DAC Peer Review 2019 MEMORANDUM of SWEDEN

Organisation for Economic Co-operation and Development ______

DAC Peer Review 2019 MEMORANDUM OF SWEDEN

September 2018

Executive summary

Sweden contributes actively to global efforts toward reaching the 2030 Agenda. Through its many contributions to the negotiations of the 2030 Agenda, the Paris Agreement, the Addis Ababa Action Agenda on financing for development, the Sendai Framework for Action on Disaster Risk Reduction, Sweden helped secure key elements and strengthen the frameworks for a new global agenda for sustainable development. Sweden also continues to be a powerful voice in multilateral organisations and has taken an active role in many areas and processes, demonstrating its commitment to joint action and leadership for global sustainable development.

As the first country in the world, Sweden adopted a Feminist Foreign Policy in 2014. The Policy seeks to enhance the rights, representation and resources of all women and girls, and emphasizes that gender equality is a prerequisite for peaceful, democratic and sustainable development. The Feminist Foreign Policy constitutes a backbone to the Government’s development cooperation and humanitarian assistance and its approach to sustainable development.

The Government of Sweden follows an ambitious coherence policy, aligning policies and management structures. Through the re-launch of Sweden’s policy for policy coherence for development, the Policy for Global Development in 2014, Sweden ensures that all Swedish policy areas jointly and coherently contribute to an effective implementation of the 2030 Agenda, nationally and internationally. Recognizing that participation from all levels of society is key to reaching the 2030 Agenda, the Swedish Government recently adopted a national action plan, facilitating the contribution of all actors to the national and global implementation of the 2030 Agenda.

Policy vision and Framework: Since the last Peer Review, the Government of Sweden has undertaken significant work to reshape policies and guidance, identifying how to best contribute to achieving the aim and objectives of Sweden’s development cooperation and humanitarian assistance. In 2016 the Policy Framework for Swedish Development Cooperation and Humanitarian Assistance was adopted, clearly setting out the goals, priorities and direction of Sweden’s development cooperation. It provides a hierarchy of policies and steering documents, and indicates how the goals of the Swedish development cooperation and humanitarian assistance are to be translated into implementation. The Policy Framework’s takes as point of departure the current global development landscape and relates to the 2030 Agenda, the Addis Agenda and the Paris Agreement.

The development cooperation of Sweden is characterised by two overarching perspectives: the perspective of poor people on development and a rights-based perspective. These two perspectives are integrated throughout Sweden’s development cooperation. In addition to the two overarching perspectives, the Policy Framework also highlights three key thematic perspectives: a conflict perspective, a gender perspective and an environmental and climate perspective.

Financing for Development: Sweden has a long tradition of a generous and ambitious development cooperation and is committed to allocating 1% of GNI to international development cooperation. Sweden recognizes the importance of the Financing for Development agenda, as outlined in the Addis Agenda, and the central role of private finance in realizing the 2030 Agenda. Over the last five years, Sweden has encouraged the engagement of the private sector and in particular the national private sector, academia and civil society in sustainable development, identifying ways to leverage additional funding as a complement to ODA. Sweden recognizes that development cooperation has an important catalytic role to increase financial flows to support development. Sweden works extensively with innovative financing, including green bonds, guarantees and blended finance. Sida’s guarantee instrument enables mobilisation of additional capital for development and encourages innovative ways of private sector engagement for global poverty eradication. During the period, Sweden has also capitalized, revamped and focused the mandate of its bilateral development finance institute, Swedfund International.

Structure and system: Sweden has continued to strengthen the structure and guidance for the implementation of its development cooperation. The new Guidelines for strategies, clarify roles and responsibilities between the Ministry of Foreign Affairs and state agencies responsible for the implementation of the Government strategies for development cooperation. The Guidelines also lay out the process to develop, implement and follow up the strategies. As main implementing agency, Sida has continued to focus on increased field presence, to strengthen the capacity for dialogue and partnership as well as follow-up and monitoring of programmes. Through cooperation on several training courses, the Ministry of Foreign Affairs and Sida have also strengthen competences in thematic and cross-cutting issues. Since the last review, the Folke Bernadotte Academy and the Swedish Institute has been commissioned to contribute to the implementation of the Government strategies, together with Sida.

Delivery modalities and partnership: Swedish development cooperation rests on internationally agreed principles of effective development cooperation, as emphasized in the Policy Framework. Sweden is to ensure that the principles are followed and developed further in Swedish development cooperation as an important prerequisite for planning, implementation and monitoring. A core value in Swedish development cooperation is the respect for partner countries’ ownership for their own development agenda, as manifested in Sida’s partnership approach. In line with the new Policy Framework, and consistent with Sweden’s commitments to aid- and development effectiveness, Sida strives to ensure good partnership and to increase predictability and flexibility for partner countries. Sweden is also committed to joint programs and donor harmonization with other development partners, and taking a leadership role in donor coordination at the country level. Consistent with its commitment to the principle of untied aid, Sweden has since the last peer review accelerated its efforts to increase its levels of untied aid. In 2016, 99.6 % of Sweden’s aid was untied.

Results management, evaluation and learning: The Government of Sweden has in recent years put a stronger emphasis on long term results and sustainability, on working holistically and on the principles of aid- and development effectiveness. Sida has worked systematically to strengthen its management for development results and the use of result-based management (RBM), maximizing achievements and continuous learning. Partner organisations have the primary responsibility for monitoring and results and Sida focuses on partner dialogue and capacity building. Reporting of results is based on a context- driven approach and there is no standard set of indicators. As of the new strategy guidelines, there is a stronger focus on results at all stages of the strategy process. The MFA uses results information to inform decision-making for the portfolio at the strategy level.

Humanitarian assistance: Sweden’s humanitarian assistance is adapted to the growing humanitarian needs and limited financial resources, and is committed to the Grand Bargain. Flexible humanitarian funding has continued to be a top priority for Sweden as it enables more principled support and increased effectiveness. Seeking to improve synergies, coordination and cooperation between humanitarian assistance and long-term development cooperation several of Sweden’s strategies for development cooperation have been elaborated since the last Peer Review, with the aim of strengthening resilience of vulnerable people, addressing root causes of crises, and seeking synergies and complementarities with humanitarian assistance. Globally, Sweden participates actively in humanitarian coordination fora. As a non-permanent member of the UN Security Council (2017-2018), Sweden promotes a strengthened focus on a principled, non-politicized, humanitarian action.

This Memorandum outlines the steps Sweden is taking to contribute to sustainable development, through effective delivery of Sweden’s comprehensive development cooperation and humanitarian assistance. The Government of Sweden recognize the importance of the Peer Review process to donor accountability and to improve the quality and effectiveness of development co-operation policies and systems. Sweden is pleased to submit this Memorandum, and hopes the review provides valuable insights and lessons to share with other OECD DAC donor countries. We are also looking forward to a constructive dialogue on how we can improve and make Swedish development more effective and efficient.

Table of contents

Executive summary ...... 1

Abbreviations and acronyms ...... 4

1. Sweden’s global efforts for sustainable development ...... 5 1.1 Efforts to support global sustainable development ...... 5 1.2 Policy coherence for sustainable development ...... 9 1.3 Global awareness ...... 11

2. Policy vision and framework ...... 12 2.1 Framework ...... 12 2.2 Principles and guidance ...... 13 2.3 Basis for decision-making ...... 16

3. Financing for development ...... 20 3.1 Overall ODA volume ...... 20 3.2 Bilateral ODA allocations ...... 21 3.3 Multilateral ODA allocations ...... 24 3.4 Financing for development ...... 26

4. Sweden’s structure and systems ...... 29 4.1 Authority, mandate and co-ordination ...... 29 4.2 Systems ...... 32 4.3 Capabilities throughout the system ...... 35

5. Sweden’s delivery modalities and partnership ...... 37 5.1 Partnering ...... 37 5.2 Country level engagement ...... 39

6. Sweden’s result management, evaluation and learning ...... 41 6.1 Management for development results ...... 41 6.2 Evaluation system...... 43 6.3 Institutional learning...... 45

7. Sweden’s humanitarian assistance ...... 46 7.1 Strategic framework ...... 46 7.2 Effective programme design ...... 47 7.3 Effective delivery, partnerships and instruments ...... 49 7.4 Organisation fit for purpose ...... 50 7.5 Results, learning and accountability ...... 51

Annexes ...... 52 Annex A. Progress since the 2013 DAC Peer Review recommendations ...... 52 Annex B. Sida’s experience of operationalizing HUM DEV nexus ...... 59 Annex C. Complete list of Swedish bilateral, regional, and thematic strategies for development cooperation ...... 62 Annex D. Organisational structure at the Swedish Ministry for Foreign Affairs and Sida ...... 64 Annex E. Human Resource Profile ...... 66 Annex F. List of references ...... 67

Abbreviations and acronyms ADB Asian Development Bank CBPF Country Based Pooled Funds CERF Central Emergency Response Fund CRRF Comprehensive Refugee Response Framework CRS Creditor Reporting System CSO Civil Society Organization DAC Development Assistance Committee EBA Expert Group for Aid Studies FBA Folke Bernadotte Academy GHD Good Humanitarian Donorship GNI Gross National Income HCA Humanitarian Crises Analysis process HLF High Level Forum IATI International Aid Transparency Initiative ICRC International Committee of Red Cross ICT Information and Communication Technology IDP Internally Displaced People IHL International Humanitarian Law ILO International Labour Organization IMF International Monetary Fund LDC Least Developed Countries MDB Multilateral Development Bank MFA Ministry for Foreign Affairs MOPAN Multilateral Organization Performance Assessment Network MDPA Multidimensional Poverty Analysis OCHA United Nations Office for the Coordination of Humanitarian Affairs ODA Official Development Assistance OECD Organization for Economic Cooperation and Development PGD Sweden´s Policy for Global Development PSEA Prevention of Sexual Exploitation and Abuse RBM Results-based Management SDG Sustainable Development Goals SI Swedish Institute SIDA Swedish International Development Cooperation Agency SIDS Small Island Developing States SRHR Sexual and Reproductive Health and Rights TOSSD Total Official Support for Sustainable Development TRAC Tool for Results management and Appraisal of Contributions UNDP United Nations Development Programme UNFPA United Nations Population Fund UNHAS United Nations Humanitarian Air Service UNHCR United Nations High Commissioner for Refugees UNICEF United Nations Children´s Fund UNRWA United Nations Relief and Works Agency WFP World Food Programme WHS World Humanitarian Summit

1. Sweden’s global efforts for sustainable development

1.1 Efforts to support global sustainable development

Leadership

The ambition of the Swedish Government is to be a leader in implementing the 2030 Agenda for sustainable development – both at home and by contributing to its implementation at a global level. A starting point for Sweden is that the implementation of the 2030 Agenda, including the principle of leaving no one behind, involves a process of successive transformation and further development of Sweden’s societal model as a modern and sustainable welfare state, nationally and as part of the global system. Fundamental to this is a broad ownership for the 2030 Agenda among all actors in society, an ownership and a participation that develop and deepen over time.

Sweden has demonstrated its commitments to joint action and to be a powerful voice globally. Through active and strategic negotiation and cooperation, the Government of Sweden helped shape the outcomes of the 2030 Agenda. Sweden consistently advocated for and secured key elements on environment and climate, democracy, gender equality, sexual and reproductive health and rights, migration and decent work. In 2017, the Government presented a report on the implementation of the 2030 Agenda to the UN’s High-level Political Forum on Sustainable Development (HLPF).1

In recognizing that the Addis Ababa Action Agenda on Financing for Development provides a roadmap of necessary means of implementation, Sweden played an active and instrumental role during the negotiations in 2015, securing key elements in the final document: focus on equality, poor people’s perspective on development; a rights perspective; and a specific focus on low-income countries, fragile and conflict-affected states, small island developing states (SIDS) and landlocked nations. Given the priorities set out in the Addis Agenda, Sweden strives to advance the fulfillment of the collective pledge to provide 0.15-0.20% of gross national income (GNI) in Official Development Assistance (ODA) to Least Developed Countries (LDC) by 2030. Furthermore, Sweden continues to be one of the most generous donors in the Development Assistance Committee (DAC). The Government is committed to allocating 1% of GNI to ODA.

Sweden also provided leadership on the Paris Agreement on Climate Change, acting for and defending a legally binding agreement. Sweden also advocated for a balance between issues of emission limitation, adaptation and implementation support. Since the previous DAC Peer Review in 2013, the Government of Sweden has greatly strengthened its global engagement in environment and climate. The Swedish Government’s ambition is that Sweden shall be at the forefront on climate issues. Sweden hosted the final negotiation of the seventh replenishment of the Global Environment Facility in April 2018. Sweden has also assumed the co-chairmanship of the Green Climate Fund for 2018.

The adoption of the Sendai Framework for Action on Risk Reduction was also important as it focuses on resilience and risk reduction measures, contributing greatly to meeting the objectives of the 2030 Agenda. In the negotiations, one of Sweden's priorities was a clearer language on the human rights dimension as a basis for, and part of, the work of disaster reduction. Yet another important priority was to strengthen the gender equality perspective and highlight the important role of women in disaster reduction.

In 2014, Sweden was the first country in the world to adopt a feminist foreign policy. The Policy constitutes an agenda for change and aims to enhance the rights, representation and resources of all women and girls. The policy is based on the notion that gender equality is a prerequisite for peaceful,

1 Government Office of Sweden (2017), Sweden and the 2030 Agenda – Report to the UN High Level Political Forum 2017 on Sustainable Development.

5 democratic and sustainable development, and a gender equality perspective is to be integrated in all development cooperation.2 Sweden is also a strong player in promoting women’s participation in peace efforts. Sweden has promoted women’s participation in several ongoing peace processes and through its work in the EU. A Swedish network for women involved in dialogue and peace processes has been established, and a new national action plan for women, peace and security has been developed. As temporary member of the UN Security Council, Sweden has made the agenda for women, peace and security a top priority.

Sweden regards the 2030 Agenda, the Paris Agreement, the Addis Agenda, as well as the Sendai Framework as a cohesive global framework for sustainable development. The Government of Sweden is pursuing an ambitious approach towards the 2030 Agenda for sustainable development and international development policy. The Government’s feminist foreign policy constitutes a backbone to this work.

Support for global agendas and commitments

Sweden has acted as a powerful voice for global agendas and commitments in the EU, the UN, the OECD, the development banks as well as other bodies. The Government of Sweden has taken an active role in many areas and processes, contributing to global sustainable development. The following constitute illustrative examples of Swedish support for global agendas:

• The United Nation reform: Sweden has engaged actively for a UN system that is fit to meet global challenges and effectively support countries in the implementation of the 2030 Agenda. Sweden has taken an active role in the discussions and negotiations regarding reforms of the UN development system, particularly its capacity to deliver coherently at country level under the leadership of an independent and empowered Resident Coordinator, increased cost- effectiveness, and stable and long-term funding of the system. Sweden has actively supported the development of a Funding Compact between the UN system and Member States to increase the level of core contributions and contributions to pooled and thematic funds in return for greater effectiveness, transparency and accountability on system-wide results. To provide input to the development of a Funding Compact Sweden, together with the Deputy Secretary-General, hosted an informal high-level meeting in Stockholm in February 2018.

• The European Consensus on Development: The EU is Sweden’s most important foreign policy arena and EU:s development cooperation is a central platform for Sweden. Therefore, when the European Consensus on Development was negotiated, Sweden played an active role with the overarching ambition to safeguard poverty eradication as an overall goal. This was important in order to ensure that the EU:s development cooperation makes a real difference for people living in poverty. During the negotiations, Sweden worked hard to include provisions in the EU policy that EU development cooperation must comply with Organization for Economic Cooperation and Development (OECD)/DAC's criteria for ODA, and specifically that EU development cooperation comply with the ODA criteria for conflict, peace and security activities decided at OECD/DAC:s High-Level Meeting in 2016. Sweden also raised the importance of all people's sexual and reproductive health and rights (SRHR).

• Multilateral development banks: The Swedish Government sees the multilateral development banks as an important platform for normative influence on the global, regional and national levels. Sweden takes an active role in translating the Sustainable Development Goals (SDG) into meaningful country-level targets, policies, programs, and projects to end poverty, fight inequality, and tackle climate change, while leaving no one behind.

2 Government Office of Sweden (2017), “Swedish Feminist Foreign Policy – examples from three years of implementation”

• Aid- and development effectiveness: Increased international attention and adherence to the principles for effective development cooperation is necessary, and Sweden is a strong advocate in this matter. The principles have been at the centre of Sweden’s engagement in policy negotiations within the EU and the OEDC DAC. Sweden believes that the efforts of the Global Partnership for Effective Development Cooperation are important, and participated in the High- Level Meeting in Nairobi in December 2016 with ministerial attendance, focussing on four priorities: country ownership, civil society organisations (as development actors in their own right and shrinking space), fragile states and gender equality.

• The Grand Bargain: Sweden contributes to commitments made at the World Humanitarian Summit (WHS) in 2016, as illustrated in Sweden’s annual self-reports. The Grand Bargain’s concrete targets provide a vehicle for effectiveness and efficiency reform of the humanitarian system. Sweden has taken an active role in advocating for the need to go from words to action on Grand Bargain commitments and to treat commitments as inter-connected and mutually reinforcing. One example is Sweden’s work for increased cooperation between humanitarian actors and development actors (see annex B for concrete examples).

• New Deal for Engagement in Fragile States: Sweden has also had an active engagement in the “New Deal for Engagement in Fragile States”, not least as co-chair of “The International Dialogue on Peacebuilding and Statebuilding” until May 2019. In this role, Sweden has provided leadership in developing a common approach between political, security and development actors in fragile and conflict affected countries. One key outcome is the Stockholm Declaration on Addressing Fragility and Building Peace in a Changing World adopted by the members of the International Dialogue on Peacebuilding and Statebuilding in April 2016.

Priority issues for global engagement

Priority issues for Sweden’s global development cooperation are outlined in the Policy Framework for Sweden’s development cooperation and humanitarian assistance (see section 2. Policy vision and Framework). They include, but are not restricted to, the following issues:

Gender equality: The Government’s ambition is to be a leading global actor for promoting gender equality and women’s and girls’ full enjoyment of human rights. Sweden’s longstanding engagement on gender equality provides Sweden with valuable knowledge and experience. Sweden has continued to use strategic partnerships and alliances to strengthen the normative global agenda for women’s and girls’ human rights. Sweden has pursued to give visibility to and combat destructive masculine norms. For example, Sweden pushed for the inclusion of women’s and girls’ full enjoyment of human rights in resolutions, and statements by the UN General Assembly, the UN Human Rights Council, the Commission on the Status of Women, the Commission on Population and Development and the World Health Assembly etc. In 2018 Sweden hosted the Stockholm Forum on Gender Equality Forum and the 4th International Conference on Men and Equal Opportunities. The Government also adopted a new development cooperation strategy for global gender equality and women’s and girls’ rights.3

Environment and climate: Sweden has become a major actor within environment, climate and oceans. Sweden is a leading donor to the major global climate funds, including The Green Climate Fund, The Adaptation Fund, The Least Developed Countries Fund and The Global Environment Facility. Sweden uses its influence and broad membership in the major global climate funds to strengthen e.g. gender programming and access to finance, and to create an efficient and effective multilateral climate finance architecture, that can maximize impact and ensure access to climate finance. This is of particular importance for vulnerable countries such as LDCs and SIDS. Sweden has furthermore actively promoted that the links between climate change and security are brought to attention in international fora and taken

3 Government Office of Sweden (summary) “Strategy for Global Gender Equality and Women´s and Girl´s Rights 2018 -2022”, adopted by the Swedish Government, 12 April 2018.

7 into account in multilateral cooperation. In 2018, the Government adopted a new strategy for Sweden’s global development cooperation in the areas of environmental sustainability, sustainable climate and ocean, and sustainable use of natural resources.4

Democracy and human rights: Strengthening human rights and democracy, through a rights-based approach, is fundamental for an inclusive and sustainable development. Therefore, Sweden continues to work for the universality of human rights, the prevention of further shrinking of democratic space and the respect for the rule of law. For example, Sweden is today the largest donor of voluntary contributions to the Office of the High Commissioner for Human Rights (OHCHR) and is also the second largest government funder for international Lesbian, Gay, Bisexual, Transgender/Transsexual and Intersexed (LGBTI) issues. Another priority for Sweden is to increase the safety and security for actors and organisations working to uphold human rights. This includes the protection, support and promotion of a broad spectrum of human rights defenders and journalists as well as civil society organisations. Through a combination of long-term core funding and capacity building, Swedish development cooperation has contributed to strengthening civil society’s work with human rights, democracy and the rule of law. Last year the Government of Sweden decided on a new thematic strategy for Sweden’s development cooperation in the areas of human rights, democracy and the rule of law.5

Equality in health with focus on SRHR: Sweden’s feminist Government is more committed than ever - politically and financially - to support sexual and reproductive health and rights. The right to decide over one’s own body, sexuality and reproduction are human rights, essential to fulfil the right of all persons to the highest attainable standard of health, and to reach sustainable development for all. Sweden’s support to all individuals’ equal access to health is significant and amounted to 13% of Sweden’s total development assistance in 2017. Sweden’s funding for SRHR is multi-sectorial and includes support to research, bilateral health sector support, multilateral support through UN agencies, as well as direct support to international NGOs and national civil society organizations. A rights-based approach to health, including SRHR, is promoted at various levels, bilaterally and multilaterally and during numerous international conferences and meetings such as at the UN Commission on the Status of Women and the Stockholm Gender Equality Forum in April 2018.

Inclusive economic development: Sweden recognizes the important role of economic development for the realization of the SDGs. Sweden works to strengthen the conditions for free and fair trade, to contribute to more effective resource mobilisation, greater financial stability and action to counter corruption, as well as well as better access to and use of open, secure and free information and communication technology. In 2018, the Government adopted a new strategy in the areas of an inclusive sustainable economic development, increased productivity and better condition for productive employment.6 Sweden is also a significant donor of trade-related development cooperation, Aid for Trade, for example to the Enhanced Integrated Framework where we have been active in the Steering Committee and as donor coordinator. Furthermore, the Swedish Prime Minister Stefan Löfven, together with the International Labour Organization (ILO) and OECD, initiated the Global Deal for Decent Work and Inclusive Growth in 2016.

Conflict resolution and the humanitarian assistance - development cooperation nexus: In a world in which humanitarian needs are growing, it is essential to work with prevention and the underlying causes of humanitarian crises. By putting more effort into conflict resolution, disaster risk reduction, education, sustainable use of natural resources, environmental and climate work Sweden seeks to ensure that crises do not arise, and are not protracted or recurrent. This demands improved synergies, coordination and cooperation between humanitarian assistance and long-term development cooperation,

4 Government Office of Sweden “Strategy for Sweden’s Global Development Cooperation in the areas of Environmental Sustainability, Sustainable Climate and Oceans, and Sustainable use of Natural Resources 2018 -2022”, adopted by the Swedish Government, 1 March 2018. 5 Government Office of Sweden “Strategy for Sweden´s Development Cooperation in the areas of Human Ri ghts, Democracy and the Rule of Law 2018-2022”, adopted by the Swedish Government, 15 December 2017. 6 Government Office of Sweden “Strategy for Sweden´s Global Development Cooperation in Sustainable Economic Growth 2018 - 2022”, adopted by the Swedish Government, 31 May 2018.

8 including an increased involvement and presence of development actors earlier, not the least in fragile contexts to relieve humanitarian actors and promote long-term solutions to protracted crises. The humanitarian-development nexus is a priority in Sweden’s dialogues with bilateral and multilateral actors, with focus on joint analysis, planning and goal formulation between humanitarian and development actors.

Sexual exploitation, abuse and harassment: Sweden has intensified its efforts to prevent Sexual Exploitation and Abuse and Sexual Harassment (SEA/H) within development cooperation. Sweden has stepped up efforts to undertake a continuous dialogue with partner- and multilateral organizations. Sweden works with likeminded countries in several relevant fora. Sweden now includes provisions on SEA/H in agreements for financial support, including eight agreements for core support to UNICEF, UN WOMEN, UNFPA, UNDP, UNHCR, UNRWA, CERF and WFP. Provisions on SEA/H are now also part of agreement templates with implementing partners and general conditions, as well as in the Guiding Principles of Sida. This ensures that implementing partners and agencies are fully aware of Sweden’s expectations on partners to act on SEA/H.

1.2 Policy coherence for sustainable development

Commitment to policy coherence for sustainable development The Government follows an ambitious coherence policy and is committed to align policies and management structures to ensure an effective implementation of the 2030 Agenda both nationally and internationally. The horizontal and vertically integrated approach makes Sweden’s Policy for Global Development (PGD) one of the most important tools in implementing the 2030 Agenda. The PGD addresses all the SDGs and has a direct link to SDG 17 on strengthening the means of implementation and revitalising the global partnership for sustainable development.

Already in 2003, the Swedish parliament, the Riksdag, adopted the first policy for sustainable global development, based on the Government Bill “Shared Responsibility - Sweden's Policy for Global Development” (2002/03:122).7 It underlines that coherence between the various policy areas is needed in order to promote a sustainable development, and commits future governments and all its ministers to contribute to the overarching goal of equitable and sustainable global development. Two perspectives permeate all parts of the PGD, the perspective of people living in poverty and the rights perspective.

Considering PGD to be an important tool in implementing the 2030 Agenda, the Government announced a re-launch of the Policy for PGD in 2014, ensuring that all Swedish policy areas jointly and coherently contribute to an effective implementation of the 2030 Agenda. The new start was also influenced by the Swedish Agency for Public Management’s evaluation of the work methods and direction of the PGD (report 2014:1). In this evaluation, the Agency concluded a need for further clarification of the policy in terms of what was expected to be achieved by parties involved and who was responsible for it.

As a consequence of the re-launch, the Government clarified responsibilities for the implementation and every ministry formulated an action plan for how to contribute to the work of PGD, linked to the SDG:s, including concreate goals for the work. The Government report biannually to the Riksdag on the implementation of the policy.

The Government’s work on implementing the 2030 Agenda with PGD as one of several tools, is taking place through regulatory processes. The work has been focused on ensuring that PGD does not become a parallel track, but rather an effective tool in the implementation of the 2030 Agenda. The coordination function for PGD within the Government Offices is located at the Ministry for Foreign Affairs (MFA), where the responsible minister is the Minister for International Development Cooperation and Climate, also the Deputy Prime Minister. An interdepartmental working group for

7 Government Bill (2002/03:122), “Shared Responsibility - Sweden's Policy for Global Development”

PGD, consisting of heads of department from all ministries, was established in 2014 and led by the Director-General for International Development Cooperation. It has, during 2018, been merged with the interdepartmental working group for the 2030 Agenda. A strategic group for the implementation of the 2030 Agenda, has also been set up comprised of state secretaries from the Ministry of Finance, the Ministry of Foreign Affairs, the Ministry of the Environment and Energy, the Ministry of Health and Social Affairs, and the Ministry of Enterprise and Innovation. Each ministry has been tasked with designating one or two focal points for the national and international implementation of the 2030 Agenda (in which PGD is included), to be included in the interdepartmental working group.

Diplomatic missions are also actively working on the implementation of the 2030 Agenda with PGD as a tool. In 2016, the MFA tasked all Sweden’s diplomatic missions (more than 100 in number) to report on how they are promoting the implementation of PGD in their respective counties. The four SDGs that missions stated that they had worked most on were: SDG 5 on gender equality, SDG 8 on inclusive economic growth and decent working conditions, SDG 13 on climate and SDG 16 on peaceful and inclusive societies. Several embassies have sustainable development as an overarching goal for their activities and joint work is taking place between the different sections in the embassies with respect to, for example, analysis, reporting and public diplomacy.

In 2016 a multi-stakeholder delegation was appointed with the task to promote the implementation of the 2030 Agenda throughout Swedish society. In 2018, the Government of Sweden adopted a national action plan for the 2030 Agenda, including both national implementation and Sweden’s contribution to the global implementation.8 The action plan highlights six thematic focus areas and four key factors for implementation. The action plan focuses on the national implementation of the 2030 Agenda, but also includes Sweden's contribution to implementation at the global level. One important contribution to the national action plan is the interim report by the Swedish Delegation for the 2030 Agenda, which identifies six priority areas in which Sweden’s challenges are considered to be the largest, but where possible solutions have been identified.9

An example of a Sweden’s coherent approach, is that Sweden assumed a leading role in the implementation of SDG 14 on the conservation and sustainable use of oceans, seas and marine resources for sustainable development. Sweden and Fiji initiated and chaired the UN high-level conference “The Ocean Conference” in June 2017. An ambitious political declaration, “Call for Action”, was adopted, which aims to actively turn around the downward trend and promote sustainable development. The conference contributed to global momentum on the issue of the seas and a clearer placing of the issue on the global development agenda.

Priority issues for policy coherence

According to the PGD in 2003, the Government is obliged to report its work on PGD to the Riksdag on a regular basis. The most recent Government PGD communication was presented to the Riksdag in March 2018 with the title, ‘Policy for global development in the implementation of the 2030 Agenda’.10 It focuses on the progress of implementing PGD in relation to the 2030 Agenda and the global goals for the period 2016–2017. A more in-depth analysis is provided regarding several areas in which the Government has expressed a particular ambition during the period:

• The feminist foreign policy; • Sustainable enterprise; • Sustainable consumption and production; • Climate and the sea; • Flight of capital and tax avoidance.

8 Government Office of Sweden (2018), (in Swedish), “Sweden’s National Action Plan on the 2030 Agenda” 9 Government Office of Sweden (2017), (in Swedish), In the direction of sustainable welfare. 10 Government Communication (2017/18:146), (in Swedish), “Policy for Global Development in the Implementation of the 2030 Agenda”

Within these thematic areas, the Government also reported on potential conflicts of goals and interests and how opportunities for improved policy coherence can be utilised. The communication also identifies synergies and potential to make better use of synergies between different policy areas and to work more proactively in different policy areas. It also identifies a number of conflicts of interests which limit the possibility to achieve fair and sustainable global development. Furthermore, it outlines the responsible ministries for each PGD area under the respective SDG.

1.3 Global awareness

Efforts towards raising global awareness and citizenship at home

Communication is a central component in Sweden’s international development cooperation, it increases the general awareness and engagement for the 2030 Agenda and strengthens both development cooperation and Sweden’s voice in an international context. Strategic communication and public diplomacy can be an effective component, contributing to the implementation of bilateral development strategies and to increased foreign policy impact.

The Swedish International Development Cooperation Agency (Sida) implements the Government Strategy for Information and Communication, incl. through civil society organisations. The aim of the strategy is to raise awareness among the Swedish public on development cooperation and its results, as well as increasing the general awareness and engagement for the 2030 Agenda and the SDGs.11 The main part of the funding for the strategy is communication initiatives channelled through civil society. Prioritized target audiences include journalists; youth; decision makers and an interested Swedish public. The 2030 Agenda and the SDGs provide a useful framework for the communication. The Delegation for the 2030 Agenda pursues a dialogue with various actors in society and disseminates information on examples of best practices in the area of socially, economically and environmentally sustainable development.

Sida makes an opinion poll every year regarding, for example, the general public’s perception on global development. The most recent annual opinion poll shows that the perception of world development has become somewhat more realistic over the past years.12 Swedish people also increasingly report that they believe they have a good understanding of development cooperation. Four out of ten people are aware of the SDGs and two out of ten believe that it will be possible to reach SDG 1 on poverty eradication by 2030. There is a continued strong support among the Swedish public for development cooperation with seven people out of ten wanting to keep, or increase, levels of public funding for aid.

Some examples of communication activities that have been successful in the past years: • #FirstGeneration is an international communication campaign with a focus on the SDGs and youth, initiated by the MFA. International and local actors contribute to the fulfilment of the 2030 Agenda. Approximately 30 Swedish Embassies are involved in the campaign: http://www.swemfa.se/campaigns/first-generation/ • Call for proposals on communication about the Global Goals – Twice per year a wide range of actors can apply to Sida for funding for their activities through a simplified application procedure. This has encouraged several new partners to engage in the SDGs and new audiences have been reached. • The Global Municipality – Sida collaborates with eight mid-sized municipalities that make specific efforts to highlight global issues and to engage in the local community during a concentrated period of time. A mix of audiences is reached through this initiative.

11 Government Office of Sweden (in Swedish), “Strategy for Information- and Communication, Including through Organizations within the Civil Society”, adopted by the Swedish Government, 2 June 2016. 12 Swedish International Development Cooperation Agency (Sida), (in Swedish) – Annual opinion poll 2017

• The Global School – An initiative where Sida works through a network of teachers with a specific mission to engage with school leaders and other teachers to promote a focus on global development in the schools. • Cooperation with YouTube influencers who have reached and engaged large numbers of youth via social media. • Media scholarships - engaging journalists in improving their knowledge, promoting investigative journalism and reporting about development issues.

2. Policy vision and framework

The Government of Sweden has undertaken significant work to reshape policies and guidance for Sweden’s development cooperation and humanitarian assistance. Since the 2013 DAC Peer Review, a more effective policy framework, based in the international commitments formulated in the 2030 Agenda, the Addis Agenda and the Paris Agreement, has been adopted, clearly setting out the goals, priorities and direction of the Swedish’s development cooperation. It also provides a clear hierarchy of policies and steering documents, indicating how the goals of the Swedish development cooperation and humanitarian assistance are to be translated into implementation.

2.1 Framework Vision

The aim of Swedish international development cooperation - as stipulated by the Riksdag in 2013 - is to create preconditions for better living conditions for people living in poverty and under oppression. The goal of Sweden’s humanitarian assistance is to help save lives, alleviate suffering and uphold dignity, for the benefit of people in need who are, or are at risk of becoming, the victims of armed conflicts, natural disasters or other disasters situations. The Policy Framework for Swedish Development Cooperation and Humanitarian Assistance (2016/17:60) (referred to as the Policy Framework) identifies how to best contribute towards achieving these objectives.13

The Policy Framework is a central document in Sweden’s development cooperation policy. It outlines the direction of the Swedish development cooperation and humanitarian assistance, laid down in Sweden’s PGD. Whether Swedish development cooperation is bilateral, regional, thematic, multilateral or through the EU, the aim is to meet the overarching objective of Swedish development cooperation and to be based on the direction presented in the Policy Framework.

As noted in the 2013 DAC Peer Review of Sweden, the earlier number of policies and governing documents created layers of complexity relating to the governance of Swedish development cooperation. The Swedish Government therefore adopted a more effective framework in March 2014, called Aid policy framework – the direction of Swedish aid (2013/14:131).14 The Aid policy framework was based on the recommendation by the 2013 DAC Peer Review of Sweden and the evaluation of the management of Swedish aid policy (2011:25) made by the Swedish Agency for Public Management.15

The Government later updated the aid platform in the light of the current global development situation and in relation the 2030 Agenda, the Addis Agenda and the Paris Agreement. In 2016 the Policy Framework for Swedish Development Cooperation and Humanitarian Assistance was adopted, replacing the previous Aid policy framework.

13 Government Communication (2016/17:60), “Policy Framework for Swedish Development Cooperation and Humanitarian Assistance ” 14 Government Communication (2013/14:131), “The Aid Policy Framework – the direction of Swedish aid” 15 Swedish Agency for Public Management (in Swedish), Evaluation of the Management of Swedish Aid Policy (2011:25).

Scope

Sweden´s development cooperation takes as point of departure and is characterised by two overarching perspectives: the perspective of poor people on development and by a rights-based perspective. These two perspectives are integrated throughout Sweden’s development cooperation. In addition to the two overarching perspectives of Sweden´s development cooperation, the Policy Framework also highlights three thematic perspectives: a conflict perspective, a gender perspective and an environmental and climate perspective. These five perspectives are further explored in section ‘2.2 Principles and Guidance’. Sweden also recognises that the challenges to attain sustainable development are significant, complex and often interlinked. Therefore, economic, social and environmental conditions and processes must be afforded weight in every important decision.

The Policy Framework state that Swedish development cooperation is primarily focused on the countries that face the greatest challenges and shortcomings in terms of their own resources, with the most extensive needs and where Swedish development cooperation has the greatest opportunity of contributing towards the aim of development cooperation. Countries are chosen based on an overall assessment and a clear basis for assessment, founded on where Sweden is particularly well-placed to carry out effective development cooperation. Operations are adapted to different contexts and changes, and priorities between and within the areas set out in the Policy Framework are determined by the conditions and needs of each individual country, region and organisation etc.

The Policy Framework also emphasises that the Swedish development cooperation rests on the internationally agreed principles of aid- and development effectiveness. The primary responsibility for a country’s development lies with the government of the respective partner country and other national actors. Broad-based local ownership is vital to sustainable development results (see section 5. Delivery modalities and partnership).

2.2 Principles and guidance

Comprehensive approach

The two overarching perspectives and the three thematic perspectives mentioned in the previous section, constitute the basis for Swedish development cooperation. Together these five perspectives are tools for identifying and managing conflicting objectives and for promoting synergies between different thematic areas of development cooperation. They are also integrated in decision-making, planning, implementation and in the follow-up of operations. Integrating these perspectives in all areas of Swedish development cooperation strengthens the prerequisites for contributing towards the overarching objective of creating preconditions for better living conditions for people living in poverty and under oppression. The five perspectives are further described below and visualised in Figure 1:

Figure 1. Perspectives and priorities of Sweden´s development cooperation

➢ The perspective of poor people on development means that the situation, needs, conditions and priorities of poor women, girls, men and boys is to be the point of departure for fighting poverty and promoting fair and sustainable economic, social and environmental development.

➢ The rights perspective means that human rights and democracy is fundamental to development. The rights perspective derives from a globally agreed set of values, comprising the UN Universal Declaration of Human Rights and the human rights conventions subsequently adopted, which are binding in international law.

➢ The conflict perspective means that Swedish development cooperation recognises that peaceful and inclusive societies, based on the principles of the rule of law, are a perquisite for sustainable development. The effects of conflict on development lead to increased poverty in conflict-torn areas and to an increasing proportion of the world’s extremely poor people living in conflict- affected and fragile states. This also means an increased risk of human rights infringements and of people being forced to flee. The Government is therefore increasing its focus on peacebuilding and state-building by taking conflict issues into account throughout its development cooperation.

➢ The gender perspective ensures that the focus on gender equality is well established, and with its feminist foreign and development policy, Sweden has high ambitions. The initiative seeks to enhance both gender equality and the full enjoyment of human rights by all women and girls, as global gender equality is essential for sustainable development. The Government is increasing its focus on gender equality by taking gender equality aspects into account throughout its development cooperation.

➢ The environmental and climate perspective refers to the integration of the sustainable use of the earth’s resources so that it leads to environmental sustainability and reduced climate impact, which is a basic prerequisite for poverty eradication and sustainable societies. Sweden believes that if development is to be sustainable in terms of the environment and climate, it needs to be shaped and managed within planetary boundaries, which includes promoting fossil-free and

climate-resilient development. The Government has therefore greatly focused on environmental and climate issues by taking these issues into account throughout its development cooperation.

The Government further defines the thematic direction in the Policy Framework as follows (the order is not indicative of priority): • Human rights, democracy and the rule of law; • Global gender equality; • Environment, climate and natural resources; • Peaceful and inclusive societies; • Inclusive economic development; • Migration and development; • Equal health; • Education and research.

Poverty reduction and leaving no one behind

The Policy framework maintains that Sweden’s development cooperation must be focused on the least developed and most vulnerable, in line with the 2030 Agenda and leaving no one behind.

Sweden also recognises that the formerly strong link between low-income countries and people who live in poverty has been weakened. Rapid economic development in several formerly low-income countries has led to an increasing proportion of global poverty being found in middle-income countries. Sweden’s development cooperation may therefore also play an important role in middle-income countries. Cooperation with middle-income countries should however be limited in financial terms, considering that their main problem is not a lack of resources, but rather a question of distribution of income. Hence, Sweden is able to play an important role in influencing or accelerating reform efforts and building capacity to support developmental efforts in middle-income countries through development cooperation, especially via multilateral organisations. Small, strategic initiatives that act as a catalyst may have a major impact, e.g. in terms of support for democracy and human rights, and institution building or initiatives that support the transition to more environmentally and climate-minded sustainable development.

Sustainable peace

With today’s trend of interconnected and complex crises Sweden sees it as essential to work with an integrated approach and cross-system efforts to build peace and to prevent, handle and resolve conflicts. The fact that conflicts tend to generate humanitarian crises highlights the increased need for a close interplay between humanitarian assistance, long-term development cooperation and conflict prevention. Sweden has adopted a new strategy for Sustainable Peace (2017), which promotes increased collaboration between actors in the humanitarian system and long-term development cooperation with a focus on joint analysis, planning and goal formulation.16 In 2018 Sweden also increased the budget allocation to Sida with 50 percent for contributions regarding sustainable peace.

Sweden emphasizes an inclusive policy, building states under the rule of law, human security and justice, fundamental social services and economic choices. These aspects also form the basis of the New Deal, a platform for political dialogue on more effective work in fragile and conflict-torn states, linking policy, security and development cooperation with justice and economics. Greater capacity in local and national institutions is a priority.

Inclusive processes for peacebuilding and state building with the participation of women, youths, civil society and diaspora groups are essential. Young people’s participation and leadership is important in creating inclusive and peaceful communities and should be included in peacebuilding. Sweden’s global

16 Government Office of Sweden “Strategy for Sustainable Peace 2017-2022”, adopted by the Swedish Government, 24 August 2017.

15 leadership within this issue has been instrumental in the adoption of the UN Security Council resolution 2419, which connects the youth, peace and security agenda closer to sustaining peace and conflict prevention.

Sweden conducts development cooperation in high risk environment. Risk-taking is often essential if development cooperation is to achieve results but the risks must be weighed against the results in terms of poverty reduction and sustainable development. Supporting an initiative may therefore sometimes be justified even though the risk is high but requires good risk management and developing forms for distributing risk. The risks should be evaluated continuously and dialogue and consultations between stakeholders must take place.

2.3 Basis for decision-making

Figure 2 reflects Sweden’s overall structure and basis for decision making on development cooperation. The Policy Framework outlines the direction of Swedish development cooperation and humanitarian assistance. This is then applied in budgets, through appropriation directions and in government instructions and strategies.

At the level below the Policy Framework comes the Guidelines for strategies within Swedish Development Cooperation and Humanitarian Assistance and then the strategies themselves. The Guidelines for strategies, adopted in 2017, clarifies roles and responsibilities between the MFA, the state agencies and embassies responsible for implementation of the Government Strategies (see section 4. Structure and System). Strategies governs the use of funds in each appropriation item in the expenditure area. Several strategies can govern funds within the same appropriation item. The strategies set out objectives for Swedish development cooperation, i.e. what the cooperation will contribute to in a specific strategy period and govern the implementation geographically, in individual countries or regions, in thematic areas and through multilateral organisations. A separate strategy outlines the objectives for humanitarian assistance.

In addition to strategies, the government manages its implementing agencies through annual instructions, appropriation letters and shareholder’s instructions. These documents delegate appropriations items from the annual budget bill, but they also draw on the Policy framework for substance.

Figure 2. The overall structure of Sweden’s development cooperation.

Country, regional and global engagements and public goods

Sweden regularly review where the added value of Swedish development cooperation is greatest. In many cases, solutions need to be global or created through collaboration across national boundaries. Global initiatives enable Sweden to influence overarching principles and values in key policy areas. Regional initiatives seek to strengthen regional collaboration and find joint solutions to transboundary problems where regional cooperation produces a better impact than initiatives in individual countries. Global and regional initiatives as well as support to multilateral organisations and the EU’s development cooperation are all ways in which Sweden can reach people living in poverty and under oppression, as well as countries in which Sweden has no or very limited bilateral cooperation.

Sida, being the main implementing agency, engages as an active development partner at country, regional and global levels. The work is governed by the geographic and thematic strategies decided by the Government of Sweden.

At the country level, Sida is in the process of updating the strategy management cycle where conclusions from a Multidimensional Poverty Analysis (MDPA) will be an integrated part of evidence-based decision-making, as per the instructions from the government. Sida’s new multidimensional poverty analysis aims to assess which groups are living in poverty in terms of resources, opportunities and choice, power and voice, and human security.17 The choice of target groups, thematic priorities and regions within countries is based on the conclusions of the multidimensional poverty analysis, Sida’s comparative advantage (including the principles of aid effectiveness), and the mandate for cooperation in each country. The selection of countries is predetermined by a decision by the Swedish government.

At the regional level, the guiding principle for engagement is that the interventions are of truly regional character, i.e. not merely multi-country programs. A similar multidimensional poverty analysis and identification of Swedish comparative advantage is to be carried out ahead of a decision on a regional strategy to identify the prioritised thematic areas of support. At the global level, the Swedish engagement is guided by thematic strategies for each prioritised area e.g. environment and climate change,

17 Government Communication (2013/14:131), “The Aid Policy Framework – the direction of Swedish aid”

17 sustainable economic development, including trade, and other global public goods that cannot be addressed merely at the country or regional level.

Partnership approach

Sida strives to actively choose partners that are best suited to meet the development challenge in each country, be it the national government, civil society organisation, a multilateral organisation, think-tank, or a private sector actor. The choice of partners is based on their ability and suitability for delivering cost-effective development results defined in the strategy, while being mindful of the different strengths and weaknesses of each partner. Also, the choice of the funding modality (core support, project support, guarantees) is adjusted for each cooperation effort and the needs and capabilities of the cooperation partner. Sida’s country teams organise partner days that allow all Swedish-funded partners to meet, network, and find synergies for their work in the country.

Multilateral co-operation

In April 2007, the Government of Sweden adopted a strategy governing the engagement with multilateral organizations in development cooperation and humanitarian aid in order to create a coherent and strategic cooperation with the multilateral organizations. The Strategy for Multilateral Development, presented an integrated and strategic approach towards multilateral organisations.18 It governed the work of the Government Offices, missions abroad, Sida and other government agencies. It covered the UN system, international financial institutions, including multilateral development banks, and other multilateral institutions in development cooperation and humanitarian assistance.

To further strengthen efforts to create a coherent and strategic Swedish engagement and cooperation with multilateral organisations, the Government revised the strategy. The revised Strategy for Multilateral Development Policy, was adopted in December 2017.19 In addition to the multilateral strategy, there are organization-specific strategies for Swedish development cooperation. Today, around 80% of Swedish total core support to multilateral organisations is guided through such strategies.

In accordance with the multilateral strategy, Sweden base the size and design of its multilateral core support on continuous follow-up and assessment of relevance and effectiveness. The prioritisation criteria in the Swedish multilateral strategy also guides Sweden’s multi-bi20 support in order to promote a coherent and coordinated Swedish approach. While core support is governed at a general level by the multilateral strategy, multi-bi support is governed by thematic and geographical strategies. However, multi-bi support must be in line with Swedish priorities and approaches regarding multilateral development organisations.

Since the review in 2013, a number of routines and rules have been introduced to strengthen capacity, increase predictability and transparency with regard to Sweden’s engagement with multilateral organisations. With start in 2015, the Government takes formal government decisions (instead of decision at the level of Government Offices) on the level of core support to all multilateral organisations. Guides and templates for organisational assessments and organisation strategies have been made available to provide support. In addition to the assessments led by MFA, Sida carries out assessments of prioritised multilateral organisations focusing on the organisation’s systems and routines related to; audit and budget management, procurement and anti-corruption.

Sweden is also active in the multilateral governing boards and often brings up issues related to increased efficiency, effectiveness and transparency. Sida supports and participates with MFA in policy dialogue with multilateral organisations including board meetings and bilateral high-level meetings.

18 Government Office of Sweden “Strategy for Multilateral Development”, adopted by the Swedish Government, 30 March 2007. 19 Government Office of Sweden “Strategy for Multilateral Development Policy”, adopted by the Swedish Government, 21 December 2017. (See annex C) 20 I.e. the bilateral support provided by Sida and other government agencies through multilateral organisations.

Sweden is active and many times leading in joint efforts to make the multilateral system and its individual multilateral agencies more effective, e.g. Utstein, Senior Level Donor Meeting, Multilateral Organisation Performance Assessment Network (MOPAN), Grand Bargain and more recently Funding Compact of the UN. MOPAN extensive assessments of multilateral cooperation’s play a central role in the Swedish assessment of the effectiveness of the organisation, it can be used as a Swedish assessment of the effectiveness and be supplemented with a Swedish assessment of its relevance in terms of Swedish objectives for development cooperation.

3. Financing for development

3.1 Overall ODA volume

ODA Targets

In 1975 Sweden was the first country ever to reach the UN target of 0.7% of GNI in ODA. Aid has never since dropped below 0.7%. Despite a constant budget pressure, there is broad commitment in the Riksdag, as well as among the Swedish public, to allocate one per cent of GNI to international development assistance. In 2017, Sweden committed 0.99%21 of GNI to ODA which corresponded to SEK 46.1 billion. The budget bill for 2018 committed 1.0% of GNI to international development assistance, corresponding to SEK 49.0 billion. According to the latest Eurobarometer poll, Swedish respondents are the most likely to agree that tackling poverty in developing countries should be one of the main priorities of the national government.

Sweden’s commitment to the target of allocating 0.15-0.20% of GNI in ODA to LDC:s is reiterated in the Policy Framework. Including imputed multilateral flows, Sweden has significantly exceeded the UN target of 0.15-0.20% of GNI in ODA to LDCs. Excluding imputed multilateral flows, Sweden still performs well and reaches the lower range of the target, with preliminary data showing 0.18% of GNI in ODA to LDCs for 2017. Since Sweden is a large multilateral donor, with 32% of total ODA constituting core support to multilateral organisations, this showcases just how high priority is given to LDCs in Sweden’s bilateral development cooperation.

ODA trends

Broad support for ODA and robust Swedish economic growth has allowed total ODA provided by Sweden to more than double since the turn of the millennium. Figure 3 below shows the development of Swedish ODA, including a broad decomposition into multilateral, bilateral and in-donor refugee costs, since the year 2000.

The budget bill for 2018 commits 1.0% of GNI to development cooperation (48 950 MSEK).22 This includes appropriations for international development cooperation (42 978 MSEK, or 88% of the budget) and appropriations for ODA-eligible costs from other expenditure areas, primarily in-donor refugee costs (2 752 MSEK, 6% of the budget), ODA financed through Sweden’s member dues to the EU (2 059 MSEK, 4% of the budget) and the administrative costs of the MFA related to ODA delivery and aid implementation (416 MSEK, 1% of the budget).

The Government is currently undertaking a holistic review of the clarified reporting directives for in- donor refugee costs and how they will impact the Swedish model for reporting to OECD /DAC. The result of this review will be presented by the Government to the Riksdag in an upcoming budget bill and a new model will then be applied. Sweden will report in accordance will the clarified directives for 2019 flows.

21 Calculated using the introduced European System of Regional and National Accounts (ESA) 2010. 22 Budget Statement, The Budget Bill for 2018

Total ODA, core multilateral ODA and ODA to in-donor refugees 8 000 1,6%

7 000 1,4%

6 000 1,2%

5 000 1,0%

4 000 0,8%

3 000 0,6%

2 000 0,4%

1 000 0,2%

0 0,0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

In-donor refugees, MUSD Core multilateral support, MUSD Total ODA, MUSD % of GNI (right axis)

Figure 3. Total ODA, core multilateral ODA and ODA to in-donor refugees

ODA reporting and forward-looking information

In its letter of appropriation to agencies, the Government requires activities that are financed from the budget for international development cooperation to be in conformity with the Creditor Reporting System (CRS) reporting directives and reported as such. Only costs that are classified as ODA according to OECD/DAC’s directives are included in Sweden’s ODA reporting. Sweden continuously strives to improve the quality of its ODA statistics. In 2018 the MFA is introducing new IT infrastructure with the objective of improving the quality and management of ODA statistics. The reporting of ODA and other flows to the OECD/DAC is given high priority in Sida’s letter of appropriation. Sida is the lead agency for development statistics.

The Government’s bilateral strategies contain information on the aid volume for the specific country or region over time-period covered (normally 5 years). In the context of the OECD/DAC Annual Survey on Donors’ Forward Spending Plans, Sweden provides information on forward-looking bilateral aid allocations at country and regional levels. Sweden also publishes available forward-looking information at project level to the International Aid Transparency Initiative (IATI) registry.

3.2 Bilateral ODA allocations

Geographic allocations

The Policy Framework guides the allocation of Sweden’s ODA at a general and aggregate level (see 2.2 principle and guidance). Budgets and appropriations are set in the annual budget bill to the Riksdag. These are further detailed in the letter of appropriation to implementing agencies. The MFA decides and allocates Sweden’s multilateral development cooperation. The main implementing agencies of Sweden’s international development cooperation are Sida, followed by the MFA, the Swedish Development Finance Institution (Swedfund), the Swedish Institute (SI) and the Folke Bernadotte Academy (FBA), as illustrated in Table 1 below. The agencies answer to the MFA, and in the case of

Swedfund also to the Ministry of Enterprise and Innovation (see section 4.1 Authority, mandate and coordination).

ODA allocations per implementing agency in 2017

Government Agencies MSEK % Sida 22 543 68,5% Ministry for Foreign Affairs 8 716 26,5% Swedfund 567 1,7% Swedish institute 249 0,8% Folke Bernadotte Academy 232 0,7% The Swedish Research Council 161 0,5% Swedish Civil Contingencies Agency 155 0,5% Other23 293 0,9% Totalt 32 916 100,0% Table 1. Bilateral ODA allocations in 2017 divided by government agency.

Most of Sweden’s bilateral ODA volumes are governed by bilateral cooperation strategies that last over several years. The main implementing agency of the Government’s strategies is Sida. In some cases, FBA, the Swedish Research Council, and the Swedish Institute are tasked to implement parts of strategies together with Sida. At present, Sweden has bilateral and regional cooperation strategies with 35 low- and middle-income countries, of which 25 are bilateral strategies and one regional strategy (a complete list of Sweden´s bilateral and regional strategies can be found in annex C). This constitutes a reduction of ten countries since the time of the last DAC Peer Review, in line with the recommendations received by the DAC and outlined plans for a decreased number of partner countries at that point.24 There is also a strategy for multilateral development cooperation which is discussed under section 3.3. Table 2 shows bilateral ODA in million SEK to the ten countries that received the most support, in 2017.

ODA to the ten countries that received the most support in 2017

Partner country ODA in MSEK Tanzania 1 162 Afghanistan 1 014 Somalia 708 Ethiopia 680 DRC 573 Palestine 518 Zambia 493 Kenya 493 Syria 479 Mozambique 472 Table 2. Bilateral ODA to the ten countries that receive the most support.

23 The Ministry for Environment and Energy, Swedish NAO, Swedish Council for Higher Education, The Swedish Prison and Probation Service, The Nordic Africa Institute (NAI) and The Swedish Police. 24 Burkina Faso and Macedonia have been kept as partner countries and Cuba has been added.

Eighteen of the bilateral cooperation strategies are for low-income countries. Fifteen of the bilateral strategies are for countries located in sub-Saharan Africa. Sweden also has regional cooperation strategies for Africa, Asia and Oceania, the MENA region, the crisis in Syria, and Eastern Europe, Western Balkans, and Turkey. These regional strategies focus on partnerships with regional actors and regional cooperation between countries, both bilateral partner countries and other countries in a region. Regional cooperation has the potential of strengthening synergies with both bilateral implementation and implementation through global thematic strategies. Figure 4. shows the regional division of Sweden’s bilateral ODA in 2017.

Regional allocation of Sweden's bilateral ODA in 2017

Sub-saharan Africa

25% The Americas

Asia

52% 3% Europe

9% MENA

5% 6% Global

Figure 4. Regional allocation of Sweden's bilateral ODA in 2017.

Thematic allocations

Thematic allocations of Sweden’s development cooperation are governed both in partner country cooperation strategies and thematic cooperation strategies. There are currently thirteen thematic cooperation strategies; gender equality; human rights and democracy; humanitarian aid; capacity building in support of the 2030 Agenda; sustainable social development; sustainable economic development; environmentally sustainable development; international crisis management; information and communication; Swedish civil society organisations; research and development; human rights, democracy and the rule of law; and sustainable peace.

The thematic allocations, in terms of OECD /DAC’s sector codes, of Sweden’s bilateral ODA in 2017 are shown in Figure 5. As shown in the figure, the largest thematic area is democracy and human rights, including gender equality receive 19% of bilateral ODA, followed by humanitarian assistance at 12%. Please note that a significant share of thematic allocations is decided in geographical strategies.

Thematic allocations of bilateral ODA in 2017

Democracy and human rights, including gender equality Environment, climate and energy 19% 21% Peace and security

Economic development 6% Health 5% 15% Education and research

9% Humanitarian aid

12% 9% Other 4% In-donor refugee costs

Figure 5. Thematic allocations of bilateral ODA in 2017

3.3 Multilateral ODA allocations

Multilateral allocations

The new strategy for Multilateral Development Policy, outlines i.a. that Sweden will base size and design of core support on continuous follow-up and assessment of relevance, effectiveness (both internal and external) and results of each individual organisation. An overall assessment is made ahead of government decision to provide financial support. Assistance through multilateral organizations amounted to slightly over half of the Swedish aid budget in 2017. Table 3. shows the 15 Multilateral organisations that receive the most core support in 2017.

In 2018, Sweden for the first-time signed multiyear strategic partnership agreements on regular resources with a number of UN organisations (United Nations Development Program (UNDP), UNFPA, United Nations Children’s Fund (UNICEF), United Nations Entity for Gender Equality and the Empowerment of Women (UN Women), Central Emergency Response Fund (CERF), United Nations Higher Commission for Refugees (UNHCR), United Nations Relief and Works Agency (UNRWA) and World Food Program (WFP)). The Swedish multilateral strategy also guides Sweden’s so called multi-bi-support, i.e. the bilateral support provided by Sida through multilateral organisations. Sida’s multi-bi support amounts to 40 per cent of the agency’s total ODA. There are multiple and collective factors behind the choice of multilateral organisations as a channel for support. Multi-bi support contributes to increased synergies of Sweden’s overall development cooperation. Within a strategy it is complementary to other forms of aid. Multilateral partners contribute as brokers and meeting points for a wide range of stakeholders. Increased aid- and development effectiveness is important for Sweden, and is also a factor behind the choice of a multilateral partner, for example through Joint Donor Funding Mechanisms.

In March 2018 the Government of Sweden submitted a communication to the Riksdag on results of multilateral development cooperation and humanitarian assistance. It covers the years 2014, 2015 and

2016. The communication has a focus on five thematic areas and includes work and results of Swedish influence and advocacy. The communication is the first in a series that will be submitted every second year with focus on different thematic areas.25

The communication gives information on size and steering of Swedish multilateral development cooperation, the work and results of the organisations. It assesses size, allocation and quality of Swedish multilateral development cooperation. The communication concludes that Sweden is among - if not the leader - of good multilateral donorship. Allocations follows thematic priorities. There is a correlation between allocation and organisations active in thematic priority areas, allocations to these organisations have increased more than the general ODA-increase. Likewise, allocations to multilateral humanitarian organisations have increased substantially, reflecting the importance given by the Government to the humanitarian situation in the world.

The 15 Multilateral organisations that receive the most core support in 2017

Swedish core-support in Organisation thousand SEK

World Bank Group (WBG) 1 809 750

The Global Fund (GFATM) 800 000

African Development Bank (AfDB)/ African Development Fund (AfDF) 786 923

United Nations High Commissioner for Refugees (UNHCR) 750 000

United Nations Children´s Fund (UNICEF) 744 000

Central Emergency Response Fund (CERF) 675 000

World Food Programme (WFP) 645 000

United Nations Development Programme (UNDP) 620 000

United Nations Population Fund (UNFPA) 575 000

Green Climate Fund (GCF) 560 000

United Nations Relief and Works Agency (UNRWA) 470 000

The Vaccine Alliance (GAVI) 300 000

The Joint United Nations Programme on HIV/AIDS (UNAIDS) 260 000

Table 3. The 15 Multilateral organisations that receive the most core support, 2017.

25 Government Communication (2017/18:188), (in Swedish), “Results of Multilateral Development Cooperation and Humanitarian Assistance”

3.4 Financing for development

Financing for development

Sweden recognises the importance of the Financing for Development agenda, as outlined in the Addis Agenda. The operational nature of the Addis Agenda and the degree of specification of its commitments provides a practical approach to the means of implementation for realising the SDGs.

The Swedish Government encourages the engagement of the national private sector, academia and civil society in sustainable development. Sweden uses a wide area of different instruments for collaboration, some examples are Swedfund, and Sida’s Public-Private Development Partnerships (PPDP) and Challenge Funds, where ODA is used to leverage additional financial flows and mobilise know-how and expertise from the private sector. Sida also uses specific drivers of change and networks like Drivers of Change and Making Markets Work for the Poor (M4P) to improve the poverty and sustainability focus of private sector actors and investors. Sida has also developed a Sustainability Due Diligence tool to ensure that partnerships with private sector actors are in line with OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, and UNs Global Compact.

The private sector in Sweden demonstrates great engagement in assuming the commitments of the 2030 Agenda and has a central role in its implementation. Companies are encouraged to use their creativity and innovation capacity to make their contribution. The Agenda has all the potential to be a catalyst for the transition towards a more sustainable economy and at the same time help companies find new business opportunities.

Since the last peer review in 2013, the MFA and Sida have been working with the private sector in Sweden and developing countries to explore ways in which private enterprises can participate in designing and implementing development projects and programmes. In addition, the Government developed a new and more ambitious policy for sustainable enterprise in 2015, including an Action plan for Business and Human Rights and a policy for sustainable business.26 Swedish businesses are expected to base their work, in Sweden and abroad, on the international guidelines for sustainable business, and contribute to the 2030 Agenda. Sida facilitates the network Swedish Leadership for Sustainable Development, consisting of leading Swedish companies, selected expert organisations and Swedfund, to engage in dialogue and identify challenges and opportunities related to sustainable development. Another example is the Swedish steel industry, they are using the SDGs as a guide to ensure societal value creation and is working together with Stockholm Environment Institute to develop a methodology and tool box to evaluate how products and processes in the steel industry affect broader societal goals and interests.

In January 2018, Sweden launched the Stockholm Sustainable Finance Centre which will carry out research on risks and opportunities for the sustainable finance sector, developing research evidence and experience to guide financial institutions and decision makers in the pursuit to acquire sustainable finance. Sida also uses its convening role to mobilize engagement for the 2030 Agenda to intensify dialogue with a range of partners, among these Swedish government agencies and authorities, private sector companies and institutional investors.

Considering the magnitude of resources under management globally in public procurement, Sweden is giving increased attention to the possibilities to use procurement as a strategic tool to promote and achieve sustainability and efficiency in development. Sustainable procurement, that is, to use selection criteria on economic, environmental and social sustainability, as well as to apply life cycle analysis, can have considerable leverage both directly and indirectly. The Government has requested Sida, to annually

26 Government Office of Sweden (2015), “Action Plan for Business and Human Rights 2015” Government Office of Sweden (2016), “Sustainable Business – the Government Policy for sustainable business”

26 report how sustainable procurement is or can be applied in bilateral development. Other policy measures are considered, e.g. in capacity development. Increased dialogue with the UN system and IFIs is envisaged.

One specific example of Sweden's commitment to the Addis agenda is the Stockholm Tax Conference, which was held in May 2018, focusing on capacity building in low- and middle-income countries. Effective tax systems are essential in order to increase domestic resource mobilisation. This conference gathered over 450 participants from tax authorities, international organisations and others to provide an opportunity for experience exchange and to feature case studies for mutual learning.

The Addis Agenda reaffirms the contribution of multilateral development banks (MDBs) to sustainable development. Sweden encourages the MDBs to continue strengthening their coordination, harmonization and methodology to enhance the multiplier effect, expand the technical assistance, disseminate and share knowledge and best practices, and provide innovative and integral solutions to multidimensional development issues. In this context, Sweden would like to stress the importance of innovative financing. For example, Sida and the Asian Development Bank (ADB) signed an agreement on an innovative risk transfer mechanism in 2016, under which Sida will guarantee up to SEK 1.327 billion of ADB sovereign loans. This guarantee will allow ADB to increase its lending capacity by an estimated SEK 4.281 billion over the next 10 years from its Ordinary Capital Resources. This type of innovations can release capacity for additional operations by improving the risk profile of bank balance sheets and reducing the capital held in reserve to cover guaranteed loans.

In the report Towards Achieving the 2030 Agenda and the Sustainable Development Goals (SDGs) from 2017, Sweden present a compilation of examples from different sectors of the society of how the Addis Agenda is implemented. In 2018, it included fewer but more detailed examples. The report aims to signal the need to move from talk to action.27

ODA as a catalyst

Development cooperation has an important catalytic role to increase private and other financial flows that support development, especially in countries with high poverty rates and countries that are affected by conflicts or climate related disasters. In these countries, the level of investments is seldom sufficient. Rather, there is a deficit in bankable projects, due to lack of capacity and resources. The aid modalities described in the previous section are all in various ways catalytic, generating financing for development beyond ODA.

Sweden also works extensively with innovative financing, including green bonds, guarantees and blended financing. Sida’s guarantee instrument, backed by the Swedish Government, is a sovereign guarantee that enables mobilisation of additional capital for development and encourages innovative ways of private sector engagement for global poverty eradication. Sida uses guarantees as an effective way of overcoming challenges with access to finance, strengthening local capital markets and encouraging large investments for development in partner countries. Innovative use of the guarantee instrument and new forms of partnerships allow Sida to mobilize and influence investors such as institutional capital and impact investors. Sida will charge the guarantee holder a fee that reflects the risk of future claims, as well as covers administration costs. The fee is paid to a reserve that is used to cover any losses. However, it is only in the case Sida subsidizes the fee that development aid is used.

Another example is Swedish Investors for Sustainable Development, a partnership with 17 institutional investors, pension funds, investment companies and Sida, with the mission to work on various aspects of the investors’ role and opportunities on the SDGs, but also on sustainability risks addressed by the goals.

The Government has also created a “project accelerator” managed by Swedfund, in order to support the

27 Government Office of Sweden (2017), Towards Achieving the 2030 Agenda and the Sustainable Development Goals (SDGs).

27 development of sustainable projects. This instrument provides support to government bodies in partner countries in the form of feasibility studies for the development of sustainable and bankable projects.

As a further example of catalytic working methods, Sida supports a project on Sustainable Innovations for International Crises and Catastrophes. Funded and driven jointly by government agencies, private institutions and civil society, the project aims to bridge the gap between the development of products and solutions for handling humanitarian emergencies and the people in need of these products and solutions, i.e. the people affected by such an emergency.

Since 2016, the Swedish MFA is pursuing a project known as broader relations. The aim is to identify tools and actors within development cooperation, that can also facilitate and develop relations that last beyond development cooperation projects, to the mutual benefit of all parties involved. The project is being piloted at the Swedish embassies in Dar es Salaam, Dhaka, La Paz, Lusaka and Nairobi, with the aim of integrating it as a working method within the whole Swedish Foreign Service. So far, areas such as capacity building, cooperation in education and research, engaging private business and sustainable procurement have been identified as thematic areas with potential to build broader relations. Hopefully, the project can also serve catalytically as a means for engaging a wider variety of actors to work for sustainable development in innovative ways.

Tracking and reporting beyond ODA flows

Sweden reports the totality of its international official resource flows to OECD/DAC, in line with the DAC directives. In 2016, Sweden’s ODA amounted to SEK 41 billion. Sweden’s “other official flows” (OOF) accounted for SEK 208,9 million in 2016. Sweden reports its contribution to Swedfund as ODA, and deducts these flows from its OOF. Furthermore, Sweden reports on other official flows such as officially supported export credits by the Swedish Export Credit Agency. These flows accounted to SEK 10,27 billion in 2016. Furthermore, in 2016 Sweden mobilized SEK 2,2 million from the private sector, using guarantees (Sida/ODA) and syndicated loans (Swedfund/OOF). Sweden is part of the International Total Official Support for Sustainable Development (TOSSD) Task Force, and aims to report the totality of its flows that promote sustainable development in line with TOSSD framework.

Information about Swedish development cooperation can be found on the web-based information service, openaid.se. This service build on open government data. On this site, anyone, including key stakeholders as well as the Swedish public, can find information about when, to whom and for what purposes aid funds have been disbursed, and with what results.

4. Sweden’s structure and systems

4.1 Authority, mandate and co-ordination

Authority and leadership

The Swedish Government is assisted by the Government Offices, which forms a single, integrated public authority comprising the Prime Minister’s Office, twelve ministries and the Office for Administrative Affairs. The MFA is responsible for all, or part, of three expenditure areas in the central Government budget: international cooperation, international development cooperation and industry and trade. The responsibility also includes Sweden’s relations with other countries, the EU, as well as relations with most multilateral organisations and other international organisations financed by international aid. The MFA is led by the Minister for Foreign Affairs, the Minister for International Development Cooperation and Climate, and the Minister for EU Affairs and Trade. Together with State Secretaries for each of the ministers this constitutes the political leadership of the MFA.

At the MFA, at the level below the political leadership, work is led by five Directors-General of which three are responsible for policy areas: political affairs, trade policy and international development cooperation. The Directors-General are responsible for ensuring that the policy areas are dealt with in an integrated way, linking overall foreign policy, development, security, trade, migration, etc. in a holistic approach. The two remaining Directors-General are responsible for administrative and legal affairs, respectively.

The Riksdag annually votes on the Government’s proposed budget bill in which the expenditure area 7 for international development cooperation is included. Allocation within expenditure area 7 to specific appropriation items (anslagsposter) are specified by the Government in letters of appropriation to relevant agencies or the Government Offices, after the Riksdag’s approval of the budget bill. Each appropriation item is governed by one or more strategies for development cooperation. Allocations to appropriation items are decided by the Government and do not require the approval by the Riksdag.

The Government is supported by government agencies that are responsible for implementing government policies. The agencies receive instructions from the Government defining their tasks as needed, annual appropriation directions, as well as separate Government decisions (e.g. strategies for development cooperation). Under the MFA, there are several government agencies implementing development cooperation.

The principal responsibility for the implementation of multilateral strategies is held mainly by MFA along with a few other ministries responsible for the relevant multilateral organisation. Several ministries and government agencies can contribute to the implementation of an individual multilateral strategy.

The main government agency responsible for the implementation of bilateral, regional and thematic strategies is Sida. In some cases, FBA contribute to implementation of strategies together with Sida28. Several government agencies can be involved in the implementation of specific contributions under individual geographical and thematic strategies, although that is decided by Sida.

Sida is organised in eight departments, internal audit and the Director-General's office. Five departments work with implementing the development assistance and three with support, steering and control. A large proportion of the contribution management is delegated to the foreign missions. Sida is managed by a governing board, which is the highest management body of the agency, and has full responsibility

28 The Swedish Institute contribute to the implementation for the strategy for Capacity Development and Partnerships in support of the 2030 Agenda, together with Sida, being responsible for scholarships and trainings for partners.

29 for all decisions concerning the operations. The Director-General is a member of the board and responsible for Sida’s operational activities in accordance with the board's directives (See annex D).

The Folke Bernadotte Academy (FBA) is the Swedish government agency for peace, security and development. FBA supports international peace operations and international development cooperation. FBA has since 2015 been commissioned to contribute to bilateral development strategies in conflict settings and is since 2017, also a part of the strategy for sustainable peace. The agency is led by a Director-General. The management is supported by a directorate and a government appointed advisory council.

Other government agencies also receiving funding from expenditure area 7 are listed in 3.2, under Bilateral ODA allocations. Missions abroad, i.e. embassies, consulates, representations and delegations to the UN, the EU, the OECD and other international organisations, are also autonomous government agencies and belong to the Government Offices. The missions abroad report directly to the MFA.

Since the last peer review, new roles and responsibilities between the MFA, the state agencies and embassies responsible for implementation has been clarified in the new Guidelines for strategies within Swedish Development Cooperation and Humanitarian Assistance.29 The Guidelines for strategies, adopted in 2017, clarifies roles and responsibilities between the MFA, the state agencies and embassies responsible for implementation of the Government Strategies. In the Guidelines, the Government also describes the strategy process and highlights the importance of enhanced dialogue and engagement with partner countries, as well as Swedish development actors, in the formulation of policy and strategies for Swedish development cooperation (see section 4.2 System).

Swedfund is the Development Finance Institution of the Swedish Government. It is a wholly state- owned company that invests in sustainable businesses in low- and middle-income countries. Swedfund is financed from the development cooperation budget (expenditure area 7) and shall thus contribute to the goal of Swedish development cooperation.

The Ministry of Enterprise and Innovation (MEI) has the owner responsibility for Swedfund since January 1, 2015. Swedfund’s board is nominated by the Ministry of Enterprise and Innovation and the MEI has a representative on the board of Swedfund. The MFA is responsible for Swedfund’s development policy mandate and the financing through capital increases and specific aid funds for technical assistance and other financing schemes (Swedpartnership and Strategic Project Development). The government adopts the owner instructions for Swedfund. The instructions are prepared jointly by the MEI and the MFA and cover both issues related to development objectives and issues related to corporate efficiency.

Co-ordination

At the MFA, responsibility for international development cooperation is divided between several functional departments. The Department for International Development Cooperation (UD-IU) is responsible for the overall development policy (including specific policy areas, e.g. economic development, education and research as well as civil society), budget for international development cooperation, reporting results to the Riksdag, the model for development strategies, aid- and development effectiveness, and transparency. IU is also responsible for certain coordination of EU development cooperation as well as drafting ordinances on instructions, and letters of appropriations to Sida as well as issues regarding the management of Swedfund.

The MFA through the UN Policy Department (UD-FN) is also directly involved in the implementation of development policy through its responsibility for the management of core support to multilateral

29 Government Office of Sweden (2017) (in Swedish),“Guidelines for Strategies within Swedish Development Cooperation and Humanitarian Assistance”, adopted by the Swedish Government, 21 December 2017.

30 organisations. Responsibility for governance and evaluation of Sweden's development cooperation via the World Bank, regional development banks, development funds and multilateral environment and climate funds resides with the Global Agenda Department (UD-GA). The Department for Conflict and Humanitarian Affairs (UD-KH) is responsible for the coordination and development of Swedish humanitarian policy, including the implementation of Sweden's humanitarian aid through the UN, the EU and the International Red Cross Movement. In addition, the department is responsible for coordinating migration policy issues in the Foreign Service and issues relating to the FBA. Other departments at the MFA are also responsible for certain development cooperation related issues, e.g. the Department for International Trade Policy and the EU Single Market.

The geographical departments at the MFA coordinate Swedish foreign policy, including development cooperation, in individual countries and in regions. Issues related to international development cooperation are integrated with the context of overall foreign policy, linking e.g. with security, trade, and migration.

Annual official dialogues are held between the MFA and the government agencies Sida, FBA, SI, and the National Board of Trade. The State secretary for international development cooperation holds a dialogue with the Director General of Sida approximately four times per year. More frequent meetings are held between the head of the MFA department for international development cooperation and the deputy director general at Sida. The State secretary also holds a dialogue with the Director General of FBA approximately three times per year. As is the case for Sida more frequent meeting are held between the MFA department for Conflict and Humanitarian Policy and the FBA.

Twice every year consultations are held on each bilateral, regional and thematic strategy for development cooperation. In embassies development cooperation is integrated with other responsibilities. Sida delegates its authority to the ambassador.

A primary duty of the MFA is the preparatory work leading up to government decisions. The general procedures and routines apply to all ministries within the Government Offices and are thus not specific to the MFA. The formalised process is described in Samrådsformer i Regeringskansliet (SB PM 2012:1 (rev 2018)).30

The civil servants at the MFA prepare supporting material and draft proposals. As an example, the process will be explained using a strategy for development cooperation. Concerned departments within the MFA comment on the draft strategy, and changes in objectives or priorities for implementation may be suggested. In general, consensus between departments is sought. If required, divergent opinions are included in the draft which is then presented in meetings held weekly with the State secretary and the Director-General for International Development Cooperation. If divergent opinions have been presented a decision will be requested.

Similarly, issues involving more than one ministry are prepared collectively by the ministries concerned according to the above mentioned formalised process. This usually takes the form of inter-ministerial discussions at the level of officials. When drafting a strategy for development cooperation, concerned ministries are consulted and invited to comment. As a rule, consensus is required and ministries need to authenticate their approval. In some cases, such discussions may also involve the State secretaries concerned. When a draft strategy for development cooperation has been authenticated by concerned ministries and approved by the State secretary for development cooperation, it is submitted to the minister. Finally, the minister presents the proposal for a formal decision which is taken by the Government as a whole at its weekly Cabinet meetings.

For example, a country specific strategy for development cooperation is drafted by the responsible geographical department with support from the Department for International Development Cooperation

30 Government Office of Sweden (2018), internal document, (in Swedish), Samrådsformer i Regeringskansliet (SB PM 2012:1 (rev 2018))

(UD-IU). Concerned departments within the MFA are consulted and allowed to propose adjustments. Once agreement has been reached relevant ministries are consulted.

4.2 Systems

After the adoption of the new Policy Framework, work commenced to update the Government’s Guidelines for Strategies. The document was drafted by UD-IU in close cooperation with the UD-FN and the new guidelines was adopted by the Government. As in the case of the previous guidelines they cover bilateral, regional, thematic, including humanitarian assistance, and multilateral development cooperation through strategies.

The process to develop, implement, and follow up strategies is clarified in the guidelines. It emphasises how learning and experience from a strategy period feeds into the preparatory work for the next period (figure 6). In the second last year of a strategy, the agencies implementing the respective strategies, will present an in-depth report which, inter alia, includes analysis of implementation progress, changes in context, summary conclusions from e.g. evaluations and Mid-term Reviews (MTR), as well as recommendations for the future. This is an important basis for the decision to draft new instructions on direction, i.e. the first step to develop a new strategy.

The guidelines also stress the importance of results, learning, and the need for flexibility and adaptation of implementation to the specific context. The importance of swift adaptation when needed in a changing context is emphasised. The initiative to adapt may come from either the Government, MFA, Sida, or FBA. A revised strategy needs to be approved by the government. The broader scope of Swedish multilateral policy and priority issues is expanded and clarified in a new multilateral strategy. This document was drafted by the UD-FN in close cooperation with the UD-IU in parallel with the guidelines for strategies and approved by the Government on the same day.

1. Instruction on direction - Gov’t office invitation to consultation - Gov’t decision

5. Follow-up - Annual reporting 2. Proposal - In-depth review, icl consultations - Authority invitation to - Financial follow-up consultation - MFA-Autority consultation - Authority submit proposal - Revision as required

3. Strategy formulation 4. Strategy implementation - Gov’t office develop draft strategy - Operationalisation and based on proposal implementation - Gov’t decision on strategy

Figure 6. Process for developing bilateral, regional and thematic strategies.

The strategies are normally valid for a period of five years. Each time a strategy is to be renewed an active decision is made by the Government to continue with development cooperation in a specific

32 country, region, thematic area, or multilateral organisation. Normally, considering the long-term approach in Swedish development cooperation, a new strategy is drafted. In 2014, however, a decision was made to phase out development cooperation with Iraq, and instead a phase-out strategy was adopted. Due to the change in context, the decision was reversed and a new development cooperation strategy was adopted in 2017.

Also in 2017, a major review of the thematic strategies and their direction was undertaken. The major conclusions of the review were that a new strategy for global gender equality was to be drafted, and in the three strategies for each of the dimensions of sustainable development, as well as in the strategy for capacity development, there is to be an increased focus on the 2030 Agenda. All five strategies were adopted in the spring of 2018.

Currently, there are 25 bilateral strategies, 6 regional strategies, 13 thematic strategies, and 29 multilateral strategies. In total, 73 strategies for development cooperation are being implemented by Sweden (see annex C).

Contribution approval mechanism

Decisions on programming, policies and partnerships are delegated to Sida, and FBA, as per the Guidelines for strategies (see 4.1 on Authority and leadership). Sida’s approval mechanism has two phases of assessment and approval. The initial phase, operationalisation, aims to develop a relevant portfolio that contributes to the objectives of the strategy. The second phase, contribution management, is designed to ensure a systematic and clear process for decision making with four steps that guides users with a small number of broad analytical questions. Since the last review, the process has been simplified to allow for greater scope for professional judgement based on a few key principles rather than detailed checklists.

For the MFA:s own management of core support to multilateral and international organisations as well as project and programme support, guidelines and templates have been updated and revised, most recently in 2017.

Quality assurance

As described above (4.1. on Co-ordination) preparatory work leading up to government decisions follows a formalised process which contributes to quality assurance at several levels. Within the MFA concerned departments are consulted and allowed to comment on drafts.

Sida’s Board of Directors has overall responsibility of ensuring that Sida maintains satisfactory internal control. The board delegates operational activities to the Director General and deputy Director General. Quality assurance is performed at three levels: operations, quality assurance and independent audit. Operational quality assurance includes thematic assessments, financial management, follow up of results and contractual requirements performed by Sida's operational departments and the embassies. Specific quality assurance functions beyond the scope of the operational departments include an evaluation, monitoring, internal control, budget and regulatory follow up. There is both an internal and an external independent audit function plus an independent evaluation function. Quality assurance has remained high on the agenda since the last peer-review and resulted inter alia in an update of the contribution management process following both internal and external evaluations in 2016. A new structure for quality assurance was established in 2017 to create efficient quality assurance in contributions and to contribute to an effective control environment at units and embassies. The renewed contribution management process launched in 2018 provides a uniform framework that allows flexibility based on risk and materiality to adapt to specific conditions and context. The above changes give the managers the mandate to make adequate priorities and make sure that allocated resources and competences are available at an earlier stage of an appraisal, rather than at a late stage where the opportunity to improve the quality is limited.

Transparency

In 2010, a transparency guarantee was introduced to Swedish development assistance, making public documentation and information about Swedish aid available on the web.31 In line with the guarantee and commitments on aid- and development, the website Openaid.se is built on open government data. The website is updated monthly and allows the public to follow when, to whom, and for what purposes funds have been disbursed, and with what results. The comprehensiveness of the data has steadily increased over the years and clearly indicates in-donor country refugee costs and administrative costs. All official Swedish aid activities since 1998 are covered. During 2018 improvements are being made to publish more documents and data to cover subnational locations, more detailed transaction information and budget identifiers, to name a few.

Sweden actively contributes to global reporting initiatives including the Global Partnership for Effective Development Cooperation and DAC statistical reporting requirements.

Sweden has continued to be an engaged and active member of IATI both in its role as a secretariat member focusing on outreach to other bilateral publishers and as an individual publisher. Continuous improvement of Swedish IATI data has placed Sweden among the top performers when compared with other publishers. Sweden has continued to add new types of data as the IATI standard has evolved. In accordance with the Grand Bargain Sweden were among the first to start publishing detailed humanitarian data in 2018. Sweden has also worked to explore how transparent reporting through IATI could have a positive impact on climate finance reporting. One example being presentations of IATI to the Conference of the Parties (COP) and the Standing Committee on Finance after invitations from United Nations Framework Convention on Climate Change (UNFCCC).

Procurement, contracting and agreement-making

In line with the overall adjustments to the contribution management Sida is reviewing and updating the standardized agreement templates. The aim is to have templates for all major types of support/partners. As most embassies with development cooperation have delegation of financial and program authority the procurement and legal units are stepping-up their support to the embassies. An area of specific importance is how to apply sustainable procurement criteria (environmental, economic and social) in the public tendering goods, works and services.

Risk management

Since the last peer review, Sida has continued to develop its risk management. At the strategic level, risk management within a specific context comprises choices within the portfolio. At the contribution management level, the introduction of a new IT-system in 2012 provided a more systemic way of managing risk. A new system for contribution management was introduced in March 2018. The new contribution management system adopts a standardized approach, allowing for more flexibility to identify and manage risks specific to the contribution and its context. These changes follow, inter alia, an evaluation in 2016, and observations in the last peer-review to better balance the attention between risk areas.

Innovation

The Government’s Policy Framework notes the importance of innovation, and partner country capacity to innovate, as a key factor to achieve sustainable development. Sida’s instruction from the Government includes innovation in both financing modalities and forms of collaboration which is consequently reflected in Sida´s operational planning. Dedicated funds have been instrumental in enabling Sida to develop innovative roles, aid modalities and forms of cooperation.

31 Government Office of Sweden (2010), “A Transparency Guarantee in Swedish Development Assistance”.

Innovation within Swedish development cooperation entails supporting the capacity for innovation in partner countries, as well as innovative means of conducting development cooperation and innovative financing. To this end, the Government strives for Swedish innovation systems to be able to contribute to Swedish development cooperation, and Sida has various tools that both support innovation and are innovative in themselves. Among those are challenge funds such as Innovations Against Poverty and the Guarantee Instrument, which are used to reduce risk for private lenders in development cooperation projects.

Flexibility and adaptation

International development cooperation and humanitarian assistance must be adapted to prevailing circumstances. The application of guidelines and the implementation of strategies for development cooperation and humanitarian assistance therefore need to be flexible and fit for purpose. One important part of this is a strategic dialogue between the MFA and Sida or FBA about the changes in the conditions for implementation that may occur during the strategy period. This includes preparedness for the adaptation of the forms and direction of development cooperation in the event of a worrying negative development of the political situation.

To be able to respond to new challenges, the design, implementation and financing of development cooperation and humanitarian assistance need to explore different ways of working and methods. It is also a matter of working through cost-effective channels and partners, technical solutions, or financing solutions.

Sida places strong emphasis on respect of ownership and therefore has core funding to partners’ own strategy and programming as the preferred modality. This, coupled with Sida’s flexibility, enables partners to be innovative in how they are to achieve their objectives. There are, however, no specific incentives provided by Sida or guidance for partners on innovation.

A key objective when launching the renewed contribution management system was to further enhance quality by enabling more learning, adaptation and initiated risk management. Better allocation of resources based on the principle of risk and materiality is expected to free-up resources for strategic dialogue, learning and swifter adaptation, while enhancing quality assurance and providing more freedom to innovate. It is now easier to scale-up successful innovative pilots. These new working methods will also need to be supported by competence development at all levels. Sida’s approach to Results Based Management also stresses adaptive management, see 6.1 Management for Development results.

4.3 Capabilities throughout the system

Staffing levels, composition and location

The Swedish Government Offices has a staff of approximately 4700. Around 1300 of them work for the MFA - 770 in Stockholm and 550 at missions abroad. At the mission abroad around 35 Full-time equivalent (FTE) are focused on development cooperation. Sida has around 140 staff and 155 locally employed in missions abroad. In the missions around 330 FTE altogether (MFA, Sida, locally employed) work with development cooperation.

In total, Sida has a staff of over 700 posted in Stockholm and in partner countries abroad. Sida has continued to focus on increased field presence to strengthen the capacity for dialogue and partnership as well as follow-up and monitoring of programmes. The number of sent out staff has increased as well as the number of National Program Officers at the embassies. Field presence is continuously evaluated and prioritized. Sida has enabled short term and more flexible assignments to enhance capacity at the embassies.

Human resources

The Human Resources departments of the MFA and Sida cooperate on several training courses including: security in the field, anti-corruption, and courses for Sida’s National Programme Officers, National Programme Administrators and trainings in preparation for a posting abroad. Training include staff in Stockholm staff posted abroad as well as locally employed staff abroad. To facilitate the planning of training the MFA and Sida will formalize their work. This will include joint assessment of future needs and competencies based upon foreseen recruitment needs and other factors.

Sida has introduced a human resource planning system that enables Sida to plan staff rotation, support career progression and handle competency gaps. Sida’s Human Resources Council makes an analysis of the organization to match its objectives. An incentive package has been developed to respond to the challenges of recruiting to fragile contexts. It enhances the competency of the persons to benefit the organization and the individual. During the last years, the opportunities for Sida staff to work with multilateral partner organizations have increased.

Both Sida and the Government Offices, as well as the FBA, have the possibility of financing and administrating secondments to international organizations, mainly within the UN system, development banks and the EU institutions. Aside from contributing to the work of these organizations, focusing on Swedish policy priorities, secondments serve as means of building staff capacity and experience. The majority of Swedish seconded personnel are Sida and Government Offices staff.

Competences in thematic and cross-cutting issues are strengthened through the thematic networks within Sida. A special effort has been made to raise competences in the areas of gender equality, environment and climate change. Sida has assigned Lead Policy Specialists in the five areas of gender equality, environment and climate change, health with focus on SRHR, human rights and democracy and peace and security. They are responsible for the development of competence, knowledge and methods in their respective areas and they represent Sida externally and participate in global dialogue in their areas of expertise. There are also Policy Specialists in other thematic areas.

5. Sweden’s delivery modalities and partnership Swedish development cooperation rests on internationally agreed principles of aid- and development effectiveness. They are emphasized in the Policy Framework, which states that Sweden is to ensure that the principles are followed and developed further in Swedish development cooperation as an important prerequisite for planning, implementation and monitoring, and repeated in the Guidelines for Strategies within Swedish Development Cooperation and Humanitarian Assistance.

5.1 Partnering

Relevance to development needs

The 2030 Agenda emphasises that sustainable development cannot be achieved without partnerships. Swedish development cooperation builds on broad engagement and inclusive partnerships between actors in Sweden, in partner countries and with regional, international and intergovernmental organisations as well as with Civil Society Organization (CSO) and the private sector. Sida carefully selects partners with the ability to bring about change, as duty bearers or change agents.

Many of the development challenges require global commitment and solutions. Sida therefore increasingly cooperates with multilateral organizations through global support. Sida also funds multilateral organizations on country level when local partners are non-existent or have limited capacity.

Support to and via civil society is an important aspect of Swedish development cooperation and are powerful agents of change. CSO:s can contribute towards a democratic culture and are crucial to the rights perspective. A significant part of Swedish bilateral development cooperation is channelled through CSOs. Sida has followed up on CSO related commitments in the aid- and development agenda with a focus on promoting an enabling environment for CSOs and supporting CSOs’ own efforts to enhance their development effectiveness. Examples include financing and active engagement in the multi-stakeholder Task Team on CSO Development Effectiveness and Enabling Environment, an active role in the joint donor support to the Open Forum and Better Aid and the active engagement in the Informal Donor Group. The latter has among other things produced a draft code of practice for harmonised requirements on CSO funding. Sida has also developed internal guidelines for aid and development effective support through civil society organisations. Since August 2017 Sida funds a strategic secondment of a senior civil society expert to the OECD /DAC as well as supports a range of international civil society partners engaged in protecting and promoting an enabling environment and development effectiveness.

Business has a central role to play in economic development. Cooperation with business actors in partner countries helps to mobilise private sector capacity. Sida has increased its collaboration with private sector in partner countries to promote inclusive value chains, innovative sustainable solutions etc. Sida collaborates with larger companies to promote sustainability aspects in their core business and to influence their respective industry to make a difference for sustainability.

Predictability and flexibility in programming and budgeting

The Government strategies contain information on the aid volume for the specific country or region over the 3 to 5-year period covered by the strategy. Sweden provides information on forward-looking bilateral aid allocations at country and regional level (see section 3.1, subsection ODA reporting and forward- looking information).

Sweden’s country strategies provide indicative annual budgets for the whole strategy period. The Government gives Sida flexibility to deviate up to 10 percent from the decided total allocation for each strategy. In addition, the Swedish government’s allocation framework allows Sida to enter into multi- year agreements with partners which enables predictability. Sida strives to ensure good partnerships and to increase predictability for partners and to ensure multi-year agreements, simplifications, flexibility

37 and close dialogue with partners. Since the last OECD/DAC peer review, programming processes have been revised and simplified to ensure greater flexibility to adapt to changing contexts. These changes have also increased development effectiveness and reduced transaction costs for Sida’s partners. Monitoring focuses on results, balancing financial accountability and learning.

Joint approaches

Sweden is a dedicated supporter of joint programmes and donor harmonisation. Sida works closely with other development partners, often taking a leadership role in donor coordination at the country level. In several instances Sweden leads donor harmonization efforts regarding gender equality, for example in Bangladesh. Sweden is committed to participate in and contribute to mutual accountability. For instance, Sweden funds the UN Resident Coordinator Office in many countries to strengthen the UN’s role and efforts in this regard. Sweden makes information of bilateral funding available on a regular basis to the partner governments and the public, with certain exceptions on individual projects with high sensitivity.

Program Based Approaches are prioritized and form an integral part of the assessment of adherence to the principles of aid- and development effectiveness in the contribution management process. Sida is participating in delegated co-operation mechanisms not the least with respect to the European Commission, both in delegating and receiving delegations. Sida currently manages EU-delegated funds in six countries, for example in Ukraine and Cambodia. This joint approach provides for a better division of labour, reduced transaction costs for the partner country and allows for the scaling up of contributions financed from the Swedish aid budget and the EU budget. Sweden also partakes actively in EU joint programming both at strategy level and program level. Harmonization is actively promoted and the default option in multi stakeholder partnerships.

Accountability and transparency

Sweden’s transparency guarantee for Swedish development assistance strengthens accountability within the Swedish Aid Administration and ensures that a wide range of partners can understand and engage in development cooperation, primarily by making information readily available on Openaid.se. Sida provides various tools and guidelines to partners to allow them to better engage and participate in funding mechanisms. An annual report is produced by Sida providing information for the Swedish Government and taxpayers on the results of Swedish development cooperation.

Sida has the collective responsibility of reporting all of Sweden’s official aid and has implemented a unified information channel to capture ODA flows from all Swedish agencies, including funds channelled through NGO’s, allowing for efficient publications to OECD/DAC CRS and IATI. This assures up-to-date, comprehensible and comparable information. Sida is currently piloting the IATI reporting of its major NGO partners, encouraging transparency amongst non-state actors and adding value to traceability and accountability of Swedish aid, with the long-term goal of requiring all NGO partners receiving Swedish aid to publish directly to IATI. Furthermore, Sida is piloting a project exploring the possibilities to publish climate finance flows online, using IATI data as a source.

Tied aid

Sweden remains committed to the principle of untying aid and has since the last peer review accelerated efforts to increase its levels of untied aid. In 2016 Sweden reported 99.6 % of its aid being untied. The levels of untied aid have since 2013 been over 95%. These increasing levels were in line with international commitments made in Accra (High Level Forum HLF3, 2008) and Busan (HLF4, 2011).

5.2 Country level engagement

Mutual accountability and ownership

Sweden’s development cooperation takes place in various contexts such as in low income countries, middle income countries, conflict-affected countries and fragile states and in humanitarian crisis. Inequality within countries and regions is often high and makes context-adapted operations even more important. A point of departure is the systematic approach that Sida uses to ensure adherence to the principles of aid- and development effectiveness. Important parts of this are e.g. the streamlined strategy process where thorough analysis and operationalization plans are developed and the contribution management system that require program managers, decision makers (and ultimately also partners) to take the principles into account, assess them and apply as applicable and relevant.

The principle of mutual accountability is applied in conjunction with work towards ownership and transparency. The principle is also applied in the global humanitarian support as well as in the global support aimed at preventing, building and sustaining peace where the principles are interpreted and adjusted to be relevant to the respective objectives, modalities and portfolios. Sweden’s transparency guarantee, which is described above, also facilitates and strengthens mutual accountability.

A core value in Swedish development cooperation is the respect for the partner country’s ownership for its development agenda. Ownership is exercised by the partner Government, other democratic institutions and by civil society actors (as defined in Accra Agenda for Action, 2008). To ensure ownership of its partner countries, Sida aligns its cooperation efforts to the partner countries’ national development plans, which normally is an openly accessible document that has a linkage to conclusions or decisions in the national parliaments. The main responsibility for the contributions that Sida supports thus remains with the partner country. Sida is also committed to participate in and promote coordination arrangements at country level.

Sweden’s commitment to ownership is manifested in Sida’s partnership approach and its financing role. Sida gives preference to core or program support for the partners’ own strategic mandate and strategy and on-budget support in the support of Governments. As part of the partnership approach, Sida assesses the partners eligibility and capacity for internal control and ability to manage funds. Part of the contribution may be to build the partner’s capacity in these areas and is followed up in monitoring and dialogue. Priority issues such as gender equality and environmental impact are also raised in the dialogue between Sida and its partners.

Use of country systems

Sweden promotes the use of and tries to strengthen country systems. For example, Sweden together with other donors have introduced results-based sector-budget support for improved budget credibility as well as transparency of the state budget and its execution. But even though Sweden is fully committed to the principles of aid- and development effectiveness, it has encountered challenges in improving its Global Partnership scoring on “Use of Country Systems”.

The declining democratic space and slow progress in governance in many partner countries has led to a decrease in the use of country systems and an increase of funding through multilateral organisations. Where multilateral modalities are being used, Sida continues to promote that the same principles are applied to the programming and implementation by partner organisations. For non-state support and government-to government support alike, Sida tries to use core support to the extent possible, to allow for locally/nationally owned programming prioritization processes as well as flexibility. Multiyear agreements are standard procedure. This is increasingly also used for the humanitarian support. Engagement in fragile contexts brings in political and conflict related complexities that add challenges to apply the principles.

Other efforts to enhance countries monitoring exercises include support to enhance national statistics, especially gender statistics. Support is provided through the UN for capacity building for national authorities for effective implementation of the 2030 Agenda. Other examples of Swedish cooperation include the strengthening of partner countries public financial management system.

Effectiveness in fragile states

Sweden’s co-chaired the “International Dialogue on Peacebuilding and Statebuilding” until recently, and contributed to as well as promoted the principles of New Deal internationally. A concrete example from the field is Somalia, where Sweden contributed to the new partnership agreement between the government and donors, which contains the New Deal principles and is accompanied by a framework for mutual accountability.

Responsiveness and inclusiveness

Context analyses are carried out periodically and in line with Swedish governments instructions on the implementation of cooperation strategies. For example, conclusions made from strategy reviews are based on close and strategic joint analyses between Sida staff and partners in all countries with bilateral cooperation.

An integral part of Sida’s cooperation is to ensure that marginalised groups can contribute to decision- making. Sida increasingly uses the multidimensional poverty analyses to improve the identification of the most vulnerable poor population, including their access to power and voice. Additionally, decentralisation, and using Swedish experiences in this regard, is key in many countries of cooperation to ensure that democratic institutions work closer to marginalised groups and individuals.

The conflict perspective is included in all country analyses and Sida is increasingly implementing programs with special focus on human security. In countries affected by conflict the nexus between development cooperation and humanitarian assistance is given special attention. In this regard the synergies with peace building processes are also relevant.

Strengthening the capacity of individuals and local societies to build resilience is an important focus in most programs. Sweden provides flexible, innovative and effective development funding focusing on underlying causes of risk and vulnerability aimed at strengthening resilience and reducing humanitarian dependency. For example, Sida supports durable solutions for displaced populations and host communities, both refugees and internally displaced populations in Uganda, Ethiopia, Sudan, Somalia, DRC and Bangladesh.

Conditionality Generally, Sweden seeks to limit the number of conditions and focus on aspects of importance for achieving development outcomes and for ensuring adequate and transparent use of resources. Development cooperation involves undertakings on the part of both Sweden and partner countries. These undertakings are agreed with the partner country and clearly specified in publicly available agreements. As far as possible, agreed undertakings, such as agreed results indicators, are drawn from the cooperation partner’s own commitments, as reflected in its strategies and plans. Sweden aims at commitments and results indicators to be specified in a joint framework covering all donors.

6. Sweden’s result management, evaluation and learning

6.1 Management for development results

Results oriented policies and strategies

The government has in recent years put a stronger emphasis on long term results and sustainability, on working holistically across sectors and on the principles for aid- and development effectiveness. Learning and dialogue has also been increasingly emphasized to make cooperation ever more effective.

Creating a clear linkage between interventions and the overall Policy Framework, the strategies reflect the Government’s priorities within a specific context and are operationalized by Sida and other agencies, deciding what activities to support to contribute to strategy objectives. Projects and programmes are designed by partner organisations, often in dialogue with Sida.

Sida has since the last peer review worked systematically to strengthen its management for development results. For Sida, results-based management (RBM) is about maximizing achievements by continuously learning from success as well as failure and making adaptations based on the lessons learned. This implies constantly asking questions such as “What do we want to achieve?”, “What have we achieved?” and “What can we do differently to increase the chances of achieving our objectives?” Sida is increasingly exploring new RBM approaches inspired by “Doing development differently”, “Problem Driven Iterative Adaptation” and other approaches recognising the complexity and uncertainty of development processes. Sida has recently developed an e-learning material for staff to promote RBM, primarily as a ‘mind-set’ and with focus on adaptive management at project level.32

Partner organisations have the primary responsibility for monitoring the results of projects and programmes and to report to Sida; i.e. partner country systems are used extensively. During project and programme implementation, Sida emphasises dialogue with partners and building capacity. Partner monitoring and evaluation capacity is considered crucial, as it determines a partner’s ability to learn and adjust throughout implementation. Periodic dialogue with partners on the extent to which results are being achieved is also encouraged. This is formally built in through annual monitoring meetings. Evaluation is encouraged but not compulsory for all projects; it depends on the needs in each case. While partners have the first-hand responsibility for results monitoring, Sida as donor agency follows up all its contributions drawing on the reporting from partners as well as other information. At least once a year an assessment is made (traffic light and narrative) whether the intervention is expected to reach its objectives. Program managers also file a self-evaluation style completion report at the end of project.

Results against strategy objectives are reported back to the MFA in annual strategy reports which also includes a contextual analysis and implications for future work. Implementing Government agencies further reports to the Government on results in its annual report. Sida reports both by strategy (implementation, finance and overall traffic light on performance), and by thematic area in the Policy Framework.33

Support to multilateral organisations is based on an assessment of the organisation’s relevance and effectiveness. Non-earmarked support is the preferred mode of financing, coupled with an active Swedish engagement at board level with focus on agreed strategies and policies. Sweden promotes a good results management within the multilateral organisations, including a planning based on objectives to be achieved, appropriate systems for monitoring and evaluation and use of results information for learning, accountability and communication. As Sweden supports the totality of an organisations activities, the objectives in the organisational strategies are here derived from the respective

32 E-Learning material for staff (internal document) 33 Swedish International Development Cooperation Agency (Sida) - Reporting and results: https://www.sida.se/English/how-we-work/Reporting-and-results/

41 organisation’s own results frameworks. In addition, there are objectives for organisational development that Sweden wants to see. Results are followed up based on annual reports and through Sweden’s representation in the board.

The Government report results back to the Riksdag, as part of the annual budget bill. This is also done against the most prominent objectives in each thematic area as expressed in the Policy Framework and in strategies. This reporting is mainly qualitative, complemented with certain quantitative data and an analysis of results. A “contribution” rather than an “attribution” approach is taken.

Approach to results measurement

The strategy guidelines spell out that there should be a focus on results at all stages of the strategy process. The strategies shall have clear and monitorable objectives suited to the specific circumstances, precise enough to give direction and enable follow-up while still broad enough for the government agency to design a program suited to context that may be adjusted to contextual changes. Objectives express, in qualitative terms (“improved”, “increased” etc.) what Swedish cooperation should contribute to.

Sida does not require partners to use a fixed template when applying for financial support. What Sida requires is an account of what is to be achieved (objectives at different levels), how the objectives will be achieved (causal relationships/theory of change) and how the intervention will be monitored and/or evaluated. Use of indicators is not mandatory and the extent to which quantitative measurement and monitoring is utilized depends, including on context, modality and partner capacity. Any indicators will be those of the partner organisations. Gender sensitive methods shall be used in follow-up. Reporting requirements are stipulated in contracts with partner organisations. Reporting is generally both qualitative and quantitative. Hence, Sida draws fully on the partner countries’ own systems for planning, follow-up and reporting of interventions.

Sida does not have a corporate results framework or any indicators of its own. Instead, the “framework” in use consists of the various strategies in which there are common thematic strands but objectives are context specific. There are no “standard indicators” as there are no “standard objectives”. Results are followed up by strategy and reported to the MFA as described above, mainly in qualitative terms. This provides a useful and contextual feedback for management and learning, while at the same time creating challenges in presenting a broader, aggregate picture of development cooperation for external reporting.

Use of results information

Results information from projects and programs is used, together with information on context, for continuous program management. Sida program officers are obliged to make a statement in Tool for Results management and Appraisal of Contributions (TRAC) on all major results reports furnished by partners. In the annual follow-up of a contribution, a conclusion on performance is made by the responsible program officer. The purpose is to ensure that Sida makes a broader analysis on how the contribution is progressing, stating the objectives and providing examples of what results have been achieved. A risk analysis is performed, analysing the overall risk level based on the current risk picture. The programme officer is also asked to assess the likelihood that the objectives will be achieved by the end of the intervention given the overall risk level, with the aim to take a balanced approach to risk in analysing the objectives and results that are set in the contribution. The annual follow-up includes making a plan for the upcoming period, what to focus on and prioritise and which specific resources that are needed within Sida in order to allocate sufficient resources to support the partner organisation to monitor results. Results information from programs also feeds into the follow-up of strategies and achievement of strategy objectives, to strengthen the link between individual projects or programs and decision-making for the portfolio at the strategy level. Results of Swedish cooperation is here placed in its context.

At the end of the strategy period a more in-depth strategy report is produced which serves as an input to the formulation of future strategies. The strategy reports serve as a basis for dialogue between Sida and the MFA on results. The MFA uses results information and analysis to follow-up how strategies are implemented. Achievement of results may have budget implications but budget decisions are based on broader considerations, not results only. Results of the multilateral organisations and of the EU:s development cooperation is used in the dialogue with concerned organisations.

The MFA also uses results data to inform the Riksdag of results, as part of the yearly budget process. In 2018 the Government also presented a special communication to the parliament on the results of development cooperation and humanitarian assistance through the multilateral organisations.

Apart from the operative use of results information, such information also contributes to learning at all levels for general learning and for improvement. It is also used to live up to transparency requirements. Sida communicates extensively to the public on what development cooperation leads to. Results reports are published at openaid.se.34

6.2 Evaluation system

Evaluation policy and evaluation function

Evaluation of Swedish development cooperation is mainly the responsibility of Sida and of the Expert Group for Aid Studies (EBA). Sida carries out programme evaluations and a limited number of strategic evaluations of the agency’s own learning neds, while EBA focus on policy evaluation and analysis. In addition, there is decentralised evaluation carried out by implementing partners and the use of evaluations of other donor agencies.35

The Government ordinance of Sida instructs the agency to make use of internally and externally produced evaluations. In 2018, Sida’s elaborated an evaluation handbook which explains the role of evaluation and Sida’s approach to evaluation and the evaluation process. It includes guidelines and a manual for conducting evaluations based on OECD/DAC’s principles for evaluation. It sets out that evaluations financed by Sida shall adhere to the principles of aid- and development effectiveness, and rely on its partners’ monitoring and evaluation systems to the greatest extent possible.

Although the responsibility for evaluation rests primarily with the development partner, Sida may commission an external evaluation for accountability purposes, to meet learning needs, or because of limited capacity by the partner. The evaluation unit (see below) provides advice and training to Sida staff and partners, commissions strategic evaluations and represents Sida in external evaluation fora. It is also responsible for quality assurance of publications and the reporting to OECD/DAC’s publication database, DAC Evaluation Resource Centre (DEReC). Fully staffed the unit shall have five persons including the head of unit. Operative departments commission decentralised evaluations.

EBA is a government committee with the task of continuously evaluating and analysing Swedish international foreign aid, thereby contributing knowledge for its development and management. EBA commissions and carries out evaluations and analyses, and communicates these to relevant target groups. EBA was created in 2013 and has since then established itself as a key player for learning and discussion on development cooperation issues. EBA is guided by government directives which in 2016 were updated, among other things with respect to target groups of EBA’s production and EBA:s role in

34 See also: OECD (2017), Results in Development Cooperation: Provider Case Studies: Sweden. 35 Swedish International Development Cooperation Agency (Sida) - Evaluation of Swedish development cooperation: https://www.sida.se/English/how-we-work/evaluation/

43 evaluation. It was also added that the activities should be considered long term. During the spring of 2018 a review of EBA was carried out by the Swedish Agency for Public Management.

The committee has ten members with different backgrounds giving direction, deciding what to evaluate and ensuring quality. In addition, an expert from the MFA is attached to the committee. A secretariat, currently with a staff of eight, implements and manages daily operations. In 2017 EBA published 12 regular reports as well as 10 summaries of development related dissertations.

Independence of evaluations

Sida, by recommendation from the Internal Auditor, the Director General decided to establish an independent Evaluation Unit at the Department for Operational Support from June 2018. Evaluation, which earlier was an independent secretariat reporting to the board, was from 2010 a unit within the department for organisational development and later a group within another unit. The newly created evaluation unit may report to the Director General. Evaluations are carried out by external consultants to ensure independence. The level of stakeholder engagement varies, partly depending on the intended use of the evaluation (such as learning or accountability).

EBA is organisationally fully separated from both operations and policy making. Committee members are not involved in the activities subject to evaluation and they independently choose what to evaluate. In addition, the authors of reports are responsible for conclusions and recommendations of the reports. EBA refers to this as a “double independence”. There is a regular dialogue with MFA but no steering by the government as to what EBA shall evaluate and the Government directives give EBA considerable room to shape its own work. The independent position makes it possible for the EBA to study operations and other issues of all actors related to the aid budget: the MFA, Sida and other agencies as well as civil society organisations.

Planning and budgeting for the evaluation of development assistance activities

Sida has an annual plan for strategic evaluations that is decided upon by the Director General. The operational units’ and the embassies also have annual evaluation plans. Sida is adapting a more systematic evaluation planning to enable strategic relevance for the implementation and follow up of cooperation strategies. The evaluation unit requests a budget for strategic evaluations from another department on an annual basis. Decentralised evaluations are financed either by the operative units or as part of the agreement with partner organisations.

EBA has a separate budget line in the Governments’ annual budget. Planning is guided by EBA’s strategic work plan. Central themes for evaluation and analysis are identified by the committee and the secretariat. Studies to be carried out is decided upon by the committee on a continuous basis.

Evaluation partnership and strengthen capacity

Sida strives to coordinate evaluation efforts and to carry out evaluations jointly with other development partners. To stimulate the use of partners’ monitoring and evaluation systems, Sida is committed to support capacity development of evaluation skills and processes in partner countries. One example of this is Sida’s support to World Bank Centers for Learning on Evaluations and Results (CLEAR).

Strengthening the evaluation capacity in partner countries is not within the mandate of EBA. However, EBA has carried out a few studies on evaluation methodologies for the broader evaluation community.

6.3 Institutional learning

Learning from and using evaluation findings

At Sida, evaluations play a significant role in results-based management and organizational learning. They contribute to well-informed decision making in contributions and cooperation strategies. Besides valuing the results of an evaluation, Sida regards the evaluation process itself as an opportunity for learning. Therefore, the evaluation manager and the evaluator shall facilitate the evaluation with careful consideration of how the evaluation process shall increase learning.

With a focus on learning and utilization, the boundary between monitoring and evaluation is not clear- cut. For example, so called developmental evaluations, on-going evaluations and real-time evaluations are integrated into program implementation. The purpose of such evaluation approaches is to provide implementers with data and analysis continuously. Sida may commission strategic evaluations, including internal evaluations, conducted by an evaluator at Sida’s evaluation team. The internal evaluations are intended for internal learning purposes. Sida has a system for management response to evaluations to ensure that evaluation findings are used to develop Sida’s organizational practices, to strengthen the effects of development cooperation and to contribute to transparency among stakeholders.

The MFA issued guidelines for the handling in-coming evaluations in 2014. These call for the preparation of a management response for any major evaluation related to international development cooperation, including those of EBA. Representatives of MFA staff are also regularly attending EBA seminars where evaluations are presented and discussed. Evaluations contribute to learning among MFA staff and thereby to the work to formulate government policy.

Knowledge management

Staff at the MFA continuously receive a vast flow of information in the form e.g. of Sida reports, EBA Evaluations, international research reports, papers from think tanks, dialogue with other governments, organisations and interest groups etc. There is also a regular internal reporting from the Embassies. Seminars with guest speakers are common at the MFA and there are various networks, for example the “aid coordinators network”, meeting regularly and sharing information and knowledge. All of this feeds in to decision and policy making. Funds are available for competence development of all staff and online courses on a variety of subjects are offered. The regular rotation of staff within the MFA, including short term exchanges, contributes to a sharing and dissemination of knowledge. At the same time, the rotation poses challenges for the institutional memory. Also, time is a constraint when it comes to reading reports, participating in seminars and joint reflection. Knowledge management could be more systematized.

Sida recognizes the need and value of creating, sharing, using and managing knowledge and information to continuously improve performance and strengthening adaptive management. Internal thematic and functional networks are important tools for learning. They function as vehicles for collaboration, learning and sharing of information across and between different departments. Sharepoint is used as an internal Information and communication technology platform. Sida recognizes that the system has limitations, and that Sida could make better use of the technology for knowledge management and sharing. It is being analysed, in an ongoing effort to strengthen learning at Sida.

Sida communicates results and challenges from the implementation of Swedish development cooperation strategies to the Swedish Government, in formal strategy-reports. These reports, and the processes of developing them, are opportunities for learning. There is room for improvement in how these and other experiences and lessons learned are communicated and used internally. Sida created 1 May 2017 a Unit for Learning and Organizational development, within the Department for Human Resources and Communications, mandated to support Sida to strengthen collaborative learning as part of Sida’s core operations, and ensure systematic knowledge management across the organization.

7. Sweden’s humanitarian assistance

7.1 Strategic framework

Humanitarian Policy and strategic framework

Swedish policy and strategic framework is adapted to a world marked by vastly increasing humanitarian needs, limited financial resources, crises that are difficult to resolve and protracted and a worrying trend towards reduced access to crisis areas for humanitarian actors as well as growing disrespect for humanitarian principles and international humanitarian law. Sweden’s Policy Framework outlines the long-term policy on Humanitarian assistance with five key priorities:

• Greater respect for humanitarian principles and international humanitarian law (IHL). • A stronger, more efficient and coordinated humanitarian system, both locally and globally, in line with shared humanitarian standards and norms to better respond to greater humanitarian needs in the world. • Greater cooperation with civil society, including affected and vulnerable populations. • Greater cooperation and increased synergies between humanitarian initiatives and long-term development cooperation to reduce the risk of recurring humanitarian crises. • New and innovative forms of financing.36

The policy has been operationalized through the Strategy for Sweden’s humanitarian aid provided through the Swedish International Development Cooperation Agency (Sida) 2017-2020.37

Sweden has worked actively to ensure that the international humanitarian system is strengthened to assure effective and principled donor coordination in line with the Good Humanitarian Donorship Principles (GHD) (2003) and the commitments made at the World Humanitarian Summit, including the Grand Bargain – A shared commitment to Better Serve people in need (2016). Sweden has strived towards synergies between humanitarian reform and to ongoing United Nations Development System (UNDS) reform, focusing on improved cooperation between humanitarian, development actors and, where possible, peace-actors, through joint-up analysis, planning and collective outcomes while respecting humanitarian principles.

Flexible humanitarian funding has continued to be a top priority as it enables both more principled support and increased effectiveness. Flexible financing and less ear-marking is hence key for saving lives and alleviating suffering, as emphasized in the principles for GHD and in the Grand Bargain. On policy level, Sweden together with the International Committee of Red Cross (ICRC), co-convenes that the Grand Bargain work stream for reduced ear-marking. For donor behaviour to change, Sweden has strived towards deepened understanding of donors’ obstacles for reducing ear-marking. Another key endeavour has been to gather evidence from implementing agencies of how un-earmarked funding enables more principled, not least needs-based, effective and efficient action.

Sweden’s commitments to flexible funding is illustrated through its substantial global core support to humanitarian agencies as well as through its support to pooled funds such as the CERF and the Country Based Pooled Funds (CBPF). Support to pooled funding modalities at global and country levels combined with core support enables a needs-based approach, effectiveness and efficiency. Sweden’s commitment to predictability is illustrated by multi-year agreements with WFP, CERF, UNHCR and UNRWA.

As a non-permanent member of the UN Security Council (2017-2018), Sweden promotes a strengthened focus on a principled, non-politicized humanitarian action in the deliberations on the Council’s agenda,

36 Government Communication (2016/17:60), “Policy Framework for Swedish Development Cooperation and Humanitarian Assistance ” 37 Government Office of Sweden “Strategy for Sweden´s Humanitarian Aid provided through the Swedish International Development Cooperation Agency (Sida) 2017-2020”, adopted by the Swedish Government, 26 January 2017.

46 with emphasis on increasing humanitarian access and protection of civilians. Through substantial financial, and to large extent un-earmarked, support to humanitarian partners, Sweden has promoted greater respect for the humanitarian principles of humanity, imperiality, neutrality and independence and ensuring adherence to IHL. Support to the ICRC is a key partner in this regard. Increased protection for people affected by crises and increased respect for humanitarian principles is a priority area of Sweden's strategy for humanitarian assistance through Sida. Sweden has reported on details on actions related to IHL commitments and humanitarian principles made at WHS linked to in the Annual Report.38

Coherence between humanitarian aid and development cooperation in crisis context

Risk, resilience and the humanitarian-development nexus are priorities in Sweden’s dialogue with governments, the UN, donors, and partners with focus on common planning and prioritization between humanitarian and development assistance, risks, vulnerabilities, and resilience. Sweden supports the New Way of Working as well as implementation of the pilots of the Comprehensive Refugee Response Framework (CRRF).

Several of Sweden’s strategies for development cooperation have been elaborated since the last peer review, with the aim of strengthening resilience of vulnerable people and communities addressing root causes of crises, for example the regional Syria crisis strategy and the strategies for Iraq, Sudan, Myanmar, DRC and Ethiopia. A number of strategies for development cooperation, both in fragile and non-fragile contexts also include seeking synergies and complementarities with humanitarian assistance. To further strengthen the integration of resilience into development portfolios, Sida has developed resilience plans for 2017-2018 in five contexts in Africa (Somalia, Kenya, Mali, DRC and Ethiopia) resulting in a more multi-sectoral approach focusing on risk, vulnerability, resilience as well as synergies with humanitarian assistance.

In Sida’s 2015-2018 vision, resilience and the humanitarian development nexus constitute one of five priority areas, aimed at developing effective methods for sustainable development. In strengthening the nexus and integrating resilience into strategy processes, Sida uses common analysis based on risk and vulnerability, flexible and innovative funding, and dialogue with relevant actors, to both meet acute humanitarian needs as well as to address root causes.

There are several examples of synergies, such as the recent case of Somalia, which in early 2017 faced a severe risk of famine. Sida acted quickly through the humanitarian appropriation to support acute food security and malnutrition interventions, while simultaneously supporting more long-term livelihood and self-reliance interventions in the same geographic areas through Sida’s development cooperation strategy. Collaboration and common analysis contributed to avoiding a widespread famine like the one in 2011 when over 250,000 people died. Please see annex B for further details.

Overall humanitarian budget and trends

Sweden remains a major humanitarian donor and Sweden’s overall humanitarian budget has increased the last five years in line with growing global humanitarian needs, from 6,8 MSEK 2013 to 11,37 MSEK 2018. Sida’s humanitarian appropriation has increased substantially over the last years, not least in 2018 which sees an increase from SEK 3,175 billion (2017) to SEK 4,15 billion (2018).

7.2 Effective programme design

Criteria for who, what and where to fund

Sweden splits its humanitarian assistance budget between the MFA (64% of the total humanitarian budget in 2017), which uses it for core funding to multilateral partners; and Sida (36%), which uses it

38 United Nations Office for the coordination of human affairs, Self-Report on commitments in the Grand Bargain, for 2016 and 2017.

47 for bilateral funding and NGO partnerships. The MFA uses multilateral assessments of the relevance, effectiveness and results of each agency, in particular assessments made by MOPAN.

In line with the Strategy for Sweden’s humanitarian aid provided through Sida, Sida applies an innovative and new allocation methodology striving to translate the humanitarian principles, particularly the principle of impartiality, into a practical tool guiding Sida’s humanitarian allocation. The methodology is based on thirteen objective indicators, including number of people affected, number of people targeted, Integrated Food Security Classification category and INFORM’s three risk measurements and can be summarised in the following steps:

1. A quantitative and indicator-based analysis is conducted to compare the severity of different crises. Taking place in early November, it identifies an initial allocation for the respective crisis.

2. A qualitative Humanitarian Crises Analysis process (HCA) takes place for each of the major crises. While the quantitative analysis determines the initial allocation for each crisis, the HCA analyses the context, prioritises which sectors to support and determines partners best placed to reach the most vulnerable. The HCA is based on the Humanitarian Needs Overviews (HNO), Humanitarian Response Plans (HRP), ICRC Appeals, European Civil Protection and Humanitarian Aid Operations (ECHO), Humanitarian Implementation Plan (HIP) as well as Sida’s field missions.

3. A consultative review process takes place where each HCA is scrutinized by Sida´s humanitarian staff at HQ and in the field, development colleagues and the MFA. In parallel, dialogue takes place with partners on how their planned activities correspond to needs and priorities articulated in each HNO/HRP. The HCA process is finalised with the release of the Global Humanitarian Overview in December each year.

4. Sida’s suggested humanitarian allocation is shared with MFA and with Sida’s partners. Ensuring early disbursement is a top priority for Sida. For transparency purposes, each HCA document is published on Sida’s external website. By the end of March 2018, 75% of the humanitarian appropriation was already disbursed. This is to be compared with 3,8% in 2014, 22% in 2015, 54% in 2016 and 68% in 2017. It also constitutes 96% of planned disbursements by end of Q1. This illustrated a clear improvement compared to Peer review 2013.39

Approach towards localizing the response and affected communities’ participation

As illustrated in Sweden’s self-reports on commitments in the Grand Bargain, Sweden sees Grand Bargain’s concrete targets as a key vehicle for change enabling steps towards increased participation, localization, use of cash, multi-year agreement and stronger synergies between humanitarian and more long-term development efforts.40

In line with Sweden’s feminist foreign policy, Sweden has been actively promoting an integrated gender approach into humanitarian assistance, where the needs and vulnerabilities of women, men, girls, and boys are assessed in each context, for example through requiring application of the Inter-Agency Standing Committee (IASC) Gender Markers 41. Sweden also led the initiative Call to Action 2016- 2017.

Sweden does not provide humanitarian funding directly to local partners. Sida is the third largest donor to the CBPFs. In 2018, 24% of the Sida funds to the CBPF goes directly to local actors. Sweden, through Sida, is exploring the possibilities of having one agreement modality through which Sida could directly finance and cooperate with local actors. Aside from financial support, all to varying degrees contributing

39 See more on Swedish International Development Cooperation Agency (Sida): www.sida.se 40 United Nations Office for the coordination of human affairs, Self-Report on commitments in the Grand Bargain, for 2016 and 2017. 41 Inter-Agency Standing Committee (IASC), (2017), Sweden - Self-Report 2017.

48 to capacity strengthening of local actors, Sida’s partner dialogue highlights localisation, capacity strengthening, principles of partnership and handover to local actors. Moreover, Sweden through Sida, provided support to research and policy development (International Council or Voluntary Agencies and Overseas Development Institute/Humanitarian Policy Group) on how the humanitarian system can invest more in the capacity of local organisations.

7.3 Effective delivery, partnerships and instruments

Tools available for protracted crises and recovery

In 2018 Sweden has taken decision to provide WFP, UNRWA, UNHCR and CERF with multi-year core funding (period 2018-2021).

In 2017 Sida increased its focus on multi-year funding resulting in 22 multi-year projects/programs with a total of SEK 330,000,000 (until 2020). In 2018, Sida is mapping partners’ capacity to undertake needs assessments and planning of activities systematically considering cash and vouchers as alternatives to other types of interventions. Based on the mapping, Sida will consider possibilities to increase cash- based programming not only in protracted crises and recovery, but also in acute emergencies. An example of innovative financing is Sida’s support to a guarantee mechanism coordinated by UNHCR.

In all 16 contexts where Sweden, through Sida, has both development cooperation and humanitarian support, Sida has included analysis on opportunities and challenges on the humanitarian-development nexus in the yearly HCA, described above, where opportunities for multi-year and flexible funding is explored. Moreover, humanitarian staff are increasingly involved in all phases of the multi-year development programme cycle.

Rapid response tools and mechanism

Flexible funding in terms of global core support and support to pooled mechanisms as the CERF and CBPFs are key vehicles for responding to needs in sudden onset crisis or rapidly deteriorating situations. CERF’s flexible funding enables rapid, effective and principled humanitarian response to people in need. The CERF has a clear value added to the humanitarian response system and gives the UN coordination system, United Nations Office for the Coordination of Humanitarian Affairs (OCHA) and the European Research Council (ERC) relevance and power to act. In Somalia, early engagement from the funds has contributed to prevent famine through time-critical needs triggered by the drought. In Bangladesh, the Fund has this years also been critical in financing assistance and protection to the over 800 000 Rohingya refugees fleeing violence in Rakhine State, in neighbouring Myanmar.

Sida allocates significant amounts of prepositioned funding to partner organisations for rapid use, in 2017 approximately 13% of total Sida humanitarian funding. Sida’s Rapid Response Mechanism (RRM) enables NGO partners to submit a proposal to Sida and obtain funds within 24 hours. A similar modality, so called un-allocated funds, has been in place for UNICEF and ICRC and is in 2018 being expanded to include UNHCR and OCHA. Support to the Swedish Civil Contingencies Agency (MSB) has its own similar support modality.

Partnerships with the humanitarian community

In complementing core funding provided by the MFA, Sida employs a range of modalities for flexible funding. In 2017, some 70 percent of Sida’s total humanitarian funding was given either through pooled funds or as funding earmarked only at the country or regional level. Sida has further increased the scope of flexible funding in 2018. Early disbursement is a top priority for Sida as demonstrated by the substantial improvement in disbursement rate since 2014. In addition to the organization specific dialogue, an annual strategic partner meeting is arranged since 2015 to increase dialogue and offer strategic feedback mechanisms for Sida’s strategic partners (NGO partners, UN agencies and ICRC).

With an increase in programme-based support to NGO’s, reporting requirements are gradually simplified, but also partners receiving project-based support have rather limited and flexible reporting requirements allowing them e.g. to report annually, and to use their own reporting formats.

Co-ordination with other donors, UN and local systems

Globally, Sweden participates actively in humanitarian coordination fora within the UN, the Grand Bargain, Good Humanitarian Donorship and the EU (Council of the European Union’s Working Party on Humanitarian Aid and Food Aid, COHAFA). Sweden chaired OCHA’s Donor Support Group (2015) contributing actively to a necessary organisational reform and is member of the CERF Advisory Group.

Coordination with the UN-system takes place at several levels, ranging from e.g. Sweden being a member of UNHCR’s Executive Committee, to participation in national level coordination fora where relevant.

Sweden coordinates advocacy and policy positions with likeminded countries including Nordic donors, e.g. with focus on humanitarian financing. As mentioned above, Sweden co-convenes works stream 8 of the Grand Bargain together with ICRC.

Sida back-stops the MFA on policy issues, e.g. on perspectives from humanitarian staff at Swedish Embassies participating in local donor coordination mechanisms. Sida has actively participated in the CBPF donor groups.

On Country level there is usually close collaboration with other humanitarian donors through the work of the Humanitarian Country Teams or the Advisory Boards of the CBPF.

7.4 Organisation fit for purpose

Co-ordination across government

The MFA and Sida meets bi-monthly in a humanitarian coordination meeting where both financial allocations and policy issues are discussed. The HCA process also provides an opportunity to discuss needs-based allocations to specific contexts, as mentioned above.

Sweden has in 2018 established an informal working group consisting of various departments of the MFA (UD-KH, UD-IU, UD-FN) for knowledge and policy within the nexus between humanitarian- development- and peacebuilding efforts. This working group will collect experiences from the field as well as link up to processes at the UN, World Bank and EU.

Sweden also has an active and regular dialogue with Swedish humanitarian NGOs both on policy and specific crisis and for consultations when elaborating the new Strategy.

Approach to civil-military co-ordination

Sweden has had limited focus on civil-military coordination considering the limited number of Swedish troops in humanitarian contexts. Sweden’s engagement in Afghanistan 2002-2014 was reviewed in an official study but there was limited conclusion on civil-military coordination linked to humanitarian interventions.42

Humanitarian staff and systems

42 State Public Report (2017:16), (in Swedish), “Sweden in Afghanistan 2002-2014”, Stockholm 2017.

The MFA’s humanitarian unit is staffed by 8 full-time staff and dedicated staff for humanitarian issues (part time) are found at the UN mission in Geneva, New York and Rome as well as at the EU representation in Brussels. Sida staff have served at the MFA’s humanitarian unit contributing to a mix between career diplomats and humanitarian expertise in the unit.

Sida’s humanitarian team comprises 30 full-time staff at headquarters, and 17 colleagues based in Swedish embassies working part-time on humanitarian issues. The team has vast humanitarian experience with members, most of whom have extensive field experience, having worked with other branches of government, NGOs, UN and the Red Cross Movement.

7.5 Results, learning and accountability

Monitoring own performance and the impact of programs

Sweden actively monitors its performance as a humanitarian donor. Sweden sees the concrete targets in the Grand Bargain as a key vehicle for change. Sweden is giving priority to promoting result based core support reports aggregating achieved results and has seen improvement in for example CERF’s annual results reporting as well as UNHCR. Humanitarian agencies’ ability to demonstrate impact is key for arguing for flexible funding.

Corruption and Prevention of Sexual Exploitation and Abuse (PSEA) are priority issues linked to accountability and will be key to have clear regulations on in Sweden’s multi-year core support agreements. On PSEA, Sweden has a close dialogue with OCHA on how to improve accountability throughout the humanitarian system.

Sweden has actively pushed for better aggregated results reporting from organisations receiving core support and there have been improvements in reporting from OCHA, CERF and UNHCR in this regard.

Sweden actively participates in joint donor field missions to verify relevance, effectiveness and efficiency in the field.

The implementation of Sida’s strategy is reported through an annual strategy report to the MFA as well as through the recurring coordination meetings mentioned above. Sida carried out an evaluation of Sida’s humanitarian assistance in 2014. An extensive evaluation of Sida’s implementation of the previous humanitarian strategy was conducted in 2015. A main conclusion of the evaluation was that “Sida is a leading humanitarian donor, not just in terms of financial resources but also in implementing the GHD principles and strengthening the humanitarian system.” 43

Sida’s field follow-up has intensified. In 2017, Sida’s team in Stockholm conducted 40 field missions to over 100 projects, in addition to the daily monitoring by Embassy based humanitarian focal points. Increasingly, Sida focuses on hard-to-reach areas, remote project sites and frontlines as well as joint monitoring with other donors.

Communicating results

Information about Sida’s annual global humanitarian allocation, including the Humanitarian Crises Analyses, is available at Sida’s public website.44 Sida reports all contributions through the online database on European Emergency Disaster Response (EDRIS), and thereby the global humanitarian Financial Tracking System (FTS), and strongly encourages partners to counter-report to FTS. Information on Sweden’s total aid is available as open data on the website: openaid.se.

43 Swedish International Development Cooperation Agency (Sida), Evaluation of Sida´s Humanitarian Assistance – Final Report. 44 Swedish International Development Cooperation Agency (Sida) – Ongoing humanitarian crises: https://www.sida.se/English/how-we-work/our-fields-of-work/humanitarian-aid1/ongoing-humanitarian-crises

Annexes

Annex A. Progress since the 2013 DAC Peer Review recommendations

DAC recommendations from Peer Review of Sweden’s progress against DAC’s recommendations (as of June 2018) Sweden 2013 1. 1 Sweden’s independent evaluation of PCD should The Swedish Agency for Public Management was assigned by the Government to evaluate the Swedish PGD. help to renew and deepen its commitments and further The focus of the evaluation was the Government’s management and working methods, in respect to the policy improve coordination, monitoring and reporting, (report 2014:1). In this evaluation, the Agency concluded a need for further clarification of the policy in terms of including the development of indicators. The what was expected to be achieved by parties involved, and who was responsible for it. As a response to the evaluation’s investigations could include: the conclusions of the evaluation, Sweden has made the following measures: transparent management of conflicts of interest between development and other policies; and levels of • In 2014 the Government re-launched the PGD. The Swedish Government has further elaborated the understanding in government and diplomatic missions integrated approach to the implementation of the 2030 Agenda and PGD, emphasising that PGD is a key tool of how Swedish and EU policies affect development. in the implementation of the Agenda. • As a result of the relaunch of the PGD, all ministries developed internal action plans for the PGD linked to the SDGs of the 2030 Agenda. All ministers are responsible for the implementation of the Agenda and PGD in their respective areas. These plans formed the basis of the Government communication to the Parliament in the spring of 2016 which was called “Policy for global development in the implementation of the 2030 Agenda”. • A consultation group for the 2030 Agenda meets three to four times a year with participation of State Secretaries from the Ministry of Finance, the MFA, the Ministry of Environment and Energy, the Ministry of Social Affairs and the Ministry of Enterprise and Innovation. A 2030 Agenda/PGD coordination team at the MFA guides the ministries by checking documents and decisions for the degree of mainstreaming PGD in the 2030 Agenda. The Coordination Team consults with civil society, the labour unions, the academia and the business community on a regular basis. Diplomatic missions play an active role in the implementation of the 2030 Agenda, with PGD as a tool. Reports show that many of Sweden’s diplomatic missions are working actively to follow up the Agenda. • In June 2018, Sweden adopted a national action plan for the 2030 Agenda, where PGD is an integrated part. • A national indicator for PGD will be developed. In the Swedish Action Plan for the 2030 Agenda, adopted in June 2018, it is written that Sweden will develop an indicator for the 2030 Agenda, as part of the PGD. The work is planned to commence in the fall of 2018. • The national action plan, including the work of the Government to use PGD as a tool in the implementation of the 2030 Agenda, will be evaluated in 2020.

2.1 Sweden should urgently consult on, finalise and In March 2014 the Swedish Government adopted the Aid policy framework. The Aid policy framework implement its planned aid policy framework, ensuring brings together the overarching direction and priorities of the Government’s policy for development that it provides a clear hierarchy of policies, adequate cooperation. criteria for effective prioritisation of goals and perspectives and indicates how these can be translated. In 2015, the Government set out to update of the framework, taking as point of departure the current global development situation and to establish a coherent and universal framework for global sustainable development based on the 2030 Agenda, Addis Agenda and the Paris Agreement. On the 14 December 2016 the new ‘Policy Framework for Swedish Development Cooperation and Humanitarian Assistance’ (2016/17:60) was adopted. Replacing the previous Aid policy framework, to which the recommendation from the DAC Peer 2013 review refers to, the new framework identifies how to best contribute towards achieving the overarching objectives of the development cooperation and humanitarian assistance.

As stated in the Policy Framework, Sweden’s development cooperation takes as a point of departure and is characterised by the perspective of poor people on development and by a rights-based perspective. The framework also highlights three thematic perspectives: a conflict perspective, a gender perspective and an environmental and climate perspective. Furthermore, economic, social and environmental conditions and processes are equally important and must be afforded weight in every important decision. In addition to stressing these thematic perspectives, the Government has highlighted the importance of an enhanced dialogue and engagement with partner countries as well as Swedish development actors in the formulation of policy and strategies for Swedish development cooperation.

The directions of Swedish development cooperation and humanitarian assistance, as outlined in the Policy Framework, is applied in budgets, in appropriation directions, in Government instructions and in strategies. Together with the Policy Framework, the Guidelines for strategies provide direction and guidance for strategies that govern the implementation of bilateral, regional, thematic and multilateral development cooperation.

2.2 As it finalises its new results strategies, particularly The strategy model for drafting, implementing, and follow-up of strategies, were in December 2017 the bilateral ones, Sweden should allow sufficient time clarified and strengthened in the new Guidelines for strategies in Swedish development cooperation and for adequate analysis and consultation with partners. humanitarian assistance. The clarifications were based on the experiences of drafting, implementation Sweden’s new bilateral results strategies should and follow-up of strategies since the previous guidelines were adopted in 2013. With the change of include humanitarian assistance where relevant, and Government in October 2014 certain practical changes were put in place and later formalised in the 2017 whole-of government approaches. Guidelines. Examples are clarifications on the importance of results and reporting; flexibility in implementation and adaptation to a specific context; consultations with stakeholders; increased emphasis on a circular strategy process where learning and experiences feed into the next strategy; and clarifications on development of multilateral strategies.

The strategies for Sweden’s bilateral development cooperation relate to humanitarian assistance but do not decide on allocation of humanitarian assistance. The humanitarian assistance is in part decided by the Government, e.g. core support to humanitarian actors, and in part delegated to Sida under the strategy for Sweden’s humanitarian assistance through Sida (2017-2020).

The Policy framework elaborates on synergies between humanitarian assistance and long-term development cooperation. The importance of these synergies is also clarified in the 2017 Guidelines and included in several bilateral strategies (e.g. Ethiopia, Kenya, Mali, Liberia, Colombia, Afghanistan) and thematic strategies (humanitarian assistance through Sida 2017-2020, and sustainable peace 2017-2022).

The strategies for bilateral cooperation are limited to the specific appropriation item for the relevant region as specified in the annual letter of appropriation. This means that contributions directed to a partner country may be governed by different strategies and funded from different appropriation items. In addition to contributions under a bilateral strategy, there may also be contributions to the same country under e.g. the humanitarian strategy, the strategy for support through Swedish CSOs, and the strategy for research and research cooperation. It is the responsibility of Sida to ensure and apply a holistic approach to the combined contributions in a context.

3.1 In the context of Sweden’s stated goal of 1% Sweden achieved the goal of 1% of GNI in ODA (according to ESA 2010) in the budget bill for 2018. There is a ODA/GNI over the medium term, it should maintain broad commitment in the Swedish parliament, as well as among the Swedish public, to allocate one per cent of efforts to concentrate its assistance on fewer countries GNI to international development assistance. and sectors. At present, Sweden has bilateral cooperation with 35 low- and middle-income countries. This constitutes a reduction with ten countries since the time of the last DAC Peer Review, in line with the recommendations received by the DAC. The plans for phasing out certain partner countries were outlined already in the last DAC Peer Review. These plans were largely implemented, apart from Burkina Faso. The Former Yugoslav Republic of Macedonia was in 2017 re-introduced as a partner country after the phase-out in 2014. Cuba was added to the list of partner countries in 2016.

3.2 In line with its commitment to Transparency, the adequate reporting of expenditures and abiding by the ODA directives are highly prioritized transparency and openness, Sweden should continue focus areas in Swedish development cooperation. Explanations of in-donor refugee costs and their development to: have significantly improved since the time of the last DAC Peer Review, both in the annual budget bill to >> monitor its in-donor costs, particularly those parliament and in the annual state accounts. Following the clarified reporting directives for in-donor refugee relating to refugees, and explain clearly and publicly costs adopted at the HLM in 2017, the Government Offices of Sweden is currently undertaking a holistic review how these costs are calculated and the reasons for any of the clarified reporting directives and how it will impact the Swedish model for reporting to OECD/DAC on in- increases or decreases; donor refugee costs. The result of this review will be presented by the government to parliament in an upcoming >> ensure that its bilateral support for both state and budget bill and a new model will then be applied. Sweden will report in accordance with the clarified directives non-state actors is reported to its partner countries; and for 2019 flows.

>> prioritise punctual and transparent reporting of its aid expenditures in line with Busan commitments and Sweden is part of the IATI secretariat and active in the Data Use Task Force, where the aims are to use the Data its role in IATI. Use Funds to improve tools for using IATI data and to promote and support the automated import of IATI data into Aid Information Management Systems and Public Financial Management System (PFMS).

Continuous improvement of Swedish IATI data has placed Sweden among the top performers when compared with other publishers. Sweden has stayed current by adding new types of data as the IATI standard has evolved, especially regarding commitments made. As an example, Sweden were among the first to start publishing detailed humanitarian data in accordance with the Grand Bargain (agreed at the World Humanitarian Summit in 2015).

Sida has the collective responsibility of reporting all of Sweden’s official aid and has implemented a unified information channel to capture ODA flows from all Swedish agencies to be able to publish efficiently to both the OECD/DAC CRS, and to IATI on a monthly basis, assuring up-to-date comprehensible and comparable information. Sida is currently piloting the IATI reporting of its major NGO partners, encouraging transparency amongst non-state actors and adding value to traceability and accountability of Swedish aid.

4.1 Once the new aid policy framework, guidelines for In 2013, the previous Government introduced “Results strategies for Swedish international aid”. Two results strategies and results strategies have been put in early examples are the results strategies for Zambia 2013-2017, and Tanzania 2014-2019. The direction place, MFA and Sida would benefit from a period of of results strategies was based on political direction expressed in the Aid Policy Framework from March consolidation to develop ownership and management 2014, and the Guidelines for results strategies within Sweden´s international aid from July 2013. of the reforms by those in charge of the development policy and its implementation. Since the last peer review, and between 2013 and September 2014, a total of eleven bilateral results strategies and eight thematic results strategies were adopted. The main idea was to employ a hierarchy of objectives and specify expected results of contributions, rather than targets. The expected results, in turn, were to contribute to one or more of the set six sub-objectives as expressed in the Aid Policy Framework. The sub-objectives in turn contributed to the overarching objective for Sweden´s international aid from 2013 and lastly to the objective for global development from 2003.

With the change of Government in October 2014 it was initially decided to largely keep the results strategy format, with three sections, a summary of the direction and the targets, a brief context, and an outline of priorities of operations associated with the targets. The strategy drafting process as specified in the 2013 Guidelines was also kept.

The strategies were, however, renamed “Strategies for development cooperation”. The sub -objectives from the 2014 Aid Policy Framework were loosely kept in the first strategies adopted by the incumbent Government but largely viewed as thematic headings (e.g. strategy for development cooperation with Palestine). The view that each strategy expressed expected results of contributions was replaced by targets expressing a future condition to which interventions contributes. Updated thematic headings were later adopted by the Government in the budget bill for 2016, which was drafted in 2015. During 2016, the thematic areas were further clarified and elaborated in the Policy Framework to fully reflect the Government’s priorities (see 2.1).

The strategy model for drafting, implementation and follow-up of strategies was clarified and strengthened in December 2017 in the new Guidelines for strategies in Swedish development cooperation and humanitarian assistance. The clarifications were based on the experiences of drafting, implementation and follow-up of strategies. The Government has as of now adopted 9 thematic strategies, 16 bilateral strategies, and 5 regional strategies according to the current process and fo rmat.

4.2 Sweden should implement its human resource Sida has continued to focus on increased field presence to strengthen the capacity for dialogue and partnership as development plans within MFA and Sida, ensuring that well as follow-up and monitoring of programmes. staff has the capacity necessary for delivering the objectives set out in the aid policy framework. It also The Human Resources departments of the MFA and Sida cooperate on several training courses. Training include needs to ensure, particularly in its partner countries, the staff in Stockholm as well as sent-out and locally employed staff abroad. To facilitate the planning of training the necessary skills and capacity to assure a strategic MFA and Sida will formalize their joint work. This will include joint assessments of future needs and policy dialogue and to manage a range of partnerships competencies based upon foreseen recruitment needs and other factors. and aid modalities, including programme-based approaches.

5.1 Sweden should increase the share of its aid Sida gives preference to core or program support for the partners’ own strategic mandate and strategy and delivered through programme-based approaches and on-budget support in the support of Governments. make more use of partner country systems for programme design, management, expenditure, As part of the partnership approach, Sida assesses the partners eligibility and capacity for internal control monitoring and reporting. It should continue to use an and ability to manage funds. Part of the contribution may be to build the partner’s capacity in these areas appropriate mix of aid instruments, balancing state and and is followed up in monitoring and dialogue. non-state partners, to suit specific country contexts and situations. Sweden promotes the use of and tries to strengthen country systems, but the declining democratic space and slow progress in governance in many partner countries has led to a decrease in the use of country systems and an increase of funding through multilateral organisations. Where multilateral modalities are being used, Sida continues to promote that the same principles are applied to the programming and implementation by partner organisations.

For non-state support and government-to government support alike, Sida tries to use core support to the extent possible, to allow for locally/nationally owned programming prioritization processes as well as flexibility. Multiyear agreements are standard procedure. This is increasingly also used for the humanitarian support. Engagement in fragile contexts brings in political and conflict related complexities that add challenges to apply the principles.

5.2 Sweden should continue to ensure that its bilateral Sweden continues to ensure that Swedish aid is recorded in the budgets of the partner countries by locally aid is included on the budgets of its partner countries. providing aid data to partner governments. In some partner countries, however, project support and cooperation with the civil society is assessed to be most relevant in order to support a rights-based inclusive development. It is also important to underline that Swedish support often aims at strengthening the national public finance management system. By support to for instance tax authorities and statistics institutions, preconditions to increase transparency as well as efficient handling of the state budget is provided.

6.1 Sweden should build on its achievements in The Strategy Guidelines issued 2017 explicitly call for balance between risk and potential results. They managing for results by ensuring that it: also stress the importance of monitoring. The new format for strategy reporting make the linkage between - takes a balanced approach to risk in setting objectives programs, context and objectives; and results; - allocates sufficient resources for monitoring results; • Results information from projects and programs is used, together with information on context, for - strengthens links between results that are being continuous program management. Sida program officers are obliged to make a statement in TRAC on tracked within individual programmes and its broader all major results reports furnished by partners. In the yearly follow-up of a project or program a development objectives and decision-making Conclusion on Performance is made by the responsible program officer. The purpose is to ensure that processes. Sida makes a broader analysis on how the contribution is progressing, stating the objectives and providing examples of what results have been achieved.

• A risk analysis is performed, analysing the overall risk level based on the current risk picture. The programme officer is also asked to assess the likelihood that the objectives will be achieved by the end of the intervention given the overall risk level, with the aim to take a balanced approach to risk in analysing the objectives and results that are set in the project or program. The yearly follow-up includes planning for the upcoming period, what to focus on and prioritise and which specific resources that are needed within Sida in order to allocate sufficient resources to support the partner organisation to monitor results.

Results information from programs also feeds into the follow-up of strategies and achievement of strategy objectives, to strengthen the link between individual projects or programs and decision-making for the portfolio at the strategy level. Results of Swedish cooperation is here placed in its context. At the end of the strategy period a more in-depth strategy report is produced which serves as an input to the formulation of future strategies. The strategy reports serve as a basis for dialogue between Sida and the MFA on results. The MFA uses results

information and analysis to follow-up how strategies are implemented. Achievement of results may have budget implications but budget decisions are based on broader considerations, not results only.

6.2 As planned, Sweden should strengthen and Sweden has increased the budget of EBA from 15 million SEK in 2014 to 17,7 million SEK in 2017, and adequately resource its capacity to deliver and use high in various ways strengthened EBA as a central actor for independent evaluation, having resulted in more quality strategic and independent evaluations and and more relevant evaluations. The MFA has issued guidelines for Management response on EBA:s ensure that the MFA and Sida fulfil their ambitions to evaluations. Sida has established an independent evaluation unit internally. Sida’s management response be learning organisations. routine for evaluations has been integrated into the contribution management tool. Sida has also updated its evaluation handbook in which “utilization focus” is a prominent feature.

6.3 Sweden should use the learning from its results The MFA is using evaluations, from EBA and others, as an input to its analysis of Swedish comparative monitoring and evaluation to sharpen its ability to advantages. Swedish comparative advantages are considered in the formulation of strategies and selection define (and build) its comparative advantage. of interventions and implementers.

The Guidelines for Strategies within Swedish Development Cooperation and Humanitarian Assistance, adopted in 2017, stress the importance of results, learning, and the need for flexibility and adaptation of implementation to the specific context. It also clarifies how learning and experience from a strategy period feeds into the preparatory work for the next period.

Sida draws on evaluation and other analyses of what works when identifying comparative advantages and defining shared priorities for its operations, such as in the recently completed process to define the agency’s Vision 2023. Evaluation and results analyses are also important in the operationalisation of strategies in order to ensure that Swedish comparative advantages guide implementation.

7.1 Sweden should speed up its disbursements to Sweden has made significant improvements to speed up its disbursement to humanitarian partners. humanitarian partners. Sweden’s humanitarian core support through the MFA is disbursed during the first quarter (Q1). Regarding Sida’s disbursement, by end of March 2018, 75% of the humanitarian appropriation was already disbursed. This is to be compared with 3,8% in 2014, 22% in 2015, 54% in 2016 and 68% in 2017. It also constitutes 96% of planned disbursements by end of Q1.

7.2 Sweden should increase efforts to inform partners In 2018, Sweden signed multi-year partnership agreements on the eight humanitarian core supports, about new administrative requirements resulting from which will clarify administrative requirements on a 4-year basis. Sida is having continuous strategic reforms. dialogue with strategic partners clarifying administrative requirements, including through annual strategic partnership days.

Annex B. Sida’s experience of operationalizing HUM DEV nexus

Sida support - development and humanitarian (2017)

1400

1200

1000

800

600

400

200

Support (MSEK) 2017 HUM Support (MSEK) 2017 DEV

Sida has identified a 3 pillar-approach to systematize the work on risk, resilience and strengthened synergies between humanitarian and development assistance (nexus hum/dev): 1) conduct common analysis, planning and programming based on context specific risks and vulnerabilities, 2) increase flexible, innovative and complementary development funding for the most vulnerable people, 3) promote increased dialogue and coordination on risk, resilience and synergies between humanitarian and development. Pillar 1: Common analysis, planning and programming based on risk, vulnerability and resilience • In all the 16 contexts where Sida has simultaneously large ongoing development cooperation and humanitarian support, Sida has included analysis around humanitarian – development nexus opportunities and challenges in the yearly humanitarian crises analysis.45 Also, humanitarian staff is increasingly involved in the preparation, operationalization and mid-term review of the multi-year development programme cycle. • Increasingly, Sweden’s development strategies through Sida – geographic, regional as well as thematic- are geared towards strengthening resilience of vulnerable people and communities,

45 Humanitarian Crises Analysis for 2018 are available on www.sida.se

addressing root causes of crises, and seeking synergies with humanitarian assistance. The regional Syria-crises strategy was the first to include resilience as an overarching objective. It has been followed by strategies for Sudan, Somalia, Iraq, Myanmar and Bangladesh among others. In addition, there are also a number of global strategies that include resilience and the nexus as an integrated perspective such as the Humanitarian strategy. • Sida has strengthened risk-informed development planning and programming through piloting together with OECD/DAC the method of resilience systems analysis (RSA) in six contexts at various points of the programme cycle (Syria, incl. Jordan and Lebanon, Sudan, South Sudan, Somalia, Kenya and Ethiopia.). In addition to supporting risk informed context analysis, experiences with the RSA46 has among others raised issues regarding humanitarian and development synergies and the need to include the most vulnerable groups in development assistance. • Sida is working to increasingly integrate the aspects of risk, vulnerability and resilience in the conceptual approach and application of multidimensional poverty analysis. As an example of how this has been applied, in the midterm review of the development cooperation strategy for Afghanistan, the analysis led to an adjustment of parts of the portfolio to also include vulnerable groups such as Internally Displaced People (IDP) and returning refugees. • To further strengthen the integration of resilience and humanitarian development nexus throughout the development portfolios, resilience strategies have been developed (Mali, Somalia, DRC, Ethiopia, Kenya and Bangladesh) which have resulted in a more multi-sectoral approach focusing on risk, vulnerability and resilience. Sida has also increased staffing capacity on resilience in the Africa region as well as in the Syria crisis.

Pillar 2: Flexible, innovative and effective development funding for the most vulnerable people - In the allocation process for 2018 Sida opened a specific window for multi-year humanitarian support aiming at a transformative approach of humanitarian projects avoiding humanitarian dependency. Sida has allocated around 330 MSEK for 2018-2020 of which a majority aims to reach displaced populations. Other examples of mainstreaming resilience in Sida’s humanitarian support are early responses to prevent famine for example in Somalia, increased cash-based assistance to support people’s own choices and priorities and increased focus on localization. - Sida supports durable solutions for displaced populations, both refugees and internally displaced populations, in a number of contexts, including in Somalia, Uganda and DRC. During 2017/2018 Sida has appointed a one-year position during 2017/2018 to contribute to implementation of CRRF. In addition, Sida supports Uganda RC-office with one seconded expert to advance implementation of CRRF. - Sida is focusing on strengthening resilience and reducing humanitarian needs in the Horn of Africa through an additional allocation of 800 MSEK during 2018-2021. The funding will complement already ongoing humanitarian efforts and address root causes of crises. Also in Bangladesh, an additional allocation of 300 MSEK was recently decided, aiming at strengthening the resilience of refugees and host communities during 2018-2020. - In crises affected areas in Mali and DRC, Sida supports community-based efforts with Action Contre la Faim (ACF) to address underlying causes of malnutrition crises such as access to safe drinking water, gender inequities, insufficient livelihoods. - In drought-related food insecurity contexts, Sida supports social protection for vulnerable people and communities designed to lift people out of chronic poverty using cash transfers, and giving them access to social services that can be scaled up and further targeted when crises threaten poor households. Sida supports social protection programmes, particular in Ethiopia, but also Kenya, Mali, DRC, Zambia, and Mozambique.

46 OECD, Resilience Systems Analysis Learning and Recommendations report.

- For 2018-2020 Sida is supporting Swedish Civil Contingencies Agency with humanitarian as well as development funding, in total 150 MSEK to, meet people’s immediate humanitarian needs, but also over time to reduce risk, vulnerability, and dependence on humanitarian assistance. - Sida is supporting United Nations Humanitarian Air Service (UNHAS) in Sudan with humanitarian as well as development funding to ensure effective passenger and light cargo transport in extremely vulnerable, and hard-to-reach, areas. UNHAS provides opportunities for organizations to promote longer term development initiatives in these areas. This is done with a total amount of 15 MSEK for 2017. - In DRC, Sida supports from the development appropriation UNICEFs multisector programme targeting recovery needs of displaced populations, both internally displaced as well as refugees. It provides them with access to basic education and health services as well as cash assistance. - Inside Syria Sida supports the Whole of Syria Livelihoods Consortium, comprising six different (primarily humanitarian) International non-governmental organizations (INGO) with ongoing humanitarian programmes in the country, over a three-year period. The purpose of the initiative is to improve the livelihoods for internally displaced persons and the host communities in which they live.

Pillar 3: Promote increased dialogue and coordination on risk, resilience and synergies between humanitarian and development. Issues related to risk, resilience and humanitarian-development nexus, including durable solutions are increasingly key issues for Sida’s dialogue with Governments, the UN, donors and partners. Links between coordination structures are key, for example common planning and prioritization between humanitarian and development assistance should be promoted and issues around risks, vulnerabilities and resilience included in the national and UN Plans. Sida supports the RC/HCs role, the New Way of Working as well as pilots of the CRRF.

Lessons learned

• Increase focus on resilience and risk by investing in risk-informed analyses and programming, improving understanding of how risks and stress-factors are inter-connected. • Increase focus on tackling the underlying drivers of risks, crises and vulnerability as well as prevention, early action and durable solutions to recurrent and protracted crises. • Ensure that development reaches the poorest and most vulnerable people, including displaced populations in line with “leave no one behind” and “address the needs of those furthest behind first”. • Strengthen complementarity between humanitarian and development programming (“humanitarian/development nexus”) aiming at avoiding humanitarian dependency.

Annex C. Complete list of Swedish bilateral, regional, and thematic strategies for development cooperation

Bilateral strategies Africa Time Frame Total strategy amount Comment 1. Burkina Faso (2018-2022) 1 500 million SEK 2. DR Congo (2015-2019) 1 250 million SEK 3. Ethiopia (2016-2020) 1 000 million SEK 4. Kenya (2016-2020) 1 750 million SEK 5. Liberia (2016-2020) 1 350 million SEK 6. Mali (2016-2020) 1 200 million SEK 7. Mozambique (2016-2020) 4 100 million SEK 8. Rwanda (2015-2019) 900 million SEK 9. Somalia (2018-2022) 3 030 million SEK 10. Sudan (2018-2022) 1 200 million SEK 11. South Sudan (2018-2022) 1 500 million SEK 12. Tanzania (2013-2019) 5 500 million SEK 13. Uganda (2018-2023) 2 400 million SEK 14. Zambia (2018-2022) 2 250 million SEK 15. Zimbabwe (2017-2012) 1 500 million SEK

Asia 16. Bangladesh (rev.) (2014-2020) 1 900 million SEK (revised 2018) 17. Cambodia (2014-2018) 1 000 million SEK 18. Myanmar (2018-2022) 1 280 million SEK 19. Afghanistan (2014-2019) 4 870 million SEK

Latin America 20. Bolivia (2016-2020) 750 million SEK 21. Colombia (2016-2020) 950 million SEK 22. Guatemala (2016-2020) 1 125 million SEK 23. Cuba (2016-2020) 90 million SEK

Middle East and North Africa 24. Palestine (rev.) (2015-2019) 1 500 million SEK (revised 2018) 25. Iraq (2017-2021) 1 300 million SEK

Regional strategies Time Frame Total strategy amount Comment 1. Regional Strategy for the Syria Crises47 (2016-2020) 1 700 million SEK 2. Regional Strategy for Africa (2016-2021) 3 900 million SEK (revised 2018) South of Sahara 3. Regional Strategy for SRHR in Africa (2015-2021) 3 200 million SEK (revised 2018) 4. Regional Strategy for Asia and Oceania (2016-2021) 1 800 million SEK 5. Regional Strategy for the (2016-2020) 1 850 million SEK Middle East and Northern Africa48 6. Strategy for Reform Cooperation with (2014-2020) 8 500 million SEK (revised 2017) Eastern Europe, Western Balkans and Turkey49

47 Syria, Lebanon, Jordan and Turkey (possible in Iraq if the Syrian conflict affects the country). 48 Algeria, Egypt, Iran, Iraq, Yemen, Jordan, Lebanon, Libya, Morocco, Palestine, Syria and Tunisia. 49 Eastern Europe: Georgia, Belarus, Moldova and Ukraine (with possibility for regional operations in Armenia, Azerbaijan), West ern Balkans: Albania, Kosovo, Bosnia and Herzegovina, Serbia and Former Yugoslav Republic of Macedonia (with possibility for regi onal operations in Montenegro), and Turkey.

Thematic strategies with total amount allocation50 Time Frame Total amount 1. Global environmental sustainability, climate, ocean (2018-2022) 6 500 million SEK and natural resources 2. Global sustainable economic development* (2018-2022) 4 000 million SEK 3. Global sustainable social development* (2018-2022) 7 100 million SEK 4. Global gender equality and human rights (2018-2022) 1 000 million SEK for women and girls*

Thematic strategies with annual budget allocation4 Time Frame 2018 indicative budget allocation 5. Humanitarian aid through Sida (2017-2020) 4 050 million SEK 6. Capacity development and partnerships in support (2018-2022) 670 million SEK of the 2030 Agenda* 7. Sustainable peace* (revised) (2017-2022) 415 million SEK 8. Human rights, democracy and rule of law (2018-2022) 910 million SEK shared 9. Special democratic support through (2016-2020) allocation in annual budget bill Swedish political party linked organisations* (revised) 10. Research cooperation and research in (2015-2021) 920 million SEK development cooperation 11. Support through Civil Society Organisations* (2016-2022) 1 825 million SEK 12. Information and communication, incl. (2016-2022) 150 million SEK through civil society organizations* 13. International civil crisis management* (2014-2017) 461 million SEK

50 Titles marked with * has not been translated into English and titles should therefore be regarded as draft titles.

Annex D. Organisational structure at the Swedish Ministry for Foreign Affairs and Sida

Annex E. Human Resource Profile

Annual workforce, development aid and development policy (as core business) 2017

Locally employed by Region MFA Sida Total: Sida AF 4,2 82,8 79,6 166,6

AME 2,2 8,0 15,1 25,3

ASO 3,1 21,8 19,6 44,5

EC 1,3 7,7 13,6 22,5

EU 5,2 9,2 19,2 33,6

MENA 2,4 9,4 8,5 20,3

rep/del 12,6 1,0 0,9 14,5

SBS 0,6 0,0 0,0 0,6

Total: 31,6 139,8 156,4 327,8

Note: The numbers are based on a yearly survey that the missions abroad fill in. Please note that this indicates if the missions abroad specify that they work with development assistance and development policy as "core business", i.e. the administrative support provided by local staff to the business is not included.

Annex F. List of references

Policy and Guidance:

• Budget Statement, The Budget Bill for 2016

• Budget Statement, The Budget Bill for 2017

• Budget Statement, The Budget Bill for 2018

• Government Bill (2002/03:122), “Shared Responsibility - Sweden's Policy for Global Development”.

• Government Communication (2013/14:131), “The Aid Policy Framework – the direction of Swedish aid”.

• Government Communication (2016/17:60), “Policy Framework for Swedish Development Cooperation and Humanitarian Assistance”.

• Government Communication (2017/18:146), (in Swedish), “Policy for Global Development in the Implementation of the 2030 Agenda”.

• Government Office of Sweden (2015), “Action Plan for Business and Human Rights 2015”.

• Government Office of Sweden (2016), “Sustainable Business – the Government Policy for sustainable business”.

• Government Office of Sweden (2017) (in Swedish), “Guidelines for Strategies within Swedish Development Cooperation and Humanitarian Assistance”, adopted by the Swedish Government, 21 December 2017.

• Government Office of Sweden (2017), “Swedish Feminist Foreign Policy – examples from three years of implementation”.

• Government Office of Sweden (2018), Internal document, (in Swedish), Samrådsformer i Regeringskansliet (SB PM 2012:1 (rev 2018)).

Strategies and Action plans:

• Government Office of Sweden (summary), “Strategy for Global Gender Equality and Women´s and Girl´s Rights 2018-2022”, adopted by the Swedish Government, 12 April 2018.

• Government Office of Sweden (in Swedish), “Strategy for Information- and Communication, Including through Organizations within the Civil Society”, adopted by the Swedish Government, 2 June 2016.

• Government Office of Sweden “Strategy for Multilateral Development”, adopted by the Swedish Government, 30 March 2007.

• Government Office of Sweden, “Strategy for Multilateral Development Policy”, adopted by the Swedish Government, 21 December 2017. (See annex C)

• Government Office of Sweden (2018) (in Swedish), “Sweden’s National Action Plan on the 2030 Agenda”

• Government Office of Sweden, “Strategy for Sustainable Peace 2017-2022”, adopted by the Swedish Government, 24 August 2017.

• Government Office of Sweden, “Strategy for Sweden´s Development Cooperation in the areas of Human Rights, Democracy and the Rule of Law 2018-2022”, adopted by the Swedish Government, 15 December 2017.

• Government Office of Sweden, “Strategy for Sweden´s Global Development Cooperation in Sustainable Economic Growth 2018-2022”, adopted by the Swedish Government, 31 May 2018.

• Government Office of Sweden, “Strategy for Sweden’s Global Development Cooperation in the areas of Environmental Sustainability, Sustainable Climate and Oceans, and Sustainable use of Natural Resources 2018-2022”, adopted by the Swedish Government, 1 March 2018.

• Government Office of Sweden, “Strategy for Sweden´s Humanitarian Aid provided through the Swedish International Development Cooperation Agency (Sida) 2017-2020”, adopted by the Swedish Government, 26 January 2017.

• Government Office of Sweden, “Swedish Regional Strategy for the Syria Crisis”, adopted by the Swedish Government, 17 December 2015.

Reports:

• Government Office of Sweden (2010), “A Transparency Guarantee in Swedish Development Assistance”.

• Government Office of Sweden (2017), (in Swedish), In the direction of sustainable welfare.

• Government Office of Sweden (2017), Sweden and the 2030 Agenda – Report to the UN High Level Political Forum 2017 on Sustainable Development.

• Government Office of Sweden (2017), Towards Achieving the 2030 Agenda and the Sustainable Development Goals (SDGs).

• Government Office of Sweden (2018), Implementing the Addis Ababa Action Agenda to achieve the 2030 Agenda for Sustainable Development – a selection of innovative examples.

• Inter-Agency Standing Committee (IASC) (2017), Sweden - Self-Report 2017.

• OECD, Resilience Systems Analysis Learning and Recommendations report.

• OECD (2017), Results in Development Cooperation: Provider Case Studies: Sweden.

• State Public Report (2017:16), (in Swedish), “Sweden in Afghanistan 2002-2014”, Stockholm 2017.

• Swedish Agency for Public Management (in Swedish), Evaluation of the Management of Swedish Aid Policy (2011:25).

• Swedish International Development Cooperation Agency (Sida), Evaluation of Sida´s Humanitarian Assistance – Final Report.

• United Nations Office for the coordination of human affairs, Information on Sweden´s Commitments and Self-Report.

• United Nations Office for the coordination of human affairs, Self-Report on commitments in the Grand Bargain, for 2016 and 2017.

Other:

• Government Communication (2017/18:188) (in Swedish), “Results of Multilateral Development Cooperation and Humanitarian Assistance”.

• Swedish International Development Cooperation Agency (Sida), (in Swedish) – Annual opinion poll 2017

Webpages:

• Swedish International Development Cooperation Agency (Sida): www.sida.se

• Swedish International Development Cooperation Agency (Sida) - Evaluation of Swedish development cooperation: https://www.sida.se/English/how-we-work/evaluation/

• Swedish International Development Cooperation Agency (Sida) – Ongoing humanitarian crises: https://www.sida.se/English/how-we-work/our-fields-of-work/humanitarian- aid1/ongoing-humanitarian-crises

• Swedish International Development Cooperation Agency (Sida) - Reporting and results: https://www.sida.se/English/how-we-work/Reporting-and-results/