy proposals to improve the business environment or economic integration in 2019-2021.
Finland's efforts to strengthen the economies of developing countries, create jobs and improve livelihoods were evaluated in 2021. An independent evaluation found that the activities have predominantly been meaningful and productive. Recommendations for further development included overall strategic management, comprehensiveness of financial instruments and providing more systematic support for partner countries transferring to commercial cooperation. The Ministry for Foreign Affairs has taken steps to draw up a policy for the private sector and to improve cooperation.
Innovations and digitalisation
The digital solutions supported by Finland promote sustainable development and digital equality.
Finland has supported the innovation activities of developing countries. It has promoted stronger and more diverse economies and the creation of new solutions that support sustainable development.
Finland's bilateral and regional innovation programmes have strengthened innovation and start-up ecosystems in partner countries. The projects financed by Finland created 57 research, technology and innovation partnerships in developing countries. For example, joint programme of the Ministry for Foreign Affairs and Business Finland, Developing Markets Platform and its predecessor BEAM, have promoted the creation of such partnerships.
Finnish support has helped multilateral partners to develop and renew their own activities. Finland has actively supported innovation work carried out by UNICEF and UNFPA, which has led in particular to the creation of digital services related to education and sexual and reproductive health. UNICEF is currently expanding its innovation programme promoting children's rights and has established two new innovation hubs focusing on finance and learning in Finland. Finland's investment in the Asian Development Bank’s Ventures Fund supports the implementation of innovative climate technology solutions and digital solutions that promote the economic participation of women in Southeast and South Asia.
Finland has promoted digital equality and gender equality in global negotiations. Finland is a leader of the Action Coalition on Technology and Innovation for Gender Equality.
Support for a sustainable digital transition is increasingly visible not only in Finland’s but also in the EU's cooperation with Africa and other developing regions. Finland has influenced the EU's priorities and the development of its operating methods and participates in the preparation of EU initiatives in Africa, Asia and Latin America through the new D4D Hub platform.
UN Innovation Hubs in the Helsinki Metropolitan Area
For more information, see the section Risk management.
Civil society organisations promoted responsible business conduct
Development financing based on loans and investments to include equality targets
Training on responsible business conduct
The UN Guiding Principles on Business and Human Rights have become a stronger part of Finnish private sector cooperation.
Companies play an important role in promoting the UN Sustainable Development Goals. In order to achieve these goals, it is important that companies also prevent and address the negative human rights impacts that may arise in their operations and value chains.
Finland has promoted the inclusion of the UN Guiding Principles on Business and Human Rights in funding to support Finnish private sector investments in developing countries. In 2019, Finnfund adopted a human rights policy that guides its work in identifying and managing risks related to human rights.
In 2019-2021, Finland financed training for more than 9,000 companies on decent work and responsible business conduct. Training was provided by civil society organisations, Finnpartnership and bilateral projects in Zambia and Tanzania.
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United Nations (2021). The Sustainable Development Goals Report 2021. https://unstats.un.org/sdgs/report/2021/(Link to another website.)
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World Bank (2022). Pandemic, Prices and Poverty.
https://blogs.worldbank.org/opendata/pandemic-prices-and-poverty(Link to another website.) Referenced on 4.10.2022. - 3
World Bank (2022). World Development Indicators. Foreign direct investment, net inflows (BoP, current US$), personal remittances, received (current US$), net official development assistance received (current US$). DataBank. https://databank.worldbank.org/(Link to another website.) Referenced on 6.7.2022.
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Finnish civil society organisations, including World Vision Finland, the International Solidarity Foundation and FIDA as part of the broader SRHR communication work and the results achieved by UNFPA with support from Finland.
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UNESCO Institute for Statistics (2022). Completion rate, lower secondary, female %. http://sdg4-data.uis.unesco.org/(Link to another website.) Referenced on 4.10.2022.
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The data was collected from aggregate indicator 'Number of teachers who received pre or in service training' from the following interventions: HEI-ICI programme, projects and programmes coordinated by the Finnish Bible Society, Wycliff, Finn Church Aid, FIDA, the Finnish Refugee Council, Disability Partnership Finland and Taksvärkki.
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Finnish civil society organisations, including World Vision Finland, the International Solidarity Foundation and FIDA as part of the broader SRHR communication work and the results achieved by UNFPA with support from Finland.
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The data was collected from aggregate indicator 'Number of teachers who received pre or in service training' from the following interventions: bilat¬eral assistance and sector programmes in Nepal, Ethiopia, Mozambique, Myanmar, Palestinian Territories and Ukraine, as well as from UNESCO’s Capacity Building for Education programme.
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The data was collected from aggregate indicator 'Number of teachers who received pre or in service training' from the following interventions: HEIICI programme, projects and programmes coordinated by the Finnish Bible Society, Wycliff, Finn Church Aid, FIDA, the Finnish Refugee Council, Disability Partnership Finland and Taksvärkki.
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The data was collected from aggregate indicator 'Number of teachers who received pre or in service training' from the following interventions: bilateral assistance and sector programmes in Nepal, Ethiopia, Mozambique, Myanmar, Palestinian Territories and Ukraine, as well as from UNESCO’s Capacity Building for Education programme.
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Participating countries include those supported through UNESCO's CAP Ed programme and Finland's bilateral cooperation partner countries, where Finland supports structural reforms of the school system.
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The data was collected from aggregate indicator 'Number of educational institutions whose capacity has been strengthened' (schools) from inter¬ventions in the following countries: Nepal, Myanmar (Sector Programme and Education Support to promote education in Ethnic Regions), Ethiopia and Ukraine.
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The data was collected from aggregate indicator 'Number of educational institutions whose capacity has been strengthened' (schools) from the following interventions: Wycliffe, Finn Church Aid, Finnish Refugee Coun¬cil, Taksvärkki, FIDA, Disability Partnership Finland, World Vision, Finn¬partnership and Finnfund.
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The data was collected from aggregate indicator 'number of educational institutions whose capacity has been strengthened' (teacher education institutions) from the following interventions: Myanmar/UNESCO, Mozambique/FASE, Ukraine/basic education project, HEI-ICI programme and E-tale Africa project.
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This figure includes pupils assisted through country and regional cooper¬ation, humanitarian assistance and multilateral cooperation in projects in Ethiopia, Lebanon, Syria, Myanmar, Iraq, including Finland's compu¬tational share of support to UNRWA and ECW. Pupils reached by civil soci¬ety organisations have been reported separately as a whole.
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Data collected on aggregate indicators' number of students enrolled in education '(vocational and non-formal) and' number of women and girls with disabilities who have access to vocational training 'from projects and programmes by the following organisations: Finnish Refugee Council, FIDA, the Abilis Foundation, Disability Partnership Finland.
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The data was collected from aggregate indicator 'Number of students enrolled in education' (pre-primary, primary, secondary) from projects and programmes by the following organisations: Finn Church Aid, FIDA, Wycliffe.
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The data was collected from aggregate indicator ‘number of students enrolled in education’ (vocational and non-formal) and ‘number of women and girls with disabilities who have access to vocational training’ from projects and programmes by the following organisations: Finn Church Aid, Finnish Refugee Council, SOS Children's Villages, Disability Partnership Finland, Finnish Bible Society, Taksvärkki ODW Finland, The Abilis Foundation, The Finnish Foundation for Media and Development.
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The data was collected from aggregate indicator 'Number of students enrolled in education' (pre-primary, primary, secondary, vocational). This figure was calculated on the basis of the most recent pre-pandemic sta¬tistics on student number in Finland's bilateral cooperation partner coun¬tries: Nepal, Afghanistan, Myanmar, Palestine, Mozambique, Ukraine and Ethiopia.
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The data was collected from the aggregate indicator ‘Number of proposals for laws and policies that improve business environment and regional economic integration’. The results are the figures reported by the UN Industrial Development Organization UNIDO in 2019-2021. Finland is a UNIDO member state and pays a statutory membership fee annually.
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Jobs and companies in developing countries have also been supported through other cooperation, but the figures reported by all supported actors do not fall under the indicators monitored by the Ministry for Foreign Affairs.
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Multilateral cooperation: The data was collected from the aggregate indicator 'Number of full-time (or equivalent) jobs assisted or created' from the following actors: UN Industrial Development Organization UNIDO, 2019-2021; European Development Fund, 2019-2020.
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The data was collected from aggregate indicator 'Number of full-time (or equivalent) jobs supported or created' and includes the Energy and Environment Partnership’s (EEP) support 2020-2021 and the Inter-American Development Bank’s (IADB) general support 2020-2021.
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The data was collected from the aggregate indicator 'Number of full-time (or equivalent) jobs assisted or created' from the following projects: AgroBIG II, Assistance for agro-driven economic growth in Amhara, Ethiopia (2019-2021); AGS Zambia, Assistance for SME growth in Zambia (2021) and SAIS, Southern Africa Innovation Support Programme (2021).
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The data was collected from the aggregate indicator 'Number of full-time (or equivalent) jobs assisted or created' from the following actors: Finnpartnership, 2019-201; FCA Investments, 2019-2021 and Finnfund, 2019-2020.
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The data was collected from the aggregate indicator 'Number of full-time (or equivalent) jobs assisted or created' from the following projects: HALO Trust, 2019-2020; International Solidarity Foundation, 2019-2021; Finn Church Aid, 2019-2021; Fairtrade, 2020-2021.
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The data was collected from the aggregate indicator ‘Number of micro, small and medium-sized enterprises in developing countries benefiting from business development services, including innovation support ser¬vices, responsible business practices and financing supporting improved or growing business’.International Fund for Agricultural Development IFAD, 2019; UN Industrial Development Organization UNIDO, 2021; Euro¬pean Development Fund, 2019-2020; International Development Associ¬ation IDA, 2020-2021; International Trade Centre ITC, 2019-2021.
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The data was collected from the aggregate indicator ‘Number of micro, small and medium-sized enterprises in developing countries benefiting from business development services, including innovation support services, responsible business practices and financing supporting improved or growing business’ from the following actors: European Bank for Reconstruction and Development (EBRD), 2020; Asian Development Bank (ADB), 2019-2020; African Development Bank (AfDB), 2020; Inter-American (IADB), 2020-2021.
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The data was collected from the aggregate indicator 'Number of MSMEs in developing countries benefiting from business development services, including innovation support services, and responsible business prac¬tices and funding for business improvement or growth', from the follow¬ing projects: Forestry and value chain development, Tanzania, 2019- 2020; AGS Zambia, Support for growth of Zambian SMEs, 2020-2021.
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The data was collected from the aggregate indicator ‘Number of micro, small and medium-sized enterprises in developing countries benefiting from business development services, including innovation support services, responsible business practices and financing supporting improved or growing business’ from the following actors: Finnfund, 2019-2020; FCA Investments, 2019-2021, DevPlat, 2020-2021.
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The data was collected from the aggregate indicator 'Number of MSMEs in developing countries benefiting from business development services, including innovation support services, and responsible business practices and funding for business improvement or growth', from the following projects: Project Support, SOS Child Village, Ethiopia, Gambia, Tanzania, 2020; Programme Support, International Solidarity Foundation, 2020-2021; Programme Support, Finn Church Aid, 2020-2021; Programme Support, WWF, 2019-2021; Programme Support, Plan Finland, 2019-2021; Programme Support, Finnish Refugee Council, 2019-2020; Programme Support, World Vision Finland 2020-2021.
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The data was collected from the Ministry for Foreign Affairs aggregate indicator ‘Number of Science, Technology and Innovation (STI) partnerships with education and research institutions and private sector actors’ from the reports of the following projects and actors: Southern Africa Innovation Support Programme, Finnpartnership, BEAM/Developing Markets Platform, Plan Finland, HEI-ICI.
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The data was collected from aggregate indicator 'Number of enterprises trained on decent work standards and/or responsible business practices', from reports by the following projects and actors: Finnish Refugee Council, Southern Africa Innovation Support Programme, Finnpartnership business partnership programme, supporting the growth of Zambian SMEs, Fairtrade, Evaluation of interest-subsidy projects, Finnwatch. The number of trained companies is calculated annually. It is possible that the same company will appear in the figures for several years.
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Un Women Global Output Indicator 2.4.2. 2019 result 5,964, 2020 result 6,808 and 2021 result 11,597. https://www.unwomen.org/en/executive-board/strategic-plan/outcome-area-2
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Project support, Deaconess Institute in Helsinki, Europe/Romaninaisten voimaa - Romanina (2020); Project support, Deaconess Institute in Helsinki, KOSOVO//Eteenpäin elämässä (EqE) (2020); Project Support, Children and Youth Foundation, SEN/Naatange art la (2020); Project Support, SOS Child Village Foundation, TAN/Women's and Children's Rights, Mufindi (2020); Project Support, Finnish YMCA, LIB/Syyrialaisten pakolaisten amk (2020); Project Support, Interpedia, NEP/Haavoittuvassa asemassa olevat lapset (2021); Support for International Non-governmental Organisations (INGO), Hivos (2020); Support for International Non-governmental Organisations (INGO), International Lesbian Gay Bisexual Trans and Intersex Association (ILGA) (2019); Support for International Non-governmental Organisations (INGO) joint application round, International Service for Human Rights (2020); Support for International Non-governmental Organisations (INGO), World Organisation against Torture (2021); Other multilateral help, Justice Rapid Response (2020); Programme support, Abilis Foundation (2021); Programme support, Fida International (2021); Programme support, Finnish Red Cross (2019); Programme support, International Solidarity Foundation (2021); Programme support, KiOS Foundation (2021); Programme support, Finn Church Aid (2021); Programme support, World Wildlife Fund (WWF) Finland’s Fund (2021); Programme support, Plan Finland Foundation (2019); Programme support, Fairtrade (2021); Programme support, Siemenpuu Foundation for civil society (2021); Programme support, Trade Union Solidarity Centre of Finland SASK (2020); Programme support, Finnish Evangelical Lutheran Mission (2020); Programme support Finnish Refugee Council (2019, 2020, 2021); Programme support, World Vision Finland (2021); Programme support, Taksvärkki (2021); Programme support, Disability Partnership Finland (2020); United Nations Alliance of Civilizations, ARFICA/Projects coordinated by youth funds, programming period 2019-2020.As the programme/project assistance organisation partnerships usually last throughout a project/programme period, the number of organisations supported in partner countries has been calculated by including only the year for which the highest result has been reported. The sum of the results for different years are only added together for those organisations where it has been explicitly mentioned that partner organisations are not the same.
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BI Cofinancing programme UN University, MOZ/MPD-UEM Policy Research (2020); ICI cooperation Finnish Forest Research Institute TAN/IKI/LUKE INFORES (2019); Bilateral project, DEMO Finland, MOZ/ DEMO Strengthening Parliament (2020/2021); Bilateral project, Netherlands Institute for Multiparty Democracy: MOZ/Natural resources governance (2019); Bilateral project, TAN/PFP 2 (2020); Asian Development Fund, Additional funding, AsDF-13 (2021), Asian Development Fund, Additional funding, AsDF-12 (2019, 2020); UN University MOZ/UNU-WIDER IGM II (2021); Thematic assistance, UN Educational Scientific and Cultural Organization, UNESCO (2019, 2020).
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UN Development Programme, KGZ/Legal sector support project (2019, 2020); UN Development Programme, TJK/Legal sector support project (2019, 2020); KiOS, programme assistance (2019, 2020, 2021); Finnwatch, project assistance, THA/burmalaiset siirtotyöntekijät voimaantuneet (2020); European Development Fund, additional funding (2019, 2020); UN Women, general funding (2019, 2020, 2021). Disaggregation has only been calculated from the results for which disaggregated data has been available.
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Support for International Non-governmental Organisations (INGO), Hivos (2019, 2020); Support for International Non-governmental Organisations (INGO), DefendDefenders, East and Horn of Africa Human Rights Defenders Project (2020, 2021); Support for International Non-governmental Organisations (INGO), International Commission of Jurists (2019, 2020); Support for International Non-governmental Organisations (INGO), International Lesbian Gay Bisexual Trans and Intersex Association (2019, 2020); Support for International Non-governmental Organisations (INGO), International Service for Human Rights (2020, 2021); Support for International Non-governmental Organisations (INGO), Minority Rights Group International (2020); Support for International Non-governmental Organisations (INGO), World Organisation against Torture (2019, 2020, 2021); Programme support, KiOS Foundation (2019, 2020, 2021); Programme support, Trade Union Solidarity Centre of Finland SASK (2019, 2020, 2021); Embassy of Finland, MDA/IJC/Media literacy, Moldova (2020); Embassy of Finland, MDA/SP/media support, Moldova (2020).
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In 2018, the Action Plan had been drawn up in 60 countries, while at the end of 2021 the number was up to 86 countries. Un Women https://www. unwomen.org/en/executive-board/strategic-plan/outcome-area-5.
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In addition, community-level peace-building is carried out by Fida International, World Vision, Save the Children, the Deaconess Foundation (reconciliation project) and the YMCA Finland (2250).
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With Finland’s assistance, the Mines Advisory Group, Halo Trust, Danish Demining Group and the United Nations Mine Action Service have cleared 6.78 km2 of mines.
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The data was collected from the following civil society organisations: Finnish Red Cross, 2019-2021, and World Vision Finland, 2020-2021.
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The data was collected from the following civil society organisations: Finnish Red Cross, 2019-2020, and World Vision Finland, 2020-2021.
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The data was collected from the following civil society organisations: Fida International, 2019-2021, and World Vision Finland, 2020-2021.
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The data was collected from the following projects: Community led Accelerated WASH in Ethiopia, Ethiopia, 2019-2020; Support to equitable access to quality water, basic sanitation and enhanced water resources management for the underserved communities in rural Kenya, Kenia, 2019-2020; Rural Village Water Resources Management Project Phase III, Nepal, 2019-2021; Rural Water Supply and Sanitation Project in Western Nepal Phase II, Nepal, 2019; UNICEF ONE WASH, Nepal, 2020-2021; WASH in Schools UNICEF, Afghanistan, 2019-2021.
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Data kerätty seuraavista hankkeista: Support to equitable access to quality water, basic sanitation and enhanced water resources management for the underserved communities in rural Kenya, Kenia, 2019-2020; Rural Water Supply and Sanitation Project in Western Nepal Phase II, Nepal, 2019; UNICEF ONE WASH, Nepal, 2020-2021; WASH in Schools UNICEF, Afganistan, 2019-2021.
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The data was collected from the following projects: Support to equitable access to quality water, basic sanitation and enhanced water resources management for the underserved communities in rural Kenya, Kenya, 2019-2020; Rural Village Water Resources Management Project Phase III, Nepal, 2020-2021; UNICEF ONE WASH, Nepal, 2020-2021.
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The data was collected from the following actors: UNICEF, 2019-2021; European Regional Development Fund ERDF, new European beneficiaries, 2019-2020; World Bank/International Development Organisation IDA, 2019-2021; Asian Development Bank ADB, 2021; African Development Bank AfDB, 2019-2021.
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The data was collected from the following actors: UNICEF, 2019-2021; World Bank/International Development Association IDA, 2019-2021; Asian Development Bank ADB, 2021; African Development Bank AfDB, 2019-2021.
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UNICEF, UNICEF Development WASH, 2019-2021.
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FAO/Forest and Farm Facility; Ecuador, Ghana, Kenya, Nepal, Tanzania, Zambia, Vietnam (2020-2021); Participatory Forestry Programme, Tanzania (2019-2021); Forestry and Value Chains Development Programme, Tanzania (2020-2021); The Alternative Development Programme in Shan State, Myanmar (2019-2020); WWF; Nepal, Bhutan, Indonesia, East-Africa (2019-2021); FIDA International (2019-2021); Finnfund (2019- 2020).
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FAO/Forest and Farm Facility; Ecuador, Ghana, Kenya, Nepal, Tanzania, Zambia, Vietnam (2020-2021); WWF; Nepal, Bhutan, Indonesia, East-Africa (2019-2021), Finnfund (2019-2020), UNIDO (2019-2021); Agrobusiness Induced Growth Programme in Amhara, Ethiopia (2019-2021).
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WWF; Nepal, Bhutan, Indonesia, East Africa (2019-2021); FIDA International (2019-2021); the International Solidarity Foundation (2019- 2021); Fairtrade (2020-2021); Siemenpuu Foundation; Brazil, Indonesia, India (2019-2021).
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Participatory Forestry Programme, Tanzania (2019-2021); Forestry and Value Chains Development Programme, Tanzania (2020-2021); Tree Outgrower Support Programme, Tanzania (2020); The Alternative Development Programme in Shan State, Myanmar (2019-2020); Agrobusiness Induced Growth Programme in Amhara, Ethiopia (2019-2021).
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FAO/Forest and Farm Facility; Ecuador, Ghana, Kenya, Nepal, Tanzania, Zambia, Vietnam (2020-2021).
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Finnfund (2019-2020).
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GEF Corporate Scorecard June 2021; IFAD Development Effectiveness Report 2020.
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European Commission Staff Working Document. Accompanying the document ‘Report from the Commission to the European Parliament and the Council 2021’. Annual Report on the Implementation of the European Union’s External Action Instruments in 2020.
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OCHA Financial Tracking Service (2021). Appeals and response plans 2021. https://fts.unocha.org/appeals/overview/2021 Referenced on 8.9.2022.