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.