Strategy for Iceland s International Development Cooperation, 2011 2014

Strategy for Iceland s International Development Cooperation, 2011 2014 Table of Contents Abbreviations... 2 1. The foundations of Iceland s international development cooperation... 4 2. Iceland s international development cooperation... 5 2.1. Values and focus areas... 5 2.2. Official Development Assistance (ODA)... 7 2.3. Multilateral and bilateral cooperation... 7 2.4. Cooperation with NGOs.... 8 3. Implementation... 10 3.1. Emphasis and priority sectors... 12 3.2. Cross-cutting themes... 15 3.3. Humanitarian and emergency assistance... 17 3.4. Countries and regional cooperation.... 18 3.5. Organisations... 20 4. International cooperation and criteria... 22 5. Strategic planning, internal and external work... 24

2 Abbreviations CEDAW CERF DAC EU ESMAP FAO GEST GNI ICEIDA ICRU IDA ILO IRENA ISAF LDCs MDGs MFA NDF NGO OCHA ODA OECD PROFISH UN UNCCD UNCLS UNDP UNESCO UNFCCC UNFPA UNHCR UNICEF UNIFEM UNRWA UNU UNU-FTP UNU-GTP UNU-LRT UN Women Convention on the Elimination of All Forms of Discrimination against Women United Nations Central Emergency Relief Fund Development Assistance Committee European Union Energy Sector Management Assistance Programme Food and Agriculture Organisation of the United Nations Gender Equality Studies and Training Programme Gross National Income Icelandic International Development Agency Iceland Crisis Response Unit International Development Association International Labor Organisation International Renewable Energy Agency International Security Assistance Force Least Developed Countries Millennium Development Goals Ministry for Foreign Affairs Nordic Development Fund Non Governmental Organisation United Nations Office for the Coordination of Humanitarian Affairs Official Development Assistance Organisation for Economic Cooperation and Development Global Programme on Fisheries United Nations UN Convention to Combat Desertification Convention on the Law of the Sea United Nations Development Programme United Nations Educational, Scientific and Cultural Organisation UN Framework Convention on Climate Change United Nations Population Fund Office of the United Nations High Commissioner for Refugees United Nations Childrens Fund United Nations Development Fund for Women The United Nations Relief and Works Agency for Palestine Refugees in the Near East United Nations University United Nations University Fisheries Training Programme United Nations University Geothermal Training Programme United Nations University Land Restoration Programme United Nations Entity for Gender Equality and the Empowerment of Women

3 MFA WFP WHO WTO Ministry for Foreign Affairs of Iceland World Food Programme World Health Organisation World Trade Organisation

4 1. The foundations of Iceland s international development cooperation The overarching objective of Iceland s international development cooperation is contributing to the fight against poverty and working towards improved living conditions in Least Developed Countries. Iceland s active participation in development cooperation, furthermore, represents an acknowledgement of its political and ethical responsibilities as a responsible member of the international community. Decisions on Official Development Assistance carry significant responsibility towards recipients and Icelandic taxpayers. Adhering to a professional, and systematic, approach is necessary for optimum outcomes and ensuring that development cooperation renders sustainable results. Furthermore, it is important that the allocation of ODA complies with strict requirements of transparency, efficiency and integrity. Iceland s Strategy for International Development Cooperation 2011-2014 was prepared on the basis of Act no. 121/2008 on Iceland s International Development Cooperation, which entered into force on October 1, 2008; Article 3 of the Act reads as follows: Every two years the Minister shall submit a proposal for a parliamentary resolution concerning the Icelandic Government s Strategy for International Development Cooperation for a four-year period. The Programme shall cover all contributions to international development cooperation and how they are divided between Iceland s long- and short-term policy objectives. Furthermore, the Strategy shall include a comprehensive overview of how the Minister intends to achieve its goals. The Strategy shall, inter alia, specify the percentage of the Gross National Income that is planned to be allocated to Official Development Assistance (ODA). International development cooperation is an integral part of Iceland s foreign policy. The Strategy for International Development Cooperation focuses on the promotion of human rights and gender equality, peace and security, as well as the fight against poverty, social injustice, disparity in living conditions and hunger. It furthermore attempts to ensure internal coherence in Iceland s foreign policy with regards to global economic, environmental and security matters. Iceland s membership of the United Nations is the main foundation for its international development cooperation. As a sovereign state in the community of nations, Iceland participates in UN activities in support of the UN charter. The United Nations Millennium Declaration, approved by the UN General Assembly in 2000, states that the fundamental values of international relations in the 21 st century are freedom, equality, solidarity, tolerance, respect for nature and shared responsibility. The Declaration states that the nations of the world will strive for peace and security and join forces in the fight against poverty. It is resolved to make the United Nations more effective in resolution of disputes, post conflict reconstruction and peacekeeping. Furthermore, the Declaration addresses issues that are crucial to promote social and economic UN Millennium Development Goals 1. Eradicate extreme poverty and hunger. 2. Achieve universal primary education. 3. Promote gender equality and empower women. 4. Reduce child mortality. 5. Improve maternal health. 6. Combat HIV/AIDS, malaria and other diseases. 7. Ensure environmental sustainability. 8. Develop a global partnership for development.

5 development as well as prosperity. The Declaration is the foundation for the Millennium Development Goals, the internationally agreed targets for international development cooperation, to be achieved by 2015. Based on the above, and with reference to Article 1 of the Act on Iceland s International Development Cooperation, this Strategy forms a comprehensive outline of Iceland s participation in international development cooperation, peace-keeping and post conflict reconstruction, humanitarian and emergency assistance. The Monterrey Consensus on Financing for Development was the conclusion of a UN conference in 2002 and codifies the mutual commitments and responsibilities of states that engage in official development assistance: donors will increase their aid allocations to developing countries, development agencies will enhance their efficiency through increased coordination of their actions, and recipients will promote reforms and improved governance in public administration and the implementation of development projects. In addition to the above, Iceland has ratified a number of UN conventions and agreements which entail obligations that are significant for this Strategy, including the human rights conventions, the Convention on the Rights of the Child, the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), the Convention to Combat Desertification, the Convention on the Law of the Sea and the Framework Convention on Climate Change. 2. Iceland s international development cooperation 2.1. Values and focus areas International development planning and policy formulation reflects viewpoints which are based on a wealth of experience that has been amassed over time. Experience has shown that although similar methods can be applied from one country to the next, local conditions and circumstances, which differ from one country to another, must always be taken into account. The emphasis is on support for the LDCs and for poor people in countries where there is significant disparity in living conditions. Partnerships for peace and reconstruction in conflict-affected communities is also an important element of development cooperation. Furthermore, a focus is put on fragile and conflict-affected states with weak capacity and governance. Icelandic development cooperation reflects values that Icelandic society holds high: respect for democracy and human rights, human diversity, tolerance, justice and solidarity. Accordingly, Iceland s development cooperation emphasises the following: i. Responsibility to be guided by accountability and transparency in development activities and share responsibility for execution and results with our partners. ii. Results all aspects of implementing development programmes administration, procedures and methodology should contribute to maximising the effectiveness of development cooperation. iii. Reliability earning international respect through professionalism and integrity as a partner in development cooperation. Iceland s objective in its international development efforts is to support poverty reduction strategies of partner countries, emphasising sustainable development and

6 the development of human capital. Special emphasis is placed on human rights, gender equality, peace, security and activities that can draw on Icelandic expertise and experience. The Millennium Development Goals and international agreements on development cooperation to which Iceland is a party, represent the guidelines for Iceland s development cooperation. Efforts are made to ensure recipients ownership of projects and programmes. This contributes to lasting results, and communities carry the responsibilities of their own development. Furthermore, efforts are made to promote mutual understanding and solidarity between Iceland and the developing countries through increased relations, including cultural exchange and trade. The principal points of emphasis of Iceland s development cooperation will be the following: i. In the Icelandic International Development Agency s (ICEIDA s) bilateral development cooperation, emphasis will be placed on three LDCs in Africa, where ICEIDA has experience: Malawi, Mozambique and Uganda. In addition, assistance will be provided to regional cooperation, with special emphasis on the sustainable utilisation of natural resources. ii. Peace-building will include contributions to international organisations and the work of Icelandic experts in two countries, which are important to international peace and security: Afghanistan and Palestine. 1 iii. iv. Multilateral development cooperation will focus on four organisations which are of particular importance to the priorities of this Strategy: the World Bank Group, the United Nations Children s Fund (UNICEF), the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women) and the United Nations University (UNU). Humanitarian and emergency assistance will continue to be an important factor in Iceland s international development efforts, primarily in collaboration with the United Nations Office for the Coordination of Humanitarian Affairs (OCHA), the United Nations Central Emergency Relief Fund (CERF), the United Nations World Food Programme (WFP), and non-governmental organisations. v. A concerted effort will be made to coordinate the work of the entities that manage Iceland s Official Development Assistance and enhance the harmonisation of bilateral and multilateral development cooperation. vi. Collaboration with non-governmental organisations will be strengthened further, both in the fields of international development and humanitarian and emergency assistance. vii. Increased public awareness and discourse about developing countries and the implementation of Iceland s international development strategy will be promoted, e.g., through publications, conferences and education. 1 Palestine refers to the occupied Palestinian territories (opt), Gaza and the West Bank, including East Jerusalem.

7 2.2. Official Development Assistance (ODA) Iceland is committed to the UN target, to which the developed countries have pledged to allocate 0.7% of their gross national income (GNI) to official development assistance. Based on UN General Assembly resolutions dating back to 1970 and the UN Consensus on Financing for Development adopted in Monterrey in 2002 and in Doha 2008, this Strategy introduces a schedule for bringing Iceland into the ranks of those states that contribute more than 0.7% of their GNI to ODA within the next 8 years. Iceland s neighbouring countries, Norway, Sweden and Denmark, in addition to the Netherlands and Luxembourg, have all allocated at least 0.7% of their GNI to development cooperation for a number of years. Several other countries have set time-bound schedules to achieve the 0.7% target, including the EU Member States, which intend to achieve the collective target of 0.7% of GNI by 2015. Iceland s contributions to development cooperation have increased significantly in recent years, reaching ISK 4.3 billion, or 0.36% of GNI in 2008. However, following the economic crisis it was unavoidable to reduce all state expenditures, including contributions to development cooperation. According to budget projections, ODA in 2011 will correspond to 0.21% of GNI, and then grow gradually to 0.28% of GNI 2 in 2014, as shown in the table above. During the revision of the Projection GNI (ISK million) Proportion of GNI (%) ODA (ISK million) 2005 989,764 0.17 1.728 2006 1,100,397 0.26 2.895 2007 1,236,756 0.25 3.037 2008 1,196,403 0.36 4.277 2009 1,344,632 0.32 4.261 2010 1,367,001 0.23 3.238 2011 1,342,565 0.21 2.765 2012 1,468,071 0.21 3.083 2013 1,538,568 0.25 3.846 International Development Cooperation Strategy in 2013 increases in ODA will be accelerated so as to reach 0.5% of GNI in 2017 and 0.7% in 2019. This schedule is based on current forecasts of economic growth. Should economic growth prove stronger than projected, budget appropriations to ODA will be reviewed. 2014 1,657,441 0.28 4.640 2.3. Multilateral and bilateral cooperation Bilateral and multilateral development operations are complementary and closely linked, both in strategic planning and work in the field. 3 The comprehensive framework for international development cooperation, established by the Act on Iceland s International Development Cooperation, laid the foundation for forging closer links between bilateral and multilateral development. In this way the 2 GNI pursuant to figures from Statistics Iceland. 3 Contributions to international organisations which are earmarked for specific states or delimited projects are termed multi-bilateral contributions and are classified as bilateral contributions in DAC statistics.

8 accumulated experience of bilateral development cooperation can complement Iceland s participation within international bodies, and vice versa, resulting in an overall strengthening of Iceland s contribution to international development. The public administration is responsible for the overall effectiveness of development cooperation. Results, efficiency, and conscientious professionalism are key factors in the decision-making process on the allocation of ODA. Periodic monitoring and evaluation of implementing agencies and their programmes are a prerequisite for such decisions. The same applies to collaboration with NGOs, contributions to international organisations and/or bilateral projects undertaken by ICEIDA. The Act establishes a comprehensive approach to all Icelandic international development efforts, which entails the requirement that all of Iceland s development cooperation should be judged by the same criteria to the extent possible. To this end it is important to apply clear working processes in the conduct of external reviews and disclosure of information, which both contribute to enhanced transparency in development cooperation. 2.4. Cooperation with NGOs. NGOs are important participants in development cooperation as well as in humanitarian and emergency assistance. Their strength is often their closeness to the grass roots in the recipient communities and they play an important advocacy role for vulnerable communities. Support for NGOs therefore serves to strengthen grassroots and reinforce democracy. Approximately 5% of Icelandic ODA is allocated to projects implemented by NGOs. Cooperation with NGOs will be strengthened in the coming years and accordingly a separate item in the State Budget will be dedicated to such cooperation as of 2012. Cooperation between the authorities and NGOs will furthermore be simplified by joint working procedures and a single application process for all projects, whether it be humanitarian and emergency assistance carried out with the MFA or development projects carried out in partnership with ICEIDA. In addition, ICEIDA will continue its focus on partnerships with local NGOs in Iceland s partner countries, where the same working procedures will be observed as in the cooperation between Icelandic and international NGOs. The authorities also aim to use framework agreements as one of the underpinnings of collaboration with NGOs in the future. In 2011, allocations to new projects implemented by NGOs will derive exclusively from the Ministry for Foreign Affairs, but as of 2012 they will be itemised separately in the State Budget, as outlined earlier. Emergency assistance in the wake of natural catastrophes and other events calling for immediate action will, as before, be paid out of the State Budget under humanitarian and emergency assistance, including allocations to NGOs. The principal points of emphasis as regards Iceland s ODA will be the following: Premises Focus Actions UN 0.7% goal The UN General Assembly has agreed that 0.7% of GNI of developed countries should be allocated to development cooperation. Most developed countries have established a time-bound schedule to reach the 0.7% target. The Nordic countries are among the most generous in the world and Iceland is committed to the 0.7% target. Iceland to become one of the countries with proportionally the highest contributions to international development cooperation. A time-bound schedule will be followed to increase ODA during the effective term of this Strategy from 0.21% to 0.28% of GNI in 2011-2014. The increases in ODA will be accelerated when this Strategy is reviewed in 2013. By 2019, 0.7% of GNI should be allocated to ODA.

9 place great emphasis on the 0.7% target in their international development policies. Budget The objective of the Act on Iceland s International Development Cooperation is to enhance the role of the Althingi in discussions on international development cooperation. Improved transparency in discussions and planning on international development cooperation. Prioritisation pursuant to the International Development Cooperation Strategy will be reflected in the State Budget. Improve efficiency and results of international development efforts through more focused planning. Separate item for cooperation with NGOs in the 2012 State Budget. Separate item for the UNU Land Restoration Training Programme in the 2012 State Budget. Separate item for cooperation with the World Bank in the 2012 State Budget. Separate item for environmental and climate related issues in the 2012 State Budget. The following plan for the division of ODA is based on the experience of recent years, including external reviews of ICEIDA projects and the work of the international organisations that Iceland partners with. The general division of ODA will continue to follow the previous division. Plan for the division of ODA by State Budget items:

10 2011 2012 2013 2014 (ISK (%) (ISK (%) (ISK (%) (ISK (%) million) million) million) million) ICEIDA 1.166,3 42 1.234 40 1.539 40 1.856 40 Ministry for Foreign Affairs 1.599,0 58 1.670 54 2.038 53 2.413 52 Of which: UNU Geothermal Training Programme 187,7 7 199 6 FAO 11,0 0 11 0 UNDP 22,1 1 23 1 UNICEF 112,4 4 122 4 UNU Fisheries Training Programme 147,3 5 158 5 UN Women 102,0 4 117 4 Humanitarian and emergency assistance 221,4 8 173 6 The Icelandic Crisis Response Unit 115,8 4 144 5 Development aid, other 353,3 13 169 5 Debt Relief for developing countries 20,0 1 - - The World Bank - - 135 4 UNU Land Restoration Training Programme - - 68 2 Environmental and climate affairs - - 60 2 UN (general contr., int. peace-keeping, ILO, WHO) 56,0 2 56 2 Capital contributions (IDA, NDF) 250,0 9 230 8 Collaboration with NGOs - - 179 6 269 7 371 8 TOTAL 2.765,3 100 3.083 100 3.846 100 4.640 100 Ratio of GNI 0,21% 0,21% 0,25% 0,28% 3. Implementation This Strategy calls for a sharper focus and clearer prioritisation in Iceland s development cooperation on the basis of sustainable development. The main emphasis will be on three areas: natural resources, human capital and peace-building, as well as on two cross-cutting themes: gender equality and environmental sustainability. Geographically, the focus will be on five countries: Afghanistan, Malawi, Mozambique, Palestine and Uganda. Four international organisations are identified as key organisations in multilateral development cooperation: The World

Implementation Policy 11 Bank Group, UNICEF, UN Women and the UNU. Humanitarian and emergency assistance will, as before, be an important element of Iceland s international development cooperation, with special emphasis on OCHA, CERF and WFP. MFA Natural Resources energy fisheries Human Capital education health Peacebuilding good governance reconstruction Humanitarian Assistance Gender equality / Environment MFA ICEIDA MFA Multilateral cooperation World Bank UNICEF Bilateral cooperation Malawi Mozambique WFP OCHA CERF UN WOMEN UNU Afghanistan Palestine* Uganda NGOs NGOs In recent years approximately 75% of allocations earmarked for specific issues have fallen within the framework of the priority areas and cross-cutting themes emphasised in this Strategy. In the implementation of the Strategy, this will represent the minimum proportion to be allocated to the priority areas; in addition, there will be a maximum of two focus areas in each partner country. Allocations and projects that fall outside the priority areas will support the general areas of focus and goals of the Strategy, or be projects which Iceland considers important to support, such as the resettlement of refugees in Iceland and debt relief for developing countries. This represents an attempt to improve the efficiency and effectiveness of Iceland s development cooperation and direct the work towards a course which combines the expertise and experience available in Iceland with the needs of Iceland s development partners.

12 3.1. Emphasis and priority sectors Natural resources The sustainable use of natural resources is one of the main prerequisites of economic progress in developing countries. Progress in fisheries 4 is of particular importance to improve livelihoods in many developing countries. Improved management of fish stocks and improved handling of catches, together with an increase in the supply of fish from fish farming and aquaculture, should improve the food security of the communities in question and create a basis for increased export revenues. The development and implementation of fisheries management programmes based on scientific advice is also important to help developing countries adapt to the effects of climate change. Fisheries have proved to be a challenge for many developing countries. The sector has been at the core of Iceland s bilateral development efforts since its inception, as a result of requests from developing countries for cooperation in an area where Iceland possesses both expertise and experience. Iceland has built up significant knowledge of development cooperation in the fisheries sector through the years, and today the fisheries sector is included in both bilateral and multilateral cooperation. The Reykjavík Declaration on Responsible Fisheries in the Marine Ecosystem of 2001 emphasised the importance of development cooperation in the fisheries sector. At the UN Summit on Sustainable Development in the following year, development agencies focus on fisheries was sharpened, which resulted in greater attention to the fisheries sector in recent years. With the above in mind, Iceland will continue to play an active role in this field. Energy is highly important for the achievement of the Millennium Development Goals. UNDP has pointed out that the goals will be impossible to achieve without greater access to energy for the poor. According to UNDP, approximately 1.6 million people live without electricity, and about two billion people meet their energy needs using primitive methods such as burning wood and biomass. The use of these substances for household heating and cooking causes pollution which often has particularly severe consequences for women. It is important to support developing countries in meeting their energy needs through the use of clean and renewable energy resources where possible and thereby limit the impact increased energy production can have on the release of greenhouse gasses. Energy has been a growing area of focus in Iceland s development cooperation in recent years, while before the work of the UNU Geothermal Training Programme (UNU-GTP) represented Iceland s principal involvement in the energy sector. Iceland s role in this area will be expanded still further, both on a bilateral and multilateral basis concurrently with the strong efforts of the UNU-GTP. Human capital The social capital inherent in the population is a major pillar of any society. Increased education, improved health and gender equality broaden the opportunities for people to participate in creating wealth and welfare for their communities and thereby promote increased economic growth and social progress. Five of the eight Millennium Development Goals relate to education and health. Reports on the MDGs show that progress towards the goals has been uneven. Positive 4 Fisheries is used as a collective term for fisheries management, marine and freshwater fishing, fish processing and handling, fish farming and aquaculture.

13 results have e.g. been achieved in increasing children s education, and infant mortality was reduced by almost 30% between 1990 and 2007. Nevertheless, much work remains to be done. For example, 72 million children still do not attend school, and the goal of equal schooling for girls and boys before 2005 was not achieved. The poorest results have been in the field of maternal health. Every year, more than half a million women and girls die as a result of pregnancy or childbirth. It is estimated that the reduction in maternal mortality was a mere 6% between 1990 and 2005. Weak health service and health care remain among the principal problems in LDCs. Health will therefore remain an important part of Iceland s development cooperation. Special emphasis will be placed on basic services, hygiene and improved maternal and infant care. In spite of significant improvements in children s access to primary education much still remains to be done to achieve the MDGs. The drop-out rate for primary school students remains high, and the same goes for adult illiteracy. Education will therefore also remain a key component of Iceland s development cooperation. The emphasis will be on children s education and adult training, in addition to building up professional expertise in the focus areas. Peace-building Peace, security and development are closely interlinked. A peaceful environment is a prerequisite for long-term development and economic growth. Conversely, weak governance, stagnation and uncertainty can give rise to conflict. Armed conflict and instability can have an impact far beyond any borders, e.g. through the increased spread of diseases, organised crime and terrorist activities, with migration and flow of refugees. The basic preconditions for peace in conflict-affected countries are good governance and reconstruction based on economic and social development. Good governance includes, but is not limited to public confidence in the rule of law, respect for human rights and responsible and transparent public administration. Peace-building is a fundamental component of UN activities and a sector which Iceland supports in a number of ways. In addition to contributions to UN international peace-keeping, 5 Iceland s participation in crisis management and peace-building includes secondment of civilian experts to the field in conflict-affected countries. In recent years understanding of the importance of, and willingness to participate in, civilian reconstruction in post conflict countries has increased. This emphasis is well suited for Iceland, as all Icelandic personnel are civilians. The condition for Iceland s participation in peace-keeping tasks is that the work must be carried out under the auspices of, or under a mandate from, the United Nations. Iceland s contribution to crisis management consists of the work of specialists for international organisations. The main focus is on assistance to vulnerable groups, such as refugees and children, emergency relief, coordination of post conflict reconstruction and governance with emphasis on the implementation of UN Security Council resolutions on women, peace and security. 5 6% of the annual contributions to UN peace-keeping is counted as development assistance according to DAC criteria.

Human capital Natural resources 14 Premises Objectives Actions Fisheries Progress in fisheries is an important factor for economic development and a tool for reaching the MDG of eradicating hunger. Enhance food security and improve living conditions in the developing countries through sustainable fisheries, improved utilisation of catches and progress in fish farming and aquaculture. Icelandic expertise and experience of fisheries put to use in the interests of developing countries. Active participation in the policymaking of international organisations on fisheries. Emphasis on work with FAO and the World Bank. ICEIDA will focus on fisheries in Mozambique and Uganda. Working Group on fisheries established by MFA and ICEIDA. Active work by the UNU Fisheries Training Programme in Iceland. The Programme as an integral part of Iceland s comprehensive strategy in this policy area. Energy Necessary to meet the energy needs of developing countries to reach the MDGs. Living conditions and health of people in developing countries will improve with increased use of renewable energy resources. Increase use of renewable energy resources in developing countries. Icelandic expertise and experience of renewable energy sources put to use in the interests of developing countries. Active participation in the policymaking of international organisations on energy. Promotion of increased investment by states and development agencies in geothermal energy for the benefit of developing countries. Emphasis on the UN, World Bank, Nordic Development Fund and IRENA. ICEIDA to work on energy matters in bilateral and regional cooperation. Working Group on energy established by MFA and ICEIDA. Active work by UNU Geothermal Training Programme in Iceland. The Programme as an integral part of Iceland s comprehensive strategy in this policy area. Education Education is the foundation of development. The second MDG emphasises the importance of primary school education. The third MDG emphasises girls and boys equal access to education. Improve primary schooling for children and adults in developing countries. Strengthen professionalism in areas based on Icelandic expertise. Promote gender equality and empowerment of women through education and training. Special emphasis on education and adult education in ICEIDA s partner countries. Cooperation with NGOs in the field of education. UNU activities in the fields of fisheries, energy and land restoration. UN Women and UNICEF as key partner organisations to promote increased education of girls and women.

Peace 15 Health Three of eight MDGs concern improved health, with special emphasis on mothers and children. Improve primary health services in developing countries. Emphasis on women's and children's health. ICEIDA will focus on health and sanitation in Malawi and Uganda, especially maternal and infant health. Collaboration with NGOs in the field of health. Collaboration with UN Women, which promotes improved health of girls and women. Participation in Nordic cooperation on the importance of sexual and reproductive health and rights. Emphasis on children s health through cooperation with UNICEF. Governance UN Millennium Declaration emphasises improved governance and support for democracy and human rights. Improved governance contributes to economic and social progress. Special emphasis on the campaign to combat violence against women in the UN Millennium Declaration. Promote peace in conflictaffected developing countries through support for improved governance. Improve the rights and position of women in conflict-affected countries. Support for UN Women s programmes on the Balkan Peninsula, Afghanistan and Palestine. Implement the National Action Plan on women, peace and security. Enrolment of experts from conflict-affected countries at the Gender Equality Studies and Training Programme. Support for humanitarian work of the International Committee of the Red Cross. Reconstruction Post conflict reconstruction is a key component in promoting stability. Important that post-conflict reconstruction goes hand in hand with peace-building. Vast majority of victims of abuse in conflict affected countries are women and children. Participation in reconstruction in conflict-affected countries. Contribution to improved coordination of reconstruction activities in conflict-affected countries. Promotion of better conditions for women, children and refugees in conflict-affected countries. Contribution to the coordination of post conflict reconstruction in Afghanistan. Support for Palestinian refugees through contributions to the UN (UNRWA/UNHCR). Support for the coordination of humanitarian action in Palestine in partnership with OCHA. Support for the projects of UN Women and UNICEF. 3.2. Cross-cutting themes Gender equality and environmental sustainability are cross-cutting themes in this Strategy, and all development cooperation should take these viewpoints into consideration. Experience has shown that assistance which is based on equal rights of women and men results in more effective development programmes. Projects which are based on the participation of both men and women and take the interests of both genders into account are more likely to generate sustainable results. Improving the position of women and increasing equality in international cooperation are also separate goals to be worked on through mainstreaming gender equality in official development assistance. Mainstreaming entails that equal rights constitute a guideline in policymaking, strategic planning, project preparation and implementation in the field, as well as in work within international organisations. UN Security Council resolutions on women, peace and security are also an important foundation for Iceland s participation in peace-building and post conflict reconstruction. 6 6 Resolutions No. 1325, 1820, 1888 and 1889.

16 It is important for both women and men to have equal opportunities for influencing, participating in and benefiting from Iceland s development cooperation. The government s policy on gender budgeting will also serve as a guideline in international development efforts. External reviews should specifically assess the effectiveness of policies and programmes, with regards to gender equality. Furthermore, emphasis will be placed on achieving gender equality among the personnel engaging in development cooperation, both in the field and in headquarters. A comprehensive gender equality policy will be adopted for development cooperation which will take into account the review of ICEIDA s policy from 2004. Iceland s development cooperation is based on the principles of environmental sustainability, which means that development should meet the needs of the present without compromising the ability of future generations to meet their own needs. The Millennium Development Goals emphasise that the resources of the earth should not be depleted in an unsustainable manner. Environmental sustainability is therefore a criterion in all Iceland s development cooperation, although it carries the greatest weight in projects that relate to the utilisation of natural resources. An environmental policy will be formulated for Iceland s development cooperation based on the government s comprehensive environmental policy and it will reflect international resolutions relating to development cooperation, including the conclusions of the UN Conference on Environment and Development in Rio de Janeiro and the Conference on Sustainable Development in Johannesburg in 2002. Climate change resulting from human causes has serious consequences for living conditions on earth. If there is no response to this trend, future generations will not retain the same living standards as the present generations. Climatic changes that bring about natural disasters, e.g. as a result of abnormal draughts or floods, are particularly difficult for developing countries. At the UN Climate Change Conference held in Cancun in December 2010, an agreement was concluded to provide the developing countries with fast start finance for enhanced action on mitigation, adaptation, technology development and transfer as well as capacity building in relation to climate change. There, developed countries committed themselves to contribute USD 30 billion to development cooperation in the area of climate change for the period 2010-2012. The Icelandic government will participate in this agreement through a special contribution during this period. The contribution will constitute a net addition to current ODA, and for this reason a separate item will be included on environmental and climatic matters in the State budget as of 2012. Gender equality and environmental sustainability will be mainstreamed into Iceland s development cooperation as follows: Premises Objectives Actions Gender equality Assistance to women contributes to more effective development cooperation Assistance that is based on gender equality reinforces the progress towards the MDGs. Women and children are the vast majority of victims of abuse in conflict-affected countries. The Millennium Declaration emphasises the implementation of the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), Mainstreaming gender equality into all development projects. Promote the implementation of UN Security Council resolutions on women, peace and security. Implement Action Plan on UN Security Council Resolution 1325. Observation of gender budgeting in development cooperation. Increase the weight of gender equality in policymaking and projects of international organisations. Working Group on gender equality established by MFA and ICEIDA. Preparation of a gender equality policy based on revision of ICEIDA s policy. Completed: January 2012. Review of the National Action Plan on women, peace and security. Completed: March 2011. Support the pilot project on Gender Equality Studies and Training Programme (GEST) External reviews of development projects will specifically assess

17 gender mainstreaming. Gender equality among development cooperation personnel. Systematic work on gender equality issues and implementation of UN Security Council resolutions on women, peace and security in international organisations. Environment Environmental sustainability is one of the MDGs. The UN Convention on Climate Change entails increased development cooperation. Iceland has extensive knowledge and experience of renewable energy sources. Extensive knowledge and experience of utilising geothermal energy, ecological restoration and sustainable land use. UN resolutions on environment and sustainable development, 1992 and 2002. Iceland to participate in international actions to assist developing countries in adapting to and mitigating the effects of climate change. Icelandic technical expertise to promote the MDG on sustainable development. Formulation of environmental policy in development cooperation. Completed: April 2012. Separate item on environmental and climate change issues in the 2012 State Budget. Environmental sustainability specifically addressed in the preparation and implementation of development projects. Active participation in the work of international organisations in the field of renewable energy. Active work by UNU Geothermal and Land Restoration Training Programmes. Contribution to a fund under the UNFCCC. Support for small island developing states in adapting to and mitigating the effects of climate change. 3.3. Humanitarian and emergency assistance Iceland s humanitarian and emergency assistance is designed to safeguard human lives and reduce suffering in crisis situations. As in the case of projects that contribute to long-term reconstruction and development, it is important to provide humanitarian and emergency assistance through efficient, responsible and coordinated actions. Iceland s assistance in this field is based on eventual emerging needs. The assistance is provided through NGOs and UN agencies and funds. Three UN agencies have the largest role in this field: WPF, which operates in the main disaster areas in the world, CERF, which enables the organisation to respond quickly in cases of sudden disasters, and OCHA, which coordinates actions. NGOs also play a key role in humanitarian and emergency operations; collaboration with NGOs is subject to specific rules of procedure, as recounted above. The year 2003 saw the launch of an international Good Humanitarian Donorship initiative under which donors observe procedures and criteria designed to ensure coherent and effective assistance. The emphasis is on respect for human rights, humanitarian law and refugee law when providing humanitarian aid, on supporting and promoting UN s unique leadership role in humanitarian action and on recognising the key role of NGOs, in particular the International Red Cross and Red Crescent Movement. It is also emphasised that states supporting humanitarian action by the UN should strive towards more timely funding The Icelandic government supports the areas of focus of the Good Humanitarian Donorship initiative. Reforms have been made in the arrangement of humanitarian and emergency assistance provided by the Ministry for Foreign Affairs. More stringent requirements are made for the programmes supported, e.g. in terms of preparation, planning as well as monitoring and evaluation, adaptation to the needs of beneficiaries and fiduciary requirements.

18 Premises Objectives Actions OCHA Iceland s knowledge and experience of working with OCHA, including the work of experts seconded by the MFA Careful coordination of actions is the foundation for effective humanitarian and emergency assistance. OCHA s role has been strengthened in recent years. Strive for enhanced effectiveness of emergency assistance through wellcoordinated actions. Regular contributions to OCHA. Special contributions in the event of unanticipated need. Short-term work of seconded experts by the MFA to OCHA in the field. Active participation in the policy work of the Nordic countries on UN emergency assistance. CERF Rapid response to sudden crises is a prerequisite to save human lives. The UN operates in most countries of the world and is a key player in crisis response. Enable the UN to respond rapidly to sudden crises. Regular contributions to CERF. Active participation in the policy work of the Nordic countries on UN emergency assistance. WFP Iceland s knowledge and experience of working with WFP. Seconded experts by the MFA to WFP. Largest provider of food aid in the world. Activities in all the main crisis areas in the world. WFP plays a key part in progressing towards the MDG of hunger eradication. WFP has a clear and well-defined role. Experience gained from training Icelandic experts by WFP. WFP to be enabled to provide food assistance in crisis areas in an efficient and effective manner. WFP to continue to play a key role in the progress towards the MDGs. Contributions to WFP crisis responses where the need arises. Short-term work of seconded experts by the MFA to WFP in the field. Active participation in the policy work of the Nordic countries on WFP. NGOs NGOs are an important partner in carrying out humanitarian and emergency assistance. Vigorous activities of NGOs in Iceland and their active participation in the work of international organisations. Strong grassroots and assistance to the most vulnerable groups. Promote more efficient emergency assistance through support to the actors who are best suited to provide assistance at any given time. Separate item for cooperation with NGOs in the State Budget as of 2012. Current operational procedures for applications and grants enforced. Review of operational procedures. Completed: August 2012 International initiative on Good Humanitarian Donorship Group International criteria and procedures to strengthen and increase the effectiveness of humanitarian aid. Iceland s humanitarian aid to yield maximum results and to be supplied to those who are in the greatest need. Iceland to become a party to the Good Humanitarian Donorship Group within two years. Work will be organised pursuant to the procedures and criteria of the Initiative as of 2012. 3.4. Countries and regional cooperation. Iceland will focus on assistance to the countries and regions where poverty and need are greatest. Afghanistan, Malawi, Mozambique and Uganda all figure among the Least Developed Countries, and there is great need for economic and social assistance in Palestine. The conditions in these countries are difficult yet different, and some are fragile and conflict-affected. Palestine Uganda Malawi Afghanistan Mozambique UN Human Development Index (rank)... 143 153 155 165

19 Life expectancy (years) 73.9 54.1 54.6 44.6 48.4 Infant mortality (< 5 years per 1000) 27 135 100 257 130 Literacy (%, older than 15 yrs) 94.1 74.6 72.8... 54 Proportion of population without water (%) 9 33 20 52 53 Source: UNDP Human Development Report (HDR) 2010 There is greater economic and political stability in Malawi, Mozambique and Uganda than in Afghanistan and Palestine, where the progress of post conflict reconstruction is impacted by the difficult security conditions and political situation. Assistance to the three African countries is based on the reasoning that the need for assistance is great and ICEIDA has long-standing experience in all of them. Since the situation in these countries is relatively stable, the cooperation can be based on longterm plans which are prepared and implemented in collaboration with the respective governments. Country Strategy Plans will be drawn up, where Iceland s assistance will be based on the focus and needs of the partner countries, as stated in their respective Poverty Reduction Strategy Papers. Implementation will be based on the Act on Iceland s International Development Cooperation, which enables ICEIDA to address its tasks using the most suitable approaches in each case, e.g. programme based approaches and joint funding in cooperation with other donors. Emphasis will be placed on observing best practice in international development cooperation. In selecting tasks, ICEIDA will emphasise that mutual accountability, competence to deliver assistance and absorptive capacity are fundamental to sustainability and development effectiveness. As regards Afghanistan and Palestine, Plans of Action will take account of changing needs as the situation develops. In these countries Iceland does not have a permanent presence. For this reason, the assistance will be granted in cooperation with international organisations by channelling contributions to joint funds or individual projects undertaken by these organisations and through secondment of Icelandic experts to the field. The focus on these countries will not exclude the possibility of undertaking projects that involve other countries. Participation in regional cooperation could, for example, be important for progress of projects in Iceland s focus areas. Separate points of emphasis and criteria will be formulated for participation in regional cooperation and multilateral cooperation in the area of fisheries and energy. Support will also be provided to the particularly vulnerable Small Island Developing States, as regards the impact of climate change, as emphasised in the conclusions of the UN Conference on Climate Change. The principal areas of focus in the cooperation with the five states are laid down in the following overview: Implementation Partners Iceland s areas of focus Afghanistan The Ministry for Foreign Affairs ISAF The Nordic countries UN Women EU NGOs Preparation of a Plan of Action 2012-2014. Completed: November 2011 Nordic cooperation based, inter alia, on a joint Nordic review from 2009. Promote better coordination of international assistance. Work on gender equality and women s empowerment. Emergency and humanitarian assistance provided by international organisations and NGOs.

20 Malawi ICEIDA The Government of Malawi Local government in Mangochi Other donors NGOs Mozambique ICEIDA The Government of Mozambique Local government in Inhambane Other donors NGOs Preparation of a Country Strategy Plan 2012-2014. Completed: October 2011. Human capital: Focus on education, health and sanitation. Preparation of a Country Strategy Plan 2012-2014. Completed: October 2011. Natural resources and human capital: Focus on fisheries and health. Palestine The Ministry for Foreign Affairs UNICEF UN Women UNRWA OCHA UNHCR EU NGOs Implement current Plan of Action for 2008-2010. Preparation of a Plan of Action2012-2014. Completed: November 2011 Emergency and humanitarian assistance provided by international organisations and NGOs. Assistance to refugees. Assistance to women and children. Uganda ICEIDA The Government of Uganda Local government in Kalangala Other donors NGOs Preparation of CSP 2012-2014. Completed: October 2011. Natural resources and human capital: Focus on fisheries, health, education and district development. 3.5. Organisations Clearer prioritisation is also reflected in the fact that special emphasis will be placed on the work of four international organisations: the World Bank, UNICEF, UN Women and the United Nations University. This means that in addition to providing contributions to and support for their projects in the developing countries, Iceland will seek to become an active participant at the policy level within the respective priority organisation. Contributions to these organisations have amounted to approximately 55% of ODA to international organisations in recent years. With the current Strategy, the aim is to increase this proportion to 75%. Contributions to other organisations, apart from these four, will take specific account of the need for assistance in Afghanistan and Palestine, and, in addition, special consideration will be given to potential Icelandic participation in international health initiatives. A new budget item earmarked for cooperation with the World Bank will be included in the State Budget for 2011, and the item relating to debt relief for developing countries will be eliminated as of then. In September 2009, the UN General Assembly approved the merger of the four previously distinct parts of the UN system, which focused exclusively on gender equality and women s empowerment. The purpose of the changes was to increase the weight of gender equality and women s empowerment within the UN and enhance the ability of the Organisation to achieve results in this field. Iceland supported the merger and will emphasise support for the new agency which was created; the UN Entity for Gender Equality and the Empowerment of Women, UN Women. The principal points of focus in Iceland s cooperation with these four key organisations are laid down in the following overview: Premises of cooperation Areas of focus Actions World Bank Iceland s knowledge and experience of working with the Bank. Efficient work pursuant to reviews. Increased emphasis by the Bank on energy and fisheries. Gender equality and its mainstreaming into the Bank s projects. Support by the Bank for developing countries in the field of renewable energy sources. IDA16 Replenishment, 2011. Gender Action Plan (GAP) Assessment of possible continuation of cooperation. Completed: October 2011. Fisheries projects (PROFISH).

21 Bank s focus on the UN MDGs. Iceland has direct involvement in the policy work in the Bank s board of directors. Extensive Nordic-Baltic Cooperation Increased participation by the Bank in fisheries projects. Increased emphasis on human rights in the Bank s work. Assessment of possible continuation of cooperation. Completed: June 2011 Energy projects (ESMAP). Assessment of possible continuation of cooperation. Completed: October 2012. Active participation in policy work of the Nordic Baltic Constituency for the Board. Joint project of the Nordic-Baltic constituency on human rights. UNICEF UNICEF s work is a key for achieving the MDGs. Active support for UNICEF is an element of Iceland s human rights policy. UNICEF has a clear and welldefined role. UNICEF s projects in the field return good results. Children s education and health are one of the basic premises for development. UNICEF s important role in fragile and conflict-affected countries and good experience of Icelander s work for the agency. Active UNICEF grassroots work in Iceland. UNICEF to maintain its role as a key UN agency for children. Reinforcement of UNICEF s work in the field. UNICEF to lead the improved coordination of donors who assist children in the field. Support for current reforms in UNICEF s work, which aim for more efficient operations and resultoriented projects. Secondment of Icelandic experts in the field. Stand-by partner agreement for surge capacity in emergency situations, Active participation in the policy work of the Nordic countries on UNICEF. Work of JPOs in the field for UNICEF. Cooperation UNICEF National Committee in Iceland. UN Women Iceland s knowledge and experience of working with UNIFEM. Active participation by women in all aspects of life promotes progress and development. Women s participation in and support for women enhances the results of development projects. Role and mandate of UN Women a key element for achieving the UN MDGs. Important role of UN Women in fragile and conflict-affected countries. Active support for UN Women is an element of Iceland s human rights policy. Iceland has extensive knowledge and experience related to gender equality. Active grassroots work in Iceland. Support for reforms of UN activities with increased emphasis on gender equality. Plans for UN reforms to be based on the knowledge and experience of UN Women. UN Women s fieldwork to be strengthened and given increased weight in the coordination of UN development assistance. Implement UN Security Council resolutions on women, peace and security. Secondment of Icelandic experts in the field. Active participation in UN policy work on gender equality. Work of JPOs in the field for UN Women. Support to the UN Trust fund in support to Actions to Eliminate Violence against Women. Cooperation with UN Women National Committee in Iceland. Participation in Nordic cooperation on UN Women. UNU Iceland s knowledge and experience of operating UNU training programmes. Iceland s knowledge and experience of working with the UNU and Iceland s reputation within the UNU. Importance of education and scientific work for economic and social development. Increased focus of UNU on cooperation with the academic society in developing countries. The academic society in Iceland has gained in strength, providing a wider basis for cooperation with Quality teaching and training for experts which is useful for the economic development of their home country. Strengthen links between the UNU and the UN development agencies and bilateral agencies, including ICEIDA. Increase the dissemination of practical knowledge through partnerships in the developing countries. Strengthen the contribution of the UNU to the MDGs. Operation of the UNU Geothermal Training Programme in Iceland and its training courses in developing countries. Operation of the UNU Fisheries Training Programme in Iceland and its training courses in developing countries. Operation of the UNU Land Restoration Training Programme in Iceland and its training courses in developing countries. Pilot project on the Gender Equality Studies and Training Programme. Preparation for the future arrangements of UNU s operations in

22 developing countries. Iceland during the implementation period of the Strategy. Many of the UN agencies have an important role in providing development assistance, but they work on a broader foundation, i.e. they address issues of interest to all the nations of the world. These agencies include the Food and Agriculture Organisation (FAO), the World Health Organisation (WHO) and the World Trade Organisation (WTO), which Iceland considers very important, even though they are not among the priority organisations referred to above. 4. International cooperation and criteria 4.1. United Nations Iceland s membership of the United Nations is one of the foundations of this Strategy. In the United Nations, the countries of the world participate in discussions on the challenges faced by the community of nations, ranging from security and human rights affairs in individual countries or regions to global environmental and health issues. Participation in the work of the UN will remain at the core of Iceland s contribution to international cooperation and an important element of general development work. Iceland s Permanent Mission in New York is an active participant in the work of the UN on the environment, natural resources and development, in addition to engaging in the work of the UN in crisis and humanitarian assistance, peace-keeping and peace-building. Iceland s Permanent Mission in Geneva also contributes in the field of humanitarian and emergency assistance. Furthermore, the UN agencies in Rome have a special role in the implementation of this Strategy. 4.2. Collaboration of OECD states Participation in the work of the Development Assistance Committee of the OECD, is an important element in Iceland s development cooperation. DAC is an international forum for donor countries with the principal role of establishing international guidelines for development cooperation and providing professional discipline through regular peer reviews. Iceland wishes to follow best international practice. Active participation in DAC is an important element of this endeavour. Iceland is not a member of DAC, but can participate in the work of the committee as an observer. The principal precondition for full membership is that Iceland must be able to provide the OECD with statistical information on the scope and break-down of its ODA in line with DAC procedures, and must also have the capacity to participate in the work of the Committee and selected Working Groups. Iceland will work in compliance with DAC procedures, criteria and definitions. A DAC special review of Iceland s development cooperation will be requested during the period, to be followed by full membership of the Committee. ICEIDA s financial system is organised so that it is easy to itemise contributions in accordance with DAC criteria, and work is under way on a similar adaptation of Iceland's multilateral contributions. 4.3. The Paris Declaration Following the Millennium Declaration a great deal of policy work on international development cooperation has been undertaken. There are two key documents in this

23 regard: The first is the Paris Declaration of 2005, which is intended to create a framework for more coherent and disciplined development cooperation aimed at achieving better results and increased aid effectiveness. The Declaration states in a clear manner, that it is the norm for aid recipients to forge their own national development strategies and exercise leadership in developing and implementing those strategies. The second key document is the Accra Agenda for Action of October 2008, where the recipient countries ownership of development programmes and the importance of harmonisation are reiterated. The Paris Declaration assumes that donors should work with and rely on partner country systems to the extent possible. Attempts should be made to strengthen the country systems and prepare them for the challenges of the future. Donors should endeavour to pool their funding so that organisations will complement one another with the aim of increased effectiveness. It is also emphasised that the assistance is aligned with existing development programmes in partner countries. The changes made with the Act on Iceland s International Development Cooperation will enable the government to begin the implementation of the goals of the declaration. International guidelines and commitments will be enforced in Iceland s development cooperation as follows: Premises Objectives Actions United Nations Iceland s participation in development cooperation is based on its membership of the UN. The Strategy is based on the UN Charter and the UN Millennium Declaration. The UN and its agencies play a key role in development cooperation. Support reforms that increase the results and efficiency of the UN's work on development and peacebuilding. Promote the progress of Iceland s areas of focus pursuant to the Strategy. Special emphasis on cooperation with the UN agencies that are involved in Iceland s areas of focus. Active participation in UN policy work by the MFA and permanent missions. Active cooperation with the United Nations Association in Iceland. Cooperation with the OECD DAC is the OECD countries donor forum. DAC establishes common criteria for the implementation of development assistance and promotes professional discipline. Icelandic development cooperation to be of high quality, professional and follow best international practices. Iceland to become a member of DAC during the implementation period of the Strategy. International reporting Quality data on development cooperation are the basis for comparison between countries and a means of improving results. Iceland to be prepared to meet DAC s reporting requirements. Reforms in the arrangements of operation and accounting for ODA. Completed: December 2011 Peer reviews Professional discipline is the foundation for quality working procedures and results in development cooperation. Increase the effectiveness of Icelandic development cooperation and make it comparable with the best international practices. Special Review of Iceland s development cooperation to take place before the review of the Development Cooperation Strategy. Paris Declaration and Accra Agenda for Action Harmonised activities and recipient ownership strengthens results. Iceland to participate in the international initiative to increase aid effectiveness through implementation of the goals of the Paris Declaration and Accra Agenda for Action. Formulation of scheduled targets in Iceland s development cooperation with reference to the Paris Declaration and Accra Agenda for Action. Completed: February 2010. Active participation in DAC s work on implementing the Declaration.

24 5. Strategic planning, internal and external work The Act on Iceland s Development Cooperation provides for active participation by the Althingi in deliberations on development cooperation. In addition to informing the Foreign Affairs Committee and Finance Committee regularly on the progress of international development cooperation, the Minister for Foreign Affairs will deliver to the Parliament a biannual report on the implementation of this Strategy. Also, the Development Cooperation Committee and the Council on International Development Cooperation act in an advisory capacity in matters of policy making in Icelandic development cooperation. One of the principal objectives of the Act is to create a comprehensive foundation for all of Iceland s development cooperation, whether conducted in partnership with individual developing countries, international organisations or non-governmental organisations. All Icelandic ODA should rest on a single foundation and have clear objectives. A comprehensive legislation entails increased interaction of bilateral and multilateral cooperation, which enables the Icelandic authorities to work in a more effective and organised manner toward progress of the priority areas of this Strategy. As recounted earlier, there are constant changes in the planning and implementation of development cooperation, as new methods are constantly being sought to increase effectiveness. The knowledge and experience of personnel working in the field of development are the foundation of professional procedures. These resources must be utilised to enable Iceland to exercise care in the preparation, implementation and monitoring of development projects and participate actively in the policy work and cooperation of international organisations. The formulation of a joint human resource policy for the Ministry for Foreign Affairs and ICEIDA is therefore a key element in maintaining and strengthening the professional foundation of Iceland s development cooperation. The academic community also plays an important role in creating a fertile soil for high-quality, progressive development cooperation. Support for teaching, research and advisory work in development studies will strengthen the pillars of our development cooperation, create increased opportunities for cooperation and fit well with Iceland s focus on the work of the United Nations University. Increased emphasis on promotion and education is a key element in Iceland s future vision. Open and objective discourse on development cooperation will deepen knowledge of the actions of the international community in the struggle against poverty and deprivation and serve as an important scrutiny on the ways in which public funds are utilised. Society s contribution to development cooperation is also important. The foundation of the work of Icelandic non-governmental organisations is active fundraising, which depends on the support of individuals and corporations. Parallel with social development, economic progress is dependent on investments in the economic sector and employment opportunities. Work in this area should be based on business ethics, where the mutual interests of all parties and social responsibility are the norm. Icelandic entities have in recent years increased their business ties in developing countries and participated more actively in projects that promote progress and prosperity, e.g. in the fields of renewable energy sources. In light of the changed circumstance in the Icelandic economy and business sector, there

25 is reason to assess in what way Icelandic participation in this area could best be promoted. The principal areas of focus in internal and external work will be the following:

26 Premises Objectives Actions Policymaking and supervision Democratic discourse on policymaking and monitoring of the implementation of development cooperation promotes increased results. Iceland s policy is based on discussions in the Althingi on focus areas and prioritisation in development cooperation. Reviewed Strategy submitted to the Althingi in 2013. The Minister for Foreign Affairs will report to the Althingi on the implementation of the Strategy in 2013. Regular reports to the Foreign Affairs Committee and Finance Committee. Interaction of bilateral and multilateral development cooperation Development cooperation returns better results when development agencies harmonise their assistance, and multilateral and bilateral agencies work together. Improve effectiveness and focus the implementation of Iceland s development cooperation. Iceland s policy work in international organisation to be based on experience and knowledge of bilateral work. Make use of Iceland s participation in the work of international organisations to strengthen bilateral cooperation. Formation of joint working groups by the MFA and ICEIDA in the following fields to strengthen bilateral and multilateral cooperation: - Gender equality - Natural resources - Development Effectiveness Formulation of an Environmental policy. Formulation of a Gender equality policy. Human resource management Quality development cooperation is based on the knowledge, experience and training of personnel. Promote better and higher quality development cooperation through an active human resource policy. Enable Iceland s embassies and permanent missions to participate actively in the implementation of this Strategy. Make use of the opportunities inherent in the provisions of the Act on Iceland s Development Cooperation for staff exchanges between the MFA and ICEIDA. Enforce the gender equality policy. Formulate a joint human resource policy of the MFA and ICEIDA for development cooperation. Completed: November 2011 Joint seminars and training courses held by the MFA and ICEIDA. Introduce staff exchanges with international organisations and development agencies of other donors. Gender balance of employees pursuant to the development cooperation gender equality policy. Cooperation with NGOs NGOs are important partners in implementing development cooperation and humanitarian and emergency assistance. NGOs are important advocates for developing countries. Strong grassroots work strengthens development work. Non-governmental organisations to be reinforced as partners in international development cooperation. The government to work with NGOs where that is likely to show the best results. The government to exert scrutiny on NGOs in the implementation of projects. Separate item in the State Budget for cooperation with NGOs in the 2012 budget. Increase in the proportion of ODA to cooperation with NGOs during the period. Joint rules of procedure and a single application process for all collaboration between the government and NGOs. The government to maintain good relations with the the partnership group of NGOs. NGOs to be subjected to reviews and other supervisory measures used in development cooperation. Cooperation with the academic community Teaching and research in development cooperation is the foundation for progress and for learning lessons from experience and results of development work. Strengthen the academic and functional pillars of Iceland s development cooperation through increased participation by the academic community in teaching, research and advisory work. Points of emphasis in the cooperation between the government and the academic community in development affairs. Completed: May 2012 Promotion and discourse Transparency, which depends, among other things, on education and public information on the use of public funds, imposes Organise active promotion and information on Iceland s development cooperation. Annual joint promotion campaign of the MFA and ICEIDA. Conferences and seminars to be organised in consultation with

27 discipline and promotes a higher quality of development cooperation. NGOs and the academic community. Private sector participation in development Economic progress depends on investments in industrial development and the creation of job opportunities. Responsible participation by Icelandic entities in development cooperation based on mutual interests and social responsibility. Analysis to be made of the possibility for participation by Icelandic entities in development cooperation. Completed: June 2012