Three-Year Programme on Austrian Development Policy

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1 Three-Year Programme on Austrian Development Policy

2 Imprint Three-Year Programme on Austrian Development Policy (pursuant to Section 23 of the Federal Development Cooperation Act 2002 as amended in the Federal Law Gazette I No. 65/2003) Presented to the Council of Ministers on 18 December 2012 for approval. Written and published by Federal Ministry for European and International Affairs Directorate-General for Development Cooperation Minoritenplatz 8, 1010 Vienna, Austria Phone: +43 (0) Fax: +43 (0) Gestaltung: Grayling Austria Layout: design:ag, Alice Gutlederer Cover picture: istockphoto.com/fotofritz16 Druck: AV+Astoria, 1030 Wien

3 Contents Table of contents List of abbreviations 3 Foreword 5 Mission statement of Austrian Development Cooperation 6 A. Development policy in a rapidly changing world global partnerships 9 Poverty reduction in a networked world 10 Shared interests and values: international commitments, our goals 11 Working with and through the European Union 13 B. Putting development policy into practice 15 Our multilateral 16 and our bilateral engagement 16 Communication is important 17 C. Austrian engagement: partners and principles 19 Principles of our engagement 19 The actors 20 Our themes 22 Our priority countries and key regions 32 ODA matrix 37 Forecast scenario 44 Three-Year Programme

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5 Abbreviations List of abbreviations ADA ADC ADF AfDB AsDB ASPR AU BOP CARICOM CFC CO 2 CSO(s) CSR DC DDR EBRD ECOWAS ECREEE EDF EEP EIB EU EUROF ALTHEA FMDS FMEAC FMEFY FMEIA FMF FMI FPIC FSO GDP GEF GNI HIPC IAEA IBRD ICEP ICIMOD Austrian Development Agency Austrian Development Cooperation African Development Fund/Asian Development Fund African Development Bank Asian Development Bank Austrian Study Centre for Peace and Conflict Resolution African Union Base of the Pyramid Caribbean Community Common Fund for Commodities Carbon dioxide Civil-society organisation(s) Corporate social responsibility Development Cooperation Disarmament, demobilisation and reintegration European Bank for Reconstruction and Development West African Economic Community Ecowas Centre for Renewable Energy & Energy Efficiency European Development Fund Energy and Environment Partnership Programmes with Southern and East Africa European Investment Bank European Union European Union Force Althea Federal Ministry of Defence and Sports Federal Ministry for Education, the Arts and Culture Federal Ministry of Economy, Family and Youth Federal Ministry for European and International Affairs Federal Ministry of Finance Federal Ministry of the Interior Free, prior and informed consent Fund for Special Operations Gross domestic product Global Environment Facility Gross national income Heavily indebted poor countries International Atomic Energy Agency International Bank for Reconstruction and Development Institute for Development Cooperation International Centre for Integrated Mountain Development Three-Year Programme

6 abbreviations IDA IDB IFAD IFC IFI(s) IMF IPSS ISAF KFOR LRRD M4P MDG(s) MDRI MIGA NGO(s) ODA OECD OeEB OeKB OPEC OSCE önkp PCD PIDG PSG(s) REEEP Rio+20 SADC SDG(s) SE4All SICA SME(s) SSA SSR UN UN GA UN SC UNIDO US$ International Development Association of the World Bank Inter-American Development Bank International Fund for Agricultural Development International Finance Corporation International financial institution(s) International Monetary Fund Institute for Peace and Security Studies International Security Assistance Force Kosovo Force Linking relief, rehabilitation and development Making Markets Work for the Poor Millennium Development Goal(s) Multilateral Debt Relief Initiative Multilateral Investment Guarantee Agency Non-governmental organisation(s) Official development assistance Organisation for Economic Co-operation and Development Oesterreichische Entwicklungsbank Oesterreichische Kontrollbank Organisation of Petroleum Exporting Countries Organisation for Security and Cooperation in Europe Austrian national contact point Policy coherence for development Private Infrastructure Development Group Peacebuilding and statebuilding goal(s) Renewable Energy and Energy Efficiency Partnership United Nations Conference on Sustainable Development Southern African Development Community Sustainable Development Goal(s) Sustainable Energy for All Sistema de la Integración Centroamericana Small and medium-sized enterprise(s) Sub-Saharan Africa Security sector reform United Nations General Assembly of the United Nations Security Council of the United Nations United Nations Industrial Development Organisation US dollar 4 Three-Year Programme

7 Foreword Foreword Demonstrating solidarity and taking responsibility is an important part of our foreign policy. It is our obligation to enable people all over the world to live in dignity and at the same time it is one of the great challenges facing us today and for the near future. In national and EU development policy, we are committed to sustainable development, taking social equity, economic growth and environmental protection into equal account, but also human rights, legal certainty and peace. Our civil society helps partners in developing countries to take their lives into their own hands. Our business and industry boosts local markets and builds capacities, creating jobs and in turn strengthening Austria as a location. As part of Austria s active commitment to peace and our role in the United Nations in New York, we also strive to uphold legal certainty worldwide as a contribution to development. No-one can solve the problems of this world alone, not the large nations, let alone the small ones like Austria, but we can make a decisive contribution. That is the aim of this new Three- Year Programme until 2015, which was drawn up in a broad consultative process. In a mission statement prefaced to the programme, all of us have voiced our determination to work towards mastering these challenges. Dr Michael Spindelegger Federal Minister for European and International Affairs Dr Reinhold Lopatka State Secretary at the Federal Ministry for European and International Affairs Three-Year Programme

8 Mission Statement Mission statement of Austrian development policy International crises, climate change, natural disasters, hunger, conflicts and security issues pose challenges that can only be surmounted with global responsibility and cooperation. Austria s development policy measures therefore form part of our international commitments together with our partners in the EU and all over the world, because it is in our own interests that people everywhere should live in prosperity, dignity, liberty and peace. At the same time, they also make a contribution to safeguarding security and prosperity for future generations in Austria. Poverty reduction, good governance, human security and the preservation of an environment worth living in are the main goals of Austrian development policy. Austria is committed to the international target of providing 0.7 per cent of its gross national income for development cooperation. In our development-policy work, we want to engage where Austria has its special strengths, whether through the specific know-how of our business and industry and our educational system, the experience of our employers and trade unions and our public administration or the commitment of our civil society. We set the following priorities here: Concentrating on people, their needs and rights: We are particularly committed to those sections of the population that suffer most from poverty and live under particularly precarious circumstances, such as children, women and older people, persons with disabilities and other especially vulnerable groups. In high-growth societies, this calls for good governance legal certainty, political participation, the equitable distribution of wealth and empowerment at local level. Sustainable economies: We advocate inclusive and pro-poor economic growth that reduces poverty in the long term and creates jobs that meet international, ecological and social standards. This way, we seek to make a contribution to sustainable development, social equity and a fair global economy. 6 Three-Year Programme

9 Mission Statement Building and using capacities: We invest in education, qualification and capacity development for public institutions and the private sector. Austrian business and industry and civil society play a special role here. Environment-friendly planning and implementation: We are for environment-friendly development, the sustainable use of natural resources and the protection of habitats in urban and rural areas. This is why we promote localised approaches that combine modern technologies and local skills. A world without fear: We are developing an efficient crisis management system and are committed to conflict prevention and peacekeeping as well as dialogue and the development of effective government institutions. Humanitarian aid is a major component of Austria s international agenda. How we mean to put these priorities into practice: Acting as partners strengthening ownership Acting together for coherent development policy Enhancing effectiveness, management by results, efficiency and transparency because development policy brings people together all over the world and a future without global partnership is inconceivable. Vienna on 18 December 2012 The mission statement was jointly drafted in 2012 with all stakeholders of Austrian development policy. Three-Year Programme

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11 global partnerships A. development policy in a rapidly changing world global partnerships At the beginning of the new millennium, the world is changing at a rapid pace. The centres of world economic growth are shifting eastwards but also towards the South. High-growth economies are setting the pace. Eighty-three developing countries have been able to double per capita income in the last decade. 1 Millions of people are increasingly entering an active middle class. Countries with young populations are also attested better prospects than ageing and stagnating countries, provided they can integrate their youth into productive life. While millions of people are rising above extreme poverty primarily in some countries of Asia and Latin America, other countries are lagging behind the development goals, particularly in Sub- Saharan Africa. 1 World Poverty Map, Andy Sumner (Ed.), Where do the poor live? In: World Development, With growth in emerging nations, the ratio of the North in the world economy is on the decline. According to forecasts by the International Monetary Fund (IMF), the gross domestic product (GDP) of Asia will surpass the economic performance of the seven leading industrial countries (G7) in By then, the share of EU 27 in global GDP could fall from the current 27 to 14 per cent. Changing global trade relations will also bring about a major shift in world power relations. This turnaround calls for closer dialogue with the new political actors. Countries like India, South Africa or Brazil will play a growing role in global negotiations, but they will also have to bear their responsibility for solving global problems. As one of the new engines of world economic growth, China above all is not just one of the major trading partners of the countries of the South but also an investor and new donor. With its regional repercussions and its geostrategic significance, the Arab Spring highlights the role of global dialogue. What do these enormous changes mean for international development policy? There is general agreement that development is not possible without growth and a secure environment, but growth alone does not automatically entail development. In the highgrowth emerging nations, many people also live below the poverty line and their basic and human rights are not adequately assured. Socially equitable and ecologically sustainable growth do not come about on their own; they require government mechanisms for the peaceful reconciliation of interests, responsible and effective means of wealth distribution and legal certainty. Three-Year Programme

12 global partnerships Government cannot, however, bring about development on its own. The private sector plays a major role. It is a key factor for creating enough jobs and prosperity through work in keeping with social and environmental standards. Civil society also plays a major part as an engine for social change and an overseer of good governance. Growth is desirable and it is essential in developing countries, but it puts heavier pressure on our natural resources and our environment: While the world population is growing and consumption in developed nations is seemingly limitless, raw materials and land are in shorter supply. Increased CO 2 emissions are also endangering and destabilising the global climate. Natural disasters and increasing water shortages and the resultant food crises threaten whole regions, above all in Sub-Saharan Africa. Many of these factors also prompt or escalate armed conflicts, which have frequent regional impacts and impede development, as detailed in the World Bank s World Development Report The resulting challenges, such as increased migration, but also the adverse consequences, such as human trafficking, organised crime and terrorism, do not keep within national borders. Developing and developed countries are equal partners in global relations. It is in our own self-interest therefore to co-shape global policies that improve conditions in developing countries and avert the adverse consequences of global problems for our country and our citizens. We also see the need, however, to reassess and change our own lifestyle. We can only meet the new challenges together as part of global partnerships, where everyone makes a contribution, such as the Sustainable Development Goals (SDGs) or the EU strategic partnerships at regional level. This also includes in particular an effective global security architecture. Our concern in the implementation of the SDGs is to ensure that particular attention is paid to gender equality and the development and empowerment of women. Poverty reduction in a networked world Since 1989, there has been a great shift in global power relations. At the same time, the World Poverty Map today shows a different geography of poverty than 20 years ago. In 1990, more than 90 per cent of people living under the international poverty line of US$ 1.25/day were located in low-income countries as designated by the World Bank, but over 70 per cent of the poor today live in middle-income nations. Slightly more than a quarter of the poor live in lowincome countries, predominantly in Sub-Saharan Africa. The absolute number of poor people is on the decline: By 2015, the share of people living in poverty will fall to 33 per cent in Asia, especially in India and China. For development cooperation, this means that the sustainable eradication of absolute poverty worldwide remains the foremost goal. Poverty reduction calls for a multidimensional approach that accounts for access to public services, the satisfaction of basic needs and human security, particularly for underprivileged and vulnerable parts of the population. 10 Three-Year Programme

13 global partnerships The poverty gap (the differential to the income threshold of US$ 1.25/day) and the spread of poverty is greatest in low-income countries, where it is particularly difficult to find a way out. This is why our active engagement in these countries remains a primary concern. We align our efforts here with the priorities of our partners, in keeping with the Paris Declaration. Perhaps the greatest challenge for the international community is posed by fragile situations, particularly in low-income countries. About 1.5 billion people, including over 50 per cent of all the poor, suffer from the effects of fragility. For lack of adequate state institutions and due to dysfunctional relations between government and society, they are caught in a poverty trap, which is why no fragile state has been able to achieve one single Millennium Development Goal (MDG). To make progress here, we need a combination of security and development measures and long-term commitment. A third group of countries of development and foreign policy concern to us are the emerging nations. We see them as major active partners for advancing the global development agenda in our mutual interest. Policy dialogue, strategic partnerships and cooperation in economics, science and technology are binding us closer together. Shared interests and values: international commitments, our goals All human beings are born free and equal in dignity and rights. Article 1 of the Universal Declaration of Human Rights of 1948 is part of the universally recognised and only global value consensus on human rights that centres on the dignity of mankind: Development cooperation and policy are bound up in particular measure with this task. By aiming at promoting human rights worldwide, they contribute to implementing equal rights for all. The key to development, according to Nobel prize-winner Amartya Sen, lies in people, in promoting their abilities and opportunities. Austria therefore adopts a human-rights-based approach as a way of contributing to this goal. This is why we support a strong civil society that acts as an advocate for the poorest, margina lised and defenceless people. Unfair power relations must be dismantled and both rights and duties shared equally a development-policy shift towards democracy. The European Union is committed to human rights and democracy. For Austria as an EU member state, the European Consensus for Development from , which clearly embodies this conviction, and the resultant EU Code of Conduct on Division of Labour of provide major action guidelines. Based on the Monterrey commitments, the EU also decided in 2005 on a binding phased plan to raise official development assistance (ODA). Despite the economic and financial crises, Austria is seeking to meet the Monterrey targets. 2 Joint statement by the Council and the representatives of the governments of the Member States meeting within the Council, the European Parliament and the Commission on European Union Development Policy: The European Consensus 2006, LexUriServ/LexUriServ. do?uri=oj:c:2006: 046:0001:0019:EN:PDF 3 EU Code of Conduct on Division of Labour in Development Policy 2007, LexUriServ/LexUriServ.do?uri= COM:2007:0072:FIN:EN:PDF Three-Year Programme

14 global partnerships To manage ODA funds effectively, we need clear objectives. Until the target year 2015, the Millennium Development Goals make up the binding global framework of development-policy activities of the United Nations (UN) and their member states in favour of the developing countries. Meeting them is the primary objective of global development efforts. We are committed to the Millennium Development Goals, but are already pursuing qualitative goals that go beyond them. These include good governance, inclusive and ecologically sustainable economic development as well as more security for all. New post-mdg debate With the expiry of the MDGs in 2015, discussions have already begun at international level on a suitable successor instrument. In September 2011, the UN Secretary General appoint - ed a high-level group of experts which laid some cornerstones for this in its report Realising the Future We Want for All: This must be based on the principles of human rights, equality and sustainability and set specific targets in social and economic development, environmental sustainability and peace and security. Under these general principles, individual, national targets must be defined and implemented. At the same time, it was decided at the Rio+20 Conference to frame the Sustainable Development Goals, comprising economics, social standards and the environment. There is now international agreement that the SDGs and the successor scheme to the MDGs should be drawn up jointly in a coherent way, not separately from each other. 4 RIO+20, United Nations Conference on Sustainable Development, 5 New Deal for Engagement in Fragile States 2011, international%20 dialogue/ pdf Austria therefore also takes active part in the international debate on the universal Sustainable Development Goals. 4 Our concern is that the SDGs take equal account of the three aspects of sustainable development social equity, economic growth and environmental protection. The needs of fragile states are catered for in the Peacebuilding and Statebuilding Goals (PSGs). 5 These perspectives must be aligned with each other and coherently planned. The international community seeks to put its assistance to the most efficient and effective use. General principles for aid effectiveness were set out in Paris in 2005 and further amended in Accra. In Busan in 2011, a Global Partnership for Effective Development Cooperation was constituted, which also involved the new donors (among them China, Brazil and India), civil society, the private sector and the scientific community as strategic donors. From Rome to Busan The first High Level Forum on Aid Effectiveness in Rome in 2003 marked the beginning of a process of renewal in international development cooperation. The donor and developing countries and the multilateral organisations in attendance laid down joint principles for more effective development cooperation. Two years later, a milestone was reached with the Paris Declaration (2005). After the meeting in Accra (2008), the process came to its provisional conclusion in the fourth High Level Forum in Busan in The final document of the forum, the Busan Global Partnership for Effective Development Cooperation, is the outcome of a broad dialogue among all stakeholders. The core principles are: a) Ownership of development priorities by partner countries b) Focus on results c) Inclusive development partnerships of all actors d) Transparency and accountability to each other 12 Three-Year Programme

15 global partnerships We base the implementation framework for our development policy on these principles. The centrepiece is our pledge to raise our ODA share to 0.7 per cent of gross national income (GNI) in the medium term. Development cooperation and humanitarian aid need resources and our aim is to provide these with the limited funds available after the necessary budget cuts. Working with and through the European Union Particularly with our European partners, we are looking to advance development policy goals. With a contribution of EUR 53.3 billion in 2011, the European Union provided more than 50 per cent of all international official development assistance and is the largest donor worldwide. 6 Of this, approx. EUR 11 billion, that is, about 20 per cent, was disbursed by the European Commission. In 2011, Austria also contributed EUR 226 million to common development cooperation. At 28.3 per cent, this makes up the largest portion of Austria s official development assistance. We are therefore keenly interested in co-shaping the development-policy strategy of the EU at global, regional and country level and putting Community funds to the most effective use. 6 Member states and Commission taken together This is why Austria takes active part in planning and implementing the EU development strategy, Agenda for Change, and collaborates in redesigning external aid instruments. In recent years, numerous EU decisions have been taken to improve the effectiveness and efficiency of European development cooperation through greater coordination, division of labour and policy coherence. We now need to put these decisions into practice. Particularly in joint programming, i.e. in the close consultation between the EU Commission and member states with the partner countries in the course of framing country strategies, the EU framework is the guideline for the individual members and priority must be attached to joint action. Via our representatives and commitment both in Brussels and our coordination offices in partner countries, we want to make the best contribution we can. In preparing internal EU policies in other sectors that can have repercussions on development, we shall, however, also work towards drafting positions we advocate. Through more concerted policies together with our EU partners (Policy Coherence for Development PCD), we want to create a better global framework particularly for trade and finance, agriculture, the environment and security and development. The aim is not only to avoid the adverse consequences of policies (do-no-harm) but also to harness beneficial synergies. Three-Year Programme

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17 practice B. Putting development policy into practice In keeping with our international commitments, together with other international donors we, the Austrian ODA actors, want to make a contribution to a world that is worth living in for everyone, where people can lead their lives in peace and liberty. As set out in the Austrian Development Cooperation Act, our foremost goals are combating poverty, ensuring peace and human security, preserving the environment and protecting natural resources. We pursue a development policy committed to human rights and rule of law. We focus on the least developed countries, our European neighbours and countries in fragile situations. In our practical development-policy engagement, we are looking to take our firm place in the donor community and concentrate on the effectiveness and efficiency of aid and issues where Austria has competitive advantages. Our engagement must be visible and above all complement that of the other EU donors in the best possible way. We align our efforts here with the development strategies and priorities of our partner countries, which bear prime responsibility for the welfare of their citizens and are also accountable to them. To accomplish our goals, we shall seek to collaborate even more closely with our Austrian partners. To achieve more for our partner countries wherever possible, we will make joint use of our vocational training and scientific capacities, the know-how of Austrian companies, modern public administration strategies and best practices in Austria s local governments. Federal state development cooperation makes a major contribution to achieving our goals. Involving other actors and instruments also beyond classic ODA will enhance the sustainability of our engagement and keep Austria s contribution visible after the completion of our developmental work. With their dedication and know-how, major partners in these efforts are the Austrian nongovernmental organisations (NGOs). They also make up a major link with the people of Austria whose support and consent we need to be able to pursue our goals. Three-Year Programme

18 practice Our multilateral... For us, the advantages of working via multilateral organisations are: bundling the funds of many donors, the specific know-how of a large pool of experts, opportunities for countercyclical interventions in crises and securing regional and global public goods. Multilateral organisations also provide dialogue platforms, help set standards and strike an equitable balance between the interests of donor and partner countries. By virtue of its foreign policy commitment to multilateralism and its role as a host state to the UN, Austria is particularly involved with the United Nations and its agencies. In its cooperation with the UN and especially the organisations of the UN Development Group, Austria will adhere to its traditional foreign-policy priority of supporting human security and human rights. Besides continuing to support the United Nations funds and programmes through core contributions, we shall also promote projects of organisations that conform with our substantive priorities and have a record of efficient administration. We shall also continue to recruit Austrians for cooperation in the UN and the UN Development Group. Another pillar of Austrian development policy is support for the international financial institutions (IFIs). Besides capital participation in the IFIs, the regular replenishments of their soft windows make an effective developmental contribution by enabling the multilateral funds, such as the International Development Association of the World Bank (IDA) or the African Development Fund (AfDF) and the Asian Development Fund (AsDF) to provide the poorest countries with low-interest loans and subsidies. This way, the IFIs make a decisive multilateral contribution to poverty reduction and to attaining the Millennium Development Goals. Via its representatives in the various supervisory boards of IFIs, Austria can help set substantive priorities and co-decide on their international project activities. A primary concern of ours here in future will be increased monitoring/evaluation of agreed goals and results and their discussion in Austria. Altogether, we shall concentrate our contributions to IFIs where possible on our priority themes. The contents of cooperation with the IFIs are defined more closely in the Strategic Guideline of the Federal Ministry of Finance (FMF).... and our bilateral engagement We are looking to combine the strengths of bilateral development cooperation with our multilateral commitment into an effective whole. We see the specific strengths of bilateral development cooperation primarily in the following: a) Possibility of direct control, discretionary allocation of funds and alignment with people s needs and, with that, also putting the strengths, experience and available know-how in Austria to specific use b) Its special suitability for strengthening bilateral relations with recipient countries and harnessing synergies with foreign policy c) The high visibility it affords Austria both abroad and at home, partly through the participation of a variety of national/local actors, such as NGOs, universities, companies, etc and hence greater identification on the part of the Austrian population d) Its complementarity with the multilateral engagement of the UN and IFIs e) Its own know-how and the fact that it is giving us a voice in the EU 16 Three-Year Programme

19 practice Another major strength of bilateral development cooperation is the instrument of debt relief. For many poor countries, their heavy indebtedness places an enormous obstacle in the way of economic and social development. We shall continue to do our part in debt relief measures, both as part of the Paris Club and also via the debt cancellation initiatives instigated by the World Bank and International Monetary Fund for Heavily Indebted Poor Countries (HIPC) and the Multilateral Debt Relief Initiative (MDRI). Communication is important Information and communication Via extensive information and communication, Austria educates the public about the contents of its development-policy and contributes to raising awareness in the population of the impacts and benefits of development cooperation. Broad access to information also makes a major contribution to transparency. We shall therefore continue to engage in dialogue with the public, the ministries, the NGOs, the private sector, the social partners, the scientific community and development cooperation representatives of the federal states, parliament and the media. In the international setting, we will also seek to communicate and exchange experience with our partners and other development actors. Development education Global learning Development education in Austria fosters awareness in the population. The EU and many of its member states have mainstreamed the notion of global learning in their development and educational systems. Since 2004, Austria has, for example, been engaged in a strategic partnership for global learning in the formal and non-formal education sector (Austrian Strategy Group for Global Education) in which universities and civil society also play a part. Global learning seeks to help children, youth and adults to gain an understanding of the increasingly complex developments and recognise their own responsibility for global society. Global learning is for us an essential contribution to modern general education, for a more aware and committed population that supports the concerns of development cooperation in an informed way. Three-Year Programme

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