Exceptional times highlight the importance of development policy

In recent years, the pandemic, conflicts and climate change have slowed down positive development. However, Finland's long-term development cooperation has produced significant results that promote Finland's foreign policy objectives.

This results report presents the results of development policy and cooperation for 2019-2021. The period has been exceptional: the COVID-19 pandemic, conflicts, increased authoritarianism and climate change have turned the previously positive trend. The share of people living in extreme poverty increased for the first time in 20 years. In some result areas, crises have slowed down Finland's development cooperation and hampered the achievement of results.

World changes have underlined the importance of development policy as a key instrument of foreign and security policy. By participating in solving global problems, Finland will also strengthen its own position. Development policy has proven to be a predictable and crisis-resilient solution for promoting Finland's objectives globally. For example, a significant part of Finland's support to Ukraine has been funded through development cooperation funds.

The report shows that despite the difficult period, Finland has succeeded in achieving notable results through long-term cooperation based on its own values and strengths. Together with its partners, Finland has improved resilience and the ability of people and societies in developing countries to function. Finland strengthens the multilateral rules-based system with value-based cooperation. 

The best results are achieved by focusing on Finland's own strengths and competence. For example, Finland has persistently promoted gender equality through both funding and policy influence. As a result of Finland's policy influence, the ADB Ventures Investment Fund has committed to ensuring that 75 per cent of its investments contribute to advancing gender equality. 

A good example of long-term development cooperation that is able to respond to changing conditions is Finland’s cooperation in Nepal, which began in the 1980s. The country has faced civil war and natural disasters, but in spite of these, poverty has decreased, literacy has risen and clean water is available to almost everyone. Nepal has provided a great deal of funding to joint programmes, which demonstrates the country's own commitment to the objectives. 

A growing share of development cooperation is allocated to fragile countries and situations. This requires greater risk management and anticipation, along with closer collaboration between development cooperation, humanitarian assistance and peace actions. The new Risk Management Policy in Development Cooperation facilitates more effective practices by the Ministry for Foreign Affairs and its partners and obliges them to develop risk management.

Development cooperation is a means, not the goal. The report notes that Finland's objective is to support developing countries so that in future, they can be responsible for the well-being of their citizens and the stability of their society. Finland must diversify its relationships with countries that are graduating from the group of least developed countries to that of lower middle income countries.

The report also describes the change in development cooperation. Traditional projects managed by Finland itself have decreased and cooperation through international organisations, financial institutions and the EU has increased. For this reason, a large part of the results presented in the report include results achieved by multilateral actors, with Finland contributing as one partner.

New operating methods, forms of funding and changes in the operating environment require new kinds of planning, policy influence and the continuous development of risk management mechanisms.