Background of Finland's Development Co-operation


Topics about Finland's background:
  1. History of Finland's Development Co-operation
  2. Development Co-operation in Zambia
  3. The sustainable Goals of Finnish Development Co-operation



History of Finland's Development Co-operation

Finland's bilateral development co-operation started in the beginning of the 60's in Tanzania. The total official development assistance (ODA) allocation in 1995 was FIM2,004.9 mill. out of which the share of bilateral development co-operation was FIM1,323 mill. (65.99%), whereas multilateral development co-operation was FIM681.9 mill. (34.01%). Out of the total ODA in 1995 humanitarian aid contributed to FIM125 mill. In 1995 Finland contributed to the European Unions development assistance FIM200 mill. In 1995 the percentage share of the ODA/GNP was 0.34%, which is relatively low compared to the United Nations target of 0.7%.

The figure for Finland's total official development assistance allocation in 1997 was 348.4million euros, in 1998 373.9million euros, in 1999 401.6million euros, in 2000 421.2million euros and in the year 2001 452million euros.



Development Co-operation in Zambia

In Zambia Finland's Development Co-operation started in the 1970's. Zambia has been one of Finland's biggest recipient countries with regards to development assistance since the beginning of the implementation of development co-operation. Between 1970-1994 Finland has allocated altogether FIM1,302.8 mill. (approximately 219.1million euros) to Zambia as funds for development co-operation activities.

In 1996 the total bilateral development assistance allocation for Zambia amounted to approximately 9.1million euros, in 1997 7.4million euros, in 1998 6.4million euros, in 1999 3.6million euros and in 2000 3.6million euros.




The Sustainable goals of Finnish development co-operation

The sustainable goals of Finnish development co-operation are:
  1. To promote economic development and reduce poverty
  2. Environment, population and development
  3. Democracy and human rights


To promote economic development and reduce poverty

The preconditions for economic development can be defined as investments in human beings and the use of market forces. Finland is working towards the latter goal by supporting structural change in economies of developing countries, together with economic reforms aimed at exploiting market forces and developing price mechanisms.

In supporting activities designed to promote economic growth and structural change in the developing countries, Finland stresses measures related to not only growth, but also to greater distribution of well-being, together with the alleviation of the adverse effects which will inevitably accompany structural adjustment.

In supporting private enterprise and the necessary infrastructure investments in the developing countries, Finland will avoid any distortion of competitive conditions and thereby the creation of unsustainable production. Support will be channelled especially to small-scale enterprises and to farming and forestry that is economically and environmentally sustainable. Impact on labour will be taken into account and labour-intensive solutions favoured.

Finland aims to promote planning and decision-making systems based on popular participation, on the principle that every individual has the right to help make decisions that affect him/her. In local economic decision-making, the necessary preconditions will be created by supporting the formation of associations or organisations or businesses, employees and farmers, or of co-operatives.

Because most of the poor in developing countries live in rural areas, action to develop the countryside must play a central role in strategy to alleviate poverty. In practice, this means projects giving the rural population access to natural resources (i.e. land and water) and to production technology, as well as access to markets for their products.

When targeting both its bilateral and its multilateral assistance, Finland will continue to give priority to the poorer countries and disadvantaged population groups in developing countries.



Environment, population and development

In a poor developing country, sustainable development means finding the right balance between growth, environmental considerations and income distribution. This is a task for the developing country itself. Assistance will be targeted at activities promoting this end. Finland will channel its support to areas where the problem has been satisfactorily solved, or where Finland can help solve it. Hence, Finland will:



Democracy and human rights

Democracy is the only lasting basis for the rule of the law. In the long term, it has proven more effective than other options as a basis for economic and social development. Each nation must find its own way to democracy and respect for human rights, building on its own history and political situation. Finland respects the principle in international law of non-interference in the internal affairs of the other state, and will thus use the means available to development co-operation to consolidate democracy and human rights. Hence Finland:


In both multilateral and bilateral co-operation, Finland applies the following principles:

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EMBASSY OF FINLAND, LUSAKA, ZAMBIA
Last update of this page: 14 April 2005


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