Icelandic Development Co-operation
Respect for human rights, development co-operation and the peaceful resolution of disputes are defined as cornerstones of Iceland´s foreign policy in the Icelandic government's manifesto. Iceland has a broad development assistance program. Multilateral aid is concentrated on co-operation through the World Bank and through Nordic co-operation. Bilateral aid is administered by the Icelandic International Development Assistance Agency (ICEIDA).
Iceland’s development policy takes account of the Millennium Goals that are eight defined and measurable goals that the United Nations seek to achieve before the year 2015, form the foundation for all international development work. The goals are designed to improve the conditions of the inhabitants of the developing countries by eradicating poverty and hunger, improving health, promoting equal rights of the genders, improving education and environmental protection and contributing to global cooperation on development.
The guiding light in all of Iceland’s development cooperation is support for developing countries in achieving self sufficiency in economic and welfare matters and in that regard no task is more important than education and the dissemination of knowledge. Icelanders have much to offer in this respect. Iceland’s expertise in the use of renewable energy sources can furthermore be extremely useful for poor countries, for example in Africa, many of whom possess abundant natural resources which they have not had the expertise to utilise in the interests of the public. Iceland’s development work puts special emphasis on the affairs of women and children. Through increased allocations to key agencies of the United Nations which are involved in the affairs of women and children.
More than half of the Icelandic development budget goes to fixed disbursement to various UN agencies and other international organizations and about 40% goes to bilateral projects through ICEIDA. The long term objective of Iceland's development co-operation is sustainable development, economic growth, equality, independence, democracy and the strengthening of human rights.
Bilateral Development Co-operation
The Icelandic International Development Agency (ICEIDA) is responsible for Iceland’s bilateral development cooperation. It is also a consulting body to the Icelandic Government in general and to the Minister for Foreign Affairs in relation to cooperation with the developing countries.
In its operations, ICEIDA aims towards improving peoples´ living conditions through empowerment, capacity building and transfer of knowledge. ICEIDA´s long term objective is sustainable development, economic growth, equality, independence, democracy and the strengthening of human rights. For local ownership and sustainability to be possible, ICEIDA emphasises active local participation, all through the project cycle.
ICEIDA's focuses its efforts on areas where Icelandic expertise is thought to be most useful and where Icelanders are well advanced. Thus, many projects have been related to training and capacity building in fisheries, fisheries research and institutional development in the fisheries sector. With time, projects in other sectors have been increasing and ICEIDA also supports projects in the education, health, geothermal, social and water and sanitation sectors.
The scope of activities of ICEIDA has grown substantially in recent years. In 2007, ICEIDA´s partner countries were six. Four countries in Africa; Malawi, Mozambique, Namibia and Uganda, Sri Lanka in Asia and Nicaragua in Central America.
According to the legislation that was adopted by the Parliament of Iceland on 11 September 2008, the purpose of Icelandic international development cooperation is to support the efforts of developing countries to achieve goals on eliminating hunger and poverty, promoting economic and social development, including human rights, education, improved health, gender equality, sustainable development and sustainable use of natural resources. Iceland is committed towards achieving the goal set by the United Nations of using 0.7% of GNP for development aid.
Iceland's Multilateral Development Co-operation
World Bank
Together with 28 other states, Iceland became a founder member of the International Bank for Reconstruction and Development - IBRD in1945. The campaign to relieve the debts of the poorest countries in the world (the HIPC Campaign) is probably the most ambitions attempt ever made to rescue the poorest countries of the world from the vicious cycle of borrowing and servicing debts which has been wreaking havoc on their economies in recent years. The campaign was launched in 1996, partly on the initiative of the Nordic countries when Iceland represented the Nordic and Baltic states on the Development Committee of the World Bank. At the Annual General Meeting of the Bank last year, the decision was made to redouble the effort and devote even more funds to the campaign than previously proposed. At that time, a decision was made on an Icelandic contribution of approximately ISK 200 million. It is assumed that 30 of the poorest countries in the world will receive assistance amounting to a total of approximately 50 billion US dollars. In order to be eligible for such assistance the governments of these poor countries need to meet certain conditions, namely that the people living in the most abject deprivation must reap the benefit of the assistance in due course. In other words, the windfall created by the debt relief is to be used for the benefit of the poorest people, e.g. in the area of education, health and employment. Ten countries have already submitted economic plans that meet the conditions. It is assumed that another ten countries will have submitted such plans and received approval before the end of this year.
Nordic co-operation on Development
The Nordic countries have co-operated closely in many ways on multilateral development. The Nordic countries generally adopt a unanimous position in dealing with international organisations such as the World Bank and the United Nations Development Program, which enables them to exert considerable influence on their policies. The Nordic Development Fund (NDF) is funded by the Nordic countries' development aid contributions. It loans money for long terms at preferential rates, solely for projects that are likely to promote progress in the world's poorest countries. The NDF has earned international respect for efficiency and is in demand as a partner by other funds operating on the same, or a similar, basis.
UNU Geothermal and Fisheries Training Programs
Icelands excellent co-operation with the United Nations University continues to grow and thrive. The third group of students has now been registered in the United Nations University Fisheries Training Program, which was established in Iceland 1998, and the United Nations University Geothermal Training Program, established in 1979, held its 22nd graduation this autumn. There is general satisfaction with these training programs within the UN University and those who have attended the programs have greatly benefitted. Recently, the Foreign Ministry concluded an agreement with the New Business Venture Fund and the Icelandic International Development Agency on what is called trade development. The main purpose is to assist Icelandic companies in discovering business opportunities in the developing countries. This work is connected with Iceland's co-operation with the World Bank, which has expressed an interest in co-operating with enterprises in these countries on economic development in the developing countries. Icelandic enterprises have much to offer in the developing countries, not only in fisheries, but in numerous other fields as well.