YEARBOOK 2000 YEARBOOK Sweden’s International Sweden’s Cooperation Development

Sweden’s International Development Cooperation YEARBOOK 2000 The yearbook may be ordered from: Ministry for Foreign Affairs Information Division 103 39 Stockholm +46-405 10 00 Tel: Fax: +46-723 11 76 www.utrikes.regeringen.se This yearbook provides an overall presentation of presentation an overall provides yearbook This and cooperation international development Swedish coo- direct bilateral channelled via Sweden’s assistance ans- bodies. The yearbook and via multilateral peration does example what countries questions – for wers some with, how much assistance does Sweden cooperate what sectors, institutions and types Sweden provide, and The yearbook also covers of initiatives are involved. cooperation, Swedish cooperation EU/EC development by Europe and the role played with Central and Eastern organisations in Swedish development non-governmental cooperation. Ministry for Foreign Affairs Sweden’s International Development Cooperation

YEARBOOK 2000

Ministry for Foreign Affairs Table of contents

Contents Page Contents Page

The new agenda for development ...... 5 The Inter-American Development Focus on poverty reduction ...... 6 Bank (IDB) ...... 62 Power and influence ...... 8 The International Fund for Agricultural Security ...... 11 Development (IFAD) ...... 64 Economic opportunities ...... 17 African Capacity Building Fund (ACBF) . .64 Nordic Development Fund (NDF) ...... 64 Democracy and human rights in NORSAD ...... 65 development cooperation ...... 21 International IDEA ...... 66

Multilateral development cooperation . . .32 Development cooperation within the United Nations framework of the European Union ...... 67 Development programme (UNDP) ...... 38 United Nations International Bilateral development cooperation ...... 76 Children’s Fund (UNICEF) ...... 39 Evaluation and quality assurance ...... 78 United Nations Fund for Population Activities (UNFPA) ...... 41 Africa ...... 80 UN Higher Commissioner for Refugees Angola ...... 83 (UNHCR) ...... 42 Eritrea ...... 85 UN Relief and Works Agency Ethiopia ...... 86 for Palestinian Refugees (UNRWA) . . . . .43 Kenya ...... 87 UN World Food Programme (WFP) ...... 44 Mozambique ...... 89 UN Drug Control Programme (UNDCP) . . .45 Namibia ...... 91 Joint United Nations HIV/AIDS South Africa ...... 92 Programme (UNAIDS) ...... 46 Tanzania ...... 94 United Nations Development Fund Uganda ...... 96 for Women (UNIFEM) ...... 48 Zambia ...... 97 United Nations Environment Zimbabwe ...... 98 Programme (UNEP) ...... 49 Other African countries ...... 99 World Health Organization (WHO) ...... 50 Regional support for Africa ...... 105 United Nations Food and Agriculture Organization (FAO) ...... 51 The Middle East and North Africa . . . . .106 United Nations Educational, West Bank and Gaza ...... 107 Scientific and Cultural Organization Iraq ...... 110 (UNESCO) ...... 52 International Labour Organization (ILO) . .53 Asia ...... 111 United Nations Industrial Development Bangladesh ...... 115 Organization (UNIDO) ...... 54 Cambodia ...... 117 Global Environmental Facility (GEF) . . . .55 Laos ...... 118 Montreal Protocol multilateral fund . . . . .57 Sri Lanka ...... 119 World Bank Group ...... 58 Vietnam ...... 121 African Development Bank (AfDB) ...... 60 Other Asian countries ...... 123 The Asian Development Bank (AsDB) . . . .61 Regional initiatives in Asia ...... 136 Contents Page Contents Page

Latin America ...... 137 Ukraine ...... 186 Bolivia ...... 143 Belarus ...... 188 Colombia ...... 145 Central Europe ...... 189 Guatemala ...... 148 Channels for cooperation in Central Honduras ...... 150 and Eastern Europe ...... 189 Nicaragua ...... 151 Cooperation via the European Union . . .191 El Salvador ...... 153 Regional cooperation in Central and Peru ...... 154 Eastern Europe ...... 191 Multilateral cooperation ...... 194 Europe ...... 155 Moldova ...... 159 The civil society and non-governmental organisations ...... 196 Southern Caucasus and Central Asia . . .161 Table: Swedish bilateral development Sida’s areas of operations ...... 163 cooperation ...... 202 Democracy, human rights and good governance ...... 163 Table: Swedish multilateral Social sectors ...... 165 development cooperation ...... 206 Infrastructure and the private sector . . .167 Utilisation of natural resources ...... 168 List of acronyms ...... 208 Research ...... 169 Economic reforms ...... 169 Humanitarian assistance ...... 170 Support for development cooperation conducted by non-governmental organisations ...... 171 Information, recruitment and development of the resource base . . . . .172

Swedfund ...... 174

Other bilateral assistance ...... 175

Nordic Africa Institute (NAI) ...... 176

Swedish Cooperation with Central and Eastern Europe ...... 177 Estonia ...... 181 Latvia ...... 182 Lithuania ...... 183 Poland ...... 184 Russia ...... 185

The new agenda for development

Development cooperation is about creating conditions to enable the poor to free themselves from poverty. As we enter a new millennium, we can look back on a development cooperation tradition which is both firmly rooted in this fundamen- tal conviction and adapted to changing circumstances, related to globalisation.

In the beginning of 2000, a parliamentary summarises some of the insights we are commission was appointed to consider the taking with us into the new millennium. future course of policies for global develop- One of the conclusions drawn is the need ment. In addition to addressing the chal- for further clarification of the integrated lenges of development cooperation, a key development agenda. Democratic and aspect of the commission's assignment is to responsible governance, respect for human investigate how various other policy areas rights and the rule of law are required if the can promote development. The ambition to goal of development cooperation is to be achieve this coherence guides Sweden’s achieved. These issues are discussed in a endeavours in international forums – for separate chapter in this yearbook. instance in the WTO, the UN and the The focus is on the EU/EC. Examples include drawing up trade interests of the poor, rules which benefit the poorest countries, as Sweden examines supporting conflict-prevention processes its policies for global and promoting discussion of environmental development. Swe- issues. den will continue to The need for coherence and clear policy be an active force in lines necessitates a broad understanding of the struggle for development problems, as elaborated in a poverty reduction, Swedish Government report entitled The and in establishing Rights of the Poor – Our Common Responsibi- global responsibility lity. Poverty is more than lack of economic for development. resources. It also involves lack of security, opportunity and empowerment. This per- spective calls for an agenda for development in which economic growth and an ambition to achieve a fair and just distribution of power and resources are both given priority. Maj-Inger Klingvall, The multi-dimensional concept of pover- Minister for International ty reflects the situation expressed by poor Development Cooperation people themselves. The Voices of the Poor study, based on interviews with 60,000 poor people in 60 countries, makes it clear that a sense of disempowerment – vulnera- bility in the face of power exercised by others – is one of the intrinsic features of poverty. This yearbook starts with a chapter which

5 Focus on poverty reduction

Increasing the standard of living of the poor is es of the future. The international develop- the overall objective of Swedish develop- ment goals are also in focus in the context of ment cooperation. This objective has been the follow-up of the Rights of the Child interpreted and supplemented by six sub- Summit due to take place in the UN General objectives, designed to highlight the com- Assembly in the autumn of 2001. plexity of poverty issues. These sub-objecti- Swedish policies outlined in the Swedish ves, which are mutually reinforcing, are not Government’s report to Parliament entitled ranked in any specific order. As the 21st cen- The Rights of the Poor – Our Common Respon- tury gets into its stride, there is a renewed sibility (skr. 1996/97:169) cover all these and stronger emphasis on poverty reduction dimensions, and also regard democracy and in international development cooperation. human rights as fundamental elements in the One of the starting points is a strategy docu- development process. In addition, a systema- ment, Shaping the 21st Century – The Contri- tic children’s approach is being developed in bution of Development Cooperation, which has been adopted by the OECD Development Assistance Committee (DAC), representing all major donor countries. This strategy, whi- ch is based on the major UN conferences of the 1990s, puts the elimination of poverty as the overarching objective and is, in addition, operationalised into a number of quantifiable international development goals, with the overall aim of reducing the proportion of people suffering from extreme poverty by at least half by the year 2015. The European

Commission is also basing its recently laun- Foto: Victor Lenson Brott/Global Reporting Sweden ched overall policy for joint EC assistance on this strategy. The goals for international development are the result of a process involving broad participation, which has contributed to giving them greater impact as international guidelines for development policy. These goals reflect an approach involving the integ- ration of economic and social development, equality, and environmentally sustainable development. Prior to the UN’s “Millennium Assembly”, the Secretary General presented a report on the UN’s role in the 21st century The elimination of poverty is one of the prioriti- which emphasised and strengthened the es for the government in the Philippines, but international goals for development. This there are many problems to be solved for the report focuses on poverty, security and the third of the population still living close to the environment as the principal global challeng- poverty line.

6 Swedish development cooperation, and the Comprehensive Development Framework overall results will be presented in a report to (CDF) previously launched by the World the Swedish Parliament. Bank are important tools for donor coordina- The elimination of poverty as the objective tion and development cooperation based on for development cooperation involves contri- the partnership concept. They provide buting to create conditions which enable the obvious starting points for Swedish country poor to free themselves from poverty. Basic strategy processes, as stressed in the guideli- responsibility for this process lies with the nes prepared jointly by Sida and the Ministry governments of poor countries. Their willing- for Foreign Affairs. ness and ability to pursue policies which The elimination of poverty is also the ove- reduce poverty are decisive factors. Develop- rall objective for UN development initiatives, ment cooperation should support – and also in line with the conclusions and recommen- influence – national policies for eliminating dations emanating from the UN global confe- poverty in a dialogue with the countries con- rences of the 1990s. The focus is on areas cerned. such as good governance, human rights, envi- Many countries will be drawing up natio- ronmental issues and promotion of equality. nal poverty reduction strategies during the These issues have now received a more integ- next few years. The link between debt relief rated focus in the UN Development Group and the elimination of poverty clarified in (UNDG) and in the field, via the UN Deve- the extended Heavily Indebted Poor Countries lopment Assistance Framework (UNDAF), (HIPC) initiative is one of the driving forces thus establishing a joint framework for initia- in this process. These strategies are intended tives at the country level. This also applies to to provide a basis for lending by the World the UNDP, which has both an operational Bank and the IMF and, to a considerable and a normative role, and exerts a conside- extent, for support from other donors. It is rable influence on other aspects of UN ope- anticipated that countries not directly affec- rations. ted by the HIPC initiative will also draw up The OECD’s Development Assistance strategies of this nature, and that they will be Committee (DAC) is preparing guidelines an important basis for development coopera- for poverty reduction in the development tion. Preparation of such strategies will be cooperation context. Sweden is participating “owned” and conducted by the individual actively in this process, based for example on countries. It is hoped that these strategies extensive consultations in a number of part- will contribute to improved coordination ner countries. The DAC guidelines will cover between donors, and stronger partnerships concepts, methods, country strategies, part- among donors and partner countries. In its nership, effectiveness, and institutional pre- guidelines for support for economic reforms requisites in the donor organisation. In addi- and debt relief approved in 1999, the Swe- tion, a separate section of the guidelines will dish Government declared that poverty stra- discuss the way in which policy areas not tegies are to constitute key background docu- directly related to development assistance ments for decisions regarding support of this affect development objectives, and how a nature. better coherence can be achieved. Sweden has been an active proponent of a There is also a focus on coherence between stronger focus on poverty in the enhanced policy areas in the Swedish parliamentary HIPC initiative. The decisive factor, howe- commission’s study of Sweden’s policy for ver, is that the process is led and owned by global development which commenced in the the countries concerned, preferably with the spring of 2000. The commission was assigned broad participation of the civil society. Swe- to present a comprehensive proposal for the den will actively monitor and evaluate such way policies should be drawn up in key areas, processes on an ongoing basis in its major based on the overall objective of poverty partnership countries. reduction and the new conditions created by National poverty strategies – Poverty globalisation. The new European Commis- Reduction Strategy Papers (PRSP) – and the sion and the EU Development Council are

7 also aiming for greater coherence between donors. Poverty reduction is also the prime different policy areas, as a means of achieving objective in the recent agreement between more effective development cooperation. the EU and the ACP countries which was The ability to assess which development signed in Cotonou in Benin in June 2000. measures have the greatest impact on pover- The Swedish Government’s Rights of the ty is a fundamental requirement for effective Poor – Our Common Responsibility report poverty reduction. In its 1999 annual report, establishes that poverty is a multi-dimensio- Sida classified for the first time the compo- nal concept. Poverty is regarded as a lack of nents involved in Swedish bilateral develop- security, empowerment and opportunity. ment cooperation in terms of their impact on Several studies of the way poor people view poverty. This breakdown indicated that 42% their situation have shown that a multi- of disbursements involved measures which dimensional approach of this nature is par- had a direct impact on poverty or which ticularly relevant. The Voices of the Poor stu- included poor people, while 47% involved dy –completed by the World Bank with measures which had an indirect impact on financial support from Sweden and other poverty reduction. It was considered that countries – is the most extensive study in this 11% of the measures had no effect on pover- area. It was based on interviews with 60,000 ty, but were justified in terms of other deve- people in 60 countries. lopment goals. The study indicates that the underlying During 1999, Sida started a poverty pro- reasons for poverty are closely correlated. ject, divided into three phases and ending in Poverty, as experienced by poor people, is June 2001. This project is designed to achie- much more than a shortage of food or sub- ve a learning process, based on Sida’s experi- sistence problems. Failure to protect poor ence, which will provide new information people from violence and crime is prominent regarding the links between poverty and feature of poverty, and this also applies to resource-distribution, growth, employment lack of influence and opportunities to control and the institutional prerequisites. Sida has one’s own life. The inability to change your reinforced its emphasis on methods to achie- life by your own efforts is a key aspect of ve popular participation in development coo- poverty. peration. As Sida’s action programme pro- The World Bank’s World Development gresses, the links between the overall poverty Report 2000/01 – Attacking Poverty, objective and the equality, environmental, published during 2000, is based on the Voices human rights and democracy goals will beco- of the Poor study. It has been preceded by a me clearer. very extensive consultation process in various The Ministry for Foreign Affairs and Sida parts of the world, including a consultation have also studied management, regulatory with various UN agencies, arranged by the structures and the implementation of EC Swedish Ministry of Foreign Affairs in Febru- development cooperation during 1999, ary 2000. The report’s conclusions are based, including the manner in which poverty among other things, on three dimensions of aspects are handled in international develop- poverty: powerlessness, insecurity and a lack ment cooperation. For some time, the of economic opportunities. The strategy Ministry for Foreign Affairs has been conduc- advocated is based on targeting these three ting a project which is designed to analyse dimensions of poverty and establishing and present proposals for Swedish contribu- empowerment, security and opportunities tions to improving the European Commis- for the poor sion’s efficiency and the emphasis on quality in development cooperation. The Commis- sion has prepared proposals for a new policy which focuses on the reduction of poverty, POWER AND INFLUENCE including the concentration of activities, and Development cooperation based on human improved coordination with member rights aims to create a global responsibility for countries and other development assistance development issues based on the principle of

8 universal rights and human dignity. This Support for democratic governance covers ambition calls for new methods. As donors, both support for central government structu- we can no longer define problems and solu- res and institutions, and also the develop- tions on behalf of the recipients of develop- ment of a vigorous civil society. Support for ment assistance. Instead, sustainable develop- public administration is a key factor in the ment cooperation demands an approach in development of authorities characterised by which all human beings are regarded as honesty, transparency and accountability – a responsible for their own lives, and are active- public administration in the service of ly asked to explain their needs, suggest solu- democracy. Support for the judicial system tions and have an opportunity to participate and for the establishment of the rule of law in the entire development process. The contributes to the creation of a society gover- human rights conventions codify common ned by legal principles, guaranteeing equal norms for the equal rights and dignity of all rights for everyone, with less scope for arbit- human beings, and lay the foundations for rary behaviour. Support for elections and development cooperation based on human electoral administration is designed to pro- rights. These documents have been drawn up mote honest processes, and security for both as the result of international cooperation, and voters and candidates. the six major conventions have been ratified Support for a parliamentary assembly is by a majority of the world’s states. As a designed to reinforce the authority of the result, the conventions provide a normative legislative body and its capacity to handle framework. Using these conventions as a tool, increasingly complex issues. The division of we can pursue a dialogue with our partner power principle involves a distribution and a countries, identify areas that have been balance of powers which is normally embodi- neglected, and establish priorities for initiati- ed in the constitution of the country concer- ves. ned. A democracy does not only consist of a The overall objective for development coo- legislative, executive and a judicial power – peration – raising the standard of living of the private sector, the media and the civil poor people – involves growth, and the dis- society are also important stakeholders. tribution and management of resources. The The civil society is a neutral concept which democracy objective also involves distribu- may be defined as the phenomenon which tion, but in this case the distribution of occurs when human beings organise themsel- power. Being incapable of controlling one’s ves, and act in the intermediate space betwe- own life – having no defence against power en the state, the family and the participants exercised by others – is also part of a broader in the market place. The civil society con- concept of poverty. The human rights con- tains both democratic and antidemocratic ventions include elements which are crucial forces. Hence, the challenge is to reinforce for the democratisation process, such as par- participants who channel the wishes or ticipation, freedom of expression, freedom of demands of specific groups and, at the same association, the right to vote and the right to time, contribute to pluralism, dialogue and stand for election, etc. strengthening mutual confidence – for Democracy is both a means and an end in example popular movements, non-govern- the development cooperation context. mental organisations, churches, trade unions, Democratic governance is a key component in social networks and youth, women’s or envi- endeavours to achieve a fairer distribution of ronmental organisations. Like the media, the resources within a country and, as a result, it is civil society can develop public opinion and a very important factor in the struggle against contribute to pluralism in the public debate. poverty. As a tool, democratisation is a way of The civil society’s role is to reinforce the increasing participation, involvement, influen- social capital and promote popular participa- ce and responsibility in everyday life. It contri- tion, local democracy, transparency and grea- butes to pluralism and a better basis for deci- ter control of the ruling elite. Constructive sions. In a credible process, this also results in cooperation between the civil society and the greater support for the decisions taken. state is an important factor, and therefore

9 Foto: Victor Lenson Brott/Global Reporting Sweden

Unless they have access to education, it is difficult for the children of today to become responsible and democratic citizens.

Swedish development cooperation aims to within the family, where the man traditio- strengthen the civil society by supporting for- nally controls the resources. Development ces working for democracy and popular par- cooperation must work for the participation ticipation. In addition, it aims to assist the of women, to support democracy and human efforts of individual countries to create con- rights and to counter poverty. This task can- ditions for a vigorous civil society and oppor- not be tackled effectively if women and men tunities for its development. In the past year, are unable to participate on equal terms. Sweden has encouraged countries to involve Children are one of the most vulnerable the civil society in both the planning and groups. Education is a decisive factor in implementation of their poverty reduction enabling people to free themselves from strategies. The UN’s follow-up of the Habitat poverty. As a result, the equal right of girls Conference held in Istanbul in 1995 also and boys to attend school is a prerequisite for stresses the special role played by local com- development. Schools have a unique role in munities, and the importance of participa- promoting a democratic culture in society, tion in the planning process at the local level. but this opportunity is missed if 130 million Poverty reduction is very much a question children of primary school age throughout of challenging prevailing power structures the world are unable to attend school. If the and self-interest. People in authority at the prerequisites for reducing poverty and pro- local level may try to appropriate resources moting democracy and human rights are to and exert influence at the expense of the be achieved, children also need to learn to poor. As a result, participation is a key con- formulate and express their opinions, and cept in giving individuals an opportunity to have the right to do so. gain control of their lives and free themselves Access to information and communications from poverty. In many countries, the rela- is another essential factor which empowers tionship between poor people and those in people and enables them to utilise their authority at the local level is also reflected resources. Information Technology (IT)

10 offers new opportunities in poor countries, Sweden’s International Cooperation for Sustai- and development cooperation can help to nable Development (skr. 1996/97:2) support and facilitate the introduction of IT establishes that the overall objective for in a manner which benefits poor people. This development cooperation – the elimination is one of the basic tenets in Sida’s new strate- of poverty – also determine priorities in the gy for IT in development cooperation. environmental field. Integration of environ- One example is Sida’s IT infrastructure ini- mental aspects into all operations is a prime tiative in the research field, covering both the requirement for sustainable development. physical infrastructure and the transfer of The following areas are identified as particu- know-how. Swedish universities are helping larly important in bilateral development coo- to establish local networks and Internet links peration: integrated management of water at universities in Sweden’s partner countries. resources, sustainable soil and forestry mana- IT technicians are receiving university-level gement, sustainable utilisation of coastal and training in Sri Lanka, Mozambique and Tan- marine resources, a sustainable urban envi- zania, with the aim of establishing long-term ronment and energy supplies. and in-depth experience in the IT field. Plan- A negative impact on the environment is ning of education support is under way in most likely to occur when poverty is combi- Ethiopia, Vietnam, Nicaragua and Uganda. ned with other factors, such as high popula- Sida and the Ministry of Foreign Affairs are tion growth, deficiencies in ownership rights also working jointly on the integration of or utilisation entitlements for natural resour- information and communications technology ces, inadequate legislation, short-sighted eco- in all development cooperation. nomic policies and various types of market failures. Environmental destruction caused by over-consumption and the careless exploi- tation of resources has a particularly severe SECURITY impact on people who are directly depen- Insecurity is one of the chief features of eve- dent on natural resources for their survival, ryday life, as experienced by poor people. and often exacerbates poverty. Other impor- One aspect of this is vulnerability when tant factors include a lack of knowledge, and faced by change – for example natural disas- the absence of democratic influence and ters, economic crises, sickness or conflicts. democratic control instruments. Another aspect is unsafety due to corruption, Sweden is supporting its partner countries the abuse of power or regarding the future – to carry our their commitments under the for example a lack of faith in the future on environmental conventions. Some of this the part of young people, or anxiety about support is channelled through the Global support in old age. Environmental Facility (GEF) which is one Development which is economically, soci- of the sources of finance for the conventions. ally and environmentally sustainable is a key In the EU, Sweden has been working for the component in future security. The world’s integration of environmental considerations ability to feed a growing and increasingly into all areas of development cooperation, urbanised population may be questioned in and also for a greater degree of coherence the light of the deterioration in the quality of between different policy areas. water, soil and air, reduced biodiversity and Conflicts of various kinds were one of the poorer stocks of fish, climate changes and main reasons for insecurity during the 1990s. unsustainable patterns of production and After the genocide which occurred in Rwan- consumption. Nonetheless, some progress da in 1994, the international community has been achieved, thanks to the combined promised that nothing similar would ever efforts of industrialised and developing happen again. The Convention on the Pre- countries. Almost 1.4 billion people gained vention and Punishment of the Crime of access to clean drinking water during the Genocide failed to prevent this catastrophe. 1980s, for example. The statutes for the International Criminal A Swedish Government report entitled Court which stipulate individual responsibili-

11 ty for crimes against humanity and war cri- there must be incentives for development mes were adopted in 1998, as an expression that offers people new alternatives and rene- of a renewed commitment in the field of wed faith in a future in a non-violent society. international law. But progress in the norma- Sweden has played a leading role in the DAC tive area has been beset by crises that the in drawing up guidelines for a more effective international community has so far been role for development assistance in conflict unable to effectively prevent or stop. During situations and for the promotion of a peace- 1999, the number of armed conflicts in the ful culture. As assigned by the Swedish world increased once more, following some Government, Sida has prepared a strategy for years of peaceful progress. Although this development assistance in conflict situations, involved internal conflicts in most cases, such based for example on the DAC guidelines. conflicts have extended across national fron- Experience of this task will be reviewed tiers. This applied both to protracted con- during the year 2000. flicts such as those in Afghanistan, Angola, Involving women to a greater extent in Sudan and Colombia, and also to more conflict management and prevention may recent conflicts, for example in the northern make this task more successful and introduce Caucasus, the Great Lakes region in Africa, new perspectives in such areas as violence Kosovo and East Timor. and threats directed against women. The UN Conflicts of this nature have increasingly and Uppsala University are studying how destructive humanitarian consequences. women can actively contribute to conflict Attacks on the civilian population, particu- management and peace promotion, for larly women and children, and the paralysis example in order to help rape victims, of all normal development are common fea- widows with no financial assets and single tures of this type of organised armed violen- women, and also ways to get women to par- ce. Achieving peaceful solutions calls for ticipate in forums which determine the vigorous political efforts, but at the same allocation of resources for medical care, time the frequent failure of attempts to achi- education, care of the elderly, etc. eve peace indicates that the participants are A considerable proportion of Swedish not interested in political settlements if humanitarian assistance is channelled via UN financial gain is the principal motive for the agencies. Sweden has played an active part in actors. Developments in Sierra Leone, Ango- promoting coordination responsibilities for la and the Democratic Republic of Congo in the UN, and of UNHCR and ICRC. The 1999 have provided fresh examples of the growing international trend in favour of bila- problems involved. The protracted hostilities teral humanitarian assistance has meant a in Colombia and Afghanistan have also greater number of participants in the field, demonstrated that lucrative drug trafficking and an increased need for coordination. In operations provide the financial incentive this context, the priority given to humanita- which fuels the hostilities. Today, criminal rian operations by the Secretary General is motives, rather than explicit political objecti- welcome, particularly his emphasis on a ves, may be a feature of armed conflicts. coherent policy for maintaining and develo- Many current conflicts are taking place in ping international access in the event of countries suffering from widespread poverty, humanitarian disasters. Greater effort must coupled with high-value raw materials, such also be devoted to humanitarian diplomacy. as gold and diamonds. New groups see an Humanitarian intervention by military means opportunity to seize control of these assets must continue to be the last resort. by means of armed force, without taking any There has been a substantial increase in the responsibility for the humanitarian, social, volume of the European Commission’s developmental or political consequences. humanitarian assistance – for example in the This represents a challenge for development wake of the Kosovo crisis. It is important to assistance. On the one hand, effective huma- ensure that humanitarian initiatives financed nitarian protection must be provided for the by the Commission are coordinated with the civilian population and, on the other hand, UN.

12 The crises in 1999 in Kosovo and East peration in the wake of a humanitarian trau- Timor illustrate the vulnerability of refugees. ma, resulting from acts of violence, and the The expulsion of the civilian population by collapse of the infrastructure and social insti- means of threats, murder and other systema- tutions. An understanding of the underlying tic violations has become a tactic of war. The reasons for the conflict, the motives, the vari- physical and psychological circumstances ous participants, and the victims’ view of faced by refugees, as well as subsequent their history and their future is also essential. destruction, lead to severe problems when There have been fewer refugees in recent the refugees return – ranging from individual years, but the problems involved have beco- mental health to physical reconstruction. me increasingly complex. Many refugees do The need for reconciliation and forgiveness not want to seek sanctuary in another must be balanced against the need for justice country, and in any case this option may not and punishment for the crimes committed. be open to them. Offering internally displa- New methods, patience and flexibility are ced persons the same protection and assistan- called for in assistance and development coo- ce as external refugees is a challenge – claims

One example is Hurricane Mitch which hit Central America in the last week of October 1998, causing one of the worst natural disasters ever experienced in the region. In particu- lar, Mitch destroyed national infrastructure at a cost of several billion dollars. Enormous waves of water swept down from the mountainsides, leaving a trail of sand, clay and trees in their wake. Buildings were washed away and bridges snapped like matchsticks. The poor suffered most. Due to land shortages, they were often obliged to build their homes high up on mountain slopes, or in floodbeds, in places where human habitation is prohibited. That is why their houses and crops were the first to be washed away by the floods. Sweden is contributing SEK 1.4 billion over a three-year period for reconstruction after the hurricane. Half the funds will be used to build up national infrastructure, while the remain- der will be devoted to social projects, environmental initiatives and debt relief. Swedish assistance in the wake of Hurricane Mitch is integrated with the regular budget for develop- ment cooperation programmes in Central America. Sida is also supporting programmes for the reconstruction of housing, water, electricity and sewage systems. Support goes to the poorest families, usually single mothers with children. These families receive a proportion of the cost of materials, but they build the houses themselves. In some cases, entire villages have been moved to safer locations where there is less risk of landslides. The house-builders are participating actively in planning reconstruction operations. In the long run, taking responsibility in this way may lead to stronger local democracy and increased interest in municipal affairs. Some of the post-Mitch assistance has been used to help small farmers in the region to start cultivation again. If farmers cannot sow their crops, there is a considerable risk that they will be forced to migrate to urban slum districts. Environmental destruction was one of the fundamental reasons for the serious consequen- ces of Hurricane Mitch. Extensive deforestation and soil erosion are resulting in major pro- blems throughout Central America, and Mitch demonstrated that a new approach is required in the environmental field. Alternative agricultural methods and better control of logging operations are essential, for example. Sida is supporting several regional organisations invol- ved in environmental issues in Central America.

13 Foto: Victor Lenson Brott/Global Reporting Sweden

For the most part, people do not talk openly about sex and marital relations in India, and discussion of HIV/AIDS is virtually taboo. Information activities in this field continue to be limited.

14 of national sovereignty and poor security hin- Poor health is another major cause of der international access and assistance initia- insecurity. HIV/AIDS is the primary pro- tives. The security problems that occur in a blem in many countries, and it gives rise to crisis are another obstacle. These issues are serious extensive social problems. More than currently being discussed at the international 33 million people are infected, and 13 milli- level in the humanitarian and human rights on have died from AIDS. The world’s poo- context. The UN Security Council has also rest people are the most seriously affected – debated refugee problems in the context of 90% of those infected are in developing peace and security. countries – and young people between the Natural disasters have become an increa- ages of 10 and 24 are at particular risk. The singly serious cause of insecurity in recent large number of children orphaned as a result years. During 1998, it was estimated that of AIDS – more than 11 million so far – is an physical losses in connection with natural extremely serious problem. disasters amounted to USD 65 billion, which When HIV/AIDS started to spread in the is more than the total volume of develop- early 1980s, Sweden was one of the first ment assistance. countries to contribute to global efforts to Food shortages are another form of insecuri- control the epidemic. UNAIDS was ty – often as a result of conflicts or natural established, within the UN framework, in disasters. It is still estimated that approxima- order to provide better prerequisites for mee- tely 800 million people do not have satisfac- ting the threat. Sweden was one of the foun- tory access to food supplies. At the national ders of UNAIDS and actively supports its and household levels, reliable access to food operations. A limited proportion of Swedish supplies is closely linked with poverty, and assistance has been contributed in the form with purchasing power. of bilateral cooperation. The current Swedish Natural resources and environmental fac- strategy for international cooperation in this tors have an impact on the possibilities of field – embodied in a report entitled Investing achieving global reliability of food supplies. for Future Generations – aims to integrate Water resources and water management are HIV/AIDS factors into all forms of develop- one example of this. Insufficient attention is ment cooperation. Experience indicates that paid to groundwater resources, and ground- HIV/AIDS programmes achieve the best water depletion is a threat to reliable food results if they involve several activities imple- supplies on a global scale. Preservation of mented on a multi-sectoral basis and employ plant genetic resources for food and agricul- participatory methods. As a result, there are ture is another aspect of the same problem. plans for integrating HIV/AIDS initiatives The food supply situation for large popula- into sectors such as education, transport and tion groups can change rapidly, due to fac- culture. HIV/AIDS is not just a question of tors such as war, natural disasters and finan- health but also a serious problem for society cial crises. The war in Kosovo, Hurricane as a whole since it has its most devastating Mitch in Central America and economic impact on people of productive and repro- disintegration in Indonesia are recent examp- ductive age – breadwinners and parents – and les. This year, we have seen floods in hence on the economy as a whole. Mozambique and drought in Ethiopia. Inter- The major proportion of bilateral develop- nal refugees and low-income groups such as ment cooperation involving HIV/AIDS is small farmers, agricultural workers, landless devoted to countries in southern Africa. Sida peasants and certain social groups are par- has established a secretariat for HIV/AIDS in ticularly vulnerable in this context. Harare in Zimbabwe. The secretariat will A new food assistance convention entered reinforce Sweden’s contribution in this field into force in July 1999, and will apply until in the region. So far, assistance has focused June 2002. The convention is designed to on preventive measures, chiefly information ensure food assistance to reduce poverty and activities targeted at young people, and the famine in the least developed countries and development of safe and effective HIV vacci- in low-income countries. nes. Care and support for people living with

15 or affected by HIV/AIDS is also part of the topics such as masculinity and violence. programme. Sida has carried out a number of Economic crises are yet another major cause country studies in order to improve its con- of insecurity, and they often affect the poo- tribution. During 1999, studies have been rest groups in society particularly severely. conducted in Bangladesh, Tanzania and Poor countries are more vulnerable to sud- Botswana. Sida has also developed closer den economic changes in the outside world. cooperation with other organisations, such as Their economies are often based on the UNFPA, UNAIDS and Southern Africa export of a limited number or raw materials AIDS Dissemination Services. whose prices are subject to rapid fluctuation. Violence and crime are perhaps the featu- In recent years, developing countries have res of insecurity which arouse the strongest also become vulnerable to short-term capital emotions. Acts of violence are more com- movements. The Asian crisis resulted in a mon in poor areas – particularly in the towns substantial increase in poverty in many – and poor people have fewer opportunities countries, with greater income gaps, and to protect themselves. But violence also has a social problems which will not automatically gender aspect. Poor women are more likely disappear when the economy recovers. to suffer from violence in the home than As a result, reducing national exposure to other women. The control aspect and viola- economic crises is a key element in poverty tions of women’s sexuality are particularly reduction strategies. A strong and transparent obvious in societies in which female genital international regulatory framework is nee- mutilation is practised. ded, primarily to counter fluctuations in As a result, efforts to counter various forms capital flows and to reduce the impact of of gender-related violence are a crucial aspect such shifts when they occur. But this assu- of development cooperation. One important mes that national economies are soundly contribution is reinforcement of the judicial based, with open and flexible economic poli- system to ensure compliance with the law to cies and strong domestic institutions. ensure protection of all citizens. Swedish Support for economic reforms is designed development assistance also gives high priori- to assist national strategies for achieving ty to equal entitlements for girls and women macroeconomic stability, growth and a to health care services, and sexual and repro- reduction of poverty within the framework ductive health and well-being. One of the of internationally coordinated measures. steps along the way is to ensure that boys Sida’s support for administrative develop- and men become aware that greater equality ment aims to establish effective institutions between the sexes is not a threat, but an in the interface between the public and the opportunity for a better life for both sexes. private sectors. Support for private-sector Poor women and women from indigenous development is designed to establish the pre- populations are particularly likely to suffer requisites for viable enterprises, and to facili- acts of violence. In many cases they have no tate their access to international markets. access to medical and health care systems. A key feature of poverty reduction strate- Women in this category are the primary tar- gies is that central government institutions get for a project supported by Sida which should also meet the needs of the poor. This covers all the countries of Central America is one of the fundamental premises in prima- and which is designed to improve women’s ry health care and education, for example. health, and help to achieve sounder relation- The quality of state institutions determines ships between men and women. Organisa- the extent to which poverty can be reduced tions and individuals coming into contact and the extent to which the education level with women who have been mistreated form of poor people can be raised. a network which offers the women and their Cooperation with Cambodia, where Swe- families care and support. The focus is now den has supported reinforcement of the beginning to turn to the perpetrators of such ministry of education’s organisational struc- acts, and several networks for men have been ture, provides a good example. Preparation formed, in which the participants discuss of a national policy and sector programmes

16 Foto: Victor Lenson Brott/Global Reporting Sweden

Microcredits – particularly loans to women – have proved to be a highly effective way of developing and strengthening poor families. The concepts developed by the Grameen Bank in Bangladesh have now spread throughout the world. The photo shows a village bank in Bolivia.

has commenced, in cooperation with several bution of resources – at the global, national donors. Ongoing support is provided via and local levels – and within each individual UNICEF for 380 primary schools with household. 180,000 pupils. New schoolbooks in three Investment is essential for economic deve- subjects have been produced and distributed lopment. But being poor means that availab- in 1 million copies, and 9,000 teachers have le resources are barely sufficient for everyday received training in the use of new teaching consumption, and there is no scope for inve- materials. Adult education programmes have stment. Hence, one of the tasks in poverty been conducted for 30,000 participants, of reduction programmes is to create the prere- whom 66% were women. quisites for mobilising the resources of poor people. This may take the form of microfi- nancing projects which give poor people access to credit. More than 20 years of expe- ECONOMIC OPPORTUNITIES rience of microfinancing in different parts of To a large extent, poverty clearly involves a the world demonstrates that poor people are shortage of resources – physical resources, reliable borrowers who invest wisely and are capital, and human capital in the form of keen on saving if given the chance. Experien- health and education. Poverty also involves ce also shows that women are often the best inadequate prerequisites in the society con- borrowers, and that they invest in the needs cerned for the utilisation of such resources – of their families and children to a greater for example ineffective market structures or extent than men. institutions, social discord or a lack of social Microfinancing is a worldwide phenome- capital. Poverty is also a matter of the distri- non, and there are now a substantial number

17 of microbanks. One of the most successful is techniques. But experience shows that mea- the Grameen Bank in Bangladesh, which has sures targeted at women – for example more than 2 million customers, mostly education initiatives or support for women women. Sida was previously one of the main entrepreneurs – tend to have a particularly contributors to this project, but the Grameen favourable impact on social and economic Bank can now manage without external assi- development. stance, and borrows on the capital market. An effective infrastructure is a prerequisite Other successful microbanks include Banco- for growth and social development, particu- Sol in Bolivia and Bank Rakyat-Unit Desa in larly aspects of the infrastrucure which Indonesia. directly affect poor people, for example Growth which is sustainable in economic, water supplies, roads and access to energy social and ecological terms is an essential pre- resources in rural areas. But poverty in urban requisite for poverty reduction. There are a areas is growing rapidly, and Sida is therefore number of basic requirements which have to placing an increasing emphasis on urban be fulfilled if sustainable growth processes development – for example slum improve- are to be achieved: peace, stability, fair and ment programmes in Chile, Costa Rica and effective legislation, human capacity, an Nicaragua. effective infrastructure and a satisfactory In Costa Rica, Sweden has been supporting public administration. In many countries, a project for almost 10 years which helps debt relief is an additional prerequisite for poor slum-dwellers to build their own hous- the establishment of a sound climate for es. Initially, this means that the home buil- growth. Development cooperation can play a ders have to receive land rights, since they key role in this process by reinforcing the sta- would otherwise be regarded as squatters. te’s ability to promote social development They borrow money from a local foundation, and effective market structures. and when the houses are completed the An effective market economy is one of the foundation can reinvest the funds in new basic preconditions for releasing the creative projects. As a result, 6,500 poor families now powers of small farmers and entrepreneurs, have new or improved housing accommoda- both in the official economy and in the infor- tion, and 40% of the participants are single mal sector. Sida supports the reform/privati- women. sation of public sector business operations, During the spring of 2000, Sida prepared the elimination of obstacles to free enterpri- a policy for its credit-financed development se, and measures to promote competition. cooperation. As in the case of all other There is a special emphasis on areas which forms of development cooperation, Sida’s small farmers, businessmen and microentre- credits are designed to contribute to impro- preneurs consider to be bottlenecks which ving the living standards of poor people. In hinder expansion and new business develop- addition, the aim is to promote economic ments. cooperation between Sweden and the reci- The economic arguments for equality pient country in areas in which Swedish between women and men are strong, but goods and services are competitive. Con- often underestimated. Greater equality leads tacts between the Swedish private sector to better opportunities for higher growth, and actors in recipient countries can in addi- and also ensures that such growth will be tion to the results achieved by the project socially and economically sustainable. Many itself have positive spin-off effects in the studies have concluded that gender equality form of transfer of technology and skills factors may well determine the success of an development which contribute to economic economic reform process. In many cases, growth. women’s heavy workload restricts their Sida’s policy places a special emphasis on opportunities to participate in the regular ensuring that credits should not be granted labour market – they have limited access to to poor countries with an unsustainable sources of income or credits which can be debt burden. After debt relief has been used for investment in new production granted to these countries as a result of the

18 HIPC initiative, loans should be confined to stment, growth and deeper structural reform. highly concessionalry credits (80%). In the legal area, this programme is expected The most appropriate investments for cre- to contribute to greater equality and better dit financing involve projects which can protection of rights. In social terms, the generate revenues, and thus reduce the bur- establishment of clearer rules and legal rela- den on public finances when the loan has to tionships is expected to result in more stable be repaid. As a result, concessionalry loans development of society as a whole. A transfer play an important part in financing projects of land utilisation rights into private hands, which generate some revenues but which do and hence a greater commitment to sustai- not have an immediate prospect of being nable land utilisation, is expected to help to fully viable in financial terms – for example achieve long-term improvement of the rural railways, rural electrification projects or, in environment. poor urban districts, water supplies and was- te disposal. Development assistance allocations Fair distribution of land resources is often a In the 1999 fiscal year, 0.705% of the esti- prerequisite for economic and social develop- mated Gross National Product (GNP) was ment. Land utilisation and the need for allocated to international development coo- integrated planning, including the economic, peration with developing countries, within social and environmental aspects, was one of the Swedish development assistance frame- the topics raised at a recent meeting of the work. The framework amounts to 0.72% of UN Commission on Sustainable Develop- GNP for the 2000 fiscal year, rising to 0.73% ment (CSD), which is responsible for fol- in 2001 and 0.74% of GNP in 2002. The lowing up progress on Agenda 21, adopted at development assistance framework will inc- the Rio Conference in 1992. The CSD rease to 0.81% of GNP in 2003. recommended, for example, that all countri- Within this framework, 30% of the total is es should promote fair access to land, and devoted to multilateral development coope- stressed the need for secure ownership and ration (including Swedish contributions to utilisation rights, with a particular focus on the EC assistance budget) and 60% to bilate- women. ral cooperation. The remaining 10% is used A new land law was introduced in Viet- to defray the cost of refugees in Sweden, nam in 1993, implying that the Vietnamese administration and other expenses. The people collectively own all land and that the development assistance framework does not state is to administer land issues on behalf of include allocations for cooperation with the people, but simultaneously guaranteeing Central and Eastern Europe, which is funded a greater degree of protection under the law from other sources. The allocation of funds is for tenant farmers, and providing for the indicated in the table. transfer of land utilisation rights by private Total Swedish development assistance persons. A land survey programme financed amounted to SEK 13.3 billion in 1999, and by Sweden has been in operation since 1997, disbursements of SEK 15.9 billion are with an emphasis on institutional develop- forecast for the year 2000. As a result, Swe- ment at the central and province levels in the den is one of the four countries which com- form of advisory services and the provision of ply with the UN’s recommendation that technical equipment. A more effective and development assistance contributions should more fairly implemented land reform pro- represent at least 0.7% of GNP. The other gramme is expected to achieve major econo- countries that meet this target are Denmark, mic results and lead to a higher level of inve- Norway and the Netherlands.

19 Swedish development cooperation

DISBURSMENTS ALLOCATIONS (MSEK) 1999 2000

MULTILATERAL DEVELOPMENT COOPERATION UN economic and social operations 1 503 1 828 International financing institutions 1 404 1 260 Other multilateral cooperation 303 171 European Development Fund 69 118 3 276 3 377

BILATERAL DEVELOPMENT COOPERATION Africa 1 751 1 850 Asia 912 1 000 Latin America 643 620 Europe 324,4 450 Special development programmes 1 232 1 070 Credits 4 450 Research cooperation 506 570 NGOs 833 880 Humanitarian assistance 1 107 1 000 Economic reforms 477 665 Information 36 50 7 825 8 605

Contributions to EU assistance 741 757 Refugee costs in Sweden 660 763 Administration, etc. 290 292 Sida and NAI administrative costs 459 427 Other 62 78 Total framework for international development cooperation 13 316 14 299

COOPERATION WITH CENTRAL AND EASTERN EUROPE Via Sida 472 529 Via the Swedish Institute 54 54 Contributions to the Stockholm Institute for East European Economies 5 5 Other contributions 263 137 Provision for losses regarding financial support/export credit guarantees 0 25 794 750

20 Democracy and human rights in development cooperation

The poverty objective has been interpreted quality of Swedish and joint international in the form of six sub-objectives, one of whi- efforts to increase the impact of commit- ch stipulates that development cooperation ments for democracy and human rights. should contribute to the democratic develop- Today, most countries support democratic ment of society. This sub-objective is consi- principles. Many countries which were dered in more detail in the Government’s previously undemocratic have implemented report Democracy and Human Rights in Swe- multi-party elections, and have thus initiated den’s Development Cooperation (skr. a transition to more democratic forms of 1997/98:76). Swedish human rights policy government. There have been fewer changes for the entire foreign affairs sector is further at the local level and in the everyday lives of developed in the Human Rights in Swedish poor people and, as a result, the challenge of Foreign Policy (skr. 1997/98:89) report. For introducing a democratic society is a task the past two years, the Ministry for Foreign which most developing countries have not Affairs and Sida have been cooperating on yet tackled. Democracy has been a develop- the development of methods and training ment assistance objective for many years, but programmes to improve the capacity and methods to promote democracy and consoli- Foto: Victor Lenson Brott/Global Reporting Sweden

The number of children and young people starting school has declined in many countries in recent years. Investment in basic education is very important, as depicted here, in Bolivia.

21 date it were not seriously developed in the • The International Covenant on Economic, development cooperation sphere until after Social and Cultural Rights (1966) the end of the Cold War. Elections in a • The Convention on the Elimination of democratic form have been implemented in All Forms of Discrimination against 115 states, a figure which did not change in Women (1979) the 1994–1997 period. Despite recognition • The Convention against Torture (1984) of democratic principles, there have been • The Convention on the Rights of the Child some reverses in recent years, and it is there- (1989) fore essential that democracy continues to have high priority as a development assistan- A very broad definition of the democracy ce objective for Swedish foreign policy. concept is employed in the development At the same time, there has been an increa- cooperation sphere. Three dimensions are sing focus on human rights, as they are for- applied: institutions and procedures, human mulated in international conventions. These rights and a democratic culture. All three conventions provide a normative framework dimensions must be in harmony if genuine for the countries and peoples of the world. democracy is to be achieved. A country whi- The strong support for the undertakings ch is democratic in formal terms cannot, for embodied in these conventions is demonstra- example, be regarded as a genuine democra- ted, for example, by the fact that Convention cy if majority decisions violate human rights. on the Rights of the Child has been ratified Such political decisions indicate deficiencies by 189 of the world’s 191 states since it was in the democratic culture. adopted in 1989. In the development coope- Democratic institutions and procedures ration sphere, this overwhelming support establish the formal prerequisites for democ- paves the way for the successful achievement racy, and are often embodied in the national of activities based on human rights, both in constitution and principles for the allocation the form of dialogue and in practice. This and balancing of powers between the various means that the focus on development coope- institutions. Universal, genuine and regular ration based on a rights perspective must be elections are key procedures in this process. reinforced, using the international human Democracy does not acquire substance until rights conventions as a starting point. human rights are respected and institutions The World Conference on Human Rights in are given a real content. A democratic cultu- Vienna (1993) confirmed that human rights re attempts to reflect the attitudes and are universal, indivisible and mutually depen- approaches which make democracy mea- dent, and that there are strong correlations ningful, for example a willingness to enter between human rights, democracy and deve- into dialogue, accept compromises, show lopment. Democracy which is sustainable in tolerance and respect for minorities, and the long term assumes respect for human achieve inclusiveness. The existence of fun- rights, and vice versa. Democracy and human damental principles and rules which are stab- rights reinforce each other. Respect for human le and apply to everyone makes it easier to rights is, for example, more widespread in accept decisions which have an adverse democracies, and there is more likely to be a impact at the individual level. Transparency democratic political system in countries in is a key factor in this process. which human rights are respected. In many countries, there is an imbalance Human rights are formulated in the UN between the executive, legislative and judici- Declaration of Human Rights of 1948 and in al institutions. The executive often domina- the six central conventions in this field: tes the scene at the expense of the legislature and the judiciary. This creates a situation • The International Convention on the characterised by weak checks and balances Elimination of All Forms of Racial Discri- which, in many cases, results in arbitrary rule mination (1965) by a small political elite. It also has conse- • The International Covenant on Civil quences for the judicial system, which has and Political Rights (1966) difficulty in fulfilling its functions since it is

22 overshadowed by an all-powerful govern- key contribution to development – this inclu- ment which controls the legislative appara- des countries in which rights are violated and tus. As a result, compliance with the law suf- political developments are unfavourable. In fers, and hence the rule of law. Deficiencies countries of this type, such initiatives can be in the division of powers also have an impact strategically focused on support for activities on governance of the country, providing or groups which promote human rights or opportunities for corruption and reducing democratisation. Measures of this kind may opportunities to use common resources in an also occur within the framework of intergo- efficient manner. This imbalance may also vernmental cooperation – for example initia- lead to the serious weakening of democratic tives to strengthen the judicial system, the values, such as participation and transparen- ombudsman function or national human cy. rights commissions. In such societies, pressu- Corruption is a major obstacle to develop- re which leads to changes may occur at a low ment, with consequences for society which level in the social hierarchy. Support for indi- extend far beyond the actual embezzlement viduals or organisations actively working for of resources. Corruption has a more serious human rights may also give such countries impact on poor people than other groups, it crucial signals regarding the importance the undermines the rule of law, increases the international community attaches to these degree of insecurity experienced by the indi- issues. vidual and depletes the resources available Long-term, sustainable democratic deve- for basic public services such as education lopment calls for deep roots in different and primary health care. Efforts to combat forms of local democracy. A wide range of corruption come under the good governance experience of cooperation with institutions heading. Good governance involves honest at the local or municipal level has been gai- and effective central government in the servi- ned within the framework for public sector ce of democracy, transparency and predicta- support. Continued improvement of met- bility, popular participation and accountabili- hods to strengthen the democratic dimension ty. is required in this type of cooperation, par- If respect for human rights is to be main- ticularly as regards issues involving participa- tained, the rule of law must be reinforced – tion, consultation and the receptiveness of and vice versa. A lack of the necessary politi- the political institutions to citizens’ needs cal will result in impunity – perpetrators of and wishes. Development cooperation violations of human rights are not tried by should be implemented in a dialogue with the courts, for example. Curbing such impu- partner countries, in which decentralisation nity from legal consequences is an important and the levels at which responsibility and part of the human rights process. powers should be located are evaluated in The death penalty is still imposed in many terms of democratisation, civic participation parts of the world. Sweden and the EU are and influence. actively working for its global abolition. Governments have an obligation to utilise Respect for human rights must be reinfor- their resources to the full to safeguard the ced. Poor women and children, particularly if economic, social and cultural rights of their they belong to indigenous peoples and ethnic citizens. Development cooperation and the minorities, are amongst the most vulnerable resources at its command have unique oppor- groups. In certain countries the government tunities in this area to work for progress in continues to commit atrocities. For the most this respect. Methods based on human rights part, this involves authoritarian regimes or in development cooperation provide a better countries in which democracy has not basis for meeting legitimate demands for, and established itself. Sweden’s attitude to these entitlement to, fundamental health care servi- countries – including the forms for develop- ces, education and other rights. ment cooperation – must be adjusted accor- The Convention on the Rights of the Child dingly. Initiatives designed to promote plays a crucial role in efforts to promote democracy and human rights may make a human rights. The Convention prescribes

23 special protection and support for children in of this area, for example as regards the view of their age, but it also acknowledges importance of the electoral process. that children are entitled to the same rights The extreme poverty which is far too pre- which apply to everyone, including the same valent in many parts of the world is the main political freedoms and rights as adults, with obstacle to lasting peace and the consolida- the exception of the right to vote. Efforts to tion of democracy. At the same time, many promote the rights of the child may be the poor countries have undertaken to comply gateway to achieving the goal of universal with the International Covenant on Econo- respect for human rights, since the welfare of mic, Social and Cultural Rights. The overall the child is prized by many societies. The picture is highly complex, however. Weak rights of the child are not generally conside- democracies may pursue policies which are red to be controversial and politically sensiti- designed to reduce poverty and achieve bet- ve. But specific articles in the Convention ter compliance with economic and social have a bearing on society as a whole. Schools rights, while democracies which are more have a unique part to play in the promotion fully consolidated implement policies which of a democratic culture and respect for involve widespread social deprivation. human rights. Breaches of political and civic rights can Democracy has gained an increasingly never be defended on the grounds that the strong foothold in many countries with whi- country in question is applying policies whi- ch Sweden cooperates in Africa, Asia and ch aim to reduce poverty, for example. All Latin America, although public institutions human rights – civic, political, economic, in these countries continue to be relatively social and cultural – are universal, indivisible weak. The leaders of these countries have and mutually dependent. There is, for been publicly elected, and democratic insti- example, a positive correlation between tutions have been formally established, but respect for political and civic rights and popular confidence in democratic institutions observance of economic, social and cultural such as parliament, the courts and the police rights. is weak. There are also weaknesses in the democratic culture, since democracy calls for methods and approaches which are inclusive, involving compromises and dialogue. Even REGIONAL OVERVIEWS the most well-designed institutions will fail The African continent continues to be cha- to work properly if this element is lacking. racterised by armed conflicts within states, Dissatisfaction may pave the way for popu- and between states. But there are also more list, authoritarian leaders – who may have positive features which are often forgotten. been elected by democratic means. During the 1990s, democratic elections were One of the key features of the democratic held in a significant number of African system is the ability to handle conflicts wit- countries, and many African states have hout recourse to violence. As a result, become more open. Various population establishing stable democratic systems in groups can now express their interests and which those concerned regard the rules and ambitions more freely than in the past. The principles incorporated in the system as fair democratic foundations are still weak, but a presents a special challenge for the interna- basis for the development and consolidation tional community. Achieving a balance of democracy and respect for human rights between representative democracy and other has been established in many countries. factors such as effective and strong parlia- The development of Asian democracy in mentary majorities is a crucial issue. The recent decades has been described as slower international debate in this area is still in its than in other parts of the world. Democracy infancy. International IDEA (the Internatio- has been widely adopted in Southern Asia, nal Institute for Democracy and Electoral but equality and the realisation of social and Assistance) in Stockholm has taken major economic rights have also made least pro- initiatives to achieve a better understanding gress in this region. Since the mid-1980s,

24 democracy has also made progress in other In the case of the Baltic states, efforts to parts of Asia – primarily in the Philippines, promote human rights and democracy may Thailand, South Korea and Taiwan. The eco- be said to be proceeding in the right direc- nomic crisis in Asia accelerated economic tion, on the whole. The death penalty has and political reforms, and this has had an now been abolished in all three Baltic impact on democracy. countries. The deficiencies which sometimes In the Latin American region, there are exist are due, for example, to the fact that considerable contrasts between the democra- these countries do not yet possess the full cy and human rights situations in different capacity to implement and apply their legis- countries. On the whole, democratic pro- lation. There has been criticism, for instance, gress is being achieved, but there are still of the situation in prisons in the Baltic major problems and weaknesses – many countries, which is generally unsatisfactory. countries lack a genuine democratic culture, In the case of Estonia and Latvia, one of the for example. The main obstacle to the conso- key problems is achieving an appropriate lidation of democracy is the poverty suffered balance between legitimate efforts to consoli- by a substantial proportion of the popula- date the position of the language of the tion. Poor people, particularly indigenous country concerned and the status of minority populations, women and children, are often languages. There is no officially sanctioned subjected to serious breaches of human discrimination, although allegations of discri- rights. But there are also positive exceptions mination against Russian-speaking groups – for example Uruguay and Costa Rica, whi- continue to be voiced in various forums. ch both have well-developed democratic systems. Bolivia The democratic process in Central and There has been a gradual improvement in Eastern Europe is continuing to develop in a respect for human rights. In October 1998, positive direction – with certain exceptions – an independent human rights ombudsman and the formal foundations for democracy function was inaugurated, to which the pub- have been established, on the whole. For the lic have access. This has independent status most part, there is a desire to develop and under the congress, has five regional offices strengthen democracy and live up to the and has achieved a good reputation. A judici- undertakings involved in accession to the al council with four members has also com- international human rights conventions. menced its activities. The judicial council, All the countries to which Sweden gives which is the administrative and disciplinary priority in its immediate neighbourhood body within the judicial system, is an impor- have adopted new constitutions, established tant aspect of modernisation of the system. the capacity to hold free elections and laid The constitutional court which was the foundations for a free press. These established a year ago has been in operation countries are members of the Council of since the end of August 1999, and has Europe and have ratified the European Con- demonstrated its independence and credibili- vention on Human Rights and Fundamental ty. The congress contains an active human Freedoms. Many Central and Eastern Euro- rights commission which frequently criticises pean countries have some way to go, howe- government policies in this area. There are ver, in achieving a genuine civil society, and also a number of independent human rights active democracy with popular participation. organisations which are able to operate freely. The civil society and the tradition of unpaid There were major demonstrations in vari- work in non-governmental organisation and ous parts of the country during the spring of popular movements has not yet been develo- 2000 as a result of growing dissatisfaction ped in most cases, with some important with the social and economic situation. In exceptions such as Poland. As a result, conti- April 2000, the demonstrations resulted in nued efforts to intensify a democratic culture the proclamation of a state of emergency, in partner countries are a key aspect of coo- but the situation returned to normal after a peration with Central and Eastern Europe. few weeks.

25 Most human rights violations occur in the Further reform is required in the economic Chapare coca-growing district. There were no and social field, particularly in more back- deaths in this area during 1999, but the civili- ward parts of the country, and the govern- an population was subject to regular house ment is introducing regional policy measures searches, arbitrary arrest, violence and other to deal with this. There has been a particular abuses. In practice, the security forces in the focus since independence on the integration area are not subject to sanctions. The situa- of the Russian-speaking population as one tion in prisons is critical – 70% of the priso- aspect of human rights. The Organisation for ners have not been sentenced, and many have Security and Cooperation in Europe (OSCE) been incarcerated for 6–8 years without trial. became involved at an early stage in the form The government respects the right to hold of active advice provided by the High Com- public meetings and freedom of association. missioner for National Minorities, Max van There is religious freedom and the media are der Stoel, and the establishment of a mission independent. The process of consolidating in Estonia in 1993. The mission has focused and intensifying democracy is continuing, on improving relationships between the despite the difficulties. Estonian public authorities and the Russian- The ongoing reform process is resulting in speaking population. The mission has propo- gradual but significant changes in a positive sed a number of improvements in the legisla- direction. Racial prejudice and discrimination tion and has acted as an independent rappor- against the indigenous Indian population con- teur on the position of Russian speakers in tinue to be widespread, however. The Estonia. During the spring of 2000, the head government’s equality policy is making limi- of mission submitted an evaluation report ted progress, due to internal problems and a which complimented Estonia on its achieve- lack of priority at the political level. Efforts ments since the mission was set up. Further are being made to integrate this issue into work is still required on implementation of development initiatives, however. the necessary changes in the language and Widespread poverty in Bolivia – 70% are electoral legislation. The Estonian govern- below the poverty line – means that a high ment is taking rapid steps to rectify the situa- proportion of the population cannot exercise tion, and plans to open an ombudsman office their economic, social and cultural rights. The in the north-eastern part of the country. The situation in the education sector is gradually positive developments in the integration pro- improving as a result of the current ambitious cess mean that the mission’s assignment will reform programme. Much remains to be be completed in the near future. Estonia has done however – 40% of women in rural areas adopted a national integration programme cannot read or write, for example. Some pro- for the period 2000-2007 which provides a gress is being made in the health care, hous- sound basis for continuation of this process. ing and employment sectors, although access Overall, it may be noted that Estonia’s deter- to water and sanitation in rural districts is mined efforts to amend its statutes and their very limited. Most of the population are not application in these areas have proved highly covered by social or health insurance. successful. Estonia Ethiopia There have been very rapid changes in Esto- In recent decades, Ethiopia has been radically nia since independence was achieved in 1991. transformed from a feudal structure under Estonia fulfils the political criteria for EU Emperor Haile Selassie, to a communist regi- membership (one of the “Copenhagen crite- me under Mengistu, and subsequently to a ria”) and is regarded as a democracy, with federal system with a democratic constitution. stable institutions guaranteeing the functions Following Mengistu’s departure in 1991, of a state subject to the rule of law. The death the new government embarked on a democ- penalty has been abolished, for example, and ratisation process. A modern constitution citizenship legislation has been amended to was approved in 1994, establishing a federal comply with international norms. structure in which the country is divided into

26 10 autonomous regions. Several elections nomic resources. The majority of the popula- were held in 1992 and 1995, including elec- tion have limited access to schools and health tions to local and regional assemblies and the care, for example. The conflict with Eritrea federal and regional parliaments. Establish- has resulted in further restrictions on the ment of a human rights commission and a resources available for economic and social human rights ombudsman function is under programmes and, in addition, it has led to way. Ethiopia has ratified the major human the mass deportation of large numbers of rights conventions, including the Economic, Eritreans living in Ethiopia. This is not in Social and Cultural Rights and the Civil and accord with international law. The deportees Political Rights covenants. include women, children and old people. Although the political system has develo- ped in a positive direction in many respects Indonesia during the 1990s, there is still some way to Indonesia has a population of more than 200 go in a number of areas if all the aims of the million, making it the largest Muslim country constitution are to be fulfilled. There has in the world. Commencing in the late 1960s, been little constructive dialogue between the Indonesia experienced a long period of dra- government and the opposition, and the matic economic growth and an economic opposition parties have been increasingly upswing which benefited broad sections of marginalised in one election after another. the population. The proportion of very poor Election boycotts have become increasingly people fell from more than half the popula- common. The preparations for and imple- tion to 11%. Access to education became mentation of the general elections in May universal and there was a sharp drop in illite- 2000 were a clear indication of progress, racy. At the same time, political life was however, demonstrating a concrete willing- dominated by President Suharto’s authorita- ness on the part of the government to rian regime. Indonesia had an elected parlia- establish the prerequisites for active partici- ment, but in practice democracy was shack- pation by the opposition. Most of the oppo- led, and human rights violations were a com- sition parties put up candidates, and the par- mon occurrence. The armed forces were vir- ticipation of several parties in election deba- tually a state within a state, and the govern- tes on radio and TV was a new feature. ment tended to solve domestic conflicts by However, as in 1995, there was harassment applying military force rather than political of specific opposition candidates, particularly dialogue. Suharto’s regime was characterised in the southern part of the country. by corruption and nepotism, right from the Breaches of respect for human rights also start, to the considerable benefit of his family occur in other areas. One of the fundamental and associates. This “crony capitalism” paved problems is that the judicial system is weak the way for the economic bubble which and underdimensioned. Detainees often burst in 1997, leading to Suharto’s fall. spend a long period in prison before their Indonesia has subsequently tried to gradu- case is tried by the courts – people accused of ally move in a democratic direction. A security offences under the Mengistu regime remarkable political renewal occurred in in the early 1990s have still not been senten- 1999, when parliamentary elections were ced, for example. There are also restrictions held for the first time in more than 40 years. on freedom of expression and freedom of the Parliament decided to accept independence media. Although there are now a number of for East Timor, following a serious outbreak newspapers which are independent of the of violence in September, in which Indonesi- government, journalists have been repeatedly an military forces were involved, and which arrested. The death penalty has not been resulted in widespread destruction. In Octo- abolished, but it has only been applied on ber, President Wahid was elected as Indone- one occasion in recent years. sia’s first democratically elected head of state Ethiopia is one of the poorest countries in and government for more than four decades. the world, and access to economic, social and A new set of values, with respect for human cultural rights is largely determined by eco- rights as one of its cornerstones, has subse-

27 quently begun to permeate Indonesian socie- local ownership of the political process and ty. The government and parliament have greater efficiency. But the government also embarked on an extensive reform process, believes that greater local control of resource with the broad support of the international flows will lead to greater regional contrasts, community – including Sweden and the EU. calling for some kind of compensatory New political legislation has paved the way system. for parliamentary democracy and decentrali- Despite these changes, Indonesia is still in sation of influence and resources. A national the early stages of a longer process involving ombudsman office has been established, and stabilisation and building up support for although its status in the political system is democracy, solving the country’s many seri- still somewhat vague, the intention is that it ous political and economic problems, and should supplement the national human dealing with corruption. A comprehensive rights commission by upholding citizen’s reform of the judicial system is required if interests vis-à-vis public authorities and offi- Indonesia is to become a democratic state, cials. The Swedish Parliamentary Ombuds- subject to the rule of law and with a culture man has had contacts with the new Indonesi- which no longer accepts corruption. In view an ombudsman office. Freedom of associa- of the degree to which the previous system tion has been consolidated, resulting in a has become entrenched, changes will pro- more active civil society and a wide range of bably only occur gradually. The rate of new non-governmental organisations. Indo- change will also be inhibited by the continu- nesian human rights organisations are able to ed existence of an overdimensioned, under- operate freely, and are playing a key role in paid and corrupt national public administra- the public debate. The media have managed tion. to retain the freedom they assumed in con- The influence formerly exerted by the nection with Suharto’s departure in May armed forces over all sectors of society has 1998, and freedom of the press has been started to diminish. But the army is still enshrined in a new press law. accused of violations of human rights in areas New human rights legislation has been in which demands for independence have approved, including reinforcement of the become increasingly strong – primarily in national human rights commission’s manda- Aceh and Iran Jaya. The bloodletting in the te. President Wahid’s new government inclu- Moluccas – rooted in ethnic and religious des a minister for human rights. Develop- antagonism – continues to present problems. ment of the national human rights action The new government has announced its desi- plan is continuing. During 2000, Indonesia is re to try to settle regional conflicts by peace- expected to ratify the Economic, Social and ful means and conciliation. It has also made Cultural Rights and the Civil and Political it plain that it wants to maintain neighbourly Rights covenants. relations with East Timor, hoping to reduce A national commission to deal with violen- the risk of national disintegration, which is ce directed against women was established in regarded as a real threat, both for the nation 1998, by presidential decree. The commis- and the region. The government has initiated sion’s mandate is to coordinate and activate investigations of breaches of human rights efforts to prevent the maltreatment of alleged to have been committed by the women and to assist the victims. armed forces and public authorities, for The new government is giving considerable example in Aceh and East Timor. priority to decentralisation of Indonesia’s for- On paper, Indonesia has satisfactory envi- merly highly centralised system. New legisla- ronmental legislation. In practice, there have tion has been enacted, but there continues to been serious deficiencies in implementation. be considerable uncertainty about implemen- There is a lack of expertise, infrastructure tation and the way in which a balance can be and budgetary funds, exacerbated by defici- established between greater autonomy and encies in the judicial system. Illegal tree-fel- national cohesion. It is considered that this ling operations continue to be a common offers substantial advantages – in the form of occurrence, even in national parks.

28 China seminars on various themes in which govern- There are considerable deficiencies in respect ment officials, academics and NGO repre- for human rights in China as a result of Chi- sentatives participate. In parallel with initiati- na’s status as a one-party state which does ves undertaken by individual countries, the not tolerate opposition and a free press. European Commission has also initiated Implementation of the death penalty is the development cooperation with China in the highest in the world, and there are acute human rights area. breaches of the rule of law. Nonetheless, the- re is no doubt that 20 years of reform have Mozambique also led to substantial improvements in this Mozambique has ratified the most crucial area, as prosperity and freedom of choice human rights conventions, and the death have increased in society as a whole. An penalty has been abolished. Seen in the light extensive legislative programme is under of Mozambique recent history, respect for way, and there is discussion in domestic human rights improved in the 1990s, alt- forums and with foreign interests of ways of hough there continue to be serious problems. making the Chinese legal system comply Several violations by the police (summary more fully with international principles. This executions, torture, etc.) have been reported reform process makes specific Swedish deve- recently. Illegal arrests and long periods of lopment assistance contributions meaningful, detention are common, as are corruption and for example to increase awareness of what arbitrary treatment at all levels of public China’s adoption of the international con- administration. There is also discrimination ventions means in practice. Since 1996, Swe- against women, as well as commercial sexual den has been involved in training initiatives exploitation of children and atrocities com- for senior Chinese officials via the Raoul mitted against street children. Wallenberg Institute – for instance in the The police authorities continue to deprive prosecution authorities, the police and the people of their liberty without regard for the prison service. Technical assistance of this law. Arbitrary application of the law and the nature is also an important feature of EU failure of citizens to claim their rights are cooperation with China in the human rights partly due to the low level of education in area based, for example, on recommenda- the police force and in many sections of the tions made by various UN human rights rap- population. Under the law, children under porteurs. the age of 16 are supposed to be tried by China is a country which is continually in special juvenile courts and imprisonment for the spotlight for breaches of human rights. persons under the age of 20 is prohibited, Sweden discusses the human rights situation but nonetheless there are reports of the in the course of various contacts with repre- incarceration of children. The constitution sentatives of the Chinese government in bila- of 1990, the press act of 1991, and the pea- teral, EU and political contexts, and in the ce agreement of 1992, guarantee freedom of form of seminars and at the international the press and freedom of expression. There level, particularly within the UN system. In is no censorship in the strict sense of the this process, Sweden tries to exert its influen- word, although there is a certain degree of ce to help to ensure that the human rights self-censorship. situation in China improves. This is achieved During 1999, new electoral laws were by conducting a dialogue and cooperation in approved and an electoral commission these areas, bilaterally, or jointly with other established. Presidential and parliamentary EU countries. elections were held in December 1999, and In recent years, the EU has conducted an the preparations and the actual elections “intensified dialogue” with China on human both proceeded smoothly. Despite monitor- rights issues. This process includes talks whi- ing of the elections by a large number of ch normally take place twice a year on vari- national and international observers, who ous human rights topics which the two parti- reported that the elections were free and fair, es wish to discuss. In addition, there are both the government and the opposition

29 mo supporters had forced their way into a police station in order to steal arms. The events in Nampula should be seen in the light of the emotional outbursts which characterise domestic politics, particularly on Foto: Tomas Jonsson the part of the opposition. Suspicion is natu- ral in a country which has experienced more than 10 years of civil war. The Liga Moçam- bicana dos Direitos Humanos (LDH), a non- governmental organisation which monitors human rights in Mozambique, dispatched an investigatory commission to Nampula. The government has promised an independent The civil society – for example trade unions and investigation of events, but this has not yet other non-governmental organisations – is play- been implemented. ing a crucial role in the struggle for human rights. Nicaragua Human rights have attracted greater attention in Nicaragua than in the past, and there has made allegations of electoral fraud. When been increased public debate. As a result, the national electoral commission declared human rights issues have gained in importan- Frelimo and President Chissano the winners, ce and are more prominent in the political the opposition party appealed against the agenda. There are still major problems, howe- result. Despite confirmation of this ruling by ver, particularly in the form of abuse of power the Supreme Court, since January 2000 the by the police and the military authorities, and opposition has been insisting on a recount prison conditions. Nicaragua’s deep and wide- and power-sharing, particularly at the pro- spread poverty also restricts economic and vincial level. These demands became less social rights. Despite some positive steps there insistent when serious floods hit Mozambi- is still inadequate protection against violence que in February–March 2000. within the family directed at women and The political differences between Frelimo children, and this continues to be a major pro- and Renamo, the opposition party, are one of blem. Although parliament approved legisla- the most disturbing features in Mozambique. tion for the appointment of an ombudsman With almost 40% of the votes in the most institution in 1996, no agreement was recent democratic elections, Renamo is now reached on candidates until June 1999. one of the largest opposition parties on the President Arnoldo Alemán has tried to African continent, and Frelimo has been cri- strengthen his position by means of a pact ticised for exploiting its small majority in between the ruling Liberal party and the order to maintain total control. One of the FSLN (Sandinists), the largest opposition main problems in this context is that Rena- party. The pact has resulted in constitutio- mo’s strongest supporters in northern and nal changes designed to modify control of central Mozambique tend to have insuffici- the national audit office, the supreme court ent education and resources to compete for and the electoral court. External observers posts in the public administration. consider that this will make these bodies In May 2000, the free press (fax newspa- less independent and will lead to tighter pers) published details of a massacre of oppo- governmental control of society. Changes sition supporters in the Nampula province in in the electoral law will hinder the the north of the country. It was alleged that establishment of new parties. Corruption the police had opened fire on a peaceful continues to pose major problems. Trans- demonstration and about 10 people had been parency and control of public funds are two killed. The state-owned newspapers reacted key issues for the donor community and slowly, but the official version was that Rena- the international financial institutions. This

30 can be clearly seen, for example, in discus- tion politicians have been prevented from sions on possible inclusion of Nicaragua as participating in political activities. In some an IMF/World Bank Highly Indebted Poor cases, the courts have sentenced them to Country (HIPC) in order to solve the debt imprisonment for alleged financial offences, problem, and control of the assistance although outside observers consider that this funds pledged for reconstruction after Hur- was done on political grounds. In one case, ricane Mitch. an opposition leader has been forced into The right of all citizens to have access to exile, and the regime has been unable to pre- satisfactory health care and elementary sent a credible explanation of cases in which education is embodied in the Nicaraguan people have disappeared without a trace. constitution and the government has an obli- The media are totally controlled by the sta- gation to provide these services. In practice, te, with the exception of a few independent only 70% of the population has access to newspapers which have to surmount various local health care, and only 70% of children administrative and financial handicaps. The in the 6-15 age range attend school. The illi- Belarus authorities plan to hold parliamenta- teracy rate is 30%. Public expenditure on ry elections in the autumn of 2000, but it is health care represents 6% of GDP, or 15% extremely uncertain whether they will be of the national budget. The corresponding carried out in a sufficiently democratic man- figure for education is 21%. ner to be accepted as legitimate by the domestic opposition and the outside world. Belarus Round-table discussions were initiated in The democracy and human rights position in 1999 between the regime and the opposition Belarus has gradually deteriorated in recent under the auspices of the OSCE, prior to the years. Although open suppression of dissi- parliamentary elections. These discussions dents is uncommon, there are considerable were terminated by President Lukasjenko, deficiencies in protection under the law, however, to be replaced by a “broad societal freedom of the press and freedom of speech. dialogue” which the opposition has so far The regime employs various methods to regarded with considerable scepticism. The deter people from expressing opinions that regime’s promises of free and fair elections differ from the official view. Several peaceful have not yet been followed by any substanti- demonstrations have been disrupted by the ve concessions as regards matters such as government – brutality and mass arrests in democratic deficiencies in the existing electo- connection with demonstrations are a com- ral legislation and access to state funding for mon occurrence. Several well-known opposi- the opposition.

31 Multilateral development cooperation

Sweden and its Nordic neighbours devote a The United Nations Charter stipulates that high proportion of their development coope- the UN’s aims are cooperation to maintain ration allocations to the multilateral area. Cur- international peace and security, the deve- rently, slightly more than a third of aid contri- lopment of peaceful relations between butions are channelled through multilateral countries, the promotion of respect for organisations – the UN, the World Bank, the human rights, and support for cooperation in regional development banks and the EC. Sup- the economic, social, cultural and humanita- port is provided both in the form of regular rian spheres. In today’s globalised society, the contributions and support for specific pro- UN – as a universal organisation currently grammes and projects. Sweden plays an active comprising 188 member states – provides role in the multilateral organisations and seeks opportunities for broad international coope- to ensure that the advantages of the various ration in a number of key areas, and between organisations are utilised and the overall deve- states with totally different political and eco- lopment impact of the multilateral system is nomic structures. The UN plays a crucial role strengthened. To this end, Sweden is also acti- in international development cooperation, vely promoting more effective coordination of since studies prepared by the UN agencies UN and World Bank initiatives, particularly in analyse and report on economic and social operations in the countries concerned. conditions, both globally and in individual Foto: Victor Lenson Brott/Global Reporting Sweden

The UN Convention on the Rights of the Child was adopted just over 10 years ago. Children’s rights are given much greater priority today than in the past. This particular poster proclaims the child’s right to live a healthy life.

32 The major UN conferences of the 1990s, and the follow-up process

To a great extent, the major United Nations conferences of the 1990s set the agenda for the UN’s activities in the economic and social area. There was a renewed focus on these processes during the “Plus Five” events that were organised five years after the major world conferences, including the Rio-plus-five, Copenhagen-plus-five and Peking-plus-five conferences. The characteristic feature of the plus-five events has been that they were designed to evaluate what had been accomplished at the national and international levels in order to meet the various world conference commitments, and to identify the measures that were now required to achieve the goals established at the conferences. The Plus Five-plus sessions held so far indicate that both multilateral actors and individual countries are implementing and following up the decisions taken at the major UN conferences with respect to legislation, for example. However, a lack of resources and insufficient political will often prevents decisions from being transla- ted into action. At the same time, discussion is turning towards major issues which are new in some respects, such as the impact of globalisation, IT and similar trends on various countries and groups. An increased thematic element is already evident in the UN’s follow-up of these conferences:

• The Rio Environment and Development Conference • The UN Convention on the Rights of the Child, held (UNCED) in 1992 and Rio-plus-five in 1997: the in 1989, and the World Summit for Children in correlation between environment and development, 1990: the foundations were laid for a more syste- global and regional conventions (including climate matic approach to children’s rights in international issues), biological diversity, biosafety and desertifi- development cooperation. Sweden is making active cation, continued progress in environmental legisla- preparations for the General Assembly’s special tion and monitoring, and threats to the marine envi- session in 2001 to follow up the World Summit for ronment. Children.

• The World Summit for Social Development in • The UN Conference on Population and Development Copenhagen in 1995 and Copenhagen-plus-five: in Cairo and Cairo-plus-five: a perspective focusing on promotion of social integration and universal parti- the individual in such areas as sexual and reproducti- cipation, including particularly vulnerable individu- ve rights, and emphasising maternal mortality, gender als and groups. equality, the sexuality of young people and HIV/AIDS.

• The Fourth World Conference on Women in Beijing in • The World Conference on Human Settlements 1995 and Peking-plus-five: continued emphasis on (Habitat II) in Istanbul in 1996: emphasis on the gender, rather than on a specifically women’s perspec- universal right to satisfactory housing and the role tive; working for benefits for both women and men in of municipalities and the civil society in housing all development initiatives, taking the different condi- and an urban environment. A special session of the tions under which women and men live as a starting General Assembly will be held in 2001 to follow up point. Habitat II.

The UN’s third world conference on the least developed countries (LDC) will be hosted by the EU in May 2001, following a decision by the UN General Assembly, and will thus take place during the Swedish Presidency of the EU. At the previous summits in 1981 and 1990, action programmes were endorsed which included recommen- dations for support to the least developed countries. The mandate for the 2001 summit is to evaluate the follow- up of the action programmes of the 1990s and to agree on new recommendations. The conference will have a broad agenda, focusing on development from several perspectives. The United Nations Conference on Trade and Development (UNCTAD) integrates the UN agencies’ efforts in the trade and development area. UNCTAD is involved in promoting opportunities for developing countries to achieve increased trade, investment and economic development, and to integrate them as equal partners in the global economy. This primarily takes the form of research, policy analysis and technical assistance. Sweden has contributed for many years to the financing of certain programmes in UNCTAD’s technical assistance program- me, and Sweden participated actively in work on UNCTAD X in Bangkok in the spring of 2000.

33 countries. The best-known example is the 700 M was allocated for contributions to broadly based and often thematically ori- international organisations (UNHCR, UNR- ented annual Human Development Report, WA, WFP and ICRC), and SEK 80 M consi- published each year by the United Nations sted of contributions to multilateral conflict- Development Programme (UNDP). prevention activities. A high proportion of At the political level – in negotiations Sida’s contributions was also channelled via between the various UN member states in the UN system to the UN’s Consolidated the General Assembly, the Economic and Appeals Process (CAP) and ICRC field ope- Social Council (ECOSOC), and at special rations. sessions or meetings with the functional com- missions – there is a continual development Increased coordination within of policies and norms, ranging from legally the UN and between multilateral actors binding texts, such as conventions, to political During the past decade, crucial steps have statements, action plans and resolutions. been taken to increase the UN’s effective- A high proportion of the UN’s work focu- ness. In January 1997, the Secretary General ses on practical measures in the field in indi- presented reform proposals, most of which vidual countries. Here, the principal partici- were endorsed by the General Assembly in pants are the various UN funds and program- the same year. The most important decisions mes, such as UNICEF and UNDP, and the included a greater focus on the UN’s core UN special agencies, such as the ILO. These activities, the introduction of a uniform bodies are often responsible for relatively management structure, the establishment of long-term development initiatives in areas the post of Deputy Secretary General with such as education and employment. responsibilities that include the continued An increasingly important aspect of UN reform process, improved coordination in operations relates to countries which are recipient countries via a Resident Coordina- experiencing humanitarian disasters as a tor, and a joint UN building in each country. result of armed conflicts. The UN’s resources These recent reforms have laid the founda- are also being utilised to a greater extent in tions for improved development cooperation the case of natural disasters. These develop- as a result of more effective cooperation ments place increased demands on coordina- within the UN system and between UN tion, efficiency and clear assignments and agencies and other donors, both at the multi- mandates. The Emergency Relief Coordina- lateral and bilateral levels. Coordination of tor (ERC), the Secretary General’s special UN development cooperation commenced coordinator for humanitarian issues, heads with the establishment of the UN Develop- overall coordination in the Inter-Agency ment Group (UNDG), and has been follo- Standing Committee (IASC). Humanitarian wed up by anchoring reform measures in the organisations conduct operations that are daily operations of UN funds and program- intended to protect and support the civilian mes. The main emphasis will be at the population in conjunction with armed con- country level. The aim is to develop a UN flicts and natural disasters. The UN High Development Assistance Framework Commissioner for Refugees (UNHCR), for (UNDAF) for each country, providing com- example, has key responsibility for the pro- mon guidelines for all UN activities, inclu- tection of refugees. ding the operations of the specialised agenci- The UN’s regular budget which finances es. The difficulties experienced in recent the UN Secretariat is relatively small, amoun- years in mobilising resources make it even ting to slightly more than USD 1 billion, whi- more essential to continue and to intensify ch is less than Sweden’s overall development the reform process in the development agen- cooperation budget. Total Swedish humanita- cies and to develop and to win support for rian assistance in 1999 amounted to slightly proposals to create a more efficient funding more than SEK 1.8 billion, of which slightly system for development activities. This is more than SEK 1 billion comprised Sida’s also being discussed by the UN funds and humanitarian allocation. Approximately SEK programmes, and by ECOSOC. The primary

34 Regular budget support for UN economic and social operations in 2000 Total: SEK 1 827 M

UNDP, 28% 2% 2% 2% 1% 2% UNHCR, 20% 8% 28% UNICEF, 15% WFP, 11%

9% UNWRA, 9%

UNFPA, 8% Narcotics control, 2%

UNCDF, 2% 11% UNAIDS, 2%

20% UNIDO, HABITAT, UNIFEM, 2% 15% UNCTAD, WTO, ITC, 1%

aim is to supplement the current system of and negotiating partner is becoming increa- voluntary contributions by, for example, singly crucial. In many cases, there is also a negotiated contributions for several years at a close link between Sweden’s commitment to time – a system applied by the World Bank the UN and European security cooperation. and the regional development banks. Discus- Sweden’s efforts to strengthen the UN sion is also continuing regarding alternative combine enlightened self-interest with the sources of financing and cooperation with desire to express international solidarity the private sector. In the humanitarian assi- through action. Sweden will continue to play stance area, the Consolidated Appeals Pro- an active role – at the national level, in Nor- cess (CAP) has resulted in significantly dic cooperation and in the EU – in the key improved coordination and efficiency. task of reforming and strengthening the UN system, including its special agencies. Sweden in the UN Sweden’s endeavours in the UN are cha- Sweden has been an active UN member for racterised by a holistic approach. Peace, many decades. Sweden’s membership of the security, democracy, gender, equality, hu- EU has affected its ability to influence proces- man rights, humanitarian principles and ses within the UN system to some extent, sin- sustainable development are inseparable in a ce the EU’s role as a political actor, financier long-term perspective. Sweden is working to

35 ensure that conflict prevention, both within loans to fund development cooperation, and between member states, receives increa- such as the Nordic Development Fund sed attention throughout the entire UN (NDF), or which are active in special areas system, including the Security Council, that and sectors, such as the International Fund the UN’s role as a humanitarian coordinator for Agricultural Development (IFAD) and is strengthened, and that the interaction the African Capacity Building Fund (ACBF). between humanitarian activities and conflict The development banks arrange loans for resolution by political means is improved. individual development projects, sector pro- Sweden is also actively following up the grammes and economic reform programmes. implementation of the undertakings made at Loans may be linked to economic advisory the UN conferences during the 1990s, both or expert assistance services, which have within the UN and in individual countries. become increasingly important in the banks’ Sweden is also working actively for increa- operations. The development banks also sed effectiveness of UN development opera- mobilise support from other sources for reci- tions at the country level, which must have pient countries and for particularly impor- more stable financing based on a more uni- tant issues as HIV/AIDS and agricultural form burden-sharing among a larger number research, and they often function as coordi- of donors. One prerequisite for this is that all nators of multilateral and bilateral support at member states must unconditionally fulfil the country level. In addition, the develop- their economic obligations to the UN. ment banks play an important part in for- The UN’s social and economic activities ming policy in the development cooperation are implemented by means of voluntarily sphere. One example is the World Bank’s financed funds and programmes, with crucial study of poverty issues presented in the mandates in areas such as development pro- World Development Report in 2000. motion measures, the eradication of poverty, Countries become members of these human rights, capacity-building assistance, banks by subscribing for shares. With this environmental issues and humanitarian assi- share capital as a base, the banks are then stance. able to borrow money in international finan- In formal terms, the office of the UN High cial markets, and these funds are subse- Commissioner for Human Rights is part of quently lent to recipient countries on more the Secretary General’s secretariat and is thus favourable terms than most developing financed via the regular budget. In response countries would otherwise be able to obtain. to a consolidated appeal for extra financing The banks’ operations generate a net for the UNHCR’s work, Sweden has appro- surplus, which is primarily allocated to ved a contribution of SEK 9.3 M for 2000 reserves, but is also utilised for donations for from Sida’s allocation, thus supporting the various purposes, such as debt reduction. UN’s efforts to ensure that human rights per- Loans to the poorest countries are financed meate all operations. by negotiated contributions from richer countries and are granted on particularly favourable terms. Sweden’s membership of the development banks entitles Swedish companies to compe- INTERNATIONAL te for the very substantial contracts and sup- DEVELOPMENT BANKS ply agreements financed by the banks. The Government is taking active steps to increa- The international development banks of se Sweden’s share of this type of procure- which Sweden is a member are the World ment. Sweden has also established special Bank, the African Development Bank funds in several banks to support the procu- (AfDB), the Asian Development Bank rement of Swedish consulting services. (AsDB) and the Inter-American Develop- The highest decision-making body in each ment Bank (IDB). In addition, there are a institution is the Board of Governors, which number of smaller organisations that provide comprises government representatives from

36 all the member states, and meets once a which poverty-reduction is an overriding year. Sweden’s Governor in the World Bank goal, while placing greater emphasis on such is the Minister of Finance, and the Deputy issues as the environment and equality, and Governor is the Minister for International concentrating operations on the poorest Development Cooperation. In the regional countries. Social factors are now being taken development banks, the Swedish Governor into account in addition to macroeconomic is the State Secretary for International Deve- analysis, since experience indicates that lopment Cooperation. focusing too narrowly on economic growth The day-to-day operations of the banks are does not necessarily lead to a reduction in managed by Boards of Directors. The mem- poverty. The Poverty Reduction Strategy ber countries are assembled in voting groups, Papers (PRSP) produced by the govern- each of which appoints its own representati- ments of partner countries and which consti- ve to the Board. The Nordic countries are tute a basis for activities and support by the members of the same voting group for all banks and other donors, provide an impor- boards (although Iceland is not a member of tant instrument for combating poverty. the regional development banks). Similarly, the banks have begun to empha- sise the importance of the development of a New direction for the banks democratic society based on good governan- Traditionally, the international development ce and effective central-government admi- banks have functioned primarily as a source nistration. This focus includes legislation and of financial resources for loans to member judicial systems for the protection of indivi- states. In recent decades, there has been a dual rights. The banks also attach great substantial increase in the flow of private importance to supporting efforts to prevent capital to developing countries, and this and reduce corruption in borrowing countri- trend has continued following recovery from es. It has been noted that the support and the international financial crisis of 1997 and participation of the civil society are essential 1998, when the development banks had to if development activities are to achieve pre- support many countries in Southeast Asia determined targets. and Latin America, and also Russia, in order The development banks are participating to alleviate the impact of the crisis and to in international efforts to reduce the debts of provide necessary stability in the global eco- the poorest countries as part of the Highly nomy. There was a sharp increase in the Indebted Poor Countries (HIPC) initiative. banks’ lending as a result, but this has now The debt-relief issue received considerable returned to the levels prevailing prior to the attention last year, when the initiative was crisis, and there are a number of indications deepened, broadened and speeded up. At that lending will decline even further. One the annual meetings of their Boards of reason is that private capital is being inve- Governors, the World Bank and the IMF sted in sectors where the development banks also endorsed proposals that debt relief were previously the primary financiers. should be used more directly to combat Another contributing factor is that foreign poverty. trade has increased significantly, particularly Sweden welcomes these changes in the in a number of medium-income countries. banks’ orientation and has contributed in The total effect has been greater economic various ways to the development of internal growth, thus allowing many countries to strategies to tackle such issues as poverty finance development with their own resour- reduction, the environment, gender equality, ces. the participation of the civil society, and Although the banks have continued to good governance. At the same time, the play an important part in arranging financial changes have given rise to discussion of the resources for many poor countries, their role role the banks should play in the internatio- as advisers and sources of expertise has beco- nal community. This question will undoub- me more pronounced. The banks are focu- tedly be on the agenda for some time to sing more on broad development issues in come.

37 UNDP

During the past few years, the UNDP has undergone swee- ping reforms and has rationalised, decentralised and focused its activities. During 1999, further steps in the reform pro- cess were taken as a result of the development of a new financing system, including a result-based budget. At the same time, the UNDP has played a key role in the ongoing reform process of the UN’s economic and social activities. Together with UNICEF, UNFPA and WFP, the UNDP is The United working within the UN Development Group (UNDG) to improve coordination of activities, both centrally and at the Nations Develop- country level. The UNDP promotes development in programme ment Programme countries by various forms of technical cooperation. Activi- ties are mainly based on programmes at the country level, under which a programme covering several years is develo- OBJECTIVES, PRINCIPAL ped jointly with the programme country, based on the ASSIGNMENTS: resources available and the country’s own development pri- orities. This programme is subsequently subject to approval THE OVERALL OBJECTIVE FOR UNDP by the UNDP Executive Board. The UNDP also has regio- ACTIVITIES, WHICH IS IN LINE WITH nal and global programmes. The UNDP presents an annual THE CONCLUSIONS REACHED BY THE Human Development Report, which integrates social and eco- UN WORLD CONFERENCES, IS TO CON- nomic factors to provide a measure of the level of develop- TRIBUTE TO SUSTAINABLE HUMAN ment. Each annual report has a theme. In 1999, the theme DEVELOPMENT FOCUSED ON THE INDI- was globalisation, and in 2000 it is human rights. VIDUAL. WITHIN THIS FRAMEWORK, A debate concerning the UNDP’s future role in multilate- THE FOUR AREAS WITH THE HIGHEST ral development cooperation has been in progress for several PRIORITY ARE THE REDUCTION OF years. The international financing institutions, such as the POVERTY, GOOD GOVERNANCE, THE World Bank, which have substantial resources, are assuming ENVIRONMENT AND THE PROMOTION OF increasingly clear social responsibility in their programmes, GENDER EQUALITY. which often resemble UNDP activities. Faced with declining overall contributions, a somewhat competitive situation has BUDGET: arisen which has resulted in a considerable reduction in the THE UNDP’S REGULAR BUDGET resources available to the UNDP and major aspects of UN AMOUNTS TO APPROXIMATELY SEK 6 development activities. At the same time, this development BILLION A YEAR. has led to a discussion of closer cooperation between the UN and the World Bank. MAJOR DONORS: During 1999, the UNDP was characterised by greater involvement in UN reform endeavours, and by internal THE UNITED STATES, JAPAN, THE change processes. Sweden is participating actively in the NETHERLANDS, NORWAY, SWEDEN, task of reforming the UNDP and enhancing its efficiency. In DENMARK, GREAT BRITAIN AND GER- the past year, these efforts have focused primarily on deve- MANY. loping a new financing system for the UNDP. During the year, Mark Malloch Brown was appointed as Administrator SWEDEN’S CONTRIBUTION: of the UNDP. As a result, the change process has been IN 1999, THE SWEDISH CONTRIBUTION intensified. AMOUNTED TO SEK 490 M, OR APPROXIMATELY 9% OF THE UNDP’S REGULAR BUDGET. IN ADDITION, SWEDEN CONTRIBUTED SEK 269 M VIA SIDA.

38 UNICEF UNICEF endeavours to promote a rights perspective in its efforts to promote children’s rights. One result is that UNI- CEF has prepared a handbook to assist implementation of the Convention on the Rights of the Child in practical operations. UNICEF places increased importance on measures to counter poverty, reduced assistance, increased debt burdens, armed conflicts and HIV/AIDS. UNICEF works with other UN agencies, governments and NGOs to promote the rights of The United the child and for a more just distribution of resources to improve access to basic health care and education, fresh water Nations Internatio- and sanitation, and to combat infant malnutrition. In addition, UNICEF endeavours to mobilise the political will and the nal Children’s Fund material resources of the partner country to enable it to build up its capacity to meet children’s needs and safeguard their rights. Although UNICEF’s operations are increasingly charac- OBJECTIVES, PRINCIPAL terised by a long-term approach, there are extensive emergen- ASSIGNMENTS: cy humanitarian measures – in armed conflicts for example. UNICEF WORKS FOR THE REINFORCEMENT UNICEF is devoting greater attention to children who are OF THE RIGHTS OF THE CHILD, AND TO particularly at risk and whose rights are severely violated, and IMPROVE CHILDREN’S SOCIAL AND ECONOMIC to protecting the rights of the child in emergency situations. CONDITIONS, SURVIVAL, SECURITY, DEVE- In addition, UNICEF conducts extensive public information LOPMENT AND PARTICIPATION IN SOCIETY. campaigns on the conditions faced by children throughout the THE UN CONVENTION ON THE RIGHTS OF world. THE CHILD AND THE OBJECTIVES OF THE The issues emphasised most strongly by Sweden in UNI- WORLD SUMMIT FOR CHILDREN IN 1990 CEF include a greater focus on a rights perspective, based on ARE CRUCIAL PREREQUISITES FOR UNICE- the Convention on the Rights of the Child, a stronger poverty F’S OPERATIONS. THE AIM IS THAT ALL orientation, capacity building, a long-term approach to deve- OPERATIONS ARE TO BE INSPIRED BY A lopment cooperation and a focus on the conditions and rights HUMAN RIGHTS PERSPECTIVE. of children at risk. Sweden has also been working for a new BUDGET: model for development financing for UNICEF, based on UNICEF’S TOTAL BUDGET AMOUNTED TO result-oriented budgets and a greater focus on long-term APPROXIMATELY USD 1,102 M IN aspects, predictability and a more equal distribution of costs. 1999, WHICH WAS AN INCREASE OF 14% In addition, Sweden has also actively stressed UNICEF’s role OVER 1998. THE PRIVATE SECTOR in the UN’s reform process. ACCOUNTED FOR A THIRD OF UNICEF’S UNICEF is currently a very active participant in the UN ANNUAL REVENUES IN 1999. NEARLY ONE reform process, and following the Secretary General’s reform FIFTH (18%) OF UNICEF’S TOTAL INCOME programme in 1997, is now working with other programmes IN 1999 WAS EARMARKED FOR HUMANITA- and funds in the UN Development Group (UNDG), where it RIAN ACTIVITIES. is leading several joint working groups, including the working MAJOR DONORS: group for the development and implementation of the Secre- THE UNITED STATES, SWEDEN, JAPAN, tary General’s ten-year programme for girls’ education, and NORWAY, THE NETHERLANDS, GREAT BRI- the working group for UN programme policy. TAIN, CANADA AND DENMARK. The ongoing Common Country Assessment/United Nations Development Assistance Framework (CCA/UNDAF) process, SWEDEN’S CONTRIBUTION: in which the UN system is developing joint country analyses SWEDEN’S BASIC CONTRIBUTION TO UNI- with partner countries, is regarded as a crucial instrument for CEF AMOUNTED TO APPROXIMATELY SEK achieving the objectives of the major UN conferences of the 265 M IN 1999. IN ADDITION, SWEDEN 1990s, including the World Summit for Children in 1990, the CONTRIBUTED SEK 218 M VIA SIDA DURING THE 1999 BUDGET YEAR IN THE Convention on the Rights of the Child and other human rights FORM OF “COMBINED MULTILATERAL/BILATE- conventions. In the late summer of 1999, UNICEF was invol- RAL SUPPORT.” THE TOTAL CONTRIBUTION ved in CCAs in 106 programme countries via the UN’s FOR 1999 MADE SWEDEN’S THE SECOND country teams. UNICEF has conducted 12 UNDAF processes LARGEST CONTRIBUTOR TO UNICEF.

39 and is expected to participate in an additional 50 by the end of 2000. In many CCA/UNDAF processes, UNICEF cooperates with the World Bank, and in 12 countri- es with the Bank’s Comprehensive Development Framework. In 2001, a UN General Assembly Special Session will be held for the follow up to the World Summit for Children (UNGASS 2001 on children). UNICEF is the secreta- riat for the committee (PrepCom) responsible for preparations in accordance with a decision by the UN General Assembly. Prior to UNGASS 2001 on children, UNICEF has initiated the preparation of a new global agenda for children and identified a need for three crucial objectives: 1) safegu- ards for the well-being of the youngest children, 2) guarantees that all children receive a satisfactory basic education, and 3) full opportunities for young people to become considerate and productive citizens. In anticipation of UNGASS 2001, UNICEF has also launched the Global Movement for Children, which is intended to mobilise both the civil society and the private sector.

40 UNFPA The UNFPA’s current activities are strongly influenced by the Programme of Action signed at the Cairo Conference. Prior to the Conference, the UNFPA’s operations were based on a somewhat simplified view of population issues, and substantial resources were devoted to family planning. Following the Cai- ro Conference, the UNFPA has adopted a more holistic appro- ach to population programmes, with a focus on the individu- al’s situation. In particular, the UNFPA emphasises the right of United Nations individuals to make their own decisions about reproduction, gender equality, men’s responsibility and women’s empower- Fund for Population ment. The Cairo Conference has been followed up by the identification of key activities adopted by the follow-up confe- Activities rence in 1999. The UNFPA has three primary programme areas, the largest of which is reproductive health, which encompasses family planning and sexual health and includes maternal care, youth OBJECTIVES, PRINCIPAL counselling, distribution of contraceptives, emergency aid and ASSIGNMENTS: measures to counter HIV/AIDS. This area accounted for 63% UNFPA ACTIVITIES ARE DESIGNED TO of the total project fund allocation in 1997. The goal is that all ESTABLISH CONDITIONS IN WHICH FAMILIES people should have access to reproductive health care by 2015. AND INDIVIDUALS CAN MAKE FREE AND The second largest area is the development of population WELL-INFORMED DECISIONS ABOUT THEIR and development strategies, which accounted for 31% of pro- OWN REPRODUCTION, AND ALSO TO PROVI- ject funding in 1997. The UNFPA assists programme countries DE THE SERVICES REQUIRED TO ENABLE in the collection and analysis of demographic data about fertili- THESE DECISIONS TO BE REALISED. THIS IS ty, mortality and migration, and the impact of these factors on IN ACCORDANCE WITH THE PROGRAMME OF the development of the country concerned. The UNFPA also ACTION AGREED BY UN MEMBER STATES helps to develop population policies and to evaluate them over AT THE UN CONFERENCE ON POPULATION time. An overriding goal is that each country should acquire AND DEVELOPMENT IN CAIRO IN 1994. the capacity to develop solutions for its own population issues. The third area of operations is designed to mobilise econo- BUDGET: mic and political support for population issues and the UNF- PA’s operations. OPERATIONS ARE FINANCED BY VOLUNTARY The UNFPA has a thematic and well-defined area of opera- CONTRIBUTIONS. THE BUDGET AMOUNTED tions, and a clear mandate on which all member states agree. TO APPROXIMATELY USD 250 M IN Sweden considers that the UNFPA is an effective and responsi- 1999. ve organisation that has taken to heart the broad view adopted in Cairo in an exemplary manner. MAJOR DONORS: Sweden has been a driving force in adopting a broad appro- THE LARGEST DONORS IN 1999 WERE ach to issues of population and development, to the importan- JAPAN, THE NETHERLANDS, DENMARK, ce of improving opportunities for young people to make their NORWAY, GREAT BRITAIN, GERMANY, own decisions regarding sexuality and reproduction, and to SWEDEN AND FINLAND. focusing attention on the role of men. Another important issue for Sweden has been to strengthen the UNFPA’s poverty ori- SWEDEN’S CONTRIBUTION: entation. Sweden has also actively contributed to reforming the UNF- SWEDEN’S CONTRIBUTION TO THE UNFPA PA’s administrative and financing functions. Decisions have REGULAR BUDGET INCREASED BY 12% TO been taken regarding the development of a new type of budget SEK 140 M IN 1999. IN ADDITION, in which programme objectives, resources, budgets and results SWEDISH CONTRIBUTIONS VIA SIDA are linked. The budget will, in turn, be tied to a funding pro- AMOUNTED TO SEK 6.2 M. cess that, it is hoped, will result in more long-term financing.

41 UNHCR

The UNHCR, which was established in 1950, is one of the UN system’s most important humanitarian bodies. The organisation’s mandate, which is based on the 1951 Con- vention Relating to the Status of Refugees and its supple- mentary protocol adopted in 1967, is to protect people who have fled from their home countries due to a well-founded fear of persecution. In recent years, operations have been The UN High expanded in some cases to include internally displaced per- sons and other persons in need of protection, such as repat- Commissioner for riated refugees. The UNHCR’s operations encompass a number of areas ranging from protecting the right to asylum Refugees and providing physical support for refugees, to finding long- term solutions for refugee problems. One important aspect of the UNHCR’s protective tasks relates to developing inter- national refugee law. Efforts to find long-term solutions to OBJECTIVES, PRINCIPAL refugee problems, primarily through voluntary repatriation ASSIGNMENTS: when circumstances permit, continue to have high priority. THE UN HIGH COMMISSIONER FOR Local integration in the recipient country or resettlement in REFUGEES IS RESPONSIBLE FOR PRO- a third country are other approaches encouraged by the TECTING AND PROVIDING ASSISTANCE UNHCR in its efforts to find long-term solutions. Sweden is FOR REFUGEES, INTERNALLY DISPLACED one of the few countries that cooperates with the UNHCR PERSONS AND OTHERS IN SIMILAR by receiving refugees within the framework of an annual SITUATIONS, IN ACCORDANCE WITH refugee quota system. The UNHCR’s operations encompass INTERNATIONAL LAW, AND FINDING more than 21 million refugees, internally displaced persons DURABLE SOLUTIONS FOR THEM. and other people in need of protection, of which about 6 million are in Africa. BUDGET: The UNHCR is almost exclusively financed by voluntary contributions. In 1999, efforts to reform the organisation’s APPROXIMATELY SEK 10 BILLION budgeting and financing structures continued with the aim (1999). of increasing the efficiency of operations and enabling prio- rities to be set in response to changing conditions in diffe- MAJOR DONORS: rent parts of the world. Sweden has played a leading role in THE UNITED STATES, JAPAN, THE this process and, in line with this, Sweden reached a com- EUROPEAN COMMISSION, NORWAY AND prehensive agreement with the UNHCR in 1999 regarding SWEDEN. its annual contribution to the organisation. This form of cooperation has been presented by the UNHCR as a model SWEDEN’S CONTRIBUTION: for other donors. In 1999, Sweden was the fifth largest donor to the UNHCR. AN ANNUAL CONTRIBUTION OF SEK During 1999, the UNHCR faced one of its greatest chal- 370 M, PLUS AN ADDITIONAL CONTRI- lenges in the form of the massive flow of refugees from BUTION OF SEK 15 M IN RESPONSE Kosovo. The UNHCR was given the task of combining the TO THE UNHCR’S EMERGENCY APPEAL coordination of humanitarian assistance and providing pro- FOR KOSOVO. tection and support for refugees in very demanding cir- cumstances. In June 1999, the UNHCR initiated an inde- pendent evaluation of its crisis management and planning capability. This evaluation has resulted in a number of mea- sures to improve the UNHCR’s crisis management capacity.

42 UNRWA

UNRWA, which was established in 1949, conducts opera- tions that are vital in assuring the immediate humanitarian needs of Palestinian refugees in a complex political environ- ment. UNRWA assists refugees who fled from their homes in conjunction with the Arab-Israeli conflict in 1948 and during the war in 1967 between Israel and its neighbours. Operations are based on a UN General Assembly mandate. The current mandate was extended until 30 June 2002, fol- The UN Relief and lowing a General Assembly resolution in 1998. The number of refugees registered by the UNRWA has grown steadily Works Agency for from just under one million in the late 1940s to about 3.5 million persons today. About 1.5 million of these persons Palestinian refugees currently live in refugee camps. The UNRWA programme encompasses basic education, health care, support for those in greatest need, acceptable housing and sanitation and some assistance in income-generating projects. More than half the OBJECTIVES, PRINCIPAL budget is for education. With the exception of a few inter- ASSIGNMENTS: national officials, most of the organisation’s 20,000 UNRWA IS RESPONSIBLE FOR SECURING employees are themselves refugees. Since 1996, UNRWA’s THE HUMANITARIAN NEEDS OF PALESTINIAN headquarters have been located in Gaza. REFUGEES IN JORDAN, LEBANON, SYRIA, UNRWA is almost entirely financed by voluntary contri- THE WEST BANK AND GAZA. butions. During the past few years, however, the organisa- tion has experienced serious financial difficulties, primarily BUDGET: due to reduced contributions and an increase in the number of refugees. Within the framework of the annual donor mee- APPROXIMATELY SEK 2.8 BILLION. tings, Sweden is working to create more stable and secure financing for UNRWA, with a broader allocation of costs. In MAJOR DONORS: 1999, UNRWA conducted budget reforms to facilitate an THE UNITED STATES, THE EUROPEAN overview of its operations, and improve transparency. COMMISSION, SWEDEN AND NORWAY. Sweden is the third largest donor to UNRWA. The size of this contribution highlights the importance that Sweden SWEDEN’S CONTRIBUTION: attaches to its operations as an aspect of the promotion of progress towards stability and peace in the Middle East. SWEDEN’S CONTRIBUTION TO THE REGULAR BUDGET FOR 1999 AMOUNTED TO SEK 150 M.

43 WFP

The food assistance provided by the WFP during 1999 amounted to more than 3 billion tons, which was the grea- test volume since 1992. WFP food assistance helped a total of about 89 million people, of whom 41 million were suffer- ing from natural disasters and 19 million were internal refu- gees. The most notable efforts in 1999 were those in Kosovo and East Timor, while major humanitarian initiatives during the year included Angola, Ethiopia and the Great Lakes The UN World region of Africa, and also North Korea, Bangladesh and Chi- na in Asia. Food Programme The WFP’s food assistance is designed to promote secure food supplies, help people in emergency situations, assist rehabilitation, and contribute to social and economic deve- OBJECTIVES, PRINCIPAL lopment for poor people in developing countries. ASSIGNMENTS: About 80% of the WFP’s resources are used for humanita- rian measures, while the remainder is devoted to long-term THE WFP IS THE UN’S ORGANISATION development. The WFP’s Board has stipulated that 90% of FOR FOOD ASSISTANCE. FOOD ASSI- the resources for long-term development are to be used to STANCE IS DESIGNED TO PROMOTE help poor people in low-income countries. More than half SECURE FOOD SUPPLIES, PARTICULARLY the WFP’s development efforts are focused on the least IN CONJUNCTION WITH HUMANITARIAN developed countries. One fundamental goal is to help vulne- INITIATIVES AFTER NATURAL DISASTERS rable women and children. OR DUE TO CONFLICTS, AND TO SUP- A few donors account for about 70% of the programme, PORT REHABILITATION MEASURES. IN and a single country (the United States) provides nearly half CERTAIN CIRCUMSTANCES, FOOD ASSI- the WFP’s resources. In addition, donors are earmarking STANCE MAY BE USED TO SUPPORT their contributions to a greater extent than in the past. The SOCIAL AND ECONOMIC DEVELOPMENT programme has also experienced difficulty in meeting FOR POOR PEOPLE IN THE POOREST resource requirements for operations designed to provide COUNTRIES. support in protracted conflicts. A strategy for resource mobilisation has been initiated in order to broaden the base BUDGET: for contributions, to attract new donors and to find forms APPROXIMATELY SEK 13 BILLION IN for support from the private sector. During 1999, the WFP 1999. has continued its efforts to increase the degree of decentrali- sation and to complete a new financial system. A compre- MAJOR DONORS: hensive review of the WFP’s forms of governance has been conducted, including proposals for new instruments for the THE UNITED STATES, THE EU, JAPAN, Board, transparency measures and improved methods of CANADA AND THE NETHERLANDS. operation. SWEDEN WAS THE TENTH LARGEST The WFP is part of the UN Development Group CONTRIBUTOR. (UNDG) and participates in the UN reform process. The WFP works closely with the UNHCR to assist refugees and SWEDEN’S CONTRIBUTION: cooperates with some 1,200 NGOs. The WFP and the FAO SWEDEN CONTRIBUTED SEK 180 M conduct joint field trips to analyse food requirements and to IN 1999 FOR HUMANITARIAN ASSI- identify the groups in greatest need. STANCE AND LONG-TERM DEVELOP- Sweden’s contribution is in the form of cash payments. In MENT. SIDA CONTRIBUTED ABOUT SEK Sweden’s view, contributions to the WFP should not be ear- 40 MILLION FOR SPECIFIC COUNTRIES marked, and the WFP should be given greater flexibility in WITHIN THE FRAMEWORK OF THE UN’S the use of its resources. Sweden also advocates a reduction CONSOLIDATED APPEALS FOR HUMANI- in the proportion of contributions made in the form of com- TARIAN AID. THE TOTAL CONTRIBUTION modities. As far as possible, the WFP should purchase food WAS SEK 220 M. locally, primarily in developing countries.

44 UNDCP

The UNDCP’s main assignment is to help countries comply with the three narcotics conventions on which international efforts in the narcotics area are based. The conventions are strongly opposed to all forms of drug liberalisation, and jointly constitute a regulatory framework defining ways in which (legal) narcotics can be manufactured, distributed and used, and what should be done to prevent drug trafficking. The conventions also address such areas as money launder- ing, seizures, bank secrecy and measures to combat narcotics The UN Drug production and trafficking. In addition to helping govern- Control Programme ments to implement the conventions, the UNDCP’s tasks include analysing the drugs situation worldwide, providing information and expert advice, supporting efforts to reduce narcotics abuse and promoting preventive measures. OBJECTIVES, PRINCIPAL In 1998, a special session of the UN General Assembly to ASSIGNMENTS: discuss narcotics attracted considerable attention. Her Maje- sty Queen Silvia of Sweden gave an opening address at one WORKING UNDER MANDATES FROM THE of the panel debates. The General Assembly adopted three THREE NARCOTICS CONVENTIONS, THE resolutions: a political declaration, a declaration concerning UNDCP IS HELPING COUNTRIES TO REDU- measures leading to reduced demand and five action plans CE THE ILLICIT PRODUCTION AND CON- regarding amphetamine-type substances, legal cooperation, SUMPTION OF NARCOTICS. money laundering, international cooperation on the elimina- tion of illicit crops, and alternative development. These deci- BUDGET: sions committed member states to the implementation of APPROXIMATELY SEK 874 M IN 1999. measures within certain specified time periods, prior to 2003 or 2008. MAJOR DONORS: Acting on a Swedish initiative, the General Assembly appointed an international group of experts to review the THE UNITED STATES, ITALY, GREAT BRI- UN’s work on drug prevention and to propose measures to TAIN, JAPAN AND GERMANY. improve the effectiveness of UN operations. In 1999, the UNDCP Board adopted the proposals of this group, which SWEDEN’S CONTRIBUTION: included improving the efficiency of the Board’s operations, THE ANNUAL SWEDISH CONTRIBUTION negotiations on a global fund for drug prevention measures AMOUNTED TO SEK 35 M IN 1999. and increased cooperation between the UNDCP and rele- SWEDISH CONTRIBUTIONS VIA SIDA COR- vant bodies within the UN system, such as the UNDP and RESPONDED TO SEK 2.6 M. UNICEF. Sweden participates very actively in the UNDCP and, sin- ce the special session of the General Assembly in 1998, has primarily worked for improved efficiency in the UNDCP’s governance and financing. In addition, Sweden has endea- voured to promote more preventive measures in the narco- tics area, and an expansion of operations in Africa, which is often a neglected continent in this context. Sweden consi- ders that it is important to increase awareness within the international community of the close links between narcotics and overall social and economic development. Furthermore, Sweden is, of course, working actively to promote closer cooperation between various UN bodies in coordinating efforts related to drug prevention.

45 UNAIDS

The latest findings about the worldwide situation regarding the HIV/AIDS epidemic show that its scope has been unde- restimated so far. The total number of people who are HIV positive currently amounts to 33.6 million, 70 % of whom are in sub-Saharan Africa. The poorest people in the world are most severely affected by the epidemic and, as a result, HIV/AIDS is not only a health problem, but also a serious development issue. The Joint United According to UN estimates, about 5.6 million people beca- me infected by HIV during 1999 and about 2.6 million died Nations HIV/AIDS of AIDS. In all, 16.3 million people have died from Programme HIV/AIDS, which primarily affects people of a productive and reproductive age – breadwinners and parents – and has serious effects not only on individual households but also on the national economy. UNAIDS, the integrated UN program- OBJECTIVES, PRINCIPAL me for measures to tackle AIDS, was established in 1996 to ASSIGNMENTS: provide new force in the fight against HIV/AIDS. Sweden UNAIDS’ MAIN TASK IS TO COORDINA- was one of the driving forces behind UNAIDS, which consists TE INITIATIVES WITHIN THE UN of a secretariat in Geneva, a Board of Governors that meets SYSTEM RELATING TO HIV/AIDS. twice a year and seven co-financiers: UNDP, UNESCO, UNI- UNAIDS IS ALSO PROMOTING RESEAR- CEF, UNFPA, WHO, the World Bank and UNDCP. All the CH IN THIS AREA, DISSEMINATING activities of these bodies in the HIV/AIDS field are now coor- INFORMATION ABOUT THE EPIDEMIC, dinated via UNAIDS. In contrast with the past, when AND INCREASING UNDERSTANDING OF HIV/AIDS issues were handled within the WHO framework, ITS CAUSES AND CONSEQUENCES. efforts to prevent HIV/AIDS are now characterised by a broa- der, multisectoral approach. BUDGET: Sweden has also continuously contributed to the develop- ment of UNAIDS operations, for example by formulating a APPROXIMATELY USD 140 M FOR strategy for an international partnership to counter THE PERIOD FROM 2000 TO 2001. HIV/AIDS in Africa (IPAA) and by taking the initiative for an international study on the long-term financing of MAJOR DONORS: UNAIDS. In issues relating to HIV/AIDS, Sweden works clo- THE UNITED STATES IS THE LARGEST sely with the other Nordic countries, and with Canada and DONOR, AND THE NORDIC COUNTRIES Great Britain, whose views on HIV/AIDS tasks are closely ARE JOINTLY THE SECOND LARGEST aligned with Sweden’s. CONTRIBUTOR. The Swedish government gives high priority to HIV/AIDS operations, not only in health assistance, but also in overall SWEDEN’S CONTRIBUTION: development cooperation. A Swedish strategy for internatio- nal cooperation with regard to HIV/AIDS was developed by SEK 37 M FOR THE 1999 FISCAL Sida in 1998 at the request of the Ministry for Foreign Affairs. YEAR. A document, entitled Investing for Future Generations: Swe- den’s International Response to HIV/AIDS, describes the Government’s views concerning international efforts to pre- vent and alleviate the effects of HIV/AIDS and establishes the position that Sweden must take in relation to its partners in development cooperation. An HIV/AIDS secretariat has been established at the Swe- dish embassy in Harare, Zimbabwe to reinforce the capacity of Sida’s HIV/AIDS operations in Africa, as one aspect of the

follow-up of the HIV/AIDS strategy.

46 The guiding principles for Sweden’s development cooperation with respect to HIV/AIDS are as follows:

• enhancing the capacity, commitment and efforts of partner countries to achieve social and economic development, • acting on the basis of locally identified needs and priorities and in accordance with national and regional strategies, • supporting national research and research capacity, and • involving people living with HIV and AIDS in all aspects of activities.

Four strategic goals and a number of sub-goals are being pursued:

• prevention of HIV, • encouraging political commitment, • offering care and support for persons who live with or are affected by HIV and AIDS, and • formulating strategies for dealing with problems and stimulating the capacity of various sectors to deal with the effects of HIV and AIDS.

47 UNIFEM

Following the Conference on Women in Beijing in the IFEM UN autumn of 1995, UNIFEM has become an active partner in development cooperation all over the world, in collabora- tion with both governments and with the civil society. The initiatives are often limited, but there is an increasing focus on the Fund’s catalytic function and the importance of con- centrating on measures which increase the participation of women in decision-making forums and the political process. The United UNIFEM works close to women at the grassroots level – in particular via NGOs and local authorities – to create Nations Develop- networks and channels designed to increase women’s oppor- ment Fund for tunities to participate in decision-making, thus enabling them to become more aware of their rights. UNIFEM also Women supports efforts to improve conditions for poor women and to influence other parts of the UN system (particularly the UNDP) in order to achieve greater impact for a gender equ- OBJECTIVES, PRINCIPAL ality perspective. This means that both country and sector ASSIGNMENTS: programmes focus on the needs and circumstances of both women and men. UNIFEM ENSURES THAT THE ROLES UNIFEM’s programme strategy, which was consolidated AND SITUATION OF WOMEN AND MEN by renewal of its mandate in the spring of 2000, focuses on ARE TAKEN INTO ACCOUNT AND INTEG- three areas which jointly support and reinforce each other. RATED IN AN EQUIVALENT MANNER INTO The first of these is the economy, an area in which UNIFEM THE UN’S WORK. UNIFEM IS ONE OF efforts focus on improving conditions for women by suppor- THE SMALLEST UN FUNDS. ting women who operate small businesses and by measures, including legislation, that give women access to natural BUDGET: resources on the same terms as men. The second area relates APPROXIMATELY SEK 160 M IN to increasing the number of women in politics and in lea- 1999. ding positions in the community. This includes training and organising poor women so that they can work at the local MAJOR DONORS: level for common interests, such as investments in technolo- gies that facilitate their work and improve their health. The THE NETHERLANDS, NORWAY, JAPAN, third area relates to strengthening women’s human rights GERMANY AND THE UNITED STATES. and combating violence against women, with the aim of changing attitudes in society that perpetuate the view that SWEDEN’S CONTRIBUTION: women are inferior and men are superior, and to strengthe- SWEDEN’S CONTRIBUTION AMOUNTED ning the legal and social status of women. UNIFEM is also TO SEK 10 M FOR THE FISCAL YEAR involved in the training of police, judges and social workers, 2000, REPRESENTING APPROXIMATELY and in efforts to enhance poor women’s awareness of their 5% OF THE FUND’S REVENUES. rights, in accordance with national legislation and the UN Convention on the Elimination of All Forms of Discrimina- tion against Women.

48 UNEP

A resolution was adopted at the regular meeting of the UNEP in early 1999 concerning the importance of integra- ting environmental factors into all policy areas and affirming that the UNEP has an important part to play in this process – both in relation to member states and to the UN system. In the summer of 1999, the UN General Assembly deci- ded to reinforce and renew the UN’s operations in the envi- ronmental and habitation spheres. One important aspect of The United this reform was that the UNEP Board will now meet every year and will become the central forum for discussion of cur- Nations Environment rent environmental trends by ministers of the environment from all parts of the world. The first meeting of the Global Programme Ministerial Environment Forum was held in Malmö, in sout- hern Sweden, in May 2000. Another outcome of the reform was a special Environment Management Group, to be appointed by the Secretary General, in which all the rele- OBJECTIVES, PRINCIPAL vant UN agencies will participate. The Management Group ASSIGNMENTS: will actively follow up current environmental issues and UNEP’S OPERATIONS ARE MAINLY NORMA- improve coordination within the UN system. TIVE, FOR EXAMPLE ENVIRONMENTAL EVA- For the past three years, the UNEP has published its Glo- LUATION AND INFORMATION, SYNERGIES bal Environment Outlook (GEO) yearbook, which has beco- BETWEEN THE VARIOUS ENVIRONMENTAL me the most authoritative report on the status of the global CONVENTIONS, TECHNOLOGY TRANSFER environment. GEO 2000, which appeared in the autumn of ISSUES, FRESH WATER ISSUES, AND SUP- 1999, contains both solid analysis and a number of policy PORT FOR ENVIRONMENTAL INITIATIVES IN recommendations. AFRICA. The UNEP is financed by voluntary contributions to the “environmental fund”. BUDGET:

SEK 485 M FOR THE YEAR 2000.

MAJOR DONORS:

GREAT BRITAIN, GERMANY, JAPAN AND THE UNITED STATES.

SWEDEN’S CONTRIBUTION:

SEK 20 M IN GENERAL SUPPORT AND SEK 2 M VIA SIDA.

49 WHO

Over the years, Sweden has been one of the largest contri- butors to the WHO’s programmes in the health care and research sectors. An agreement between Sida and the WHO was signed on 8 May 2000 for cooperation in the period 2000–2001 amounting to approximately SEK 160 M. Gro Harlem Brundtland, who became Director General in 1998, has succeeded in implementing fundamental reform of the WHO, including replacement of the entire senior staff at World Health the headquarters in Geneva. The Director General has initi- Organization ated several changes in the WHO’s methods in order to modernise and rationalise the organisation. In addition a campaign against malaria has been launched and the prepa- ration of a new framework convention on the control of OBJECTIVES, PRINCIPAL tobacco has been initiated. ASSIGNMENTS:

THE WHO’S MAIN OBJECTIVE IS TO The four main strategies are: IMPROVE HEALTH STANDARDS THROUG- HOUT THE WORLD. THE WHO WAS • reducing poverty FOUNDED IN 1946 AND NOW HAS • developing health/medical care systems 191 MEMBER COUNTRIES. THE OPERA- • tackling the most important factors TIONS OF THE WHO HAVE AN IMPACT which lead to ill health ON HEALTH AND MEDICAL CARE SERVI- • emphasising the importance of health CES, RANGING FROM HEALTH INFORMA- aspects in development policy. TION TO SOPHISTICATED DIAGNOSTICS AND TREATMENT. ASSISTANCE FOCUSES In 1999, the World Health Assembly adopted a pharmaceu- ON PRIMARY HEALTH CARE. SWEDEN’S tical strategy to support national pharmaceutical policies MEMBERSHIP OF THE WHO IS PRINCI- and close cooperation with commercial and patents organi- PALLY THE RESPONSIBILITY OF THE sations. The WHO has also participated in the establish- MINISTRY OF HEALTH AND SOCIAL ment of the GAVI global vaccine initiative, which received AFFAIRS. a donation of USD 750 M from Bill Gates. This initiative is designed to save the lives of at least 3 million children by BUDGET: means of vaccinations against the most common children’s diseases. The WHO intends to augment its efforts to com- APPROXIMATELY SEK 3.5 BILLION PER bat HIV/AIDS, to focus on the rights of the child, and to YEAR FOR THE 2000-2001 PERIOD. take gender aspects into account. The WHO is the first UN special agency to participate in the UN Development Group MAJOR DONORS: (UNDG), and is working closely with other parts of the UN THE UNITED STATES, GREAT BRITAIN, system and, to a growing extent, with the World Bank. THE NETHERLANDS, JAPAN, NORWAY, SWEDEN AND ITALY.

SWEDEN’S CONTRIBUTION:

SWEDEN’S CONTRIBUTION TO THE REGULAR BUDGET WAS SEK 33.5 M IN 1998 AND SEK 120 M VIA SIDA.

50 FAO

The FAO has a key role in: A • monitoring global natural resources with respect to agriculture, forestry and fishing, F O F • providing a forum for cooperation and negotiations betwe- I I S A T N en countries in the agricultural, forestry and fishing areas, P A • proposing measures for sustainable utilisation of natural resources. The United Nations In recent years, the FAO has implemented a number of Food and Agricultu- internal reforms, including the decentralisation of operations to regional offices and a heavy investment in IT to dissemi- re Organization nate the results of the FAO’s normative operations. Negotia- tions on the revision of the international commitment regar- ding resources for agriculture and foodstuffs derived from plant genetics have been conducted under the FAO’s auspi- OBJECTIVES, PRINCIPAL ces. ASSIGNMENTS: One of the FAO’s key tasks is monitoring the 1996 World THE FAO IS A UN SPECIAL AGENCY, WITH Food Summit. The FAO Committee on Food Security AGRICULTURE, FISHING AND FORESTRY AS (CFS) provides a forum for following-up the action plan, ITS PRIMARY AREAS. ITS NORMATIVE OPE- and a global report will be presented in 2000. The FAO’s RATIONS AND FIELD PROGRAMMES ARE special programme for food security which covers about 50 DESIGNED TO ENSURE THE MONITORING OF countries is designed to increase agricultural production. GLOBAL NATURAL RESOURCES AND THE Sweden is working actively for the integration of the gen- PROMOTION OF RURAL AND AGRICULTURAL der perspective into the FAO’s operations, and for closer DEVELOPMENT, THUS INCREASING SECURE cooperation with other UN agencies. Sweden considers that ACCESS TO FOOD SUPPLIES ON A GLOBAL the FAO should devote its efforts to normative activities SCALE. that are supported by field programmes, and that the FAO’s normative tasks need to be strengthened by improving its BUDGET: analytical capacity. Support is provided via Sida for field programmes which USD 650 M FOR THE TWO-YEAR PERIOD focus on methodological development in the forestry, fishing 2000-2001. and agricultural sectors, and for the FAO’s rehabilitation operations in connection with humanitarian initiatives in the MAJOR DONORS: wake of natural disasters and conflicts. Sweden was the lar- MEMBER COUNTRIES PAY MEMBERSHIP gest contributor to the FAO’s rehabilitation and reconstruc- CONTRIBUTIONS IN ACCORDANCE WITH A tion initiatives in 1999. FIXED SCALE FOR THE ENTIRE UN SYSTEM. THE UNITED STATES, JAPAN, FRANCE AND GERMANY MAKE THE LARGEST CONTRIBU- TIONS. IN ADDITION, THERE ARE VOLUNTA- RY CONTRIBUTIONS.

SWEDEN’S CONTRIBUTION:

SWEDEN CONTRIBUTED A TOTAL OF SEK 100 M 1999, INCLUDING CONTRIBU- TIONS VIA SIDA.

51 UNESCO

Sweden’s membership of UNESCO is primarily the respon- sibility of the Ministry of Education and Science, via the UNESCO Council. UNESCO is about to embark on exten- sive reorganisation, with clearer links with the organisation’s original mandate. The new Director General, Mr. Matsuura, intends to maintain tighter control of budgets and administ- ration in order to make UNESCO more effective. The United Swedish membership of the UNESCO Board in the peri- od 1995–1999 involved, for example, demands for greater Nations Educatio- transparency, closer cooperation with the media and NGOs, and clear and more orderly budget procedures. Finland will nal, Scientific be a member of the UNESCO Board for a further two and Cultural years. The United States has not yet resumed its membership of Organization UNESCO, as proposed by the US administration. Sida has initiated efforts to find new forms for develop- ment assistance cooperation with UNESCO. OBJECTIVES, PRINCIPAL ASSIGNMENTS:

UNESCO IS THE UN AGENCY RESPONSIBLE FOR CULTURE, EDUCATION AND SCIENCE. UNESCO WAS FOUNDED IN 1945 AND IT CONTRIBUTES TO PEACE AND SECURITY BY PROMOTING COOPERATION BETWEEN NATIONS IN THE CULTURAL, MEDIA, EDUCATION AND RESEARCH AREAS.

BUDGET:

THE REGULAR BUDGET FOR THE TWO- YEAR PERIOD 2000/2001 AMOUNTS TO SEK 4.4 BILLION, PLUS ESTIMATED VOLUNTARY CONTRIBUTIONS OF SEK 1.8 BILLION.

MAJOR DONORS:

JAPAN, GERMANY, FRANCE, GREAT BRITAIN AND ITALY.

SWEDEN’S CONTRIBUTION:

SWEDEN’S CONTRIBUTION FOR 1999 WAS SEK 28.7 M. IN ADDITION IT IS ESTIMATED THAT VOLUNTARY CONTRI- BUTIONS VIA SIDA AMOUNTED TO SEK 10.8 M.

52 ILO

In June 2000, the International Labour Conference (ILC) approved rules for breast-feeding at work and worker pro- tection in the agricultural sector. The ILO gives high priority to child labour issues and the elimination of the most harm- ful forms of child labour. Sweden has made additional con- tributions for this, as have the US and Germany. The Chilean Director General, Juan Somavia, has taken very active steps to make the tripartite cooperation on which the ILO is based more dynamic, and to improve the ILO’s The International profile as regards the social effects of globalisation and to Labour Organization achieve closer cooperation with the UN system. Mr. Soma- via, the first Director General from the southern hemisphe- re, has presented a report entitled “Decent Work”, which states that the ILO’s most important objective is “to promo- te opportunities for women and men to have decent and OBJECTIVES, PRINCIPAL productive work, on terms which permit freedom, equality ASSIGNMENTS: and human dignity”. Four strategic objectives are based on THE ILO’S OBJECTIVE IS TO IMPROVE the overall concept of good work. WORKING AND LIVING CONDITIONS BY INITI- ATING CONVENTIONS AND RECOMMENDA- • promoting fundamental rights in working life TIONS ON MINIMUM STANDARDS FOR • creating greater opportunities for women and WAGES AND SALARIES, WORKING HOURS, men to achieve secure and satisfactory jobs and pay, EMPLOYMENT CONDITIONS AND SOCIAL • improving social security for everyone, SYSTEMS. • strengthening tripartite cooperation and the social dialogue. BUDGET:

The ILO has established eight high-priority “InFocus” pro- THE ILO’S REGULAR BUDGET FOR THE grammes to implement the strategic objectives. Gender PERIOD 2000-2001 AMOUNTS TO USD aspects and a development perspective are to permeate all 482 M. ILO operations. There will be a greater emphasis on techni- cal assistance, in accordance with decisions taken at the MAJOR DONORS: International Labour Conference in 1999. THE UNITED STATES, JAPAN, GERMANY, Sida has initiated a dialogue concerning a new strategy for FRANCE AND GREAT BRITAIN. cooperation with the ILO, aiming for a broader approach based on a human rights perspective. A Swedish ILO strate- SWEDEN’S CONTRIBUTION: gy is being developed. THE ANNUAL SWEDISH CONTRIBUTION AMOUNTS TO APPROXIMATELY SEK 23 M. VOLUNTARY CONTRIBUTIONS VIA SIDA WERE ROUGHLY SEK 20 M IN 1999.

53 UNIDO

Following some years of turbulence, including proposals for terminating UNIDO’s operations and the resignation of the United States in 1997, the organisation has achieved stabili- ty as the result of a new business plan, largely drafted by the EU. UNIDO also has a new management team, headed by Carlos Alberto Magarinos of Argentina as Director General. Japan is the largest donor. UNIDO suffers from a shortage The United of funds for the implementation of its new programme, whi- ch has a strong focus on policy advice, the environment, Nations Industrial energy and brokering assignments between the private sec- tor and the public sector. Mr. Magarinos visited Sweden in Development 1999 for contacts with the Government, Sida, the private Organization sector and research institutions. Sweden was elected as a Board member at the UNIDO General Conference in 1999, in accordance with the Nordic rotation principle. OBJECTIVES, PRINCIPAL ASSIGNMENTS:

UNIDO’S ASSIGNMENT IS TO ASSIST DEVELOPING COUNTRIES BY SUPPOR- TING INDUSTRIAL EXPANSION AND MODERNISATION, AND COORDINATING UN ACTIVITIES IN THE INDUSTRIAL SPHERE.

BUDGET:

APPROXIMATELY SEK 1.2 BILLION FOR 1998-1999, PLUS VOLUNTARY CON- TRIBUTIONS OF SEK 848 M (1997).

MAJOR DONORS:

JAPAN, GERMANY, RUSSIA, FRANCE AND GREAT BRITAIN.

SWEDEN’S CONTRIBUTION:

SWEDEN’S CONTRIBUTION TO THE REGULAR BUDGET AMOUNTED TO SEK 9.7 M IN 1999.

54 GEF

The Global Environment Fund (GEF) was established in 1991 as a joint pilot project by the UN system and the Bretton Woods institutions. In conjunction with the restructuring of the GEF in 1994, its operations were made permanent, and 34 donors allocated USD 2 billion for the first replenishment period. By 1998, the number of donors involved in the replenishment negotiations had increased to 36, and capital replenishment for the 1998-2002 period amounted to USD 2.75 billion. The Global The GEF’s Board consists of 32 voting groups which, in turn, represent the GEF’s 166 members. Its task is to deve- Environment Fund lop, approve and evaluate GEF programmes. Sweden beca- me a member of the Board on 1 July 1999, and also repre- sents Estonia (deputy member) and Finland. The GEF has an impartial advisory technical/scientific panel of 12 mem- bers at its disposal. The GEF has gained a reputation for OBJECTIVES, PRINCIPAL openness towards NGOs, both in connection with Board ASSIGNMENTS: deliberations and the design and implementation of pro- TO FINANCE OPERATIONS IN DEVELOPING jects. The secretariat, which is headed by Mohamed El- COUNTRIES WHICH ARE DESIGNED TO ACHI- Ashry, is located in Washington. EVE GLOBAL ENVIRONMENTAL BENEFITS IN Until the middle of last year, a total of about USD 2.5 THE AREAS OF BIOLOGICAL DIVERSITY, CLI- billion had been paid out for projects in more than 100 MATE CHANGE AND INTERNATIONAL WATER countries. In addition, as a result of its catalytic capabilities, RESOURCES. IN ADDITION, FINANCING IS the GEF has managed to generate a further USD 6 billion PROVIDED FOR MEASURES TO PROTECT THE from other donors for operations supported by the GEF. So OZONE LAYER IN EAST EUROPEAN far, most projects have involved biological diversity, follo- COUNTRIES. THE GEF MAY ALSO FINANCE wed by projects relating to climate changes. Projects in the MEASURES TO COUNTERACT LAND third main area – international water resources including DESTRUCTION PERTAINING TO THESE ARE- ozone protection – accounted for about 25% of the GEF AS. THIS IS ACHIEVED VIA THE WORLD project catalogue. BANK, UNDP AND UNEP. The GEF Assembly, which met for the first time in New Delhi, India in April 1998, convenes every three years for a BUDGET: general review of operations. The Assembly expressed satis- faction with the GEF’s operations and the donors’ recom- USD 2.75 BILLION FOR THE 1998- mendations for the replenishment period, including natio- 2002 REPLENISHMENT PERIOD nal anchoring of GEF operations and improved evaluation of operations. Both these requirements were proposed by MAJOR DONORS: Sweden and were subsequently followed up by the Board. THE UNITED STATES, JAPAN, GERMANY, During the year, Sweden initiated an independent evalua- AND FRANCE. tion of operations to provide a basis for the next replenish- ment negotiations. Special seminars for recipient countries, SWEDEN’S CONTRIBUTION: which were designed to involve a broad group of relevant participants at the national level in a dialogue about the SEK 448 M FOR THE PERIOD. GEF’s operations, commenced during the year. During the year, the GEF approved two new operational programmes involving transport and integrated administration of the ecosystem. The integration of global environmental issues into the operations of organisations responsible for imple- mentation is an important aspect of GEF activities. Extensi- ve efforts are now in progress within these organisations to implement these plans – for example in the World Bank, which will be completing a major programme to integrate

55 global environmental aspects into its operations during the year. The GEF’s prize for outstanding leadership in the struggle to counter global environmental problems, which was awarded for the third time in 2000, was presented to Anil Agarwal of India and Denis Hayes of the United States.

56 The Montreal Protocol, which was adopted in 1987, was one of the first international environmental conventions. It has subsequently been supplemented by a number of amen- dments that place more stringent requirements on member countries as regards phasing out substances, and the requisite time frame to permit this to take place. Sweden considers that contributions to the Multilateral Fund should strengt- hen institutions to a greater extent and make it easier for The Montreal developing countries to take responsibility for phasing out all Protocol Multilateral ozone-depleting substances. The International Executive Committee, of which Sweden was a member during 2000, Fund has decided to reorient the Fund’s working methods in this respect. Sweden is pursuing a normative process within the EU fra- mework to increase the speed and efficiency of the phasing out of ozone-depleting substances, by utilising Sweden’s OBJECTIVES, PRINCIPAL experience in this field. The Swedish National Environmen- ASSIGNMENTS: tal Protection Agency has a key role to play in this process. TO ACHIEVE A PHASE-OUT OF ALL OZONE- Although the use of ozone-depleting substances has decli- DEPLETING SUBSTANCES AND THEREBY TO ned, it is disturbing that a number of developing countries RESTORE THE OZONE LAYER OVER TIME, AS have notified that they are finding it difficult to meet their A RESULT OF JOINT COMMITMENTS ON THE commitments as regards CFCs and methyl bromide, two PART OF MEMBER COUNTRIES. major ozone-depleting substances. Sweden is working actively – particularly in its capacity as BUDGET: a member of the Executive Committee – to achieve effecti- ve assistance, based on responsibility and control exercised REPLENISHMENTS OF USD 440 M WERE by the developing countries themselves. CFCs and solvents MADE TO THE MONTREAL PROTOCOL MUL- are of particular interest. The drawing up of a programme TILATERAL FUND FOR THE 2000-2002 for phasing out ozone-depleting solvents in thousands of PERIOD. THESE FUNDS ARE ALLOCATED TO small companies in China was completed in March 2000, DEVELOPING COUNTRIES (“ARTICLE 5 and will now be implemented with assistance funding of COUNTRIES”) TO ACHIEVE A PHASE-OUT, USD 52 M. THUS ENABLING THEM TO FULFIL THEIR COMMITMENTS.

MAJOR DONORS:

ALL INDUSTRIALISED COUNTRIES, IN ACCORDANCE WITH THE UN CONTRIBUTION SCALE.

SWEDEN’S CONTRIBUTION:

SEK 18 M PER YEAR, OF WHICH 20% MAY BE UTILISED FOR BILATERAL SUPPORT UNDER SIDA’S AUSPICES.

57 The World Bank Group consists of the International Bank for Reconstruction and Development (IBRD), the Interna- tional Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID). Today, the World Bank is by far the largest single source of public-sec- tor development assistance and loans to developing countri- The World es and the countries of Eastern Europe. In 1999, loans pro- vided by the IBRD totalled about USD 22 billion, and the Bank Group IDA lent about USD 7 billion. The Bank has operations in all parts of the world and had 181 members in 1999. The World Bank, with its headquarters in Washington DC, has OBJECTIVES, PRINCIPAL approximately 9,000 employees. James D. Wolfensohn has ASSIGNMENTS: been President of the World Bank since 1995. Sweden acts jointly with the other Nordic countries and the Baltic REDUCING POVERTY AND PROMOTING SUSTAINABLE ECONOMIC GROWTH BY countries on the World Bank’s Board. The Strategic Compact, an internal reform programme MEANS OF LOANS AND ADVISORY SERVI- launched by the World Bank in 1997, was completed in CES. 1999. Clear progress was achieved in the programme’s LENDING IN 1999: main areas: a greater focus on poverty reduction, a stronger emphasis on reforms and social issues, higher quality in LOANS FOR USD 22 BILLION WERE cooperation projects, decentralisation of the organisation to GRANTED ON MARKET TERMS (BY THE the field, and higher priority for partnerships with other IBRD) AND LOANS FOR USD 7 BILLI- participants in the international development cooperation ON WERE GRANTED ON CONCESSIONAL sphere. On the whole, this reform programme met the TERMS (BY THE IDA). expectations expressed by Sweden and the other Nordic countries. MAJOR OWNERS: The stronger focus on combating poverty is evident in several areas. Loans are granted to a greater extent to the THE UNITED STATES, JAPAN, GERMA- poorest countries, and are increasingly based on criteria NY, FRANCE AND GREAT BRITAIN. directly related to poverty, in part as a result of the guideli- SWEDEN’S CONTRIBUTION: nes for the twelfth replenishment of the IDA. During 1999, the World Bank launched a new overall poverty- SEK 865 M. reduction programme – the Comprehensive Development Framework (CDF). This initiative is based on “national ownership”, partnership, donor coordination and increased emphasis on measures that directly affect conditions for the poorest people. The CDF principles will be put into practi- ce by using Poverty Reduction Strategy Papers (PRSP) for- mulated by recipient countries to provide a basis for donor assistance programmes. The first strategies were presented to the World Bank during the first half of 2000. The World Bank’s World Development Report 2000/01, which has poverty as its the main theme and will be presented in the autumn of 2000, and Voices of the Poor, which is an exten- sive interview study, have provided important contribu- tions to new thinking in the poverty-reduction area. The HIPC debt relief initiative is an additional compo- nent in the increased emphasis on eliminating poverty. At the annual meetings of the World Bank and the IMF in 1999, proposals were adopted to broaden, intensify, and

58 accelerate implementation of the HIPC initiative. Long-term financing of the expanded HIPC initiative has not yet been resolved. As a result of the new initiatives for combating poverty, the World Bank has strengthened its cooperation with other participants in interna- tional development cooperation, primarily the IMF, the UN, WTO and the regional development banks.

59 AfDB The African Development Bank (AfDB) has 77 member countries, of which 53 are African. The Bank was established in 1963 and has its headquarters, with approxi- mately 1,000 employees, in Abidjan in Côte d’Ivoire (Ivory Coast). In recent years, most of the Bank’s loans have been granted to the more creditworthy countries in North Africa and to South Africa, while concessional loans granted by the African Development Fund’s (AfDF), which was established in 1972, have been made to the poorest member countries. African At the AfDB’s annual meeting in Cairo in May 1999, the discussion centred primarily on implementing the vision Development Bank adopted by the Bank earlier in the year. This vision, which was developed with very active participation of the Nordic countries, reaffirms the Bank’s mandate and objectives. The OBJECTIVES, PRINCIPAL premise is that the Bank, as an African institution, can play ASSIGNMENTS: a decisive role in the continent’s economic and social deve- lopment. Poverty reduction was identified as the overall THE AFDB’S MANDATE AND MAIN objective for all operations. On the country level, the Bank’s ASSIGNMENT IS TO CONTRIBUTE TO THE operations should focus primarily on three areas: agriculture ECONOMIC AND SOCIAL DEVELOPMENT and rural development, investments in human capital OF ITS AFRICAN MEMBER COUNTRIES, (education and health), and support for the development of WITH THE OVERALL OBJECTIVE OF REDU- the private sector. The Bank’s mandate also extends to regi- CING POVERTY. OPERATIONS AT THE onal initiatives to handle issues which transcend national COUNTRY LEVEL FOCUS ON AGRICULTU- boundaries, such as environmental initiatives and support RE AND RURAL DEVELOPMENT, INVEST- for economic cooperation and trade. The vision also focuses MENTS IN HUMAN CAPITAL AND SUP- on gender, the environment and good governance. PORT FOR THE DEVELOPMENT OF THE At the annual meeting, it was also noted that the fifth PRIVATE SECTOR. capital replenishment (CGI-V) was finally approved by all member countries after detailed discussion. Another impor- BUDGET/LENDING IN 1999: tant issue was the negotiations for the eighth replenishment of the fund, which were completed in record time in Janua- THE AFDB APPROVED NEW LOANS ry 1999. The ADF 8 agreement, which covers the 1999- AMOUNTING TO ABOUT USD 950 M. 2001 period, means that the fund will be replenished by THE AFDF APPROVED NEW LOANS slightly more than SEK 26 billion, of which the Swedish AMOUNTING TO APPROXIMATELY USD contribution amounts to slightly more than SEK 940 M. 560 M. TOTAL DISBURSEMENTS The agreement entails a clear increase in the Bank’s empha- AMOUNTED TO MORE THAN USD 1.1 sis on poverty, equality, good governance, and other Swe- BILLION. dish priorities in development cooperation. An important SWEDEN’S CONTRIBUTION: component is the application of result-based criteria for len- ding. SWEDEN CONTRIBUTED SEK 285 M These two agreements denoted donors’ confidence in the TO THE AFDF IN 1999. Bank and its role in Africa. The reform process, in which Sweden has a leading role, was initiated in 1995 and has led to significant improvements in the Bank’s financial and ope- rative functions. During 1999, a process was also initiated that will lead to a review of the bank’s organisational struc- ture.

60 AsDB Sweden was one of the 31 countries which established the Asian Development Bank (AsDB) in 1966. The Bank now has 57 member countries, of which 41 are located in the region. The Bank, whose head office is in Manila in the Philippines, has about 2,000 employees. In addition, the Bank has established offices in 16 countries, and further offices are planned. The Asian Development Fund (AsDF), which was founded in 1974, is the Bank’s “window” for concessional loans. Sweden is a member of a joint electoral group which The Asian also comprises Canada, the Netherlands and the other Nordic countries. Development Bank During 1999, the AsDB has given high priority to allevia- ting the social effects of the financial crisis in South-eastern and Eastern Asia. This focus was reinforced when the Bank OBJECTIVES, PRINCIPAL determined at its annual meeting in 1999 that poverty reduc- ASSIGNMENTS: tion would be the overall objective for its operations. The poverty strategy which was developed during 1999, based on THE PRIME GOAL OF ALL ASDB OPERA- three pillars – economic growth, social development and good TIONS IS TO FIGHT AND REDUCE POVERTY governance – confirms this orientation. The Bank’s policy pro- ACROSS THE REGION. cess focuses on the implementation and revision of previous policies in areas such as the environment, good governance, LENDING IN 1999: gender issues and development. All policies are fully in line LOANS FOR USD 4 BILLION WERE GRAN- with Swedish priorities in these areas. TED FROM THE “HARD WINDOW” (ORDINA- Discussion of the AsDB’s future role in the multilateral RY CAPITAL RESOURCES (OCR)). financial system has high priority on the agenda. A long-term LOANS FOR USD 1 BILLION WERE GRAN- strategy for the Bank is expected to be completed by the end TED FROM THE “SOFT WINDOW” (ASIAN of 2000. This strategy will be based on the Bank’s poverty DEVELOPMENT FUND (ADF)). strategy and the development objectives agreed at the interna- tional level. The Bank has also taken other major steps in rein- MAJOR OWNERS: forcing its profile as a regional development bank and in improving donor coordination in the field. The Bank has sig- JAPAN (APPROXIMATELY 15% OF THE ned a cooperation agreement with the World Bank, for SHARE CAPITAL) example, and has developed a policy for its field representa- THE UNITED STATES (APPROXIMATELY tion. 15% OF THE SHARE CAPITAL) The resources mobilised as a result of the ADF 7 negotia- tions are expected to be exhausted by December 2000. As a SWEDEN’S CONTRIBUTION: result, the eighth round of replenishment negotiations com- SEK 186 M TO ADF AND SEK 2 M TO menced in October 1999, and are expected to be completed ASDB. in September 2000. These negotiations have involved discus- sion of the Bank’s multilateral structure and its role, donor coordination, performance-based lending operations, poverty reduction, gender issues, the environment and regional coope- ration. During his first year of office, the Bank’s President, Tado Chino, has handled a number of important issues and clearly indicated that the most crucial task facing the AsDB is the eli- mination of poverty in the region. He has also shown a wil- lingness to tackle problems regarding the internal manage- ment of the Bank. A special committee will be set up to improve the Board’s insights into the Bank’s operations, its development initiatives, and its results.

61 IDB The Inter-American Development Bank (IDB) is the largest multilateral lender in Latin America and the Caribbean. The Bank’s head office in Washington and its 28 representation offices have approximately 1,200 employees. The Bank cur- rently has 46 member countries, 28 of which are on the American continent (regional) and 18 are in other parts of the world (non-regional). Sweden became an IDB member in 1977 and is part of a constituency which also comprises Denmark, Finland, France, Norway, Spain and Austria. The IDB celebrated its 40th anniversary in 1999. Opera- tions during the year were characterised by the aftermath of the financial turbulence and natural disasters of recent years. The Inter-American Disaster loans to counteract the negative impact on the countries concerned amounted to USD 4.6 billion. At the Development Bank same time, the IDB has continued to strengthen its role as a partner in the development process in the region. In May OBJECTIVES, PRINCIPAL 1999, the IDB hosted a meeting in Stockholm between ASSIGNMENTS: representatives of governments and the civil society in countries affected by Hurricane Mitch and the donor com- TO PROMOTE ECONOMIC AND SOCIAL DEVE- munity, at which the objectives and principles for recon- LOPMENT IN LATIN AMERICA AND THE struction and the necessary transformation of societies were CARIBBEAN. determined. The IDB’s governors have discussed the future role of the LENDING IN 1999: Bank for two years. The Nordic countries have stressed the LOANS FOR USD 9 BILLION WERE GRAN- importance of a greater emphasis on poverty reduction as TED ON MARKET TERMS (FROM THE SHARE the overall objective for the IDB’s operations. This was also CAPITAL). the main conclusion drawn by a meeting of non-regional LOANS FOR USD 413 M WERE GRANTED member countries arranged by Sweden in Stockholm in ON CONCESSIONAL TERMS (BY THE FUND January 2000, and attended by the Bank’s President, Enri- FOR SPECIAL OPERATIONS (FSO) TO THE que Iglesias. The Nordic countries also stressed the impor- FIVE POOREST COUNTRIES IN THE REGION. tance of an analysis of the IDB’s role in relation to other actors. In this context, Sweden placed a special emphasis on MAJOR OWNERS: the part played by the Bank in the development of poverty- reduction strategies. The poverty-reduction papers initiated THE UNITED STATES (APPROXIMATELY by the World Bank and the IMF assume leadership on the 30% OF THE SHARE CAPITAL) part of the governments of poor countries, and the partici- BRAZIL (APPROXIMATELY 11% OF THE pation of the civil society, the private sector and the entire SHARE CAPITAL) donor community. ARGENTINA (APPROXIMATELY 11% OF The most difficult issue faced by the IDB in 1999 was THE SHARE CAPITAL) financing of the Bank’s participation in the expanded HIPC debt relief initiative. The IDB’s share is estimated to cost SWEDEN’S CONTRIBUTION: USD 700 M more than the USD 400 M which the IDB IN 1999, SWEDEN PAID IN A TOTAL OF governors decided to allocate to the original HIPC initiative. SEK 12.2 M TO THE IDB, MOST OF A solution was achieved, in principle, in June 2000. WHICH REPRESENTED SHARE CAPITAL. Sweden has actively cooperated with the IDB for many years in various projects via Sida. During 1999, this coope- ration has been reinforced and consolidated by a framework agreement which regulates all cooperation between the par- ties, and by a partnership agreement in which Sida and the IDB mutually agree to utilise their comparative advantages to improve conditions for poor people, primarily in Central America.

62 Sweden has been negotiating since 1998 for membership of the Inter- American Investment Corporation (IIC), which has links with the IDB group. The IIC supports the development of small and medium-sized companies. There was a breakthrough in the negotiations at the IDB’s annual meeting in March 2000, resulting in a transitional solution for Swe- dish membership of the organisation.

63 Sweden and the other Nordic countries pro- IFAD posed that PACT should be conducted under the auspices of the ACBF, and a deci- The International Fund sion to this effect was taken at the begin- for Agricultural Development ning of 2000. IFAD is a UN special agency. Its operations The World Bank decided to make an initi- have a very clear poverty-reduction orienta- al contribution of USD 30 M to PACT via tion as a result of its focus on improving the ACBF. Total contributions by the living conditions for rural populations in the World Bank will amount to USD 150 M poorest developing countries by means of over a five-year period. projects and concessional loans. IFAD plans The increased financial volume and the to maintain its lending and technical assistan- broader mandate created by PACT will ce in 2000 at USD 480 M, and 30 new pro- have a considerable impact on ACBF opera- jects are expected to receive approval. Evalu- tions in the next few years. It will also call ations indicate that the Fund’s operations for reinforcement of the organisation and achieve high standards, and IFAD is interna- increased expertise in order to tackle new tionally respected as a small and efficient areas such as statistics, accounting, company organisation, in the forefront as regards met- law and measures to counter corruption. hods for agricultural development. Sweden is one of the major contributors Sweden has played a particularly promi- to the ACBGF, and is currently deputy nent role in IFAD in recent years, partly chairman of the Board of Governors. The due to Swedish participation in the reple- ACBF has its head office in Harare in Zim- nishment negotiations, which also resulted babwe. Soumana Saka, the recently appoin- in comprehensive reform of the Fund’s ted executive secretary, comes from Mali. management and financing mechanisms. Denmark, Norway and Finland and Sweden have each had seats on the IFAD Board sin- ce 1997, and firmer arrangements for Nor- NDF dic cooperation have been established during the past two years. Nordic Development Fund Consultations were initiated at the annual The NDF is a Nordic fund that grants con- meeting in 1999 concerning further reple- cessionary loans (corresponding to IDA nishment of the Fund’s capital. These nego- terms) primarily to low-income countries. tiations are expected to be completed These loans, which are financed by contri- during 2000. butions from the Nordic countries, are gran- ted for projects of Nordic interest which promote economic and social development. The NDF only grants credits as part of co- ACBF financing arrangements with other funding institutions. Since its inauguration, the Fund African Capacity Building Fund has co-financed more than 100 projects The ACBF helps African member countries with loans totalling more than 350 million to develop their capacity to draw up and Special Drawing Rights (SDR) (more than implement macroeconomic policies. In SEK 3.7 billion). The IDA has been the 1999, the Fund’s budget amounted to principal partner in these projects. The sub- approximately USD 12.5 M. The Swedish scribed capital (basic capital) amounts to contribution was about SEK 10 M. The 515 million SDR, of which 240 million ACBF’s operations in 1999 were dominated SDR has been paid in. by discussion in the World Bank of the Part- The NDF applies a lending strategy with a nership for African Capacity Building poverty-reduction orientation, which takes (PACT) initiative, which was launched by into account the environment, sustainable the president of the World Bank in 1995. development, equality, the promotion of

64 participation in partner countries, good currency used for accounting purposes from governance, human rights, and measures to Special Drawing Rights to the euro. In addi- prevent corruption. During 1999, NDF len- tion, the Nordic countries agreed on a capi- ding amounted to approximately SEK 332 tal replenishment (NDF IV) since the Fun- M, of which Sweden contributed SEK 64 d’s current capital of 515 million SDRs is M. An evaluation of the NDF, presented in expected to be covered by commitments July 1999, was favourable for the most part, and projects which have been approved by but proposed a greater focus on infrastruc- the end of the year 2000. This involves a ture initiatives and the phasing out of priva- replenishment of EUR 330 M for a five-year te-sector operations in their current form. period as from 2001. Payments made to The evaluation advocated the retention of a NDF IV are expected to cover the Fund’s small organisation, a continued focus on liquidity requirements until 2009. “Nordic interests” in the form of the procu- rement of goods and services, and streamli- ning of the Fund’s comparative advantages in terms of experience, expertise within the NORSAD organisation and the Nordic resource base. NORSAD was established in 1990 by Den- The conclusions drawn – which are suppor- mark, Finland, Norway and Sweden and ted by all the Nordic countries – is that the countries which are members of the Sout- NDF’s comparative advantages indicate that hern African Development Community the emphasis on the economic infrastructu- (SADC). NORSAD contributes to econo- re should be maintained, but that it is also mic development and self-sufficiency in the important to integrate social aspects into SADC countries, primarily in the form of projects to a greater extent. The previous loans for joint ventures. The Nordic explicit objective under which 40% of pro- countries (with the exception of Iceland, jects are to involve the social infrastructure, which is not a member) recently agreed to multisectoral operations and the environ- extend the Fund’s mandate until March ment is confirmed. In 1999, the Board 2003 and to provide a capital replenishment approved NDF participation in the HIPC of DKK 150 M. Sweden’s contribution over debt relief initiative and a change in the a three-year period amounts to SEK 66 M.

65 International IDEA – the International Institute for Democ- racy and Electoral Assistance – was founded by 14 countries in 1995. The original initiative was the result of a motion in the Swedish Parliament supported by several parties. The Institute is located at Strömsborg, a small island in the cent- re of Stockholm. In formal terms, the Institute is an intergo- vernmental organisation with a current total of 19 member countries from all parts of the world, and with five interna- tional NGOs as associate members. The Secretary-General International IDEA is Bengt Säve-Söderbergh, and operations are headed by the Chairman, Sir Sridat Ramphal. The budget, which amoun- ted to USD 10.5 M in the current fiscal year, is funded by voluntary contributions made by members. Sweden has con- tributed USD 3.5 for the year 2000, in addition to a basic budgetary support supplement of approximately USD 1 M, OBJECTIVES, PRINCIPAL financed by Sida. ASSIGNMENTS: The Institute’s assignment is the promotion of democrati- IDEAS MAIN ACTIVITY IS TO CONTRI- sation by disseminating information about democratic BUTE TO DEMOCRATIC DEVELOPMENT systems and their prerequisites and fundamental principles, THROUGH NORMATIVE AND FIELD ACTI- in a non-prescriptive manner. Practical applications vary in VITIES (RULES AND GUIDELINES) BASED different parts of the world. Under its Rules and Guidelines ON BROAD-BASED COMPARATIVE INTER- heading, IDEA assembles information about electoral NATIONAL EXPERIENCE. IDEAS WORK systems, electoral legislation, party finances, participation, IS NON-PRESCIPTIVE AND OFFERS A conflict management and other institutional and structural BROAD RANGE OF SOLUTIONS BASED ON prerequisites for democracy. This information is presented DEMOCRATIC PRINCIPLES. in the form of handbooks and on the Institute’s website (www.idea.int). In its Capacity Building area of operations, BUDGET 2000: the Institute is an active participant when it has a compara- tive advantage which justifies such a role. Major projects are 10,5 MUSD currently being conducted in Indonesia and Nigeria, where the Institute’s prime role is to facilitate processes to promo- MAJOR DONORS: te democratisation, for example by means of a national dia- SWEDEN, CANADA, HOLLAND,NORWAY, logue. IDEA’s mandate includes bridging the gap between FINLAND, DENMARK research and practice. This is achieved under the Applied Research heading, for example in the form of annual SWEDISH CONTRIBUTIONS: “Democracy Forum” conferences. In 2000, the Democracy Forum discussed the relationship between democracy and 3,5 MUSD IN CORE SUPPORT, 1 MIL- poverty. LION IN COMPLEMENTARY FUNDING IDEA has cooperation agreements with the World Bank, the UNDP, the EU, the Asian Development Bank, the Inter-American Development Bank, the OAU and the OSCE. IDEA’s associate members – the International Fede- ration of Journalists, Transparency International, Parliamen- tarians for Global Action, the International Press Institute and the Inter-American Institute for Human Rights – are also important partners in the Institute’s work.

66 Development cooperation within the framework of the European Union

The European Community (EC) is the developing countries into world's fifth largest source of develop- the global economy, ment cooperation funding. The EU, that • the reduction of poverty is to say its member states and the EC, in developing countries, provides about 60% of total global deve- • development of democracy, the rule of lopment assistance. law, and respect for human rights and fundamental liberties, EC development cooperation has been part • fulfilling the commitments and acknow- of the Community's activities since the ledging the objectives approved by the European Economic Community (EEC) was Community within the framework of the formed in 1957. United Nations and other relevant For many years, the EU’s development international organisations. cooperation policies have been a mixture of development cooperation, trade promotion, There have been considerable changes in the cultural cooperation and political compo- geographical focus of EC assistance. The nents. The EU is unique as a development major recipient of EC assistance has always assistance organisation because it permits been Sub-Saharan Africa, although its share the close links between development coope- of EC assistance has declined since the ration, trade policy and foreign policy. 1970s, primarily due to substantial assistan- The Treaty of Rome (1957) and the Food ce given in recent years to Eastern Europe, Convention (1967) provided the original the former Soviet Union and the former legal basis for EC development cooperation. Yugoslavia, and the impact of Mediterrane- Subsequently, a number of more specialised an cooperation. areas were added, including extensive food assistance, primarily in the form of grain. Organisation and decision process This type of assistance – and cooperation The new European Commission, which took with countries outside the Africa, Caribbean up its duties in September 1999, immediate- and Pacific (ACP) group of countries – was ly decided on a new organisational structure financed from the EC budget, while ACP for the administration of development assi- cooperation was financed from the Euro- stance. The Directorate General for Deve- pean Development Fund (EDF). The objec- lopment Cooperation was given responsibili- tives for a common development policy, as ty for the Commission’s development policy formulated in the Maastricht and Amster- and methods without regard to geographic dam Treaties, may be summarised as fol- location. The Directorate General for Exter- lows: nal Relations (DG RELEX) was made responsible for the financing and program- • sustainable economic and social progress ming of assistance to all countries, with the in developing countries, particularly the exception of the APC group, which continu- more seriously disadvantaged countries, ed to be the responsibility of the Directorate • harmonious and steady integration of General for Development Cooperation (DG

67 DEV). DG RELEX was also made respon- member states are entitled to take the initia- sible for supporting human rights and tive. democracy in all partner countries. A joint In the development cooperation area, service unit, SCR, is responsible for project policy decisions and decisions concerning implementation, financial monitoring and the use of funds are normally taken by the the evaluation of operations financed by Development Council, which meets twice a assistance funds. year and comprises the ministers responsible This organisational structure quickly pro- for development cooperation in member sta- ved to have serious deficiencies, particularly tes. Prior to consideration by the Develop- since the project cycle continued to be divi- ment Council, the issues concerned are pro- ded between two or three authorities, cessed at two subordinate levels within the responsibility for evaluation rested with an Council – first by a Council working group executive body, and the structure and capa- and then by Coreper (Comité des représen- city of the SCR was insufficient to handle tants permanents), comprising the ambassa- the volumes involved. According to a state- dors of member countries. ment issued by the Commission in May The Council’s decisions may take the form 2000, the organisation will therefore be of conclusions, resolutions or regulations. modified. Resolutions and conclusions include both The SCR is to be transformed into a more the Commission and the member states, independent organisation with greater while decisions concerning regulations must resources, and will be responsible for the be discussed and approved by the European entire project cycle, while responsibility for Parliament. In the case of ACP cooperation, country programming in the recipient Council decisions are approved by the countries will be retained by DG DEV and foreign ministers in the General Council. DG RELEX, depending on the region in The Commission is responsible for question. A quality support group will be ensuring that decisions by the Council of established for country programmes and Ministers are implemented – this applies to project proposals. The evaluation function all aspects of EC development cooperation. will be more independent than at present. In the management committees, member DG DEV will establish a special group for states supervise the Commission's complian- reviewing decision proposals from all Com- ce with the regulations that have been mission authorities in order to ensure cohe- approved. In the development cooperation rence between all the decisions involved. area, there are three geographical manage- These changes are a part of the wider reform ment committees (ALA, EDF and MED), a process now in progress throughout the food committee, a humanitarian committee, Commission. a human rights/democracy committee and The Commission has about one hundred an NGO committee. delegations in the field. Preparatory work and decision making, however, are normally Financing centralised in Brussels, thus limiting the Development cooperation is financed partly powers of these delegations. The new orga- from the regular EC budget, and partly by nisational structure will strengthen the dele- special contributions to the European Deve- gations and give them greater authority. lopment Fund (EDF) by member states to EC development cooperation comes cover cooperation with the ACP countries. under First Pillar heading, which means that Cooperation financed from the budget it is the responsibility of the European Com- includes assistance to Asia, Latin America munity (EC), and the Commission is solely (ALA) and non-member countries in the responsible for making proposals. Hence, Mediterranean area (MED), food aid, huma- development cooperation contrasts with the nitarian assistance, support via NGOs and a Common Foreign and Security Policy large number of cross-sectoral areas, inclu- (CFSP) under the Second Pillar heading – in ding the environment, HIV/AIDS, equality which both the Commission and individual and population issues. EDF 8, which covers

68 the five-year period until the year 2000, has cooperation in the higher education sector a total budget of EUR 13.1 billion. There between European and Latin American are, however, significant delays in imple- institutions, and AL-INVEST which is desig- menting commitments and disbursements, ned to promote the internationalisation of resulting in substantial unutilised resources small and medium-sized companies by within the EDF. In 1999, commitments means of exchanges and contacts between amounted to about EUR 2.7 billion, while companies in Europe and Latin America. disbursements amounted to about EUR 1.3 Cooperation to promote democracy and billion. Sweden’s share of EDF 8 is EUR 350 human rights and to reinforce the rule of M (about SEK 2.9 billion). Approximately law has been strengthened during 1999, fol- EUR 4 billion is allocated annually from the lowing a decision taken by the Council. A regular EC budget for development coopera- committee for human rights has been tion. Assistance to the ACP countries from established, containing representatives of EDF 9 will amount to EUR 13.5 billion. In members states and chaired by the Commis- addition, there is about EUR 9 billion in sion. During 1999, a special programme for unutilised funds from the previous EDF. more than EUR 11 M was approved for This total amount covers the period Andean Community countries in the area. 2000–2007. Support for indigenous populations SEK 757 billion of the Swedish develop- amounted to approximately EUR 16 M in ment assistance framework has been earmar- 1999, and primarily involved programmes in ked to cover Sweden’s share of the budget- Mexico, Guatemala and Nicaragua. financed portion of EC development coope- Cooperation between the EU and Latin ration for fiscal year 2000. America is also well-developed in the narco- tics field. A special cooperation mechanism Latin America was established in 1998, covering the EC development cooperation with Latin demand and supply aspects, and the harmo- America covers a wide range of activities, nisation of legislation. In 1999, for example, extending from disaster relief to economic the Commission supported an alternative cooperation. During 1999, total EC assistan- cultivation programme in Peru and a project ce to Latin America amounted to approxi- for the mapping of land areas in Colombia. mately EUR 426 M for 400 different initiati- ves. In addition, there are specific regional Asia projects for a total of some EUR 190 M. EU development cooperation in Asia com- Development cooperation with Latin menced in the early 1970s, but did not take America is governed by the ALA regulation, off until the ALA (Asia and Latin America) which also applies to cooperation with Asian regulation was issued in 1981. Cooperation countries. Cooperation programmes provide has expanded significantly, after a modest technical assistance, but also support indige- start. In 1994, it was further reinforced nous peoples, the reinforcement of democ- when the Commission adopted a strategy for ratic development and respect for human Asia, underlining the Community’s inten- rights. More than half the total funds are tion of strengthening ties between Europe devoted to countries in Central America. and Asia. The largest single programme for Central In recent years, development cooperation America is the regional programme for has expanded to include both assistance and reconstruction after the destruction caused economic cooperation. In 1999, EC assistan- by Hurricane Mitch in a number of countri- ce to Asia amounted to EUR 292 M, of whi- es in October 1998. Total support amounts ch the major proportion was devoted to to EUR 256 M over a four-year period. Peru long-term cooperation, with a focus on and Bolivia are the most important partner poverty reduction and the promotion of countries in South America. sustainable development. Within this frame- Economic cooperation comprises various work, there have been initiatives for the programmes, such as ALFA which promotes environment, institutional and capacity

69 development and good governance. Sweden the form of a contract between two equal welcomes this trend. parties. The Lomé Convention has subse- During 2000, the EC decided to prolong quently been renewed every five years. the regulation governing humanitarian and Lomé IV applied for a 10-year period other types of aid to groups which were for- (1990–2000), but there was a half-way revi- ced to leave their homes as a result of serious ew in 1995. Most of the provisions in Lomé developments which threatened their safety. IV have been extended to cover the transi- The aim is to establish prerequisites for their tional period prior to entry into force of the adjustment to new circumstances, or for new partnership agreement between the EC readjustment. Support for reconstruction and the ACP countries signed in June 2000. after the independence of East Timor will Cooperation now covers 77 ACP countries – continue during 2000 and 2001. Sweden including South Africa since 1997. South welcomes the Commission’s plans for the Africa is not covered by the Lomé Conven- development of new country strategies for tion’s preferential tariffs and development cooperation with Asian countries, following cooperation programmes, however, since it a decision by the Development Council in has a special assistance and trade agreement May 2000 regarding a uniform country stra- with the EU. tegy process. Development cooperation within the Lomé Convention framework is financed by Mediterranean region the EDF. Following entry into force of Lomé EC development cooperation with countries IV, all support which is not administered by in the Mediterranean region was previously the European Investment Bank (EIB) is in of a traditional nature, regulated by “financi- the form of a gift. As time has passed, there al protocols” which established an assistance has been a shift of emphasis, and assistance framework for five years at a time. In 1995, instruments have been developed. Lomé IV the EU decided to adopt a common Medi- focuses on economic reform, regional coope- terranean policy to assist 12 countries ration, democracy and human rights. Most around the Mediterranean (Algeria, Cyprus, assistance is allocated via country frame- Egypt, Israel, Jordan, Lebanon, Malta, works and regional programmes (approxima- Morocco, Syria, Tunisia, Turkey and the tely 60%). Assistance includes a special com- Palestinian authority). This assistance is pensation system for raw material prices devoted to economic transformation, rein- (Stabex) and minerals (Sysmin). Another forcement of a socio-economic balance, and key area is import support and direct budget support for the development of the civil support for the national budgets of partner society and regional cooperation. EUR 4.7 countries. The EDF also covers venture capi- billion was allocated to EC Mediterranean tal, interest subsidies on EIB loans and assistance for the period 1996–1999. humanitarian assistance. The major proportion of this assistance The Lomé Convention is more than a (EUR 3.4 billion) is governed by the MEDA development cooperation agreement, since it regulation, which is currently being revised. also includes preferential tariff treatment. The key questions which need to be resolved The ACP countries have free access to the are the utilisation of country strategies and EU market for all types of goods, except member states’ influence on decision proces- commodities covered by the EC’s Common ses. Agricultural Policy. Preferential tariff treat- ment has been supplemented by a special ACP countries protocol for certain products (bananas, rum, Trade and development cooperation betwe- beef, veal and sugar) which have guaranteed en the EC and the ACP countries in Africa, access to the EU market for specific volu- the Caribbean and the Pacific are regulated mes, and also guaranteed prices in the case by the Lomé Convention. This type of coo- of sugar and meat. peration dates back to the time when the Lomé cooperation also includes common European Community was formed, and took institutions, with a joint council of ministers

70 as the supreme decision-making body. more than 170 different bodies. Like many The results achieved by ACP cooperation other donors, the EU stresses the links have not lived up to expectations, and between disaster relief, support for recon- changes are required. A new agreement was struction and long-term development coope- signed in June 2000 (see special box). ration. There has been a special evaluation of Food assistance ECHO’s operations in the period 1996- EC food security and food aid programmes 1999, in parallel with the global evaluation are designed to promote secure food suppli- of EC assistance completed in 1999. The es in the poorest countries. The overall ECHO evaluation reported some deficienci- objective is to assist these countries by es in the management of humanitarian initi- drawing up long-term strategies for food atives. In May 2000, the EU Development security and helping them to increase Council took the first step towards rectifying agricultural production. Initiatives include the problems when it adopted a resolution support for the regulation of land ownership recommending that the Commission should at the municipal level (Honduras), projects clarify ECHO’s mandate. It was also decided to improve farming methods (North Korea), that ECHO should intensify its cooperation and to establish market conditions for small with the UN and the ICRC, and cooperate farmers or opportunities to make a liveli- more closely with member states on deve- hood outside the agricultural sector (Peru). lopment policy. An extensive evaluation of the programme has been initiated, and a report is awaited in Cooperation via NGOs the autumn of 2000. During 2000, the Non-governmental organisations and, in a Commission drew up a policy for integrating wider sense, the civil society play a major food security in the wider perspective of role in European development cooperation. efforts to reduce poverty. In 1998, regulations were adopted regarding In 1999 the programme represented a the administration of decentralised coopera- total of EUR 505 M, of which 45% was tion and co-financing with European non- devoted to the ACP countries. The largest governmental organisations. Cooperation recipient countries during the year were with NGOs may take the form of contracts Ethiopia, North Korea, Malawi and Bangla- for the implementation of projects financed desh. 22% of the budget was channelled by the EC, or it may involve EC co-finan- multilaterally via the UN World Food Pro- cing of projects initiated by NGOs. gramme (WFP), and about 18% via NGOs. The latter type of support has expanded in The EC is the second largest donor to the the past 10 years, and the Commission has Food Aids Convention. A new convention had difficulty in handling the large number entered into force on 1 July 1999, and will of applications. During the year, Sweden has apply until June 2002. The aim is to contri- actively contributed to the formation of an bute to global food supplies. executive committee for projects which are co-financed with NGOs, and has participa- EC humanitarian assistance ted in the drafting of new guidelines for the EC humanitarian assistance is administered modernisation and simplification of the by the European Community Humanitarian application process, in close cooperation Office (ECHO). The budget for 1999 was with the European NGO Liaison Commit- EUR 800 M – the highest figure since the tee. Office was established in 1992 – making the There is a special budget item for co- EU one of the largest sources in the world of financing with NGOs, with an allocation of financial support for humanitarian opera- EUR 200 M in 1999. If they are to qualify tions. This high level of assistance was pri- for co-financing, the organisations concerned marily due to the crisis in Kosovo. Funds must be non-governmental, independent, were channelled via UN organisations and non-profit organisations with their headqu- NGOs, and ECHO is now working with arters in a member country, and the major

71 Cooperation between the EU and the ACP countries

Lomé cooperation has been presented as a model for part- and cooperation may be suspended. nership, but the results have not lived up to expectations. The EU considered that good governance is sufficiently The partnership principle is based on ambitious but often important to make it a fourth “essential element”. The unrealistic assumptions about the political, institutional ACP countries regarded it as important but refused to and administrative capacity of the ACP countries. Weak- accept that good governance should have “essential ele- nesses within the European Commission have also contri- ment” status. Sweden helped to achieve a compromise buted – for example a fragmented development assistan- under which good governance was classified as a “funda- ce organisation, cumbersome administrative procedures, mental element” in the agreement. This means that good centralised decisions in Brussels, and inadequate capaci- governance is an important objective and is covered by ty and expertise. The structure of Lomé cooperation – the political dialogue, but that special consultation is only involving a large number of different instruments, country called for in the event of serious instances of corruption. frameworks which are largely predetermined, and limited Another new feature of the agreement is that the partici- involvement of participants other than the government of pants undertake to pursue active peace-promotion, con- the partner country concerned – has also hindered effecti- flict-prevention and conflict-resolution policies. ve development cooperation. Preferential tariff treatment The future trade regime was one of the most difficult has not led to greater integration of the ACP countries into problems. A compromise was reached, under which the the global economy. And the ACP countries have not current trade regime will be extended until 2008, and the managed to increase their share of EU imports, or even WTO will be requested to grant exemption for this. In the maintain it. In addition, preferential treatment under the meantime, the EU will negotiate Regional Economic Part- Lomé Convention is not compatible with WTO rules, and nership Agreements which are compatible with the WTO must therefore be replaced. rules for ACP regions that want to have free-trade agree- Prior to negotiations on a new agreement, the Commis- ments of this nature. The aim is to encourage regional sion presented a green paper in 1996 which examined liberalisation and increased trade throughout the region as the future relationship between the EU and the ACP one aspect of the integration of the ACP countries into the countries in order to initiate a broad debate in member global economy. These regional agreements also mean states and the ACP countries. The conclusions drawn pro- that the ACP countries have to gradually open up their vided a negotiation mandate for the Commission. markets to EU exports. Implementation is to commence The negotiations commenced in September 1998, and not later than 2008 and is to be completed over a 12- were concluded in February 2000. Four ministerial confe- year transitional period. rences were held, resulting in agreement on overall objec- The allocation of development cooperation funds on a tives and principles. In the end, they also solved some country basis is to be governed by needs and the results knotty problems in the negotiation process, for example achieved. The agreement involves concentration of the concerning good governance and trade regimes. number of development assistance instruments into a The new partnership agreement runs for 20 years, but single allocation for funds donated. The planning and with an opportunity for revision every fifth year. The allevi- establishment of priorities for operations in the country ation of poverty is the overall objective for cooperation – concerned will then be determined on the basis of country which represents a change. In addition, the partnership is strategies. A special investment facility for support for pri- to be extended to groups outside the government sector – vate-sector development will be administered by the EIB. the civil society and the private sector are to be involved In connection with the negotiations, EU member to a greater extent. The agreement envisages an intensifi- countries were able to agree on the volume for the ninth ed political dialogue between the parties which is to con- European Development Fund (EDF 9). Assistance provi- tribute to peace, security and stability, and promote ded by EDF 9 will amount to EUR 13.9 billion and, in democratic development. This dialogue will also include addition, there are unutilised funds of approximately EUR regular assessments of the progress made in areas such 9 billion from the previous EDF. The total amount should as human rights, democracy, the rule of law and good cover the period 2000-2007. governance, and there is a greater emphasis on these Sweden participated actively in the negotiations which aspects, although the first three areas were already regar- resulted in the new agreement. The agreement lays the ded as “essential elements” in previous agreements. foundations for continued cooperation with the ACP Breaches of these principles are to result in consultations, countries.

72 share of their financial resources should be made of evaluations and that country strate- derived from European sources. Grants are gies should be applied for programming pur- provided for initiatives designed to reduce poses. In addition, special attention was to poverty which are carried out in cooperation be paid to countries involved in conflicts, with NGOs or with European organisations greater selectivity was to be applied (a focus which conduct information activities. on needs and management by results), and Decentralised cooperation is designed to rolling programming schedules were to be facilitate and strengthen horizontal relation- introduced. In addition, the Commission ships between participants in the civil socie- proposed increased delegation of authority ty in member states and third countries. to EU delegations and greater decentralisa- NGOs, local and regional authorities and tion in favour of partner countries. other organisations in the civil society recei- There was also a focus on efficiency and ve contributions for measures to promote management issues in connection with the social and economic development. Commission’s resignation in March 1999, in parallel with the global evaluation. The new Operations in 1999–2000 Commission, under the leadership of its As a result of membership of the EU, Swe- Deputy President, Neil Kinnock, has embar- den has an opportunity, and an obligation, ked on an intensive process of renewal. In to influence a considerable proportion of the January 2000, a draft strategy document was world’s development cooperation. In 1995, presented in the form of a white paper con- the Development Council decided that an taining proposals for extensive reforms of evaluation of the EU’s total development the Commission and its administration. In assistance operations was to be implemen- the case of development cooperation, the ted. This evaluation, which was completed reforms which have the greatest relevance in the spring of 1999, indicated serious pro- apply to budget regulations, the rules for blems in the management of EC assistance. staffing appointments and the Commission’s The criticisms included insufficient policy management and control systems. impact on operations and deficiencies in effi- ciency, coordination with member countries, Coordination and complementarity openness, transparency, and feedback of eva- According the Maastricht Treaty, the Com- luation results. The organisational structure mission’s development assistance program- of the Commission and its ability to manage mes must complement national program- development cooperation were also questio- mes conducted by member countries. The- ned. The ministers for development coope- re are differences of opinion as to how this ration adopted a resolution at the Develop- should be achieved in practice, however, ment Council’s meeting in May 1999 calling and limited progress has been made. The for measures to improve the effectiveness of basic view expressed in the resolution Community assistance programmes and the adopted by the Development Council in results achieved. The Commission was May 1999 was that complementarity can- urged to draw up initial proposals for a com- not be dictated by Brussels but must emer- prehensive policy declaration which would ge as the result of closer cooperation in the provide a basis for various action plans for field. The development strategies of part- Community assistance. ner countries are the primary instrument In March 2000, the Commission presen- for coordinating the contributions made by ted proposals for future development policy, various donors. The resolution indicates including adaptation of EC assistance to that there should be closer cooperation comply with international guidelines, such between EU delegations and the field offi- as the DAC’s Shaping the 21st Century and ces of member states when drawing up the UNDP, World Bank and IMF Compre- country strategies for Community assistan- hensive Development Framework and ce programmes. A group of experts has Poverty Reduction Strategy Papers. It was proposed that measures should be taken at also proposed that increased use should be the central level to harmonise rules and

73 EU Presidency in 2001

An EU open to the rest of the world will be one of the key concepts during Sweden’s presi- dency in the first six months of 2001. In this period, Sweden will be heading the Develop- ment Council and the negotiations in the Council’s four working groups in the development cooperation area, and will also be involved in hundreds of EU consultations prior to UN con- ferences and meetings, and other types of consultation at both central and local levels. In addition to presidential responsibility for formulating joint EU standpoints and representing the EU in international organisations and third countries, ongoing tasks will continue – for example in the 25 executive committees and groups of experts in which the Swedish Ministry for Foreign Affairs and Sida are participating, under the Commission’s leadership. The preparations have taken an increasingly tangible form since the spring of 1999, within the framework of the overall Swedish work programme, and the Commission’s work program- me. The basic assumption is that Sweden will help to ensure that the quality and efficiency of Community assistance improves during the Swedish presidency, and that the EU shoul- ders its responsibilities in the development cooperation sphere in a spirit of solidarity, as a trustworthy member of the international development community, and with a particular emphasis on the United Nations. To the extent that the presidency is able to exert an influence in this sphere, Sweden will endeavour to ensure that the Development Council’s agenda will be a manageable overall process, maintaining continuity with the French and Belgian presidencies and also building on the work done under previous presidencies. But, above all, Sweden must help to ensure that the requisite decisions are taken by the Council to guarantee the instruments and achi- eve an effective organisation for the implementation of the Commission’s new development policies. Sweden plans to arrange two high-level meetings during its presidency period. “Children in Armed Conflicts and Displaced Children” is a high-level seminar which will take place in Norrköping on 1-2 March 2001. “Making Globalisation Work for the Poor”, an informal con- sultation to discuss globalisation and development cooperation, will take place in Kramfors on 21–22 June. In Brussels, the EU is hosting the UN conference on the least-developed countries. This will take place on 13–20 May 2001.

procedures, ensure that the same poverty Conflict prevention, and sectoral analyses are employed, and peace-making and settling conflicts apply common sector programme support During recent years, a broader view of con- wherever possible. flict and security issues has been established, The resolution closely reflects the Swe- with a greater focus on measures to prevent dish view on this issue. Sweden has finan- conflicts and establish lasting peace. Deve- ced a study conducted by the European lopment assistance is an important instru- Centre for Development Policy Manage- ment in this context. At a meeting of the ment (ECDPM) and the Nordic Africa Development Council in November 1998, Institute (NAI) on how complementarity is conclusions were adopted that are designed viewed by the Commission and by Sweden. to indicate a route for the implementation of The conclusions reached by the study were the policies of the Commission and member used as the basis for formulating the text of states in this area. the resolution. The Development Council’s conclusions emphasise, for example, the leading role

74 played by recipient countries in preventing various crisis situations. It is also intended conflicts and strengthening peace, that EU that the committee should evaluate events activities should support local capacity and and prepare “best practice” strategies. local institutions, and the importance of The establishment of a civilian committee coherent and coordinated action by the EU provides an opportunity to review the EU’s in various policy areas. Direct references entire civilian conflict and crisis prevention were made to the DAC: Guidelines on Con- capacity. This task involves both First Pillar flict, Peace and Development Cooperation on issues, such as humanitarian tasks (ECHO) the Threshold of the 21st Century. in order to and EC development cooperation, and stress the importance of coherent action. Second Pillar issues such as foreign policy, as The Helsinki Summit in 1999, at which the result of the establishment of a dialogue the EU agreed to establish a civilian crisis- with the Committee for Foreign and Securi- management committee, following a Swe- ty Policy. In addition, this will throw light dish /British initiative, was another impor- on member states’ bilateral development tant step. This committee is responsible for cooperation from a stocktaking and evalua- collecting information from member states tion viewpoint. This will enhance opportu- regarding their ability to contribute civilian nities for a consensus and coherent action in emergency resources and to advise the Com- these policy areas. Sweden has given high mittee for Foreign and Security Policy in priority to this area for some time.

75 Bilateral development cooperation

Most Swedish development cooperation is most of these countries, but country strategi- carried out bilaterally – based on direct es are also being developed for certain other cooperation between Sweden and indivi- nations. Country strategies are prepared dual developing countries. Sida is the jointly by the Ministry for Foreign Affairs central administrative authority for Swe- and Sida. To an increasing extent, they are den’s bilateral development cooperation, also based on close dialogue with the partner and is responsible for the overwhelming country in question, both with the govern- proportion of the implementation of bila- ment and the civil society. The Swedish diplomatic representation in the country teral development assistance. Sida was concerned also plays a key part in this pro- formed in 1995 by merging five existing cess. In Sweden, participants in the process development assistance authorities include the popular movements, non-govern- (SIDA, SAREC, BITS, SwedeCorp and the mental organisations, the Swedish Trade Sandö Training Centre). Sida had 837 Council, universities and individual experts. employees in December 1999. In order to integrate Swedish cooperation as far as possible with the development Sida’s task is to implement development coo- efforts carried out by the partner country, peration within the framework of the overall and coordinate initiatives with other donors’ goal of raising the standard of living of poor contributions, increasing emphasis is being peoples, the six objectives for development placed on linking Swedish country strategies assistance policy, and the overall goals of with strategies primarily developed by the Sweden’s cooperation with Central and Eas- partner country itself. However, they also tern Europe. Sida’s approach to the integra- need to be linked to strategies developed by tion of these objectives into its operations is other leading donors, such as the World Bank described in Sida Looks Forward – Sida’s pro- and the United Nations, in close cooperation gramme for global development. This docu- with the national government and the civil ment emphasises that cooperation should society. Poverty Reduction Strategy Papers help to establish conditions for development. (PRSP), which have already been mentioned, The manner in which these prerequisites are will play a key role in this context. to be achieved is described, for example, in Bilateral Swedish development cooperation the four action programmes prepared by Sida is implemented in a number of forms, using for poverty eradication, the environment, various tools adapted to suit the type of coo- democracy and human rights and gender peration and the situation in each individual equality. partner country. The overwhelming propor- Sweden is participating in bilateral deve- tion of resource transfers (more than 90%) lopment cooperation with a large number of take the form of donations. The remainder countries. The term countries is not only involve different types of loans. Various con- used to refer to the state or the government, ditions are attached to donations, including but to the community as a whole. In the case the time period, the degree of earmarking and of countries with which Sweden has more requirements regarding partial financing by comprehensive or complex cooperation, this the partner country. is governed by a “country strategy”. There are The new type of partnership relationship special “country framework" allocations for aimed at implies new demands on the forms

76 The 20 largest partner countries in 1999

Rwanda Bolivia India Sri Lanka Zambia Angola Guatemala Ethiopia Zimbabwe Yugoslavia Uganda Palestine Bangladesh Bosnia-Hercegovina Honduras Vietnam Nicaragua South Africa Tanzania Mozambique

SEK ’000 0 100 000 200 000 300 000 400 000 500 000

for development cooperation. Sida has sum- ned (particularly in the case of cooperation marised this in the following points: financed by country frameworks). This invol- ves an overall approach to the country con- 1 An open and clear policy dialogue with the cerned, rather than the mere financing of iso- partner country. lated projects. The aim is to supplement the 2 Programmes receiving development assi- country’s own efforts and to contribute to stance are placed in their national context. the financing of major programmes, for Programme support will become an increa- example in sectors such as education and singly common form of aid. health-care, while at the same time emphasi- 3 Active donor coordination led by the part- sing the partner country’s responsibilities and ner country. clarifying the various roles. 4 Development assistance mobilises local Government development assistance is also resources, both human and financial. performing an increasingly important func- 5 Financing is shared between the partners, tion as a catalyst for increased flows of priva- with clear reporting of Sida’s and the part- te capital, both at the national and interna- ner country’s shares. tional levels. In many countries, the condi- 6 Clear project and programme goals and tions exist for a gradual reduction of develop- definite deadlines and closing dates for ment assistance and a subsequent increase in measures taken. domestic and foreign private resources. Development assistance can facilitate this In general terms, this means that Sida will process by supporting the development of focus on long-term cooperation based on a national financial sectors, for example. comprehensive view of the country concer- Cooperation financed by country frame-

77 works is intergovernmental and based on a gic plan for 2000–2002 gives special priority cooperation agreement between Sweden and to: the partner country concerned. An entity in the partner country is always responsible for • greater clarity concerning implementation. This entity may be a poverty and growth ministry or a government agency, but it • developing and changing Sida’s roles could also be a private company or an NGO. • field operations Some bilateral aid is also channelled to speci- • monitoring and control. al programmes via UN agencies, the World Bank and other bilateral donors. Evaluation and quality assurance In addition to country frameworks, there Bilateral development cooperation is evalua- are a number of types of initiatives, both in ted both by Sida’s Secretariat for Evaluation states which have country framework coope- and Internal Audit which reports directly to ration with Sweden and in other countries. Sida’s Board, and also by various depart- These initiatives are often short-term or of a ments and by embassies which have an integ- more limited nature. They are, however, rated development cooperation function. included in country strategies in the countri- Sida’s policy for evaluation operations has es for which strategies are established. This identified three main objectives: type of assistance includes support for democracy and human rights, private-sector • monitoring operations to ensure cooperation, support for economic reforms, correct allocation of responsibilities, special environmental initiatives, humanitari- • learning from experience and further an assistance, research cooperation and sup- development of operations, port via Swedish NGOs. All these forms of • contributing to the development of know- assistance are discussed in more detail in the ledge and expertise in order to enhance section on Sida’s operations. research and the long-term development of In geographical terms, Sida’s disburse- ideas in the development cooperation field. ments in 1999 were allocated as follows: Africa 35%, Asia 19%, America 16% and The Evaluation and Internal Auditing Secre- Europe and Central Asia 14%. The remain- tariat (UTV) is assigned to review both Sida’s der primarily consisted of payments which organisational structure and its operations. In could not be classified on a geographical addition, Sida’s operational departments eva- basis. In terms of areas of operations, 17% of luate operations as an integrated feature of disbursements were devoted to humanitari- their various programmes. A new method for an assistance, while 16% went to social sec- achieving systematic decisions was prepared tors, 13% to human rights and democratic during 1999, and has begun to be applied by governance and 12% to the infrastructure, most departments. The aim is to further syn- the private sector and urban development. thesise evaluation, thus improving opportu- Humanitarian assistance has expanded more nities for drawing instructive conclusions and rapidly than other areas in recent years. establishing clear lines of responsibility. Previously, Sida intended to reduce the Five evaluations were carried out in 1999, number of initiatives, but due to a strong involving the impact of programme support, focus on small and strategic projects – par- the extent to which environmental aspects ticularly in the democracy and human rights are taken into account in Sida’s credit-finan- area – the number of initiatives has increa- ced projects, cooperation between research sed, and totalled 4,620 in 1999. institutions in Sweden and Uruguay, and two In January 1999, Sida introduced a new evaluations of the large Bai Bang project in model for internal planning and manage- Vietnam. In addition, studies were conduc- ment of operations. The new annual cycle is ted regarding the evaluation process and its governed by a strategic plan which identifi- relevance for partner countries, and develop- es strategic development areas on an annual ment cooperation channelled via Swedish basis, with a three-year horizon. The strate- NGOs.

78 During 1999, 32 evaluations by depart- The Swedish development assistance ments were also published. Most of them administration needs more information involved questions regarding continued sup- about how effective cooperation should be port operations or assessments of the changes conducted. This calls for greater feedback in approach and implementation required for and the development of knowledge and specific programmes. Two-thirds of the eva- experience within the evaluation function, luations concluded that initiatives had resul- better utilisation of research results, and gre- ted in satisfactory achievement of targets, but ater expertise on the part of personnel dea- almost one-third indicated more serious pro- ling with bilateral development cooperation blems, such as lack of “ownership” on the issues. The Expert Group for Development part of the partner country, inadequate viabi- Issues (EGDI) appointed by the Govern- lity and low cost-effectiveness. The key les- ment in 1995 is playing a key role in this sons reported include the importance of context in the form of external advice and adopting a sector-programme approach, contacts with the research community. explicit clarification of roles at an early stage During 1999, the EGDI published four stu- and the importance of long-term cooperation dies, including studies of development assi- and donor coordination. stance dependency, rural development in Most of these evaluations have been Tanzania and the international financial published on Sida’s website (www.sida.se). architecture.

79 TUNISIA MOROCCO

WESTERN SAHARA ALGERIA LIBYA EGYPT

MAURITANIA CAPE VERDE MALI NIGER SENEGAL ERITREA GAMBIA CHAD BURKINA SUDAN DJIBOUTI FASO GUINEA- GUINEA BISSAU SIERRA NIGERIA

BENIN ETHIOPIA LEONE TOGO

LIBERIA GHANA CENTRAL AFRICA COTE D'IVOIRE CAMEROON SOMALIA UGANDA EQUATORIAL GUINEA DEMOCRATIC CONGO REPUBLIC OF KENYA GABON LAKE CONGO RWANDA VICTORIA BURUNDI CABINDA (ANGOLA) TANZANIA

ANGOLA MALAWI ZAMBIA

MOZAMBIQUE ZIMBABWE NAMIBIA MADAGASCAR BOTSWANA

SWAZILAND LESOTHO

REPUBLIC OF SOUTH AFRICA Africa

Conflicts have continued in many parts of by the UN and the EC. A protracted civil Africa during the past year, and they have war with serious humanitarian consequences led to destruction and widespread human is still in progress in Sudan. The civil war in hardship and deprivation. Although some Angola has also continued and, in late 1999, steps have been taken towards a solution of overflowed into Namibia, at least tempora- the conflict in Central Africa, with a focus rily. In the early months of 2000, the deve- on the Democratic Republic of Congo, fol- lopment process was affected by a flood lowing the Lusaka Agreement signed in disaster (mainly in Mozambique) and severe 1999, no final peace agreement has been drought in Ethiopia, both of which resulted achieved. Similarly, there has been no solu- in a substantial need for humanitarian assi- tion of the conflict between Ethiopia and stance. In Zimbabwe, political and economic Eritrea, despite mediation by the OAU mismanagement led to a crisis. (Organisation of African Unity), supported But political and economic progress is

80 nonetheless taking place in Africa. Democra- investment and trade are a crucial factor in tic elections were held in most African their development. The debt burden has countries during the 1990s and, in 1999 the- been eased as a result of international action, re were presidential, parliamentary or local but it still represents an obstacle to develop- elections in some 10 African countries. In ment in the poorest and most heavily indeb- Nigeria, a military regime which had been in ted countries. power for many years was replaced by a civi- Africa has about 23 million of the world’s lian government, following general elections. 36 million HIV/AIDS sufferers. Almost In South Africa, democratic elections were 200,000 Africans were killed in hostilities in held for the second time. Presidential elec- 1998, but 2.2 million people died of tions took place in Senegal in February HIV/AIDS. The scale of the HIV/AIDS epi- 2000, and there was a transfer of power demic is a strain on all aspects of the econo- under peaceful forms. my. It is no longer merely a health problem, Many African countries have become but has become a serious obstacle to deve- more open, and new groups in society have lopment, as witnessed by the special been able to voice their interests and ambi- HIV/AIDS session of the UN Security tions more freely than in the past. The civil Council in January 2000. This was the first society has had greater opportunities to time the Security Council has ever discussed influence the course of events. Democratic a health issue, thereby extending its defini- development is not an automatic process, tion of what constitutes “a threat to interna- however, as demonstrated by events in Zim- tional peace and security”. In addition, mala- babwe. Building up democratic institutions ria is also claiming a large number of victims and developing a democratic culture take in Africa. time. The progress made in the past decade Although they continue to face broadly has laid the foundations for the further the same development problems as in the development and consolidation of democra- past, many African countries are trying to cy. establish a new relationship with the outside In most African countries, economic poli- world in which they are aiming for reduced cies have been revised, with a focus on reliance on aid, a greater degree of mutual macroeconomic reforms, deregulation, pri- interest and participation, higher investment vatisation and trade liberalisation. This has and increased trade with other countries. led to favourable economic development in The desire to establish a new partnership many African countries, although poverty relationship was also one of the objectives of continues to be widespread. Sub-Saharan the Government white paper submitted to Africa is the region in which the highest pro- the Swedish Parliament in March 1998 portion of the population are subject to entitled Africa on the Move. Revitalising Swe- extreme poverty. Continued economic dish Policy towards Africa for the 21st Cen- reforms must therefore lead to increasingly tury (skr. 1997/98:122). The overall goal of rapid growth, with a focus which ensures this new policy for Africa is to support pro- growth that will benefit poorer groups. cesses of change initiated by Africans, to The African countries are also facing other develop a more equal form of cooperation – development problems. Environmental a partnership between Sweden and African destruction is increasing as the deserts countries – and to reinforce long-term expand, and there is growing pollution in exchanges between Sweden and Africa. coastal areas around Lake Victoria with The goals and guidelines set out in Africa rapid population growth. Urbanisation is on the Move are followed up when drawing also creating environmental problems, up country strategies for cooperation with unemployment, increased crime and social the main recipients of Swedish development misery. Corruption is widespread at all assistance. These strategies are guided by the levels, and this has a negative impact on att- need for anchorage in the partner country’s racting private-sector investment at a time own development visions, and satisfactory when many African countries consider that coordination with other donors. The aim is

81 to base cooperation on a broader assistance battle against the HIV/AIDS epidemic, whi- programme with a sectoral focus directed by ch is becoming increasingly serious. As alrea- the country concerned, rather than the pro- dy mentioned, Sida has improved its capaci- vision of support for individual projects. ty to tackle the epidemic and its consequen- In particular, the Africa on the Move white ces by setting up a regional HIV/AIDS sec- paper stresses the reduction of poverty and retariat in Harare. the role played by democracy and human Sweden will increasingly focus on reinfor- rights in all development cooperation. There cing African capacity to prevent and manage is a clear focus in this connection on the conflicts as a result of cooperation with regi- implementation of the international human onal and subregional organisations such as rights conventions, for example those which the OAU, SADC, ECOWAS and IGAD. affect women and children. Contributing to Cooperation with countries in West Africa the reinforcement of capacity and expertise, will continue, in accordance with the strate- and the establishment of effective public gy for the development of Sweden’s coope- institutions in partnership countries are ration with countries in West Africa. important features of such programmes. A During 1999, Sida approved an action “knowledge boost” is essential to counteract programme for development cooperation the growing marginalisation of Sub-Saharan with Africa in the period 1999–2002, cover- Africa in a globalised economy. ing the aspects mentioned above. Sweden is also participating actively in the Foto: Victor Lenson Brott/Global reporting Sweden

The transition to democracy in South Africa proceeded more smoothly than anyone had dared to hope. The major challenge today is to achieve genuine improvements in everyday living conditions for the overwhelming majority of the population.

82 ANGOLA Area...... 1 247 thousand km2 (1998) The protracted conflict in Angola – an armed Population ...... 12 million (1998) struggle against Portugal, the colonial power, GNP per capita...... USD 380 (1998) followed by almost 25 years of civil war – Life expectancy ...... 47 (1998) has not yet been solved. It proved impossib- le to complete the latest peace process, and Infant mortality per 1,000 children under 5 years ...... 204 (1998) civil war flared up once more in December 1998. The main responsibility for the break- Percentage of illiterate people down of the peace agreement lies with the aged 15–24 years (male/female) ...... - / - (1998) UNITA rebel movement. The UN has Total assistance as a approved extensive UN sanctions against percentage of GNP ...... 8.2 % (1998) UNITA, but compliance has been unsatis- Swedish assistance ...... SEK 146.8 (1999) factory. The UN Sanctions Committee has presented a report containing proposals for improved compliance. The humanitarian situation in Angola has deteriorated significantly. The number of appear to feel bound to respect human internal refugees is increasing continuously, rights, either formally or in principle. The and is now almost 2 million. The number of human rights unit within the UN mission is refugees outside the country’s borders is also doing everything possible to promote increasing. At the same time, deterioration respect for human rights. of the security situation has made it difficult to reach those who need humanitarian assi- Sweden’s development assistance stance. Sweden has a long-term involvement in Angola is now experiencing a serious eco- Angola, which began at an early stage with nomic and social crisis as a result of the support for the MPLA liberation movement. protracted conflict, and extensive measures Development cooperation has gradually are required to rectify the situation. The dis- been restricted as a result of the military tribution of income is extremely skewed, situation and economic mismanagement. In and most of the population are poor. Only a the current situation, the weak administrati- marginal proportion of the national budget ve apparatus makes it difficult to establish is devoted to the social sectors. The Angolan sustainability in cooperation projects. Coo- government and the IMF have recently peration is conducted in accordance with a reached agreement on a “shadow program- country strategy, governed by specific pro- me”. ject agreements. Total disbursements in 1999 amounted to approximately SEK 148 Democracy and human rights M. Serious human rights violations are The overriding goals of Swedish develop- occurring on both sides. In theory, the con- ment assistance are to reduce poverty, pro- stitution and Angola’s ratification of most of mote peaceful and democratic development the key human rights conventions provide and respect for human rights, and increase relatively good protection against human social justice, but as a result of the conflict, rights violations. In practice, however, this humanitarian initiatives are also needed to protection is minimal. The armed forces and alleviate the effects of war and to support the police have been brutalised by the the civil society. Cooperation therefore protracted conflict and discipline is poor. focuses mainly on humanitarian and peace- The frequent violations mainly involve indi- promotion initiatives, support for human vidual officials, but the government has not rights and democracy, and health care, par- taken the necessary steps to prevent atrociti- ticularly for mothers and children. Swedish es or punish the culprits. Reports on the support for mine-clearance operations has situation in UNITA-controlled areas indicate helped to open up substantial areas for culti- that the population’s civil liberties and rights vation by internal refugees. The child health have been totally ignored. UNITA does not care programme has involved vaccination

83 campaigns, for example, and the maternity Eritrea is one of the world’s poorest countri- care programme has given 25,000 women es. Average income is less than USD 200 per year access to high quality child-birth per year, infant mortality is high and illitera- services administered by midwives. Support cy widespread. The conflict with Ethiopia for the human rights and democracy process has involved major expenditures for mobili- has helped to strengthen the civil society, sation and arms, which puts a strain on the including the establishment of a reference Eritrean economy. As a result, the economy library and a documentation centre for has slowed down, with lower growth and an Angolan lawyers. Human rights seminars increasing budget deficit. The privatisation have been arranged for municipal prosecu- of state-owned companies is continuing, but tors, policemen and prison warders. Swedish at a slower pace than in the past. Eritrea support for gender equality has contributed places a strong emphasis on self-reliance and to the expertise of the Angolan women’s wants to avoid dependence on development network, which is utilised in a number of assistance. As a result, Eritrea is keen to contexts. Seminars on the gender and vio- develop trade and other types of commerci- lence themes have been arranged, in which al relations with the rest of the world. There journalists and policemen have participated. is hardly any corruption in Eritrea. The government’s ambition is to help the poo- rest groups, and an extensive programme has been initiated to improve social condi- tions. Most non-governmental organisations (NGOs) which were forced to suspend their operations and leave Eritrea in 1998 have now been asked to return to initiate huma- nitarian programmes. The OAU initiated efforts to achieve a peaceful solution to the conflict between Ethiopia and Eritrea at its summit meeting in June 1998. This resulted in the presenta- tion of a peace plan, but a peaceful solution has not yet been achieved, due to continued disagreement regarding technical arrange- ments for implementation of the plan. Ethi- opia launched a military offensive on 12 May 2000, which strengthened its position in the field. Eritrea withdrew its troops from all the disputed border areas, and Ethiopia declared that the war was at an end, wit- hdrawing its forces from western Eritrea. But Ethiopia still has troops in undisputed Eritrean territory. In late November 1999, the EC appointed Mr. Serri, the Italian state secretary as the chairmanship’s special representative for the conflict. His assignment is to support the OAU’s mediation efforts and maintain close contact with the OAU and the two countri- es involved. The mediation process is conti- nuing, and confidential talks commenced in Algiers on 30 May 2000 under OAU auspi- ces.

84 ERITREA Democracy and human rights Area ...... 118 thousand km2 (1998) No real democratisation has yet occurred in Population ...... 4 million (1998) Eritrea. The ruling party, the People’s Front GNP per capita...... USD 200 (1998) for Democracy and Justice (PFDJ), continu- Life expectancy...... 51 (1998) es to be the sole political party. The consti- Infant mortality per 1,000 tution prescribes free elections, but presi- children under 5 years ...... 90 (1997) dential and parliamentary elections have not Percentage of illiterate people yet been held. A national electoral commis- aged 15–24 years (male/female) ...... 21 / 41 (1998) sion has been appointed to prepare election Total assistance as a legislation prescribing the rules for represen- percentage of GNP ...... 20.6 % (1998) tation and political participation. Swedish assistance...... SEK 35.5 M (1999) The constitution adopted on 1 May 1997 guarantees fundamental civil and political rights. In addition, the constitution establishes the right to form political parties, During 1999, support for the energy sec- but not on the basis of ethnic background or tor primarily took the form of consultancy religion. Despite these rights, practical appli- services. In the education sector, a literacy cation of the constitution indicates that the- campaign activated 20,000 participants re is some way to go before a genuinely during 1999. Research cooperation with the democratic culture is established. At the University of Asmara has gradually expan- moment, for example, there are no opposi- ded. Computerisation of the Ministry of tion parties or independent human rights Finance accounting system has been some- organisations. Although a few privately what delayed. A funding support agreement owned newspapers have been launched in amounting to approximately SEK 10 M for the past year, there is limited scope for the humanitarian initiatives in Eritrea was signed free formation of opinion. The judicial in April 2000. This contribution, which is system is undeveloped, and there is a lack of financed from the country framework, is to well-educated court personnel. A number of be used to help internal refugees and Eritre- people are held in detention without charge ans deported from Ethiopia. or trial. Eritrea has ratified the Convention on the Rights of the Child and the Conven- tion on the Elimination of All Forms of Discrimination against Women. Swedish development cooperation Sweden’s partnership agreement with Eritrea has been extended until 31 December 2000. In view of considerable budgetary reserva- tions regarding development cooperation, and the uncertainty about the impact of the con- flict, the country framework was reduced to SEK 10 M. As a result of renewed, extensive hostilities which commenced on 12 May 2000, it was decided to suspend all new com- mitments until further notice, including com- mitments covered by existing programmes. Cooperation with Eritrea aims to contribute to economic and social development, and the reinforcement of democratic development. Cooperation involves support for four areas: energy development, literacy, public admi- nistration and the University of Asmara.

85 ETHIOPIA Area ...... 1,104 thousand km2 (1998) and decentralisation processes present pro- Population ...... 61 million (1998) blems, however. Journalists and dissidents GDP per capita ...... USD 100 (1998) continue to be arrested, and the opposition Life expectancy ...... 43 (1998) cannot operate effectively and has been inc- Infant mortality per reasingly marginalised. In the run-up to the 1,000 children under 5 years ...... 173 (1998) general elections held on 14 May 2000, Percent of illiterate people however, there were several indications that aged 15–24 years (male/female) ...... 47 / 50 (1998) the government was trying to establish the Total assistance as a prerequisites for active participation of the percentage of GNP ...... 10.0 % (1998) opposition in the elections. Furthermore, in Swedish assistance ...... SEK 155.9 M (1999) contrast with their attitude in 1995, the opposition parties declared that they were prepared to participate in the electoral pro- cess. Political operations by the opposition parties continue to be blocked in various Ethiopia is one of the world’s poorest ways, however – some candidates have been countries. Approximately 27 million people arrested, for example. Problems are com- are living in absolute poverty and it is esti- pounded by a weak and over-loaded judicial mated that about 65% of the population is system. A large number of former govern- illiterate. Infant mortality is around 20%, ment employees have been imprisoned since one of the highest rates in the world. the regime shift in 1991, without being Agriculture, which is crucial for the Ethiopi- brought to trial. The conflict with Eritrea an economy, is very sensitive to weather (see the section on Eritrea) has led to the conditions. There is a serious drought, due deportation of a large number of Eritreans to failure of the brief rain period for three residing in Ethiopia in a manner that contra- years in a row. During 2000, it is estimated venes international law. Ethiopia has ratified that about 8 million people will need food the major international human rights con- aid in Ethiopia. ventions, including the covenants on Econo- The economy has gradually improved sin- mic, Social and Cultural Rights, and the ce the change of regime in 1991 and, for the Civil and Political Rights. most part, Ethiopia’s structural adaptation programme has been implemented in a sys- Swedish development cooperation tematic manner. On the whole, the IMF has Sweden’s partnership agreement with Ethio- taken a positive view of the economic situa- pia has been extended by one year until 31 tion, but the ongoing conflict with Eritrea December 2000. In view of considerable has resulted in economic deterioration. Pro- budgetary reservations regarding develop- jected disbursal of an IMF loan has been ment cooperation, and the uncertainty about postponed until the consequences of the the impact of the conflict, the country fra- conflict on national finances become clearer. mework has been reduced to SEK 70 M. As Similarly, the EC has also frozen payment of a result of renewed, widespread hostilities its structural adjustment support. The bud- which commenced on 12 May 2000, it was get deficit is increasing as a result of higher decided to suspend all new commitments defence expenditure and reduced develop- until further notice, including commitments ment assistance funding. covered by existing programmes. In addition to the elimination of poverty, the goals for Democracy and human rights development cooperation include better Following the fall of the Mengistu regime in living conditions in rural areas as a result of 1991, the new government initiated a the sustainable utilisation of natural resour- democratisation process. A modern constitu- ces, education and health care, as well as the tion was adopted in 1994, establishing a reinforcement of democratic development. federal form of government, with 10 auto- Initiatives are focused on natural resources, nomous regions. Both the democratisation education and health. However, support for

86 KENYA 2 programmes in the health and education Area ...... 580 thousand km (1998) sectors have been postponed until further Population ...... 29 million (1998) notice as a result of the conflict. GNP per capita...... USD 350 (1998) An agreement was signed in September Life expectancy...... 51 (1998) 1999 for the development of the forestry Infant mortality per 1,000 faculty at Wondo Genet. children under 5 years ...... 124 (1997) Implementation of the rural programme Percentage of illiterate people in the Amhara region commenced in Sep- aged 15–24 years (male/female) ...... 5 / 7 (1998) tember 1997. One result of the programme Total assistance as a is that 20,000 microcredits were granted percentage of GNP ...... 4.2 % (1998) during 1999. In addition, national roads Swedish assistance...... SEK 93.5 M (1999) have been repaired and rural roads have been constructed. Support for initiatives designed to reinforce democracy and human rights has become broader and deeper. Sup- Kenya’s second multi-party elections which port was provided for the Ethiopian associa- were held in December 1997 resulted in the tion of women lawyers for basic legislative re-election of president Moi, and a marginal training for female community leaders. Swe- victory for the ruling party, the Kenya Afri- den has also continued to support the efforts can National Union (KANU), in the parlia- of NGOs working in the human rights and mentary election. It was hoped that the democracy field in Ethiopia, and has contri- opposition would take vigorous steps to per- buted to preparations for the general elec- suade the government to tackle the economic tions – for example in the form of funds for crisis, widespread corruption, an obsolete the electoral commission and the recently- constitution and the decline in the standard established special fund for support to poli- of living. But this did not happen. By establi- tical parties. Ethiopia clearly wants to achie- shing cooperation with various opposition ve clear “ownership” of the process in its parties, the government drove a wedge cooperation with Sweden. In the long term, between them, thus ensuring a stable majori- Ethiopia wants to reduce its dependence on ty in parliament. In addition, there is only a assistance and develop relations in the com- limited degree of ideological discussion mercial sphere instead. In 1999, efforts to between the parties. The Kenyan economy increase trade and private-sector coopera- continues to stagnate, but the government tion between Sweden and Ethiopia were ini- has recently taken steps which are being tiated and a partnership agreement was sig- monitored by the donor community. ned in May 1999 between the Addis Ababa Chamber of Commerce and the Stockholm Democracy and human rights Chamber of Commerce. One of the most important political issues for Kenya is the review and revision of the con- stitution, in order to adapt it to the current multi-party system. This process has not yet started, due to antagonisms between the poli- tical parties and conflicts of interest between the country’s various geographical areas and ethnic groups. Respect for human rights continues to be unsatisfactory. Although Kenya has ratified the major human rights conventions, there are weaknesses in the practical application of human rights, as seen in frequent instances of violence and brutality in connection with police activities and in prisons. There is limi- ted protection of the rights of the individual.

87 The death sentence is frequently pronounced, ment was signed for the period 1 July 1999 – but is not implemented. Freedom of expres- 30 June 2002. The aim of Swedish develop- sion and freedom of the press are relatively ment cooperation with Kenya is to improve satisfactory, although newspapers and indivi- conditions for the poor, support democratic dual journalists are subject to threats, harass- development and contribute to the sustainab- ment and attempted bribery. Trade union le use of natural resources and the environ- organisations are subject to government con- ment. Continued support concentrates on the trol. Women have a subordinate position in following sectors: health care, land manage- Kenyan society and violence directed at ment, water supplies and sanitation, and rural women and children is a serious problem and roads. The strengthening of institutions and an obstacle to social development. In recent administrative capacity is emphasised in all years, a rich civil society has emerged in these initiatives. Democratic development Kenya, and respect for human rights is moni- and reinforcement of fundamental human tored by a number of NGOs. rights are promoted in all forms of coopera- tion. There is a particular emphasis on rein- Swedish development cooperation forcing the rights of women and children. As In view of the reduced opportunities for the a result of Swedish support, 150,000 people implementation of initiatives, growing cor- now have access to water supplies, 20,000 ruption and infringements of human rights, small farmers have received training and Swedish bilateral assistance has declined sub- almost 1,500 km of rural roads have been stantially since the late 1980s and a new focus repaired. In the democracy field, some 50 has been adopted. The country framework, central government officials have received which was SEK 150 M in 1989, has been human rights training. A broad democracy reduced to SEK 65 M in recent years. capacity-building programme has been post- In April 1999, the Swedish Government poned, however, pending a review of the con- approved a new country strategy for the stitution. Kenya is also one of the largest reci- 1999–2003 period, and a cooperation agree- pients of support via Swedish NGOs. Foto: Victor Lenson Brott/Global Reporting Sweden

Nairobi, Kenya’s capital, is a large modern city, but increasing corruption and violations of human rights prevent sustainable development on a national scale. In combination with the overall political situation, this has led many countries to reduce their support for Kenya.

88 MOZAMBIQUE Area ...... 802 thousand km2 (1998) Mozambique suffered particularly seriously from the severe flood disaster in Southern Population ...... 17 million (1998) Africa in the first few months of 2000. A GNP per capita ...... USD 210 (1998) high proportion of the national infrastructu- Life expectancy...... 45 (1998) re was destroyed and several million people Infant mortality per 1,000 were affected. It is estimated that the direct children under 5 years ...... 213 (1998) and indirect costs of the disaster amounted Percentage of illiterate people to about USD 700 M. The government of aged 15–24 years (male/female) ...... 26 / 57 (1998) Mozambique, in cooperation with the Total assistance as a UNDP, invited the international community percentage of GNP ...... 28.2 % (1998) to attend a meeting of donors in Rome, whi- Swedish assistance...... SEK 424.9 M (1999) ch resulted in massive support (USD 452 M) for the national reconstruction program- me. Following the flood disaster, Sweden has approved a grant of SEK 29.5 M in humani- poverty and the country is heavily depen- tarian aid, channelled via the UN in respon- dent on assistance. In terms of indicators se to the OCHA appeal, and via NGOs. such as average life expectancy, education During 2000, there will be reallocations and average income, the standard of living within the country framework in order to has steadily improved since 1995, however. provide additional assistance for various During 1999, the government presented a reconstruction programmes in sectors which national poverty survey and an action plan Sweden already supports. Sweden has also for the elimination of poverty. The approved balance of payments support and HIV/AIDS problem is not as extensive as in debt relief amounting to SEK 100 M for the other neighbouring countries, but the trend year 2000. gives cause for concern and it is estimated In the course of a few years, Mozambique that 14% of the adult population are infec- has moved from war to peace, from a ted. centrally planned economy to a market eco- The widespread existence of landmines is nomy, and from a one-party state to parlia- a constant reminder of the struggle for free- mentary government. Mozambique’s second dom and the civil war. Mine clearance pro- round of free presidential and parliamentary grammes will be required for at least ten elections was held in December 1999. Freli- years. The flood disaster in early 2000 mo, the ruling party, achieved a narrow vic- accentuated the landmine problem since tory which, however, was not fully accepted areas which had previously been cleared by Renamo, the opposition party. Nonethe- were once again classified as risk zones. less, the prospects of lasting peace and eco- nomic and social reconstruction appear to be Democracy and human rights favourable. Mozambique is still dominated by the state The government’s financial reform pro- and the ruling party, but the press is uninhi- gramme has been successful. There was a bited, and human rights are respected to an high growth rate in 1999, with low inflation increasing extent. The civil society is gradu- and increasing foreign investment, although ally being built up, and a decentralisation Mozambique is still one of the world’s poo- process is under way. Work on constitutio- rest countries. The national debt burden is nal reform has begun. Corruption and a considerable, but is diminishing as a result of weak judicial system continue to be the pri- the joint World Bank and International mary sources of concern, but the govern- Monetary Fund HIPC debt initiative. A sub- ment is making efforts to achieve increased stantial proportion of Mozambique’s debts transparency, closely linked with reforms in were written off during 1999, and this pro- the public sector. A lack of knowledge conti- cess has accelerated after the flood disaster. nues to restrict respect for human rights and Almost 70% of the population live in their implementation. The political leaders

89 want to improve the situation, however. Since gaining its independence, Namibia’s domestic politics have been characterised by Swedish development cooperation stability, partly because SWAPO, the ruling Cooperation with donors, including the IMF party, continues to dominate the political sce- and the World Bank, is working smoothly. ne. The parliamentary and presidential elec- In 1999, Mozambique was the largest indi- tions held in December 1999 proceeded smoot- vidual recipient country for a number of hly. The president received 77% of the votes major donors, including Sweden, Norway and SWAPO strengthened its position in parlia- and Finland. The overall objectives for Swe- ment at the expense of the opposition, which dish development cooperation with Mozam- continues to be weak. bique are a reduction in poverty and reinfor- Namibia has had a military involvement in cement of the democratic process. Coopera- the conflict in the Democratic Republic of tion is governed by a country strategy for Congo and, in addition, has been drawn into the 1996–2001 period. Long-term support the Angolan civil war to some extent, since the has continued for education, agriculture, Namibian government permits the transporta- public administration, road construction, tion of Angolan troops and supplies and allows energy supplies, democracy and human Angola to use Namibian territory in direct hos- rights, mine clearance, culture and decentra- tilities with UNITA forces. lised assistance for the Niassa province. The The long-standing dispute with Botswana results are considered to be satisfactory. regarding the border between the two countries The country framework for 2000 is SEK has been referred to the International Court of 300 million and, in addition, Sweden is pro- Justice in the Hague. An uprising in the Caprivi viding support for areas such as economic strip in northern Namibia in August 1999, reform, research and the private sector. involving demands for independence, resulted Support for the general elections in 1999 in several deaths. took the form of assistance in preparing The Namibian economy enjoyed relatively electoral registers for the whole country. satisfactory macroeconomic stability in 1999. Sweden has played an active role in debt GDP per capita amounts to approximately relief measures for Mozambique, and in USD 2,000 a year, although this figure gives an 1999 disbursed considerable sums for balan- unrealistically positive picture of living condi- ce of payments support and contributions to tions for the majority of the population. Nami- a multilateral debt fund. bia is characterised by a heavily distorted inco- me distribution and land ownership structure, and also by heavy unemployment. HIV/AIDS is a growing problem and it is estimated that more than 20% of the adult population are infected. There is a delicate balance between popular expectations and the government’s objectives. Preparation of Namibia’s second national development plan is not expected to be completed until the latter part of the year 2000. Democracy and human rights Respect for human rights is satisfactory and the judicial system is effective. Serious breaches and violations of human rights are rare. Some violations of human rights occurred, however, when army and security forces suppressed the rebellion in Caprivi. The EU urged the govern- ment to respect human rights. There have also been malignant verbal attacks in government

90 NAMIBIA 2 quarters on the media, and against whites and Area ...... 824 thousand km (1998) foreigners. This has led to considerable criti- Population ...... 2 million (1998) cism. Several local human rights organisations GNP per capita...... USD 1,940 (1998) operate freely in Namibia, however, and cor- Life expectancy...... 54 (1998) ruption is considered to be relatively limited. Infant mortality per 1,000 children under 5 years ...... 112 (1998) Swedish development cooperation Percentage of illiterate people Prolonged and extensive Swedish support for aged 15–24 years (male/female) ...... 11 / 7 (1998) the SWAPO liberation movement and for Total assistance as a Namibian refugees was transformed into bilate- percentage of GNP ...... 5.7 % (1998) ral development cooperation when independen- Swedish assistance...... SEK 71.6 M (1999) ce was achieved. In accordance with the vision Namibia and Sweden had in 1990, other forms of cooperation were to be intensified in parallel with the phasing out of traditional types of assi- stance after 10–15 years. This approach still poverty-reduction strategy approved by the applies, but the time scale has been extended. Namibian government in late 1998. This is because transformation of Namibian The country framework for 2000 is SEK 65 society has taken longer than anticipated when M. Country framework assistance focuses on the country achieved independence. continued support for the education and public The partnership and development coopera- administration sectors, while support for the tion focus on support for poverty reduction, and transport sector will be phased out in the long are designed to ensure that cooperation betwe- term. Support is also provided for democracy en Sweden and Namibia are increasingly based and human rights, the environment, private-sec- on normal bilateral exchanges and less on assi- tor development and the elimination of stance funding. Sweden has financed the prepa- HIV/AIDS. Experience of cooperation with ration of an action plan to implement the Namibia is positive. Foto: Victor Lenson Brott/Global reporting Sweden

Improved education for both children and adults is a prerequisite for national development. Nonetheless, fewer African children are attending school, compared with the situation 10 years ago. The photo shows a les- son on a large farm in Namibia.

91 SOUTH AFRICA Area ...... 1,221 thousand km2 (1998) needs. The EU and South Africa signed a Population ...... 41 million (1998) free-trade and cooperation agreement in GDP per capita ...... USD 3,310 (1998) October 1999, and some aspects of the Life expectancy ...... 63 (1998) agreement started to be applied on a provi- Infant mortality per sional basis as from 1 January 2000. Sweden 1,000 children under 5 years ...... 83 (1998) has an excellent relationship with South Percent of illiterate people Africa. A “manifestation week” was celebra- aged 15–24 years (male/female) ...... 9 / 9 (1998) ted in South Africa in November, featuring Total assistance as a a 700-strong Swedish delegation headed by percentage of GNP ...... 0.4 % (1998) the Swedish prime minister. The aim was to demonstrate, broaden and intensify the Swedish assistance ...... SEK 337.8 M (1999) diversity of the existing partnership between Sweden and South Africa. One of the conc- rete results of this initiative was the establishment of a bilateral commission, and South Africa had its second round of the manifestation week was followed up by democratic elections in June 1999, and 68% various organisations and activities in Swe- of the electorate cast their votes. The Afri- den. can National Congress (ANC) achieved an overwhelming victory, receiving 66% of the Democracy and human rights votes. Thabo Mbeki succeeded Nelson Man- South Africa is a democracy, with one of the dela as president and leader of the ANC par- most progressive constitutions in the world, ty. The greatest challenge faced by the new embodying far-reaching socio-economic government is the implementation of socio- rights. This means, in formal terms, satisfac- economic reforms which benefit the majori- tory protection of human liberties and ty of the population – people who are living rights, but at the practical level there are in poverty. The needs are still considerable, serious deficiencies in implementation. The despite major initiatives which include drin- main reasons are a lack of financial and per- king-water, housing and electrification pro- sonnel resources, a demoralised police force jects. The government’s inability to provide and coordination problems within the public such basic services in the period it has held administration. The government has taken a office has resulted in criticism by the opposi- number of measures to deal with the increa- tion and some impatience at the popular se in crime, including the launching of a level. Unemployment continues to be extre- national crime-prevention strategy, tougher mely high (about 35%) and crime is increa- legislation against attacks on women and the sing at an alarming rate. The HIV/AIDS epi- criminalisation of all forms of sexual exploi- demic has almost become an explosion, and tation of children. Popular support for rein- it is estimated that nearly 4.2 million South troduction of the death penalty has increa- Africans carry the virus. In February 2000, sed, however. The Truth and Reconciliation the floods which caused problems throug- Commission, which presented its final hout South Eastern Africa hit the Northern report in 1998, has still not decided whether Province. At least 50 people died and about the government should grant a general 80,000 were made homeless. The South amnesty or prosecute the perpetrators of African economy was rather seriously affec- human rights crimes. Access to socio-econo- ted by the Asian crisis, but recovered during mic rights such as medical care, education, 1999 – the overall growth rate for the year housing and job opportunities is unevenly was 1.2%. The government has taken steps distributed throughout the community. to give priority to traditionally underprivile- Discrimination against women and a tradi- ged groups – “black empowerment” – but tional patriarchal approach continue to be the results have been mixed. features of South African society. At the The percentage of foreign investments is political level, women have achieved a grea- still not sufficient to meet the country’s ter degree of influence, however, and almost

92 30% of the members of parliament are have been signed, for example for AIDS women. Xenophobia is on the increase, pro- campaigns and education initiatives. About bably due to a fear that refugees and immi- half the Swedish support is channelled via grants will enter the labour market, which is South African NGOs. The tendency is, already a problematical area. however, for an increasing proportion of funds to be channelled through the public Swedish development cooperation administration. The country strategy for the 1999–2003 period provides the basis for development cooperation with South Africa. Develop- ment cooperation is designed to support democratic development, reduce poverty and promote a long-term, broad relationship between Sweden and South Africa. A three- year partnership agreement was signed in February 1999. The country framework for the three-year period is SEK 200 M a year, and in addition there are also aspects such as international courses, support for Swedish NGOs with operations in South Africa, and projects financed by Sida’s private-sector allocation. Country framework support focuses on democracy and human rights, public administration, education, urban development and culture and the media. A research agreement which is designed to promote cooperation between Swedish and South African researchers was signed during the manifestation week. During the year, a Swedish South Africa Business Partnership Fund was set up, with a Swedish contribution of SEK 80 M over a five-year period. The Fund is designed to promote contacts and economic cooperation between small and medium-sized companies in Sweden and South Africa. Sweden also contributed to various preparations for the elections including support for the electoral commission and voter education program- mes. The housing programme, which has resulted in the construction of 7,000 hous- ing units, was rationalised, for example by means of microcredits and rotating funds introduced during the year. Cooperation with Port Elisabeth and Kimberly has resul- ted in large scale town-planning operations at the local level. As a result of cooperation between the tax authorities in Sweden and South Africa, the UN national accounting system has been introduced, which has led to greater efficiency in the tax area. New agreements with South African partners

93 TANZANIA 2 Area ...... 945 thousand km (1998) countries, the political parties are based on com- Population ...... 32 million (1998) mon interests and values, not on religion or GDP per capita ...... USD 220 (1998) ethnic affiliations. The relatively weak political Life expectancy ...... 47 (1998) opposition sometimes has difficulty in operating Infant mortality per effectively. There are demands for a new consti- 1,000 children under 5 years ...... 136 (1998) tution, adapted to a multi-party system. The Percent of illiterate people position of the media has been strengthened and aged 15–24 years (male/female) ...... 7 / 13 (1998) there is a wide range of publications. Total assistance as a Socio-economic problems restrict the funda- percentage of GNP ...... 12.4 % (1998) mental human rights of the poor majority of the population, such as access to education and Swedish assistance ...... SEK 381.8 M (1999) medical care. The deficiencies in the judicial system are demonstrated by long detention peri- ods and over-crowded prisons. Tanzania has, however, ratified the major human rights con- The Tanzanian economy has been oriented ventions. towards a market economy since 1986, and the The first multi-party elections in 1995 were macroeconomic reform process is being closely carried out in relatively good order on the main- monitored by the donor community. The land, although the election results in Zanzibar reforms include more effective tax collection, were manipulated. As a result of these irregulari- continued privatisation of state-owned compani- ties and continued violations of human rights on es, improved prerequisites for foreign invest- the islands, Sweden and many other donors sus- ment, and cutbacks and rationalisation in central pended development cooperation with the Zan- government administration. zibar government. The opposition refused to Poverty is still widespread in Tanzania. The accept the election of the president and wit- macroeconomic reforms have not yet resulted in hdrew from the parliamentary process. Fol- tangible improvements for poor people, and the lowing mediation by a representative of the social sector is backward. Agriculture, which Commonwealth Secretariat, the parties have provides employment for the majority of the now signed an agreement to work jointly for a population, is undeveloped, highly dependent on democratic structure in the island group, inclu- the weather, and is seriously affected by recur- ding preparations for the elections in the autumn rent natural disasters. The absence of a consi- of 2000. stent agricultural policy is another major reason The human rights situation in Tanzania as a for the poor development of agriculture. Amor- whole has gradually deteriorated with the appro- tisation of the substantial national debt absorbs a ach of the elections in October. The increasing considerable proportion of national revenues and frequency of instances of persecution, attacks on reduces the scope for sectors such as education, opposition politicians, and the breakup and ban- health care and roads. Tanzania’s burden of debt ning on political meetings and demonstrations, will decline, however, and the Swedish Govern- have led the EC to draw attention to the deteri- ment has granted Tanzania debt relief of SEK oration in the human rights situation, within the 160 M for the year 2000, SEK 80 M for 2001 framework of the ongoing dialogue with the and SEK 80 M for 2002. Tanzania will also Tanzanian government and political leaders. benefit from the joint World Bank and IMF debt The position of NGOs is unclear at the relief initiative (HIPC), which will result in the moment, partly because current legislation dates cancellation of at least one third of Tanzania’s from the colonial era. In its dialogue with Tanza- liabilities. Half the population is under 18 and nia, Sweden emphasises the importance of a there is a high rate of unemployment. vigorous civil society in a democracy and, as a result, supports the preparation of new legisla- Democracy and human rights tion. The democratisation process commenced shortly Corruption continues to be a major problem. after the introduction of the economic reform A national action programme to counter corrup- policy. In contrast to many other African tion has been prepared, with the support of Pre-

94 Foto: Victor Lenson Brott/Global Reporting Sweden

In accordance with advice from the World Bank and other donors, countries like Tanzania tried to plan its eco- nomy on the basis of state controls and management. Today, the Tanzanian government and the donors have revised their opinion. Supporting the development of small enterprises is a key aspect of developing the Tanza- nian economy.

sident Mkapa, but it has not yet been implemen- Sweden is concentrating its cooperation on ted. fewer sectors and measures in order to increase the efficiency of development cooperation. Coo- Swedish development cooperation peration includes support for continued democ- The goal of Swedish development cooperation ratisation, greater social equality, the establish- with Tanzania is to contribute to the develop- ment of a competent, transparent and efficient ment of the prerequisites for poverty reduction, central government administration, economic economic growth, deeper democracy, equality, growth and economic balance achieved as a greater respect for human rights, effective public result of economic reform and broad private-sec- administration and improved social services. tor cooperation, the development of human capi- Since the autumn of 1996, the Nordic countri- tal by improving primary education, higher es and Tanzania have cooperated on a more equ- education and research, and ecologically viable al basis in a partnership which is designed to rural development as a result of environmental ensure a greater degree of Tanzanian "ownership" management and measures to increase produc- and responsibility in development cooperation. tion. The long-term objective is to reduce dependence Sweden is cooperating with Tanzania in the on assistance. Other donors have also adopted primary education field on a long-term basis, but this approach. A new and interesting aspect is support for vocational training is being phased that Tanzania is in the process of developing its out. Extension of the energy sector is an impor- own strategy for the orientation of foreign assi- tant aspect of rural development, but long-term stance – the Tanzania Assistance Strategy. The support for the HESAWA programme aim is that this Tanzanian strategy should provide (health/sanitation/water) will be phased out by a basis for the new country strategy for Swedish 2002. Support for environmental cooperation assistance, which is currently being drawn up. around Lake Victoria has been initiated.

95 UGANDA 2 Area ...... 241 thousand km (1998) army, result in weak protection of the legal Population ...... 21 million (1998) rights of the individual, however. Applica- GDP per capita ...... USD 310 (1998) tion of the death penalty and intolerance of Life expectancy ...... 42 (1998) homosexuals give cause for concern. There Infant mortality per is extensive press freedom, and independent 1,000 children under 5 years ...... 170 (1998) trade unions and religious freedom. Alt- Percent of illiterate people hough there are considerable divisions in aged 15–24 years (male/female) ...... 15 / 30 (1998) society, it cannot be claimed that there is Total assistance as a deliberate discrimination against any par- percentage of GNP ...... 7.0 % (1998) ticular group. There is a growing focus on violence directed against women and child- Swedish assistance ...... SEK 168.1 M (1999) ren – a relatively common phenomenon. An increasing number of human rights organisa- tions are active in Uganda, and there is lively discussion of human rights issues. After emerging from a crisis which lasted for 20 years, Uganda has succeeded in achieving Swedish development cooperation relative stability and a high rate of economic Development cooperation in Uganda focuses growth. Many of the previous restrictions on on the elimination of poverty. The overall liberty have been eliminated, and Uganda’s objectives are support for the development success in combating HIV/AIDS has attrac- of a democratic society, including increased ted international attention. The government equality between women and men, and con- has consistently tried to implement an eco- tributing to national recovery by supporting nomic policy to promote growth. Uganda is economic reform policies and building up the first country to benefit from extensive the social infrastructure. The existing debt relief measures as a result of the HIPC country strategy applies until 31 December initiative launched by the World Bank and 2000. Preparation of a new country strategy the IMF. There is case for concern, however, is under way. Swedish support for the health regarding increasing defence costs, corrup- care sector has helped to achieve better tion and the security situation. In addition to planning and a greater emphasis on equality fighting guerrillas in the northern and wes- of opportunity in health policy. The water tern parts of the country, the Ugandan army and sanitation programme has ensured that has also been involved in military operations hundreds of thousands of people have access in the Democratic Republic of Congo, whi- to better water supplies. Swedish support ch is in a state of crisis. for the ongoing administrative reform pro- cess has contributed to the rationalisation of Democracy and human rights administrative activities. Budgetary support The democratisation process in Uganda is has been provided via a special poverty subject to considerable debate, and many fund. A number of human rights organisa- people believe it is proceeding too slowly. A tions have received funds for information referendum on whether to continue the pre- and education activities. A high proportion sent political system – which in practice pre- of support financed from the country frame- vents the free operation of political parties – work is channelled via other organisations is to be held in the year 2000. President (for example, the World Bank and UNI- Museveni considers that a multi-party CEF). Sweden is participating as a dialogue system would not lead to progress, but partner. This has resulted in focused and would merely reinforce ethnic antagonisms. cost-effective management of Swedish sup- Uganda has ratified the key conventions in port. the human rights area, and respect for human rights has improved. Inadequate resources and expertise on the part of public authorities, including the police and the

96 ZAMBIA Area ...... 753 thousand km2 (1998) Following the shift of power after the first free elections in Zambia in 1991, great hopes were Population ...... 10 million (1998) vested in the new leaders. These hopes have not GNP per capita ...... USD 330 (1998) been fulfilled, however, and the political climate Life expectancy...... 43 (1998) has deteriorated. Infant mortality per 1,000 During the 1990’s, the Zambian economy was children under 5 years ...... 192 (1998) relatively stable, but the situation has now Percentage of illiterate people changed. The economic reform program imple- aged 15–24 years (male/female) ...... 10 / 16 (1998) mented in cooperation with the IMF has lost Total assistance as a impetus in recent years. The slow privatisation percentage of GNP ...... 11.0 % (1998) process for ZCCM, the state-owned copper com- Swedish assistance...... SEK 126.0 M (1999) pany, was concluded on 31 March 2000, howe- ver. ZCCM’s losses have resulted in a substantial deficit item in the national budget. Poverty is deep and widespread, particularly in rural areas. It is estimated that there are 6 million The overall goal of Swedish development coo- poor people in Zambia – two thirds of the popula- peration with Zambia is to promote processes for tion. The Zambian government’s strategy for deeper and broader democracy, in which human combating poverty has not been clearly formula- rights are respected and good governance is appli- ted. ed, with a reduction of poverty achieved as a result of economic development. The main areas Democracy and human rights of cooperation are democracy and human rights, The democratisation process has stagnated in agriculture, health care, and private-sector deve- recent years, and respect for human rights has lopment, including the restructuring of state- deteriorated. During the election campaign in owned companies. 1996, there was a change in the constitution to The results of Swedish development coopera- prevent the participation of Kenneth Kaunda, the tion in the various sectors are largely positive. In former president, in the presidential election. Mr. the health care sector, institutional capacity has Kaunda is leader of the largest opposition party. been improved, primarily at the district level. In September 1999, 58 people were condemned Key institutions in the education sector have to death for participation in an attempted coup been upgraded as a result of Swedish support, in 1997. Appeals against these sentences have enabling them to provide appropriate training been lodged with the supreme court. The programmes for doctors, nurses and other per- government has adopted a good governance pro- sonnel groups. Sweden has also contributed to an gramme, but it is feared that the government international conference which laid the founda- does not have the capacity to implement it. Zam- tions for more effective efforts to stop the spread bia has not developed a democratic culture, eit- of AIDS in Africa. Support for the agricultural her as regards formal democratic structures or in sector has included training programmes for terms of major aspects of the civil and traditional small farmers. Swedish support in the democracy society. Elections are due to be held in 2001. and human rights field has continued to focus on some 15 NGOs, enabling them to play a key role Sweden’s development cooperation in the public debate. In the energy sector, consi- A high proportion of Swedish assistance is linked derable progress has been made in the utilisation to implementation of the democratisation process of renewable sources of energy, and Swedish sup- and the economic reform programme. Sweden port for industrial cooperation has contributed to has suspended its balance of payments support more efficient railway operations. Sweden has following the controversial election process in also supported a conference on “public unit trust 1996. In December 1998, in the absence of more savings schemes” which had a considerable positive developments, Sweden decided not to impact, and regional conference on the harmoni- enter into a new cooperation agreement with sation of stock exchange regulatory structures. Zambia. For the time being, development coope- ration is subject to specific project agreements.

97 ZIMBABWE Area ...... 391 thousand km2 (1998) 1998 in the conflict in the Democratic Population ...... 12 million (1998) Republic of Congo in support of the Congo- GDP per capita ...... USD 620 (1998) lese government. The economic consequen- Life expectancy ...... 51 (1998) ces are still unclear. Infant mortality per Zimbabwe is one of the countries most 1,000 children under 5 years ...... 125 (1998) seriously affected by the HIV/AIDS epide- Percent of illiterate people mic, and it is estimated that 26% of the aged 15–24 years (male/female) ...... 2 / 5 (1998) 15–49 age group is infected. Total assistance as a Democracy and human rights percentage of GNP ...... 4.7 % (1998) Two journalists were arrested by the army in Swedish assistance ...... SEK 157.9 M (1999) mid-January 1999 in the offices of an inde- pendent newspaper. When they were relea- sed on bail, it emerged that they had pro- bably been tortured. A number of incidents Zimbabwe has recently suffered from politi- during 1999, and the recent violations in cal instability and increasing popular discon- connection with the occupation of farms, tent. The role played by the trade unions in are clear indications of serious breaches of the public debate has gradually expanded, human rights. and organised political opposition has beco- me stronger. The key political issues have Swedish development cooperation involved constitutional reform, access to Assistance for Zimbabwe is long-term and land, and land ownership rights. focuses on poverty. A review of Swedish The referendum held in February 2000 development cooperation was conducted in primarily involved a new draft constitution. 1999. The partnership agreement expired In the event, it was interpreted as a vote of on 31 March 2000 and, in view of the cur- confidence in the government, primarily as a rent situation, has not been extended. Assi- challenge to President Mugabe. When the stance measures within the framework of results indicated that the government’s line current project agreements are continuing, had not won public approval, this denoted however. In 1999, almost SEK 162 M was that the ruling party’s total dominance of disbursed. The country framework for 2000 the political scene was being questioned for will amount to SEK 110M. The overall goal the first time since independence. The land of development cooperation is the elimina- question was the key issue in the run up to tion of poverty and the reinforcement of a the elections held in June 2000. This was democratic culture. Within the country fra- widely considered to be an attempt to win mework, support has focused on the trans- back popular opinion in favour of the port, public administration, health care and government. At the same time, there was an education sectors. Priority is now given to increase in persecution and attacks on mem- support for democracy and measures to bers of opposition groups. strengthen respect for human rights. Zimbabwe’s economy has suffered from a Swedish support is also provided for period of inflation, budget deficits and a efforts to tackle the extensive HIV/AIDS weakening currency. The measures taken by problem, and for land reform. Technical the government have been insufficient to cooperation, initiatives to promote the pri- restore confidence in its economic policy. vate sector, and concessional credits are Unemployment is high and assets are une- other aspects of cooperation. venly distributed, while economic develop- There is positive experience of develop- ment limits the scope for the necessary soci- ment cooperation with Zimbabwe at the al reforms. The political crisis has already project level. had an impact on the national economy. At the invitation of President Kabila, Zim- babwe, Angola and Namibia participated in

98 Other African countries

BOTSWANA Geographic Information System (GIS). In Botswana held parliamentary elections in addition, Botswana is eligible for specific cre- October 1999, resulting in a victory by a con- dits, international courses arranged by Sida, siderable margin for the ruling party, the and Sida regional programmes in areas such Botswana Democratic Party. Botswana is as democracy and human rights, HIV/AIDS regarded as a model in the region, due to its and water resources. political stability and sound economic base which, in combination with the government’s cautious economic policies, have made Botswana a medium-income country. There GUINEA-BISSAU have been considerable investments in educa- In June 1998, the armed forces revolted tion, health care, water supplies and the infra- when President Vieira dismissed the supreme structure, but the majority of the population commander, Ausumane Mané, for alleged continues to be poor. Efforts are being made involvement in smuggling arms to separatist to expand the economic base and reduce guerrilla forces in southern Senegal. President dependence on the cyclical diamond industry. Vieira was deposed by the army on 7 May Botswana’s greatest challenge, however, is to 1999, after almost 12 months of hostilities combat the rapid spread of HIV/AIDS. and “co- government”. A transitional civilian Approximately 30% of the inhabitants of pro- government was appointed and, in accordan- ductive age are infected, making Botswana ce with the constitution, the speaker of parli- one of the most seriously affected countries in ament, Malam Bacai Sanha, was appointed the world. The government is implementing interim president. various measures, such as the establishment In a statement issued on 18 May, the EU of a national coordination committee for condemned the outbreak of violence in con- AIDS issues, but has not achieved any signifi- nection with the coup, and urged Guinea-Bis- cant degree of success. Unemployment, whi- sau to implement its democratisation process. ch is currently more than 30% is another The EU also urged Guinea-Bissau to announ- growing problem. ce parliamentary and presidential elections in Respect for human rights is satisfactory. accordance with the Abuja agreement. On 19 Botswana ceased to be a Swedish develop- July, the EC initiated consultation with Gui- ment cooperation program country in 1998. nea-Bissau in accordance with Article 366a of Subsequently, cooperation has continued to the Lomé Convention, under which a party be based on the mutuality principle and the which considers that its counterparty has promotion of relations between Sweden and committed a breach of democratic principles Botswana, particularly in the economic field. may initiate consultations to review the situa- The development of economic cooperation, tion. Consultation signalled the normalisation private-sector contacts and increased trade of relations between the EC and Guinea-Bis- and investments are key features of this coo- sau. peration. Support may continue to be provi- As a result of the destruction which occur- ded for specific initiatives on a cost-sharing red and some 200,000 internal refugees, the basis in areas in which Swedish expertise is conflict contributed to further deterioration competitive. The long-standing cooperation in one of the poorest countries in the world in the land survey field is continuing, invol- (ranking: 172 of 175 countries on the UN ving the development of national maps and a Humanitarian Development Index (HDI)).

99 During the transitional government’s period ca in the 1990’s, with three civil wars which of office, the political situation stabilised, disrupted the early stages of the democrati- however, and reconstruction commenced. sation and development process. These con- Most of the internal refugees returned to their flicts were due to regional antagonisms homes. Preparations for the elections were between north and south, and disputes financed by the UNDP and other bodies via amongst the political elite concerning politi- the UNOGBIS office, and were coordinated cal power and control of oil resources. The by the national electoral commissions. The real cost of the conflicts in terms of human first round of parliamentary and presidential lives is still not clear. In the most recent civil elections was completed on 28 November in war in 1998–1999, more than one third of a peaceful, democratic manner, and 80% of the population were forced to flee, and the electorate participated. The Party for humanitarian aid could only sporadically Social Renewal (PRS) emerged as the largest reach refugees suffering from serious under- party in the parliamentary elections. In the nourishment and physical and mental trau- presidential elections, Kumba Yala, the PRS mas. candidate, and Malam Bacai Sanha, the The situation has improved, however, fol- PAIGC candidate and acting president during lowing the signing of two ceasefire agree- the transitional government, received the gre- ments in the autumn of 1999. The hostilities atest number of votes. In the second round on have ceased and a democratisation process is 11 January, Kumba Yala won by a comfor- under way. President Bongo of Gabon has table margin and was inaugurated as presi- played an important mediation role in these dent on 17 February. He declared that the developments. The security situation has new government’s prime target was the elimi- also improved. Most of the refugees have nation of corruption. been able to return to their homes and have Swedish support for Guinea-Bissau has access to humanitarian aid. A national dialo- concentrated on peace-promotion initiatives, gue is planned, and there is timetable for a reconstruction, and democracy and human return democracy. The situation is far from rights. Total assistance during 1999 amounted ideal, however, and a lasting solution for the to SEK 42.3 M, including support for the allocation of power and resources is requi- national electoral commission, the national red. broadcasting system and independent weekly During 1999, Sweden contributed huma- publications. Sweden also dispatched 10 elec- nitarian aid via the Red Cross (SEK 3.5 M) tion observers to monitor the elections on 28 and the Swedish Mission Council (SEK November, and a further eight observers for 945,000), and has provided support on the the second round of presidential elections in form of food and emergency health care via January 2000. Sweden is monitoring political Diakonia (SEK 2.4 M). As a result of a Swe- developments and the consolidation of the dish initiative, the conflict in Congo was pla- peace in order to determine the form which ced on the agenda for EU cooperation, and a further development cooperation should take. working group which includes the Mission The Swedish embassy in Bissau closed on Covenant Church of Sweden and the 31 December 1999. During 2000, develop- Christian Socialists in Sweden is involved in ment cooperation will be supervised by a Sida peace promotion activities in Congo. The office in Bissau, and subsequently by the conflict has prevented more extensive initia- recently established embassy in Dakar. A Sida tives, however. official will be posted to Dakar for this pur- pose. MALAWI After 30 years of repression under a dictator, CONGO (BRAZZAVILLE) Hastings Banda, the first free elections were The Congo Republic (Brazzaville) was one held in 1994. A businessman – Bakili Muluzi of the most conflict-prone countries in Afri- – was elected president. Muluzi’s victory

100 brought radical changes to public life as a There has been an increase in conflicts based whole. There has been a tangible improve- on ethnic, religious and economic factors, ment in respect for human rights and free- and the government’s ability to deal with dom of the press and, since the change of them has proved to be limited. Furthermore, government in 1994, Malawi has made con- relations between the government and parli- siderable progress in the democratisation ament have been poor and, as a result, parli- process. The creation of democratic structu- ament has rejected several parliamentary res has commenced. The opposition is weak bills. The economic situation is still precari- and divided, however, and has not yet found ous. its proper role. Presidential and parliamenta- Nigeria continues to be a major player in ry elections were held in June 1999. Presi- the foreign policy sphere, particularly in dent Muluzi was re-elected and his party, view of its status as a major power in the the United Democratic Front, became the region. Nigeria’s commitment to regional largest party in parliament. The election integration has increased and relationships results have been disputed by the opposi- with other countries have improved conside- tion, however, and legal proceedings are still rably as a result of an intensive programme in progress. of official visits. In Sierra Leone, Nigeria Malawi is one of the world’s poorest continues to be a major contributor of countries. The government is carrying out an troops to the United Nations UNAMSIL economic reform programme to achieve force. growth which will lead to a reduction in During 1999, Sweden contributed 10 poverty. This programme is supported by election observers to the EU contingent whi- the donor community, including Sweden, ch monitored the parliamentary and presi- and the results have been largely positive, dential elections. Support is also provided although progress has been spasmodic. via NGOs, primarily for initiative in the Following the change of government, human rights, democracy, education and Sweden has mainly provided balance of pay- health care fields. This support amounted to ments support, and it has also granted a con- approximately SEK 4.5 M in 1999. cessionary loan. Sida is investigating the pos- sibilities of providing support for democracy, human rights, the capital market, energy development, and the integration of Malawi SIERRA LEONE into regional initiatives in the water and In July 1999, a peace agreement was signed HIV/AIDS spheres. between the parties in the civil war in Sierra Leone. The agreement, which signalled the end of eight years of civil war, was signed by Sierra Leone’s democratically elected presi- NIGERIA dent, Ahmed Tidjan Kabbah, who received The inauguration of Olusegun Obasanjo as military support from the West African the democratically elected president of ECOMOG force and the leader of the Nigeria on 29 May 1999 denoted the end of Revolutionary United Front (RUF) rebel almost 16 years of military misrule. During army, Foday Sankoh. The peace agreement his first year of office, President Obasanjo resulted in the reconstitution of the RUF as re-established democratic institutions, a political party, and Sankoh became vice- appointed a broad coalition government and president. Impunity was granted for crimes initiated an ambitious programme of politi- committed during the war, despite protests cal and economic reform. His clear emphasis by the UN and others. The EC also stressed on building a democratic structure, inclu- that the perpetrators of serious breaches of ding respect for human rights and law and human rights and crimes against humanity order, has been widely commended, particu- must be held liable for their actions. The larly at the international level. Nonetheless, peace agreement prescribes the establish- Nigeria is facing considerable challenges. ment of a truth and conciliation commission

101 to help the civilian population emerge from process in Somalia. Somalia still has not the trauma of war. central government and certain areas in The conflict in Sierra Leone was characte- southern and central parts of the country are rised by the utilisation of child soldiers, sex- characterised by instability, chaos and out- ual violations and mutilation. There are right hostilities between the leaders of the widespread humanitarian needs, but assi- various fractions. Relative stability has been stance efforts are hindered by the fact that established, however, particularly in nort- large parts of the country are still in rebel hern Somalia. In April, the Swedish Govern- hands. In October, the UN Security Council ment decided to grant assistance via Sida decided to dispatch a UN force (UNAMSIL) amounting to a maximum of SEK 20 M a to Sierra Leone. In February 2000, the year during the 1999–2001 period for pro- UNAMSIL force was increased to 11,100 jects in parts of Somalia – such as the north- men, making it the largest current UN ope- west and north-east – where initiatives have ration in the world. UNAMSIL is assigned to been or are being taken to build up regional guarantee security and monitor the disar- administrations. This assistance is designed ming and readjustment of those involved in to promote reconciliation and stability by the hostilities. means of social and economic rehabilitation, The situation deteriorated in May 2000 and also reconstruction and sustainable rein- when approximately 500 UN soldiers were tegration of refugees and demobilised captured by the rebels, and there were hosti- troops. lities between rebel and government forces. In addition to the generally unstable situa- The UN troops were released after a few tion, which has led to more internal refu- weeks following negotiations between the gees, the country has suffered natural disas- RUF and President Taylor of Liberia. Foday ters such as floods and drought, and various Sankoh, the rebel leader, was arrested and types of epidemics. In 1999, Swedish huma- will probably be put on trial. As a result of nitarian assistance for operations in Somalia the unrest, Britain dispatched 1,000 amounted to more than SEK 45 M, channel- parachute troops to evacuate EU citizens. led via UN organisations and Swedish and The UN Security Council approved enlarge- international NGOs. The focus is on buil- ment of UNAMSIL to 13,000 men. A deci- ding up society, in which local structures sion on a further increase to 16,500 soldiers play a key role, and certain rehabilitation was expected in June 2000. measures to support this process. During 1999, Sweden was the second lar- gest donor to Sierra Leone, according to UN statistics. Sweden contributed SEK 20 M to emergency medical care operations, measu- THE GREAT LAKES REGION res to protect children, food supplies, and Ever since the genocide in Rwanda in 1994, humanitarian coordination. During 2000, the area around the Great Lakes in Central funds have been approved for UNICEF initi- Africa has been dominated by instability, atives to protect children and UNDP measu- ethnic conflicts and severe economic, social res on behalf of physically and mentally and political problems. In August 1998, a exploited women, and also for agricultural rebel uprising started in the eastern part of supplies via the FAO and contributions to the Democratic Republic of Congo, with Red Cross operations. Sweden has dispatch the support of the neighbouring countries of three military observers to UNAMSIL. Rwanda and Uganda. Zimbabwe, Angola, Namibia – and for a brief period Chad – intervened on the side of the Congolese government, and this resulted in a major SOMALIA regional military conflict which caused furt- The peace initiative presented by the presi- her instability and suffering in the region. dent of Djibouti may succeed in breaking The needs in Rwanda are enormous. the deadlock in the national conciliation Genocide has cost the country about half a

102 million people. Approximately 2 million number of important measures were taken refugees – a quarter of the population – have in the early stages, the economy and political returned, and this has exacerbated the ten- developments have been increasingly domi- sions. The Rwandan government has, howe- nated by the civil war, and several reforms ver, succeeded in rebuilding much of the have been postponed. The ceasefire agree- infrastructure and public administration, and ment in July 1999 created fresh hopes. A is implementing an economic policy that national political dialogue is to be initiated, establishes the prerequisites for develop- which is designed to lead to a new constitu- ment. The security situation within Rwan- tion and free general elections, for example. da’s borders has improved considerably since So far, however, very little progress has been the outbreak of the war in Congo. The figh- made. ting in the north-western part of the country The Great Lakes Region has received con- has virtually ceased and, as a result, attacks siderable international support in recent on the civilian population have declined. years, and Swedish assistance has increased The presence of the Rwandan army has had substantially. During 1999, under a three- a negative impact on the security situation in year framework decision taken in 1997, the eastern part of the Democratic Republic Sweden approved approximately SEK 200 of Congo. M for assistance to the region (Rwanda, During 1999, two commissions – for Burundi and refugees in adjacent countries, human rights and for national unity and including the Democratic Republic of Con- reconciliation – have begun their work. In go). This was channelled via the UN and the case of political and civil rights, the international and Swedish NGOs. Assistance government still imposes restrictions on any took the form of humanitarian support operations that threaten the security situa- (approximately SEK 105 M) and measures tion and its own power. Shortcomings in the to promote human rights and democracy judicial system and conditions in the (more than SEK 12 M). country’s overcrowded prisons create consi- The humanitarian assistance was designed derable needs. to alleviate the consequences of war and The situation in Burundi is unstable and armed conflict, to facilitate the repatriation hostilities between the rebel forces and the and reintegration of refugees, to contribute to army are continuing. This also applies to the establishment of normal living conditions atrocities committed against the civilian and to promote the transition to reconstruc- population. The Burundi army has interned tion and coexistence. Contributions were approximately 350,000 civilians in camps in made to the UN’s humanitarian appeals for rural areas near Bujumbura. Internal peace the region and to other measures in the talks and the regional Arusha negotiations health, water and sanitation, food security, have led to renewed hopes of a peace agree- demobilisation and donor coordination areas. ment, however, following Nelson Mandela’s In the democracy and human rights field, mediation. The regional sanctions introdu- support to Rwanda amounted to approxima- ced after the coup in Burundi in 1996 were tely SEK 6.5 M, with approximately SEK 5.8 lifted in early 1999 as a result of some pro- M for Burundi. In Rwanda, this included sup- gress in the peace process. However, the port for the media, the judicial system and sanctions and substantial reductions in assi- the reconciliation commission in order to assi- stance have contributed to an extremely st the peace and reconciliation process. Sup- serious economic and social situation. A gra- port for Burundi focused on the internal pea- dual resumption of development assistance ce process, including grants to the indepen- is anticipated, as concrete progress is achie- dent media, legal assistance and peace semi- ved in the peace process. nars. There were no direct initiatives to sup- In the Democratic Republic of Congo, the port democracy and human rights in the hopes created by the fall of President Mobu- Democratic Republic of Congo in 1999. tu and the installation of a new government A contribution of SEK 40 M for debt relief in May 1997 are still unfulfilled. Although a for Rwanda was approved in 1998. SEK 20

103 M was disbursed during 1999, and SEK 20 M tion in neighbouring countries. The need for in 2000. humanitarian aid continues to be conside- The Swedish Government has assigned rable, although there are reports of gradual Sida to submit proposals for a strategy for improvements. Humanitarian efforts are assistance in the Great Lakes region for the coordinated by the UN as part of Operation period 2000-2001. The framework of this Lifeline Sudan (OLS). Negotiations between strategy includes the formulation of indivi- the UN and the government in Khartoum dual country analyses and strategies for have, in principle, resulted in humanitarian Rwanda and Burundi and also, in a simplifi- access to the entire country. Some 10 NGOs ed form, for the Democratic Republic of have left the area, following demands made Congo. These proposals are in the discussion by the SPLM guerrilla movement. The con- stage. tinuing hostilities are contributing to a virtu- ally unmanageable security situation. Sudan has ratified the key human rights conventions, with the exception of the Con- SUDAN vention on the Elimination of Discrimina- The most recent phase of the civil war in tion against Women. Although some pro- Sudan has been continuing since 1983. In gress has been made, the human rights situa- April 1997, the Sudanese government con- tion continues to give cause for considerable cluded a peace agreement with some of the concern. There are recurrent reports of sum- fractions in the south, but the largest rebel mary executions, the bombing of civilian group, the SPLM, did not participate. targets, disappearances, forced labour and However, peace talks were resumed in Nai- compulsory recruitment. robi in October 1997 under the auspices of Swedish humanitarian assistance for ope- the regional Intergovernmental Authority on rations in Sudan amounted to approximately Development (IGAD), although no signifi- SEK 60 M in 1999. Sweden is among the cant results have been achieved so far. The four or five largest donors. Support is chan- IGAD Partners Forum (IPF) support group, nelled via UN organisations and Swedish of which Sweden is a member, is looking for and international NGOs. Operations focus ways in which to contribute to the peace on relief for the civilian population affected process. Sweden has provided support for by the civil war in both government-control- this objective via contributions to the IGAD led and rebel-controlled areas. Assistance peace fund. comprises emergency aid, transport, rehabi- The protracted civil war in Sudan has litation, education, water, sanitation and resulted in approximately 4 million internal health care. A special strategy for humanita- refugees, while 400,000 have sought protec- rian assistance to Sudan is being prepared.

104 Regional support for Africa

There are many reasons for supporting regi- Saharan Africa, in accordance with a onal and subregional cooperation in Sub- Government assignment. In the spring of Saharan Africa. Support for economic deve- 1999, the Government approved guidelines lopment and growth as a result of common for support during the 1999–2000 period. markets is making an important contribution Five main areas were defined: African cross- to this type of cooperation. This also applies border cooperation endeavours (both betwe- to the promotion of increased security and en countries and within the civil society), stability by establishing close political rela- African, Swedish and international institu- tions and an improved conflict prevention tions operating in several countries, African and management capability. In addition, a institutions and networks (or institutions number of cross-border problems also call and networks initiated and operated by seve- for a regional approach in areas such as ral donors) established to disseminate expe- migration, the allocation of water resources, rience in a specific area to several countries, efforts to combat HIV/AIDS, and illicit tra- policy and method development via interna- ding in narcotics and light arms. tional organisations operating in Africa, and The advantages of increased regional and peace-keeping and conflict resolution. subregional cooperation have attracted grea- The guidelines emphasise that Swedish ter attention in recent years, not only in support for existing organisations in Sout- many African states, but also in the donor hern and East Africa should be further deve- community, including the multilateral insti- loped and that cooperation with countries tutions. As a result, support for regional coo- and organisations in West Africa should be peration and regional integration has increa- tested. Swedish efforts may focus on indivi- sed in recent years. dual countries or groups of countries, or on Swedish support for regional cooperation NGOs in the case of cross-border projects. in Sub-Saharan Africa has hitherto mainly The prerequisites for this support are active been confined to Southern Africa, with a and committed African leadership and smaller proportion for East Africa, including responsibilities. the Horn of Africa. In the past, Sweden has In March 2000, the Government decided focused on infrastructure investments, but in to assign Sida to initiate a long-term pro- recent years, there has been a change of gramme over a three-year period to support emphasis in favour of such areas as skills sustainable development in the Lake Victo- development, institution-building and con- ria area. As a result, Sida will enter into a flict management. The African Develop- “strategic partnership” agreement with the ment Bank has received financial support. East African Community (EAC), which Support for land conservation and the mana- includes Kenya, Tanzania and Uganda. The gement of water resources has increased, programme is designed to reverse the negati- and this also applies to support for public ve trend of recent years, involving growing administration, the development of democ- poverty and environmental destruction, and racy and social science research. Support for replace it by sustainable economic, social efforts to halt the HIV/AIDS epidemic is and environmental development. expected to increase as a result of the establishment of the Sida regional HIV/AIDS secretariat in Harare. In 1998, Sida prepared proposals for the orientation of regional support for Sub-

105 TUNISIA MOROCCO SYRIA WEST BANK AND GAZA IRAQ IRAN ALGERIA WESTERN SAHARA LIBYA EGYPT SAUDI-ARABIA

YEMEN The Middle East and North Africa

The Middle East and North Africa have countries about the way in which respect for been prone to conflicts for many years, human rights can be furthered in the region. partly due to socio-economic factors such A human rights network has been formed, as uneven distribution of resources, water with the participation of human rights orga- shortages, poor economic development nisations from several countries in the EU and rapid population growth. and around the Mediterranean. The EU pro- vides support for the building of democracy, promotion of human rights and the develop- Respect for human rights is weak and little ment of the civil society in nine of the 12 democratic progress has been made. Most countries covered by the Barcelona Process countries in the region lack democratic tra- (Algeria, Egypt, Jordan, Lebanon, Morocco, ditions. In many countries, there are viola- Syria, Tunisia, Turkey and the Palestinian tions of the right to life and physical integri- territories). Support is also provided to pro- ty. Freedom of expression and the press are mote regional cooperation between the EU curtailed in many cases. This also applies to and all 12 countries in the region (Cyprus, freedom of association, assembly and religi- Israel and Malta are also included, in addi- on. Women’s rights are not respected or, at tion to the above countries). least, only to a limited extent. The rights of The MEDA Regulation, which establishes minorities are not always recognised either. the rules for the EU’s development coopera- In most cases, the countries of the region tion with the southern partner countries have acceded to the international conven- around the Mediterranean, requires respect tions on human rights, although application for democracy and the principles of the rule is inadequate. Several countries have made of law, as well as respect for human rights reservations stipulating that the conventions and fundamental freedoms. The MEDA will only be applied to the extent that they Regulation entitles the EU to impose sanc- are not considered to contravene shari’a tions on countries that do not fulfil these (Islamic law). At the same time, there are basic prerequisites for MEDA cooperation. signs that certain countries in the region The establishment of a free trade area in (particularly Morocco and Jordan) want to 2010 is also covered by the Barcelona Pro- have a dialogue with other countries and are cess, and the EU has entered association aware of the need for change. agreements with various partner countries. Within the framework for the EU’s Medi- The agreements contain clauses, which pre- terranean cooperation in the Barcelona Pro- scribe political dialogue and require that cess, there is an ongoing dialogue between human rights are respected by the various 12 Mediterranean countries and the 15 EU partners. If this is not the case, the EU can

106 WEST BANK take appropriate measures (suspension clau- AND GAZA se). So far, agreements have been concluded Area ...... – with Tunisia, Jordan, Morocco, Israel and Population ...... 3 million (1998) the Palestinian authority. An agreement has GNP per capita...... USD 1,560 (1998) also been concluded with Egypt, but this has not yet been ratified. Life expectancy...... 71 (1998) Infant mortality per 1,000 Swedish development cooperation children under 5 years ...... 26 (1998) With the exception of the West Bank/Gaza, Percentage of illiterate people the scope of Swedish development coopera- aged 15–24 years (male/female) ...... – tion in the region is limited, mainly because Total assistance as a these countries are at a relatively high level percentage of GNP ...... 13.8 % (1998) of development. The major proportion of Swedish assistance...... SEK 207.7 M (1999) Swedish assistance consists of humanitarian assistance, concessional credits, contribu- tions to NGOs, technical cooperation and international courses. When the five-year interim period expired on 4 May 1999, the world expected that the final sta- tus negotiations between Israel and the PLO would commence and that both sides would agree on a solution to their protracted conflict. However, the peace process stagnated during Benjamin Netanyahu’s (Likud Party) period of office, and the final negotiations did not achieve the results anticipated. Expiry of the interim period also coincided with new elections in Isra- el, and the new coalition government, led by Ehud Barak the leader of the Labour Party, was permitted a certain period of time to clarify its approach to the peace process. On 13 Septem- ber 1999, the parties agreed on a new timetable for the final status negotiations, which would lead to signing of a final status agreement one year later – on 13 September 2000. Much remains to be done, however. So far, the parties have only presented their maximum demands, although it now appears that certain discussions on compromises have commenced. The prerequisites for a viable Palestinian eco- nomy are fragile and the movement of labour and goods across administrative borders is often difficult. Peaceful development would almost certainly promote economic and social develop- ment. Per capita income in the autonomous are- as is higher than in many developing countries, however. The population is relatively well educa- ted and there is an entrepreneurial culture. Access to European markets, capital provided by Palestinians in other countries and international development cooperation should create relatively favourable opportunities for growth.

107 Foto: Maria J Lundberg

The recent peace process between the Israelis and the Palestinians has led to hopes of an end to the protracted conflict in the Middle East. However, there are still many disputes to be resolved, such as the future of Jerusalem. This picture shows the Arab quarter in the historic city centre of Jerusalem, where Jewish settlers have hung the Israeli flag over Palestinians walking along the street.

108 Democracy and human rights A new country strategy for development coo- Human rights are not respected by the Israeli peration with the West Bank/Gaza is being occupation authority. Palestinians who are prepared. The new strategy covers the period arrested are regularly subjected to brutal inter- 2001–2005, and it is anticipated that the main rogation methods. Arbitrary detention and features will be unchanged – with a focus on summary executions are relatively common the above sectors. Since the conflict has now occurrences. Administrative detention is used reached a potentially crucial phase, the country by the Israeli authorities to imprison people strategy will include scope for flexibility in coo- without a formal charge or prosecution. Alt- peration. Various alternative course of action hough there has been a decline in the number can be developed to meet different scenarios. of confrontations between Israelis and Palestini- During the past year, Sweden has given prio- ans, trends during the spring of 2000 have rity to special initiatives to support the peace shown that disturbances can easily come to the process, human rights and democracy, social boil. The Palestinian authority has also disregar- and cultural development with an emphasis on ded the rights of the individual and restricted children and young people, and the prerequisi- freedom of expression. Journalists have been tes for sustainable economic development. arrested. There are arbitrary detentions and a Direct human rights support is mainly devoted large number of people are held in custody wit- to 10 Palestinian and Israeli NGOs. Most of hout being prosecuted. The interim “Basic these funds are channelled via the Swedish Law” constitution, which establishes funda- department of the International Commission of mental democratic principles and respect for Jurists (ICJ-S), although separate support is human rights, has not yet entered into force. also provided for the highly respected Palestini- An extensive debate on how to establish the an Independent commission for Civil Rights rule of law is taking place within the Palestinian (PICCR). In addition, Sweden is supporting a authority, in the Palestinian community as a project designed to improve the professiona- whole, and with the donor community. Work lism of the Palestinian civilian police force. has begun on institutional reforms, but very Swedish support also includes initiatives in limited progress has been made. fields such as child health care, the rights of children with functional disabilities, the disse- Swedish development cooperation mination of information about children’s rights The overriding goals of Swedish development via children’s television programmes and other cooperation with the West Bank and Gaza are media, and special programmes for pre-school the promotion of peaceful development and children and children who are especially vulne- reinforcement of the peace process, including rable. Since 1995, Since 1995, Sida has been support for improved economic and social con- supporting a programme which aims to create ditions for the Palestinian people, and contribu- employment by rehabilitating the infrastructu- tions to the establishment of a democratic re. In addition to road maintenance, this inclu- Palestinian society. These objectives also form des improvements to schools, women’s centres, the basis for international support for the peace youth centres and small-scale infrastructure process. The guidelines indicate that develop- projects. The overall aim of support for the pri- ment cooperation should concentrate on three vate sector is to promote economic develop- areas: ment and employment. Support is provided for • direct support for the peace process, such activities as the development of Palestini- • support for human rights and democracy, an companies, the preparation of policies and and support for social and cultural develop- regulations for quality assurance, the promo- ment, with a focus on children and young tion of textile exports and the development of people, local chambers of commerce. • support for the establishment of prerequisi- tes for sustainable economic development, which can lead to increased employment by building up the infrastructure and the private sector.

109 as regards the right to education and IRAQ employment, however. Although the posi- The daily life of the Iraqi people is made tion of women in Iraq is considered to be extremely difficult by the limited availability strong in comparison with certain other of food, pharmaceuticals, hygiene articles countries in the region, their fundamental and drinking water. Naturally, these factors rights are not respected – for example free- have affected the fundamental health of the dom of movement, family law and the inhe- population. The cultural and intellectual iso- ritance rights. lation of Iraq is a serious problem. Iraq was previously a welfare state in the Arab world, Swedish development cooperation but standards are now very low. The decline In 1999, Sweden contributed a total of SEK in the education system will have far- 52 M in humanitarian assistance for activiti- reaching consequences for the future, es in Iraq. Sweden also provided SEK 5 M making reconstruction difficult. The UN’s (conflict-prevention funding) for the UN “oil for food” programme has been in opera- force in northern Iraq (UNGCI). The largest tion since 1997. However, the aim of the contribution was allotted to Qandil, the programme is not to contribute to the long- Swedish committee for Kurdish human term build-up of Iraqi society, but merely to rights, which received SEK 20 M for measu- provide for the daily needs of the popula- res which included the reconstruction of tion. The humanitarian situation in northern Kurdish villages. The Mines Advisory Group Iraq, where the central government has limi- (MAG) received SEK 7 M for mine clearan- ted control and authority, is considerably ce operations, and the Red Cross Commit- better than in other parts of the country. tee received SEK 7 M. The UN is responsible for the implementa- Swedish humanitarian assistance for the tion of the “oil for food” programme in nort- civilian population in Iraq amounting to hern Iraq, while the Iraqi authorities are SEK 51 M was approved for 2000. The grea- responsible for the programme in other parts ter part of this was devoted to Qandil (SEK of the country. 20 M) and the British Mines Advisory Group (approximately SEK 19 M), both of Democracy and human rights which operate in northern Iraq. Other funds There continue to be considerable human were channelled via the International Com- rights deficiencies in Iraq. The regime com- mittee of the Red Cross. Continued Swedish mits systematic breaches of human rights, assistance for the UN force has been appro- which has an impact on the entire popula- ved. SEK 10 M was earmarked for UNICEF tion. There are obvious deficiencies in the in 1999–2000 for activities in southern and extent to which the population has access to central Iraq, where the civilian population is civil, political, economic, cultural and social subject to serious shortages as a result of the rights. There are reports of summary and current political situation. arbitrary trials, executions, disappearances, torture and inhuman punishments. Iraq is a one-party state and President Sad- dam Hussein holds both legislative and executive powers. The courts are responsible to the president, who also controls the armed forces and the police. All attempts to challenge the current regime are brutally suppressed. The total absence of democratic projects and institutions which monitor the authorities means that the prospect of democratic developments would appear to be remote. Iraq is a secular state. Various religious groups are subject to discrimination

110 MONGOLIA

AFGHANISTAN CHINA

PAKISTAN NEPAL BHUTAN BANGLADESH INDIA BURMA LAOS

VIETNAM PHILIPPINES CAMBODIA THAILAND

SRI LANKA MALAYSIA

Asia INDONESIA

Asia is not only the world’s most densely- mic expansion – with a gradual decline in populated continent, with more than half competitiveness, speculative investments and of the world’s population, but also the weak financial systems, including deficiencies most diversified, with great political, eco- in the monitoring of credits. The crisis also nomic, social and cultural contrasts. Asia had a political dimension, seen for example in contains some of the world’s richest an inability to take corrective measures in countries and some of its poorest. Almost time, due to a symbiosis between political three-quarters of the world’s poor – one and economic interests. The countries which billion people – live in Asia, despite rapid suffered most were Thailand, Malaysia, Indo- nesia, South Korea and the Philippines, with economic development in recent decades. a combined population of approximately 400 million. Prior to 1997, a number of countries in East Other countries also suffered. The impact and Southeast Asia were experiencing rapid of the crisis on the Chinese economy, for economic growth. Many people benefited example, may make it difficult to maintain from tangible economic improvements and the high growth rates achieved during the could put poverty behind them. The financial 1980s and 1990s. The crisis also exposed the crisis of 1997/1998 was a setback, however, vulnerability of major population groups. and the GDP of the most vulnerable countri- Many people who had recently managed to es fell sharply for two years. The crisis expo- free themselves from poverty fell below the sed institutional weaknesses and structural poverty line once again. This applies, in par- problems that had accompanied rapid econo- ticular, to women and children. More than

111 one million Indonesian schoolchildren have quality is negatively affected by exhaust gases been forced to terminate their schooling, for and industrial emissions. Asia has 13 of the example, and many of them have been forced world’s 15 most polluted cities. Fishing and into begging and prostitution. other marine resources are threatened in However, the strong cyclical recovery in many coastal areas. Deforestation and the the region during 1999 and the spring of destruction of land are dramatic. The ecologi- 2000 indicates that the crisis has been overco- cal weaknesses are illustrated by the extensive me in all countries except Indonesia, where forest fires in Indonesia which affected sub- the uncertain domestic political situation is stantial areas of Southeast Asia. In 1998, holding back the economy. The economic Bangladesh and China were hit by heavy floo- upturn has restored the GDP levels achieved ding. by these countries prior to the crisis, or it will Increased environmental awareness is called do so in the near future. But institutional for to ensure that environmental damage does weaknesses, growing public debt resulting not prevent future development, undermi- from the crisis, and increased globalisation ning the living conditions of millions of peo- have made these countries vulnerable to new ple. Strong government measures are also shocks. This is why it is important that pro- required, combined with efforts to eliminate blems identified as a result of the crisis are poverty and cooperation on an international tackled and that the reforms which have been scale. promised are implemented. In most cases, these countries still do not have effective Developing democracies bankruptcy legislation, the banking sector is In recent decades, democracy has developed paralysed by bad loans and promises of ratio- more slowly in Asia than in the rest of the nalisation by major companies have not yet world. In formal terms, democracy is most been fulfilled. It is also crucial that Japan sol- widespread in Southern Asia while, at the ves the structural crisis which has been para- same time, this is where the equality situation lysing its economy for a decade, and resumes and the implementation of social and econo- its role as the economic motor of the region. mic rights are weakest. Since the mid-1980s, democracy has also made progress elsewhere Widespread, deep poverty in Asia – particularly in the Philippines, Thai- Widespread and deep poverty remains one of land, South Korea and Taiwan. The economic Asia’s most serious problems. This applies crisis has accelerated economic and political particularly to Southern Asia, but also, in the reforms, and this has had an impact on aftermath of the crisis, to Eastern and Sout- democracy. This applies to Indonesia, for heast Asia. One billion people in Asia are still example, where the economic crisis was a living on less than one U.S. dollar per day – in contributory factor in the shift of power whi- absolute poverty. The problem of poverty is ch occurred in May 1998, which led to free particularly serious in rural areas, in rapidly elections for a new parliament and president expanding cities with millions of inhabitants, in the summer and autumn of 1999. The among migrant workers, in minority areas, liberation process in East Timor is directly and among women and children. related to this development. Perhaps the most radical changes in peo- Threat to the environment ple’s living conditions in the past 20 years Environmental destruction has increased have occurred in China. For the individual, rapidly in Asia. The high rate of economic the reform policy has meant greater personal growth has made Asia one of the world’s scope for action. However, there are still con- most polluted regions, and poverty is an siderable human rights deficiencies, and this obstacle to solving the problem. Environmen- will continue to be the case as long as China tal destruction has attained such proportions is a one-party state which does not tolerate that it has had a global impact. A high pro- political opposition and a free press. To some portion of the population does not have extent, this also applies to Vietnam and Laos. access to fresh water. In the cities, the air- Following the fall of the Soviet Empire, Mon-

112 golia has introduced a democratic system, to the possibilities of achieving significant which is in the process of being consolidated. results in the elimination of poverty and the In Cambodia, the main issue after the elec- establishment of development that is sustai- tions in 1998 is whether the new government nable in the long-term. Development coope- will manage to take advantage of the oppor- ration also means that there are considerable tunity to build democratic institutions. In opportunities to build up closer mutual and contrast, there is Burma where military rule equal relationships. has prevailed for a decade, with continued Responsibility for ending Asia’s widespread serious violations of fundamental freedoms and deep poverty primarily rests with the Asi- and rights, and North Korea, which continues an countries themselves, but development to be a closed totalitarian society. cooperation can play a significant role. Even countries with relatively satisfactory capacity “Our Future with Asia – need financial resources and – perhaps even A Swedish Asia strategy” more important – new know-how for the The Swedish Government submitted a report development of institutions and methods to entitled Our Future with Asia – A Swedish achieve sustainable long-term development. Asia strategy (skr.1998/99:61) to Parliament The Asian crisis indicates the vulnerability of in March 1999. The strategy for Asia focuses the achievements of the past few decades. on nine central areas: In the course of cooperation over a number of decades, a widespread contact network has • political dialogue been developed between Sweden and the • democracy, human rights Asian countries. Assistance to Eastern, Sout- and gender equality heast and Southern Asia currently amounts to • trade and direct investment approximately SEK 1.5 billion per year, whi- • the elimination of poverty and ch corresponds to about 17% of total bilateral closer relations as a result of assistance. Increased endeavours in Asia are development cooperation required if the OECD’s goal of halving the • the environment number of poor people in the world by 2015 • research and education is to be achieved. Asia is the home of the vast • popular movements and majority of the world’s poor people, and the cross-border networks prerequisites for fulfilling the overall objecti- • culture ve of development cooperation – reducing • information activities and poverty – have proved to be better in Asia the promotion of Sweden than in other parts of the world. Although the volume of Swedish assistance The main objective of the report is to indicate has declined in real terms, the group of the route to be taken. Implementation of the countries with which Sweden has some form strategy is specified in the form of an action of bilateral cooperation has gradually been plan. In accordance with the wishes of the extended and currently includes 18 of the 25 Parliament, the Government has initiated a countries and regions covered by the strategy study of the importance and role of religion for Asia. and the way in which Sweden’s partnership The major differences between the Asian with Asia can be improved. countries with which Sweden cooperates means that Swedish assistance takes different Development cooperation as forms in different countries, based on each part of a Swedish strategy for Asia country’s situation and needs. Cooperation The strategy for Asia states that development with individual countries is designed in accor- cooperation is a significant dimension of Swe- dance with the country strategies approved den’s relations with Asia, and that this should by the Government. New strategies will be continue to be the case. This is supported by prepared in line with the Asia strategy. The the fact that the vast majority of the world’s emphasis in cooperation with Southern Asia poor people are in Asia, and this also applies is on equality and the elimination of poverty.

113 In Sri Lanka, where the most serious obstacle international financial institutions and the to development is the internal armed conflict, EC. The World Bank and the Asian Develop- there is a stress on initiatives for peace, ment Bank are playing an increasingly crucial democracy and economic development. India role in the majority of countries. In most was one of the largest recipients of Swedish cases, Sweden’s bilateral assistance is relative- assistance until the nuclear weapons tests car- ly limited, compared with the extensive assi- ried out in May 1998. As a result of the tests, stance disbursed by the World Bank and the the Swedish Government terminated the cur- Asian Development Bank. At the same time, rent cooperation agreement. Projects which Sweden often has considerable knowledge of have already been agreed are being comple- individual countries and their institutions, ted, and support via NGOs and international based on many years of experience. training programmes are not affected. According to the Asia strategy, there are In the countries of Southeast Asia, such as three strong reasons for continuing develop- Vietnam, development cooperation is domi- ment cooperation with Asia at least the same nated by support for reform processes and level as today – the majority of the world’s measures to promote the establishment of poor people are in Asia, there are considerab- institutions such as parliament, the banking le opportunities for achieving results, and system, and statistical and tax authorities. Sweden has a long-term interest in establi- The democratisation process in Indonesia has shing closer relations with an Asia which is in paved the way for support for continued the process of development. One objective reforms in the world’s fourth-largest country should be to increase Swedish assistance to in population terms. Swedish assistance for Asia. East Timor is designed to improve the prere- The strategy for Asia indicates three assign- quisites for the creation of a state based on ments to which priority should be given in democracy, respect for human rights and Sweden’s continued development coopera- effective and open public institutions. In the tion with Asian countries: more developed countries, such as Thailand, cooperation focuses on the transfer of Swe- • achieving a clearer focus on reform proces- dish experience and know-how as a result of ses and institution building which is desig- exchanges between Swedish institutions, ned to develop the basic prerequisites for companies and universities and their counter- democracy and respect for human rights, a parts in partner countries. Concessional cre- market economy, a reduction in poverty, dits, contract-financed technical cooperation improved schooling and health care, and and international courses in Sweden are ecologically sustainable development, important instruments in this process. Support for democracy and the protection • developing a long-term commitment to of human rights plays a prominent part in increased environmental cooperation in a development cooperation with all the Asian goal-oriented manner, countries, for example, within the framework for country strategies for Vietnam, Laos and • developing more equal and mutual rela- Cambodia. This includes a particular empha- tions. In this respect, it is particularly sis on children’s and women’s rights. The spe- important to achieve research-initiated coo- cial funds for regional and other activities will peration, cultural cooperation and exten- be used to support regional cooperation, envi- ded cooperation between NGOs in Sweden ronmental initiatives, democratisation and and Asia. Sida is arranging a major confe- respect for human rights. rence for Swedish and Asian NGOs in Sweden is a prominent donor of humanita- 2001. Sida will investigate the prerequisites rian assistance to Asia. Major recipients in for a Start Asia programme designed to recent years include destitute people in achieve broader and more long-term com- Afghanistan, North Korea and East Timor. mercial relations with Asian countries. Sweden also makes important contributions to assistance to Asia provided by the UN, the

114 BANGLADESH Area ...... 144 thousand km2 (1998) Bangladesh is one of the world’s poorest countries and more than half of its popula- Population ...... 126 million (1998) tion is living below the poverty line. Certain GNP per capita ...... USD 350 (1998) improvements have taken place during the Life expectancy...... 59 (1998) 1990s, however, and the proportion of poor Infant mortality per 1,000 people living on less than one US dollar a children under 5 years ...... 96 (1998) day has fallen from 59% to 53% in five Percentage of illiterate people years. Other social indicators have also aged 15–24 years (male/female) ...... 40 / 61 (1998) improved. The annual rate of population Total assistance as a growth, for example, has slowed to 1.6%. In percentage of GNP ...... 2.8 % (1998) economic terms, Bangladesh achieved signi- Swedish assistance...... SEK 207.9 M (1999) ficant progress during the 1990s, with avera- ge annual GDP growth of approximately 5%. This upswing has been supported by a policy that has been largely market-oriented since 1991. During the 1999 budget year reports record harvests year after year, the (July 1998-June 1999), GDP increased by industrial sector, including exports, has had 4.8%, while the inflation rate, which was difficulty in recovering after the 1998 floods. less than 4%, continued to be low. During Industry suffers from the absence of an the current budget year, the economy is effective infrastructure. The road network is expected to grow by 5.4%. poor, the port is underdeveloped port, there Although the rate of growth has increased are problems with electricity supplies and significantly compared with the 1980s, the communications are not up to standard. economy still has a long way to go before its Investments in both physical and human reaches its full potential. Investment levels capital must increase considerably in the have continued to be inadequate, and the next few years. However, domestic savings economy still suffers from serious structural remain low, and the influx of foreign capital problems. At the same time, the political is not sufficient to cover investment require- reform process, involving a transition from ments in the private sector. At the same state regulation to a free market, has stagna- time, state revenues are limited (approxima- ted in recent years. There is a lack of dyna- tely 10% of GDP), which also hinders public mism in several sectors which have had dif- investments. As far as human capital is con- ficulty in recovering from the downturn fol- cerned, the number of students has certainly lowing the floods of 1998. There is also increased, but since less than 1% of the growing concern regarding public finances. population has a university education, Bang- The government clearly has problems in ladesh is ill-equipped to meet growing inter- meeting its revenue targets, and control of national competition. expenditure is weak. As a result, there has been a very substantial increase in state bor- Democracy and human rights rowing from the banking system. The democratisation process in Bangladesh Bangladesh must create 50 million new was initiated by the elections in 1991, follo- jobs in the coming 25 years if the country is wed five years later by the freest elections in to reduce poverty. At the same time, the country’s history. Bangladesh has a free agriculture – which currently represents and critical press, but the broadcasting 30% of GDP and more than 60% of employ- media are controlled by the state. There are ment – has reached a threshold where deficiencies in respect for human rights, modern technology and higher productivity however, usually due to cultural, religious mean that expansion of the labour force is and social factors. The position of women no longer called for. A higher level of and children continues to be weak, although employment must be created in industry the government is trying to improve the and services instead, but the transition pro- situation by means of legislation and other cess is slow. While the agricultural sector initiatives. Violence in society, which may

115 be directed at political activists, writers and fruitful cooperation between state schools journalists, is tending to increase, and this and schools run by NGOs. In the health care gives cause for concern. sector, the emphasis is on reproductive Domestic political developments are cha- health. An immunisation programme has racterised by confrontation between the contributed to a reduction in the mortality government, headed by the Awami League, rate for children under the age of five. and the opposition (Bangladesh National NGOs are responsible for a high proportion Party). There is no dialogue between the of human rights activities, working for incre- two sides, and the opposition, which is boy- ased awareness of women’s rights and the cotting parliament, regularly calls for general principles established by international con- strikes (hartaler) to paralyse the economy ventions. and force the government to resign. The In 1999, Sida partially financed the pur- next election must be announced by the chase of 100 Swedish diesel generators by summer at the latest, and there is a risk that means of special development credits. In the next few months will be uneasy, with addition, an agreement to supply 50 Volvo elements of violence. buses to Dhaka, with the support of deve- lopment credit, is close to approval. Further Swedish development assistance projects involving development credits, There is a strategy for Swedish development including surface water treatment and villa- cooperation with Bangladesh for the ge payphone schemes, are under considera- 1997–2000 period. The main objective is tion. the reduction of poverty, with a particular focus on women’s rights and opportunities. Education, health care and rural develop- ment are the most important areas. A new country strategy for the period 2001–2005 is being prepared. Swedish assistance represents approxima- tely 1 % of total assistance for Bangladesh. At the beginning of 1999, Sweden approved additional funding for reconstruction activi- ties following the serious floods. The World Bank is by far the largest donor, and is also responsible for donor coordination. Swedish development assistance has achie- ved positive results. Improvements in the infrastructure, which are part of the rural development programme, have led to incre- ased economic activity. Many women have become involved in job-creation measures and credits have been made available to peo- ple who do not own land. Sweden has sup- ported the successful Grameen Bank for some time. Education support has helped to achieve an increase in the number of women in gainful employment and the proportion of girls attending primary school has risen to almost 50%. With Swedish support, the school curriculum has been revised to take the gender perspective into account, and the new curriculum now applies throughout the country. Swedish activities also encourage

116 CAMBODIA 2 Cambodia is one of the world’s poorest countri- Area ...... 181 thousand km (1998) es. In recent years, a rudimentary market econo- Population ...... 11 million (1998) my has replaced previous experiments with a GNP per capita ...... USD 260 (1998) planned economy and state-owned companies. Life expectancy...... 54 (1998) However, the country’s economic situation has Infant mortality per 1,000 deteriorated after several years of relatively satis- children under 5 years ...... 143 (1998) factory growth. Essential economic investments Percentage of illiterate people have not been undertaken, partly as a result of aged 15–24 years (male/female) ...... 26 / 61 (1998) the Asian crisis. Cambodia’s considerable fore- Total assistance as a stry and mineral assets are subject to ruthless percentage of GNP ...... 11.9 % (1998) exploitation. In the spring of 1999, Cambodia Swedish assistance...... SEK 62.4 M (1999) became a member of the Association of South East Asian Nations (ASEAN) and this is expec- ted to have a positive effect on the country’s development. The political situation has stabilised after the emphasis is on capacity development. Swedish elections in June 1998 and the formation of the assistance is primarily channelled through the new coalition five months later. The forces that UNDP and UNICEF. Support is also provided want to achieve development have had greater via voluntary organisations, and for the UN scope, and the government is more open to ideas human rights centre in Phnom Penh. and views from the outside. Developments in In the rural development sphere, support pro- Cambodia are moving in the right direction. A vided via the UNDP has helped to improve promising reform programme has been initiated, expertise and capacity in institutions and locally which gives priority to health, education and elected committees which allocate funds for rural development. The government has also investments and maintenance. Bridges, canals emphasised its intention to fight poverty. and roads have been built or renovated. Since work on the infrastructure involves labour-inten- Democracy and human rights sive methods, many jobs have been created. Cambodia lacks democratic traditions and there Support has also contributed to improved coor- are breaches of human rights. The public admi- dination and planning at the provincial level. nistration continues to be weak and there are In the education sector, support for reforms in serious deficiencies in the judicial system. Cor- primary schools via UNICEF has continued. ruption and impunity are major problems. Pro- Sweden is responsible for the financing of this gress is being made in the human rights area, entire component in UNICEF’s programme. A however. The tribunal considering crimes com- system for linking schools into networks is being mitted by the Khmer Rouge is expected to take tested in Cambodia. This has led to more effecti- place during 2000. The tribunal’s structure is ve utilisation of resources. More villages have being discussed with the UN and it is important received access to education, and the quality has that an agreement is reached to permit the improved. Contributions have been made for implementation of trials in an acceptable man- the production of teaching materials and teacher ner. training. Support for the Cambodian mine clearance Swedish development cooperation programme has facilitated the transformation of Sweden began to provide assistance for humani- large minefield areas into agricultural land. tarian reasons in 1979, and Cambodia has been a Democracy and human rights initiatives have Swedish programme country since 1995. In included training of police and military person- 1998, the Government approved a new country nel, advice on legislation and considerable docu- strategy for the 1999–2001 period. The objecti- mentation of human rights infringements. Assi- ve of cooperation is to improve living conditions stance also includes support for a financing insti- for poor people in rural areas. Cooperation focu- tute, which provides credits for small businesses ses on rural development, education, mine clea- and agriculture. rance and the promotion of human rights. The

117 LAOS 2 Area ...... 237 thousand km (1998) considerable border trade with China and Population ...... 5 million (1998) Vietnam. GDP per capita ...... USD 320 (1998) In 1997, Laos became a member of the Life expectancy ...... 54 (1998) Association of South East Asian Nations Infant mortality per (ASEAN), and this will strengthen the 1,000 children under 5 years ...... – (1998) country’s regional integration in the long Percent of illiterate people term. aged 15–24 years (male/female) ...... 19 / 46 (1998) Democracy and human rights Total assistance as a percentage of GNP ...... 23.0 % (1998) Laos is a one-party state. Its first constitu- tion, which was adopted in 1991, establishes Swedish assistance ...... SEK 95.5 M (1999) the Communist Party as the country’s lea- ding body. The constitution also stipulates that Laos is to be a market economy and that private ownership rights are to be pro- Laos is one of Asia’s poorest countries. The tected. The government claims that it wants majority of the population is employed in to introduce a multi-party system gradually, agriculture. Laos is rich in natural resources, to minimize the risk of a division of the such as timber, hydropower and minerals. A country, which is ethnically heterogeneous. fraction of Laos’ hydropower and mineral In recent years, the individual, private assets are utilised, but the forests are over- sphere has been extended, but the country is exploited. Development assistance accounts showing few signs of political liberalisation. for a significant proportion of the Laotian The state’s control function is strong, and economy. the expression of views questioning the The long-term development problems in ruling party’s political monopoly is not tole- Laos include the low level of education and rated. There are political prisoners. The the lack of skilled labour. Central govern- central administration and the rule of law ment administration is not well-developed are both affected by a serious shortage of and suffers from a lack of trained staff. A trained personnel. The armed forces have very small proportion of the population has considerable influence on the economy and a university education. The lack of popular politics and the mass media are state-con- control of the public administration, in com- trolled. Religious freedom is normally bination with widespread corruption, makes respected, although there are also reports of effective administration impossible. persecution of Christian minorities. Equal In the mid-1980s, liberalisation of the eco- rights for men and women are enshrined in nomy commenced with a transition from a the constitution, but, in practice, there con- state-controlled, planned economy to a mar- tinues to be a lack of gender equality. Laos ket economy. Economic reforms had a has not signed the two key human rights favourable effect on the economy and Laos covenants on Civil and Political Rights and had growth rates of 6-7% in the period Economic, Social and Cultural Rights. In 1991–1997. The reform programme was practice, there is no freedom of expression halted as a result of the Asian crisis, and the or freedom of association. remaining structural problems in the econo- my have caused periodic high levels of infla- Swedish development cooperation tion (as in 1999), an unstable currency and Laos has been a programme country for balance of payments deficits. The economy Swedish assistance since the 1970s. Swedish has stabilised since late 1999, although there assistance represents approximately 5% of are still fundamental structural problems. the total assistance received by Laos. Assi- Laos has close economic ties with neigh- stance for Laos is governed by a country bouring countries. Thailand is Laos’ largest strategy for the 1999–2003 period. The trading partner and the most important objective of Swedish development coopera- source of foreign investment. There is also tion is to contribute to the reduction of

118 SRI LANKA 2 poverty and inequality in society, and to Area ...... 66 thousand km (1998) improve the prerequisites for democratic Population ...... 19 million (1998) governance and human rights. The main GNP per capita ...... USD 810 (1998) focus is on programmes for roads and natu- Life expectancy...... 73 (1998) ral resources. Support is also provided in the Infant mortality per 1,000 health care sector, for the development of children under 5 years ...... 18 (1998) the national statistical authority and in the Percentage of illiterate people potable water and sanitation sphere. Sup- aged 15–24 years (male/female) ...... 3 / 4 (1998) port for the road sector is increasingly con- Total assistance as a centrated on provincial and village roads, percentage of GNP ...... 3.2 % (1998) thus permitting underdeveloped regions to Swedish assistance...... SEK 117.8 M (1999) participate in Laos’ economic development, and road maintenance programmes. The forestry programme is being phased out, but a continuation is being planned, with a focus on the management of natural resources in Sri Lanka has the second highest per capita certain backward highland areas. Other GDP in southern Asia (after the Maldives). important programmes are designed to pro- The income distribution is relatively even mote democracy and human rights and to and, in comparison with other countries in reinforce the judicial system, as well as the the region, Sri Lanka has high ratings in establishment of a law faculty at the Univer- terms of literacy and social indicators. The sity of Vientiane and in-service training for most serious obstacle to development is the judges and other legal personnel. New acti- armed conflict between the government and vities in the education area are being prepa- the Tamil LTTE guerrillas (the Liberation red, including support for Lao Radio. Tigers of Tamil Eelam). The conflict, which has been going on since 1983, has claimed tens of thousands of lives and resulted in hundreds of thousands of internal refugees. Efforts to find a political solution to the conflict have been fruitless so far, but the government and the opposition have initia- ted a dialogue regarding amendments to the constitution (increased autonomy for the provinces) which might lay the foundations for a peace agreement. The costs of the civil war have increased, and impose a heavy burden on the national budget. Essential reforms have been postponed, and econo- mic and social development is impeded. The privatisation of state operations is continu- ing, but at a slow pace. Foreign policy is dominated by proximity to India, the major power in the region. Sri Lanka has good relations with its other neighbours in Asia and with other key countries. At the regio- nal level, Sri Lanka is a driving force in the South Asian Association for Regional Coo- peration (SAARC). Democracy and human rights Sri Lanka is a democratic republic. Consti- tutional powers are divided between popu-

119 larly elected present and parliament. Despi- In Vietnam, the ruling communist party has te being equal in the eyes of the law, been implementing its “Doi Moi” reform women have very little representation in policy for about ten years. This has resulted decision-making forums. The human rights in considerable economic growth, primarily situation is affected by the armed conflict, as a result of increased foreign trade and sub- although some improvement has been noted stantial foreign investment. Nonetheless, in recent years. The number of disappearan- Vietnam is still one of the world’s poorest ces and illegal executions has decreased. countries, and there are growing differences Both the government and the guerrillas have between urban and rural areas, and between made undertakings to protect children affec- the various regions. The overwhelming majo- ted by the conflict. The number of reports rity of poor people live in rural areas and of rape and attacks on women has increased, most of them are farmers. The minorities in however. the highland areas have not benefited from the general economic development process. Swedish development cooperation The effects of the first phase of reforms Development cooperation between Sweden have begun to fade, and Vietnam’s exports and Sri Lanka, which commenced in 1958, and foreign investments have been reduced represents an important aspect element of as a result of the Asian crisis and the limited the relationship between the two countries. number of new reform initiatives. There are Swedish assistance has primarily focused on differences of opinion as to how Vietnam educational activities and rural develop- might return to a high level of economic ment, but considerable sums have also been growth – for example by implementing a allocated to research cooperation, the deve- new generation of reforms in state-owned lopment of the export sector, the major companies, the private sector and the finan- hydroelectric project at Kotmale, humanita- cial sector. rian assistance and support for human Environmental problems are increasing as rights. In March 1998, Sweden and Sri Lan- Vietnam becomes a modern industrialised ka signed a three-year cooperation agree- country. Despite the establishment of an ment which involved a new approach to environmental strategy and the introduction some extent. The objective for cooperation of legislation, there are still no directives and is development characterised by peace, regulations in a number of areas. democracy and sustainable economic pro- gress which will benefit poor people. Mea- Democracy and human rights sures for peace and democracy include sup- The economic reform process has a political port for local initiatives to promote peace, dimension, although this is subordinate to support for vulnerable groups in society and the objective of maintaining a one-party sta- measures to promote communication te. Liberalisation of the economy has led to between the parties involved in the military tangible growth at the individual level, and conflict. Support is channelled via local, widespread corruption has resulted in a international or Swedish organisations. In more critical attitude to the state and the addition, there are humanitarian initiatives party. The human rights situation has in the acute conflict on the Jaffna Peninsula. improved, but fundamental freedoms and Economic development is promoted by sup- rights are inadequately protected. Ultimate- porting research, private-sector institutions ly, the party controls the judicial system and – in the financial sector, for example – and establishes the framework for freedom of by means of specific investments and corpo- speech and other rights. Competition in the rate development. Sweden is also prepared political sphere is not permitted. to participate in reconstruction measures in the north and east, when the situation per- Swedish development cooperation mits. Vietnam has been a Swedish programme country since 1970. A new country strategy was approved by the Swedish Government

120 VIETNAM 2 in 1998 for the 1999–2003 period. The Area ...... 332 thousand km (1998) objectives for cooperation are the reduction Population ...... 77 million (1998) of poverty, and the promotion of democracy GNP per capita ...... USD 350 (1998) and human rights in an long-term and sustai- Life expectancy...... 68 (1998) nable manner. There is an emphasis on capa- Infant mortality per 1,000 city building. children under 5 years ...... 42 (1998) Sweden is taking a number of initiatives to Percentage of illiterate people support the reform of the Vietnamese eco- aged 15–24 years (male/female) ...... 3 / 3 (1998) nomy, the judicial system and public admi- Total assistance as a nistration. Several institutions are receiving percentage of GNP ...... 4.3 % (1998) support, for example, the prime minister’s Swedish assistance...... SEK 273.6 M (1999) research group on reform. The aim is to improve the ability to support, follow-up and analyse reforms. The Vietnamese natio- nal assembly and the Swedish Parliament have agreed to cooperate more closely. Swe- important factor in building up and moder- dish legal experts have assisted the Vietna- nising the Vietnamese power-supply system. mese ministry of justice in developing its In addition, funds have been allocated to the legislative process, and Sweden is supporting construction of a medium-sized hydroe- education and training measures regarding lectric facility. the human rights conventions. There have been extensive efforts in the In the energy field, Sweden is giving prio- forestry sector for some time. The current rity to the creation of an efficient electricity rural development programme is designed to network, and the development of expertise establish better prerequisites for individual in this field. This support has been an farm households, and to facilitate the on- Foto: Victor Lenson Brott/Global Reporting Sweden

Mopeds and light motorcycles now buzz by, replacing the gentler swishing sounds of bicycles. Eco- nomic reforms in Vietnam have created a new group of young, confident women and men.

121 going privatisation of land. In addition, sup- companies also have high priority. port is being provided for the establishment Extensive cooperation in the cultural and of a Vietnamese environmental authority. media areas is designed to promote a diversi- Streamlining of cooperation in the health fied society. In the gender-equality field, and medical care sectors has also been Sweden supports the Vietnamese Women’s implemented, involving support for policy Federation. The starting point for the cur- development, the rational use and control of rent strategy period is building on previous pharmaceuticals, training, and support for cooperation, with particular emphasis on health care in backward areas. Sweden sup- supporting reform endeavours, but with an ports the private sector in Vietnam by provi- increased focus on poverty reduction and ding training and credit for small and sustainable development. One ambition, for medium-sized companies. Measures for the example, is to strengthen economic ties reform and privatisation of state-owned between Sweden and Vietnam.

122 Other Asian countries

conjunction with fighting on the Shomali AFGHANISTAN plains in 1999, homes and crops were burnt Afghanistan is one of the world’s poorest and the infrastructure was destroyed. Families countries. In the past few decades, armed were forcibly moved from the area and were conflicts have killed and injured a great many split up. There continues to be an internal victims, forced several million people to flee, refugee problem in Kabul, with an estimated and destroyed large parts of the country’s 30,000–35,000 persons living in the former infrastructure. The health care system is in Soviet embassy compound. ruins and the education sector is completely dependent on outside help. Women, in par- Humanitarian assistance ticular, are vulnerable and subject to serious Swedish humanitarian assistance for people in discrimination, with little opportunity for need in Afghanistan covers several different education and work. These problems and categories, and is primarily designed to allevi- weaknesses are complicated by the fact that ate the effects of the civil war, to meet the Afghanistan is often disrupted by serious eart- needs of women and children, and to promo- hquakes. The fundamentalist Taliban move- te swift reconstruction. Since there is no legi- ment is believed to control 80–90% of the timate government or local counterparts, and country. the conflict is still continuing, development During the first half of 1999, Sweden was cooperation is confined to humanitarian aid, chairman of the Afghanistan Support Group although some organisations, including (ASG), which consists of 15 donor countries NGOs which receive Swedish support, are and the European Commission. On 21–22 planning assistance measures which are desig- June 1999, Sweden arranged a major meeting ned to have some development impact. of the ASG in Stockholm, which was also Swedish support has amounted to approxi- attended by UN agencies, the International mately SEK 90 M a year since 1992 (SEK Red Cross (ICRC/IFRC) and NGOs. 103 M in 1999), channelled via the UN, the International Committee of the Red Cross Democracy and human rights and the Swedish Committee for Afghanistan. The lack of respect for human rights continu- The most important sectors are health care, es to give cause for concern. The outside mine clearance and education. The largest world has been forced to witness how the single recipient is the Swedish Committee for respect for human rights and international Afghanistan, which mainly uses local resour- humanitarian rights has been neglected by the ces to implement its activities. The aim is to parties involved in the conflict. The war has establish Afghan “ownership”, so that clinics meant that there is no freedom of expression, and schools can be transferred to authorities freedom of the press, or freedom of assembly and local communities at a later stage. or association. Women are prevented from working outside the home, and girls cannot attend school. There are reports of massacres and the for- BURMA ced expulsion of innocent civilians, the Since 1988, Burma has been ruled by a mili- execution of prisoners of war, persecution tary regime, which has so far refused to and executions due to ethnic background, ter- enter into a dialogue with the democratic ror, and the murder of Afghan refugees. In opposition. The party headed by the Nobel

123 prizewinner, Aung San Suu Kyi, which won rights and urges the government to coopera- the elections in 1990 and is the rightful te with the UN system. government, is still being denied political power. Swedish development cooperation During the 1940s and the 1950s, Burma In 1999, Swedish development assistance for was one of the region’s most developed the democratic forces in and outside Burma countries, with rich natural resources. Eco- totalled slightly more than SEK 19 M. The nomic mismanagement and the sanctions of major proportion of this assistance – more recent years have helped to ensure that the than SEK 17 M – was used to support refu- economy has not undergone the same favou- gees in Thailand via the Burma Border Con- rable development in Burma as other sortium (BBC), making Sweden the largest countries in the region. Slightly less than a individual contributor to the BBC. In 1999, quarter of the population are below the NGOs received approximately SEK 1.3 M poverty line. Agriculture forms the basis of for various initiatives. the economy and provides employment for more than half of the population. Democracy and human rights THE PHILIPPINES There are extensive and serious breaches of The Philippines is one of the more stable human rights in Burma. Political arrests, for- democracies in Asia, and the presidential ced labour and compulsory evacuations are elections in 1998 once again confirmed that examples of the violations which take place. democracy has taken root there. Democracy There is a deep conflict between the central in the Philippines has its limitations, howe- government in Rangoon and the country’s ver, partly as a result of a distorted socio- ethnic minorities. As a result of political economic structure, with certain feudal fea- oppression and the poor humanitarian situa- tures, and extensive poverty. Almost one tion, there are approximately 1 million third of the country’s 76 million inhabitants internal refugees, and about 120,000 refu- continue to live close to or below the pover- gees are residing in camps along the Thai ty line. Although the Asian economic crisis border. In addition, a large number of Bur- had less impact on the Philippines than on mese are illegal residents in Thailand. many of its neighbours, it weakened the Sweden and the EU have adopted a criti- position of the poor. The Philippines’ relati- cal stance in relation to Burma. The aim is to ve success in coping with the crisis was due persuade the regime to adopt a more to the reforms which had been implemen- democratic approach. The EU and the UN ted previously, for example in the banking are the primary channels for Sweden’s Bur- sector. The existence of an open society ma policy. As a result of its “common posi- with extensive press freedom is also conside- tion”, the EU has implemented a number of red to have contributed to successful crisis sanctions against Burma, primarily an arms management. On the whole, democracy is embargo, visa restrictions, freezing of assets regarded as having contributed to the re- of Burmese citizens with links with the regi- establishment of fundamental national poli- me, suspension of all assistance with the tical stability. The protracted conflict in exception of strictly humanitarian aid, and a Mindanao continues to be a problem, howe- moratorium on official exchanges at the ver. political level. The EU has also suspended The current government, under President Burma’s general customs privileges. At the Estrada, lists poverty reduction as one of its same time, efforts are being made to initiate main priorities, but little progress has been a dialogue with the regime, with the aim of made. Towards the end of 1999, this resul- defining a route to democratic government. ted in a substantial decline in his popularity. Sweden plays a key role as coordinator of the UN’s annual resolution on Burma, whi- Democracy and human rights ch strongly condemns violations of human The human rights situation has improved

124 progressively during the 1990s. In several government – the third in as many years – respects, the Philippines is now in a better headed by the Hindu-nationalist BJP party, position than many other countries in the strengthened its position by gaining an abso- region. Democratic pluralism, and freedom lute parliamentary majority in the elections of expression and religion have been held in the autumn of 1999. However, the established. Although violations of human government’s cohesion depends on the per- rights occur, human rights groups are able to sonal qualities of the Prime Minister, Mr. work freely in the Philippines. Human rights Vajpayee, and it is doubtful whether the problems are often the result of a weak and coalition would survive without him. The corrupt judicial system, and the social and political climate, which is sometimes stor- economic imbalances that exist within the my, does not represent a threat to democra- country. cy, however, and the parliamentary system In one respect, the human rights situation has deep roots. deteriorated during 1999 – the execution of The pace of India’s economic and trade persons condemned to death was resumed. policy reform programme slowed in the However, the President imposed a moratori- mid-1990s due to the domestic political um on the implementation of further execu- situation. Although the rate of growth has tions at the beginning of 2000. remained at a relatively healthy 5–6%, the economy has been problematical, with a Swedish development cooperation sluggish reform process, weak industrial pro- In 1997, the Government adopted a country duction and an increasing budget deficit. strategy for Sweden’s development coopera- This has restricted the scope for infrastruc- tion with the Philippines for the 1997–2001 tural investments and essential measures in period. This cooperation is designed to pro- the education and health care fields. Factors mote continued favourable economic and contributing to the stagnation also included social development and a better environ- a decline in the impact of reforms and, in ment by transferring Swedish know-how certain cases, setbacks in the form of tariff and technology. There is a focus on suppor- increases, while world trade and capital ting developments on Mindanao. Coopera- flows declined due to financial turbulence in tion should also contribute to expanding Asia. The government was unable to take links between Sweden and the Philippines. important decisions during much of 1999 as The bulk of assistance is in the form of a result of government crises and new elec- technical cooperation, via support for tions. The inadequate infrastructure is a NGOs, international training programmes major obstacle to the country’s develop- and concessional credits. Support totalled ment. The industrial sector also has a serious SEK 32.7 M in 1999, with technical support negative impact on the environment. amounting to SEK 23.3 M. This includes the Agriculture continues to be India’s main financing of water purification projects, industry, accounting for approximately 25% basic surveys to assist agricultural reforms, of GDP. environmental operations at paper mills, and Testing of nuclear weapons has complica- a number of other projects with environ- ted the security policy situation in the regi- mental ramifications, for example on Minda- on. The conflict over Kashmir, which has nao. been continuing for many years, has intensi- In 1999, Swedish support for NGOs ope- fied. The conflict markedly deteriorated in rating in the Philippines amounted to SEK summer of 1999, when Pakistani militants 5.3 M. crossed the demarcation line into Kashmir. India responded by deploying its air force (for the first time in 20 years). In 1999, GDP per capita was USD 392. INDIA More than 350 million people (one-third of India continues to face major political, social the population) live below the poverty line and economic challenges. A new coalition and most of them live in rural areas. Increa-

125 Foto: Victor Lenson Brott/Global Reporting Sweden

An enormous laundry facility in the heart of Bombay handles laundry from hotels, households and other sources around the city. Most of the workers can neither read nor write, but nevertheless almost all laundry is returned to the right person. sed investments, better use of resources, Swedish development cooperation continued reforms and a higher rate of The agreement for development cooperation growth are required to meet the country’s with India was terminated due to the nuc- rapidly growing needs. lear weapons tests in May 1998, but initiati- ves which had been agreed previously are Democracy and human rights being completed. Support via NGOs and in India is a vigorous democracy, with press the form of international courses are not freedom, an independent judiciary, a broad affected. Opportunities for the financing of spectrum of political parties and a multitude certain activities in the private sector and in of special-interest organisations, including the research and the environmental fields human rights bodies. At the same time, the- will continue to apply. In 1999, Sida was re are considerable deficiencies in the given the go-ahead to prepare research coo- human rights area, and this may be attribu- peration of mutual interest amounting to ted to socio-economic factors. Traditionally, more than SEK 30 M. In the human rights women, people of low caste and indigenous and democracy field, Swedish assistance ini- populations are in a weaker position if they tiatives have primarily focused on women’s wish to claim their rights. The lack of rights and participation in democratic pro- resources and the high level of illiteracy cesses. make it difficult for weak groups in society Sweden has endeavoured to increase capa- to gain a hearing. The human rights situa- city and know-how within Indian public tion in Kashmir is unsatisfactory, due to the administration and the civil society, with the ongoing conflict. aim of reducing pollution affecting the atmosphere, soil and water. Sweden’s

126 previous contribution to the financing of the important role in the public debate. The hydroelectric power plant at Uri in Kashmir media has been able to retain the freedom it has made an important addition to India’s established in conjunction with Suharto’s energy supplies, with a low level of environ- resignation in May 1998 and freedom of the mental impact. Economic cooperation in the press has been consolidated by a new press form of concessional credits and guarantees act. may become important tools in the future in A new law on human rights has been modern, urban sectors. Swedish companies adopted, including reinforcement of the have the know-how and technical expertise national human rights’ commission’s manda- to participate in developments in this key te. President Wahid’s new government also area. includes a minister for human rights and work is progressing within the framework of a national action plan for human rights. Ratification of the covenants on Civil and INDONESIA Political Rights and Economic, Social and 1999 was an important turning point for Cultural Rights is expected to occur during Indonesia. The country’s first free parlia- 2000. mentary elections for more than four deca- On paper, Indonesia has excellent envi- des were held, and a process of political ronmental legislation, but in practice there renewal was initiated. The election of Presi- are deficiencies in implementation. The dent Wahid in October 1999 and the country lacks the necessary expertise, infra- appointment of a coalition government structure and budget funding, and in addi- denoted significant steps in Indonesia’s tion the judicial system is ineffective and, if democratic development. A new set of valu- fines are awarded, they are often much less es, based on respect for human rights, has than the gains resulting from a breach of the begun to permeate Indonesian society. law. Illegal tree-felling operations continue There is a continued need for extensive to be commonplace. reforms. Indonesia’s public administration has to be thoroughly reformed if the rule of law is Swedish development cooperation to be effectively developed. Due to the lack Swedish development cooperation with of an efficient public administration and a Indonesia has been on a limited scale for legal system worthy of the name, respect for some time. Traditionally, there has been a existing laws is limited. The new government focus on contract-financed operations, inter- has given high priority to good governance national courses and a certain amount of and the fight against corruption. Decentralisa- institutional support. Assistance has also tion of political power is another important been channelled indirectly via UN agencies challenge for Indonesia’s new government, which are active in Indonesia. As a result of and a prerequisite for resolving regional con- political and economic developments in flicts within the country’s borders. At the Indonesia during 1997–1999, Swedish initia- same time, the new government has shown tives increased in 1999, primarily in the form that it wants to change the role of the army of support for the democracy process, the and bring it under democratic control. reinforcement of human rights and poverty reduction. Consequently, development assi- Democracy and human rights stance to Indonesia in 1999 expanded to New political legislation has provided a basis approximately SEK 25 M. It is anticipated for a system of parliamentary democracy and that the volume may increase during the new decentralisation of influence and resources. country strategy period to as much as SEK Freedom of association has been consolida- 50 M (excluding credits), providing the con- ted, which has resulted in a more active civil ditions are right. In 1999, Sweden supported society, with a large number of new organi- the holding of parliamentary elections, inclu- sations. Domestic human rights organisa- ding support for preparations and for Indone- tions can operate freely and are playing an sian organisations monitoring the elections.

127 Foto: Victor Lenson Brott/Global Reporting Sweden

The image of Mao is still in place, despite China’s increasing market orientation.

On 16 March 2000, the Swedish Govern- in employment and in state-owned industri- ment approved a new country strategy for es. The environment is very seriously affec- assistance to Indonesia, emphasising the need ted by overpopulation, poverty and an unin- for continued support for reform processes hibited approach to growth. and institution- building which promote democratic social development which has Democracy and human rights already commenced and respect for human There are considerable human rights short- rights. There was also a stress on support whi- comings in China that will not be solved ch promotes environmentally sustainable while China remains a one-party state which development, and poverty-reduction measu- refuses to tolerate political opposition and a res during a transitional period. In addition to free press. The death penalty is more fre- the possibility of credits, the emphasis is on quently applied than anywhere else in the contract-financed operations, courses and world and there are serious deficiencies in support for democracy. application of the rule of law. However, at the individual level, the reform policy and the retreat from an ideological stance have led to greater personal freedom of action, in CHINA which the party no longer controls everyday Since it introduced its reform policy 20 life. High priority is given to legislative and years ago, China has experienced the highest administrative reforms, and major efforts level of economic growth in the world and have been made to reform and modernise has achieved considerable success in its tran- the judicial system. International commerci- sition from a planned economy to a market al and political contacts, and cooperation economy. However, this process is far from with UN human rights mechanisms are hel- complete and China now faces a number of ping to accelerate this process. problems in the banking and financial sector,

128 Swedish development cooperation 1999, an official has been posted to The Swedish Government has assigned Sida Shanghai to administer the extension and to draw up a new country strategy for deve- intensification of operations in Shanghai lopment cooperation with China for the approved as a result of an evaluation of RWI 2000–2003 period. The aim is to support a assistance to China. (See Swedish Human continued reform process in China and the Rights Training in China. An Assessment, development of a modern judicial system Sida, Feb. 1999) and regulatory structures. Cooperation Cooperation has been initiated between should focus on areas in which Swedish prosecutors and judges in Gothenburg and experience and technical know-how can Shanghai. As a result of this project, the contribute to development, new thinking Chinese participants will receive insights and change processes in China. Sweden’s into the way in which the Swedish judicial contribution to China’s development is ine- system works and the various roles and func- vitably marginal, but activities in strategi- tions involved. cally selected areas may assist the change Chinese participation in international trai- process. Special emphasis is placed on ning programmes was the original form of human rights, democracy, the environment assistance provided. In 1999, more than 50 and gender equality. Chinese took part in courses aimed at senior Assistance by means of contract-financed civil servants and managers in various sec- technical cooperation has resulted in the tors. The courses provide an opportunity to training of people who then provide in-servi- learn about Swedish experience and met- ce training for personnel in such fields as hods, and to discuss them in an international environmental monitoring, Agenda 21 pro- environment. cesses and air-traffic control. Credit finan- Some 10 Swedish NGOs have received cing has resulted in investments which are support for activities in China, mainly for justified in terms of the national economy health, education, human rights and democ- and which have had a positive impact on the racy initiatives. Examples include support to environment and health care services. In the PMU-Interlife for a children’s home for case of environmental cooperation, initiati- abandoned and disabled children and the ves have focused on particularly vulnerable Swedish-Tibetan School and Culture Associ- environments, for example "dirty" manufac- ation which runs several primary schools in turing processes, air pollution, and water the Tibetan countryside. and sewage management. There is no country framework for coope- The Raoul Wallenberg Institute (RWI) at ration with Tibet. The number of concessio- Lund University is primarily responsible for nary loan projects has declined, partly due to Swedish support for the promotion of the OECD guidelines, which preclude cre- human rights in China. The aim is to increa- dits for commercially viable projects. se awareness of human rights issues and develop expertise in this field in China by disseminating information about internatio- nal regulatory structures in various areas, for MONGOLIA example judicial systems, prisons and the Following the collapse of the Soviet Union in police, and to help to ensure that internatio- 1990, Mongolia developed rapidly towards nal norms are increasingly accepted by the democracy. The government has made consi- Chinese public administration. This assistan- derable progress in the introduction of free- ce amounted to approximately SEK 10 M in market reforms. In economic terms, Mongolia 1999 and involved a series of seminars in still faces considerable problems after its tran- China and in Sweden for senior public offi- sition from a planned economy – heavily cials at the central and regional levels, a dependent on the Soviet Union – to a market guest-research post at RWI in Lund and the economy. Economic decline resulted in the donation of books and documents on human collapse of domestic industry. Unemploy- rights to Chinese research libraries. As from ment and wage reductions put the population

129 under considerable pressure, and the social Swedish development cooperation welfare system collapsed. Dependence on the Sweden initiated some development coope- Soviet Union has now been largely replaced ration in 1991. There is contract-financed by dependence on international donors (par- technical cooperation mainly in the admi- ticularly the World Bank, the Asian Develop- nistrative and banking sectors, the health ment Bank and the UNDP) and Japan. It is field (water and sanitation), and democra- estimated that 35% of the 2.5 million inhabi- cy/human rights. Mongolia has sent a relati- tants live in extreme poverty. The groups par- vely large number of participants to Sida’s ticularly affected are single women with international courses, including 26 in 1999. children, orphans and pensioners. Since 1998, Sweden has contributed about Following the recession of 1990–1993, SEK 16 M to the national poverty program- Mongolia has achieved economic growth of me under the auspices of the UNDP. This 3.5% per annum since 1994. Within a few programme was evaluated in 1999, and the years, the rate of inflation fell from 300% to results were largely favourable. Total disbur- 17% in 1997. However, like other Asian sements for 1999 amounted to SEK 8.5 M. countries, the Mongolian economy was Mongolia’s interest in Sweden focuses on affected by the Asian crisis, which led to a Sweden’s role as a pioneer welfare state. The decline in prices for the country’s traditional Mongolians mainly request specific informa- exports – copper, cashmere wool and gold. tion on the workings of the democratic Although the government has implemented system, and how the welfare structure has extensive economic reforms since 1996, been built up and modified in areas such as including higher energy prices, reform of the education, medical care and the labour mar- banking sector and the public sector, and a ket. Sweden may support the process of far-reaching privatisation program, there change in Mongolia in a long-term perspecti- continue to be problems. Exports are exces- ve, both in the form of assistance for the sively dependent on raw materials, national reform process and programmes to help finances appear to be chronically weak, and groups affected by the transitional phase. it is difficult to attract foreign investors. Mongolia has been a member of the WTO since January 1997 and is also a member of the ASEAN Regional Forum (ARF), Asia’s NORTH KOREA embryo regional security organisation. North Korea is one of the few states in the world still dominated by a totalitarian Stali- Democracy and human rights nist ideology combined with a centralised, Although Mongolia lacks democratic tradi- planned economy. Following the break-up tions, the parliamentary system is now well of the Soviet Union and the collapse of established among the general public and COMECON (socialist bloc partnership politicians. Since the introduction of democ- organisation in the 1949–91 period) in the racy, there has been an ambition to establish early 1990s, North Korea was both unable full human rights protection, and conside- and unwilling to adapt to new conditions. It rable effort has been devoted to this field. is estimated that the North Korean GDP Mongolia has also shown interest in active declined by 5% a year during the 1990s. participation in international contexts such Only 20% of the total land area in North as the UN, particularly in matters concer- Korea can be cultivated. Much of the soil ning the reinforcement of the rule of law has been impoverished due to over-fertilisa- and protection of human rights. Representa- tion and deforestation, or washed away by tives of the Mongolian government want to rain. During 1995–1997, North Korea also find the best way of achieving increased suffered from drought, rains and typhoons. democracy and prosperity. The country is In conjunction with deficiencies in the eco- making active efforts to become part of the nomic system, this has resulted in an extre- international community and to find a role mely precarious food situation. for itself in this context, in its new form. It is difficult to form an opinion about

130 how serious the situation really is, since the protect the interests of the US, Germany, regime does not permit full insight. Accor- Australia and Canada, but it also plays an ding to the UN bodies currently operating in important monitoring and reporting role. North Korea, it is evident that large sections Swedish humanitarian aid for operations of the population have been suffering from in North Korea has partly been provided in chronic undernourishment for several years. response to the six appeals for emergency In combination with the considerable shor- assistance issued by the UN since 1995, and tage of medicine and inadequate energy sup- partly to support NGOs operating in the plies, this has probably resulted in a substan- country. In all, Sweden has donated approxi- tial increase in the mortality rate, particular- mately SEK 142 M in humanitarian aid sin- ly among children and other vulnerable ce 1995 to those in need in North Korea. groups. During the autumn of 1998, a nutri- The major proportion of this assistance has tion survey for children up to the age of been used for food supplied via the WFP, seven undertaken by the WFP, UNICEF, the but Sweden has also provided support via EU and the North Korean government con- the WHO and FAO to help improve health cluded that there was widespread undernou- care and agricultural production. Other rishment. organisations receiving Swedish support In recent years, a certain amount of include NGOs, such as the Red Cross, change – brought about by crisis – has taken PMU-Interlife, Swedish Church Aid and place in North Korea and increasing contacts Children’s Aid. have been established with other countries. Some minor changes in the North Korean Talks are under way with the US, South constitution in recent years have paved the Korea, Japan, Australia and Italy, for examp- way for very limited economic reforms. But le. Italy established diplomatic relations with extensive reforms are required – economic, North Korea in January 2000. The talks political and social – if normal development between the parties involved cover all types assistance is to be considered. At the of issues of interest and importance to those moment, such reforms would appear to be concerned. This is part of the process to unlikely. reduce the tension on the Korean peninsula and in the region. Sweden is also holding tal- ks with North Korea with the same inten- tions, and there have been several visits to PAKISTAN the country in recent years. Since gaining independence in 1947, Paki- stan has been governed alternately by milita- Democracy and human rights ry juntas and democratically elected govern- The human rights situation in North Korea ments. The Pakistan Muslim League, which is serious. External human rights observers took office following democratic parliamen- have never been allowed to visit the country tary elections in 1997, initiated a reform and little is known about actual conditions. programme to solve Pakistan’s serious eco- There are no fundamental political liberties nomic problems. or rights, and there are reports of summary Following a military coup in October trials and disappearances. Conditions in 1999, the country is once again being gover- North Korean prisons and labour camps are ned by the military. The military regime has very severe. Torture, maltreatment, neglect committed itself to dealing with corruption and public executions occur. North Korea and the abuse of power, but has so far been has threatened to withdraw from the Cove- unable to comply with the demands of the nant on Civil and Political Rights. international community to provide a time- table for the return of democratic rule. The Humanitarian assistance current order risks weakening the country’s Sweden is the only EU country with an civic structures. embassy in North Korea. The primary task The high level of indebtedness to foreign of the Swedish mission in Pyongyang is to countries has had serious consequences for

131 Foto: Victor Lenson Brott/Global Reporting Sweden

Globalisation means that the same companies have a presence in virtually all countries.

132 the national economy. The sharp reactions to participate in certain minor activities for of the rest of the world to the nuclear wea- the time being. pons tests in May 1998 (including sanctions) contributed to a further decline in Pakistan’s economic situation. In order to create favou- rable political and economic development, THAILAND major efforts are needed to deal with cor- In recent decades, Thailand has developed ruption, the macroeconomic imbalance, into a modern democracy, with gradually weak institutions, lack of equality of oppor- declining military influence. A new constitu- tunity and respect for human rights, and tion was adopted in 1997 and the country’s environmental destruction. Pakistan’s first elections to the senate were held on 4 foreign policy is dominated by the tense March. Despite certain irregularities, the relations with India and are now entirely high level of participation and the authoriti- engulfed by the protracted Kashmir conflict. es’ decisive handling of the problems show The ongoing civil war in Afghanistan also strong and broad popular commitment to threatens to destabilise the country. the new constitution. The Asian financial crisis began in Thai- Democracy and human rights land in July 1997. Many years of economic The human rights situation in Pakistan growth were brought to a halt and structural remains basically poor. The fundamental weaknesses were revealed. Thanks to a deci- and traditional problems in the area of sive reform policy and considerable interna- human rights are torture during police inter- tional support, however, the government rogation and in prison, and the fact that the was able to reverse the trend. Following a rights of women, children and minorities are downturn of almost 10% in 1998, economic curtailed. The subordinate position of development improved in 1999. In 2000, women in Pakistani society is deep-rooted. growth is expected to accelerate again and Rape within marriage is considered legal and amount to 4–6%. murders on points of “honour” occur. Religi- The rapid economic growth of recent ous intolerance permeates many areas of decades has raised the standard of living for society, although sectarian violence has dec- most Thais. At the same time, there are sub- lined somewhat. Access to social and econo- stantial gaps between rich and poor, and mic rights is inadequate for the majority of between urban and rural areas. Income dis- the population. tribution is more uneven than in most other countries in the region. The public social Swedish development cooperation security system is undeveloped, and environ- Pakistan was one of the first countries to mental problems are increasing unabated. receive Swedish assistance, but programme Rapid urbanisation has resulted in severe country cooperation was terminated in the pressures on the environment, particularly in 1970s. In recent years, Pakistan has been a the Bangkok area, where there is serious air relatively large recipient of contract-financed and water pollution. The over-exploitation technical assistance, for example in the of natural resources – particularly forests – transport sector and the environmental area. has led to serious strain on the environment. Several concessional loans have been appro- At the same time, however, there is an awa- ved for projects in the telecom and energy reness of the problems and the government’s sectors, for instance. Pakistan has also recei- development plans emphasise the importan- ved support for the education and health ce of environmental protection and sustai- sectors and for human rights institutions. In nable development. addition, almost 350 Pakistanis have partici- pated in Sida’s international training pro- Democracy and human rights grammes since 1980. As a result of the nuc- Thailand is now a vigorous democracy, and lear tests in May 1998 and the military coup the process of deepening and reinforcing in October 1999, Sweden is only prepared democracy and the rule of law is under way.

133 There is considerable freedom of expression, The consultation was followed by a period which is upheld by an outspoken press. The in which the pro-Indonesian East Timor mili- fact that the country now rests on sound tia was permitted to create a humanitarian democratic foundations has proved to be a disaster, apparently supported and led by cer- positive factor in economic recovery. tain elements in the Indonesian army. When Women have the same legal standing as Indonesia left the area, more than half of the men. In practice, however, there are still dif- population were in flight, and 85% of all buil- ferences between women’s and men’s rights dings were destroyed. The consequences of in various areas. Women are underrepresen- these acts of violence will affect East Timor ted in political appointments, although there for a long time to come. The people of East are relatively more women in leading posi- Timor are now forced to build up all their tions in the private sector. public functions and institutions from nothing. Swedish development cooperation The autumn of 1999 was primarily cha- Swedish development cooperation commen- racterised by the critical humanitarian situa- ced in 1986 and has primarily been in the tion and by the international community’s form of contract-financed technical coopera- attempts to improve the situation. While the tion. So far, a total of 80 projects at a total UN has established its presence, work has cost of SEK 160 M have been agreed, prima- also begun to build up an effective public rily in the environmental and energy sectors. administration and prepare the population Three credit lines for industrial develop- for future independence. At a meeting of ment, two credits for environmentally fri- donors in Tokyo in December 1999, com- endly technology and one for the delivery of mitments amounting to more than USD 500 medical equipment were approved during M were made for this purpose. the 1990s. Approximately 500 Thais have At the same time, the East Timor leader- participated in Sida’s international courses. ship, and the Indonesian government, have On 23 March 2000, the government appro- clearly signalled their desire to heal the ved a new country strategy for development wounds that occurred in conjunction with cooperation with Thailand for the the separation. Indonesia has also initiated 2000–2004 period. Cooperation will focus investigations of the Indonesian military and on activities in the environmental area and civilian officials who were responsible for support for the political and economic the violence in East Timor in the autumn of reform processes. Continued support is anti- 1999. At the same time, more than 100,000 cipated via Swedish NGOs to strengthen the refugees from East Timor were still in West role of Thai organisations in the civil society. Timor at the end of the year, partly as a result of the militia’s influence over the refu- gees in the camps. Sweden and other countries have repeatedly pointed to Indo- EAST TIMOR nesia’s responsibility for the safety and well- In 1999, East Timor was able to start out on being of the refugees while on Indonesian the road to independence after 24 years of territory. occupation. On 30 August, a consultation on the future of the area was held under UN Democracy and human rights auspices. 79% of the electorate voted for In many respects, 1999 was one of the worst separation from Indonesia. The decision was years in East Timor’s history, but also one of confirmed by the Indonesian parliament in the best. The violence and grave human October. Shortly afterwards. Indonesia evacu- rights’ violations during the final months as ated the area. Since then, East Timor has an Indonesian province were followed by the been under UN administration and, during first steps towards independence. East the next two years, the UN will attempt to Timor’s leaders, headed by Xanana Gusmão, establish the conditions required for indepen- have consistently referred to reconciliation dence. and a free East Timor, based on democratic

134 foundations and with respect for human Rescue Services Agency assisted the UN rights as a cornerstone. Office for the Coordination of Humanitari- an Affairs (OCHA) in establishing an infra- Swedish development assistance structure for humanitarian aid received. The In 1999, Sweden provided support for East Swedish civilian police officers continued to Timor amounting to approximately SEK 35 serve under the UN. Sweden contributed M. Prior to the consultation on the future of USD 1 M to the UN Trust Fund for East the area, Sweden contributed SEK 1 M to Timor at the donor conference in Decem- the UN, and also 10 civilian policemen and ber. A further contribution of SEK 40 M nine electoral administrators. During the was made in conjunction with a visit to East Indonesian era, Sweden also provided huma- Timor in April 2000 by the Swedish Minis- nitarian assistance through the ICRC and ter for International Development Coopera- the Swedish Caritas organisation, for pro- tion, Maj-Inger Klingvall. Long-term Swe- jects such as the construction of schools. Fol- dish support for the establishment of nation- lowing the violence in the autumn of 1999, hood will depend on future developments in assistance had an almost exclusively humani- East Timor. tarian orientation. For example, the Swedish

135 Regional initiatives in Asia

Regional initiatives in Asia are primarily Forum Asia and the Asia Pacific Forum on designed to promote regional cooperation, Women, Law and Development, are recei- particularly in Southeast Asia, and opportu- ving Swedish support. Support is also provi- nities for Swedish programme countries to ded for local NGOs in Bangladesh, India and participate in this cooperation. The environ- Sri Lanka within the framework for regional ment and natural resources also have high cooperation. priority. The main recipient of Swedish sup- The Asia-Europe Meeting (ASEM) in port is the Asian Institute of Technology March 1996 in Bangkok, which was atten- (AIT), which focuses on higher education ded by the heads of state and government of and research. The Swedish funding is prima- the 15 EU countries and 10 Asian countries rily used for a scholarship programme which (the seven ASEAN countries, plus Japan, enables about 50 students from Sweden’s China and South Korea), marked the begin- programme countries to participate in hig- ning of greater Euro-Asian cooperation). her education every year. Funds are also pro- The ASEM aims to create increased unders- vided for the Institute’s activities in the envi- tanding between Europe and Asia and to ronmental field. facilitate trade and investments in both Sweden also provides assistance to the directions, as a result of political and econo- Mekong River Commission (MRC). mic dialogue and scientific and cultural The MRC, whose member states are exchanges. The ASEM summit in London in Cambodia, Laos, Thailand and Vietnam, is the spring of 1998 established the ASEM responsible for safeguarding the water Trust Fund under the auspices of the World resources of the Mekong region. Swedish Bank, with the objective of reducing the support focuses on the development of insti- social consequences of the Asian crisis in tutions and expertise, in the form the provi- 1997/98 and contributing to the reform of sion of personnel for example. Funding for the financial sectors in countries affected by various study programmes and courses is the crisis. The Asia-Europe Foundation also provided in the environmental area. (ASEF) was formed in 1997 to promote Swedish support for the UNDP/World intellectual and cultural cooperation and Bank regional water and sanitation program- contact between nations. The Asia-Europe me has focused on projects which have a Environmental Technology Institute bearing on Sweden’s continued involvement (AEETC) was founded in 1999. Sweden has in the water sector in certain countries. Sup- contributed to all these institutions. Within port for International Centre for Integrated the framework of ASEM cooperation, initia- Mountain Development (ICIMOD) in the tives have been taken to improve and sup- Himalayan region is expected to provide port international cooperation for the pro- experience, which can then be transferred to tection of children. Sweden is working to programmes in countries such as Vietnam achieve the expansion of this cooperation to and Laos. include irregular migration and “trading” in Support for the promotion of human women and children. rights and democracy is another important The third ASEM summit will take place in aspect of regional cooperation. Initiatives are Seoul, South Korea, in October 2000. taking place in such countries as China, Cambodia, Indonesia and the Philippines, and via local funds in programme countries. Regional human rights organisations, such as

136 CUBA

HAITI

MEXICO BELIZE JAMAICA DOMINICAN REPUBLIC HONDURAS GUATEMALA GRENADA NICARAGUA EL SALVADOR PANAMA GUYANA COSTA RICA VENEZUELA SURINAME FRENCH GUYANA COLOMBIA

ECUADOR

BRAZIL PERU

BOLIVIA

PARAGUAY

ARGENTINA

URUGUAY CHILE

Latin America

Latin America and the Caribbean region During the 1990s, all the countries of the are full of contradictions – huge natural region, with the exception of Cuba, had resources and complex ecological pro- governments elected by the people. Howe- blems, glittering prosperity and unimagi- ver, in some countries, democracy lost nable misery. The current reconciliation ground in 1999, primarily due to authorita- processes and armed conflicts provide rian leaders who obstructed continued examples of this. Differences between the democratic development. The extension and reinforcement of democracy in the region countries of the region and within them must continue. Positive democratic develop- are considerable. In some cases, there ment would further contribute to improved are favourable prospects of sustainable security and the prevention of conflicts in development, while in other countries the region, which is clearly illustrated by the such factors are largely lacking. very favourable security situation that cur-

137 rently exists in the Southern Cone. It is of influence, and limited access to education, the utmost importance that the protracted health care, etc. armed conflict in Colombia is resolved as Efforts to achieve integration in the region soon as possible. have intensified in recent years. This applies Economic development in Latin America in particular to the Mercosur/Mercosul was affected by falling prices for several cru- customs union between Argentina, Brazil, cial raw materials and by the economic situ- Paraguay and Uruguay. Several Latin Ameri- ation in the rest of the world in the late can countries have entered into bilateral 1990s. Vulnerability in relation to interna- free-trade agreements. One of the future tional financial turbulence was reflected in challenges for Latin America is to achieve the serious disruptions in countries like Bra- increased integration with the global econo- zil, Argentina and Chile, due to the crises in my and greater competitiveness. Improved Asia and Russia in 1998-1999. At the same access to other markets and increased invest- time, the countries in question, strengthened ments will be of crucial significance for the by economic liberalisation and increased development of the region. Several Latin integration with the global economy, American countries are very active in multi- demonstrated their ability to counter the lateral contexts, such as the World Trade effects of crises in other parts of the world. Organization (WTO). In several of the countries in the region, The first summit meeting between heads export earnings declined during the 1990s, of state and government of the European while unemployment rose and social invest- Union and the Latin American and Caribbe- ments fell. The North American Free Trade an countries took place in June 1999 in Rio Agreement (NAFTA) and the strong growth de Janeiro. Joint issues in the political, eco- in the US had a beneficial impact on Mexi- nomic, trade policy and cultural spheres co’s economic development, however. Since were discussed. The meeting adopted an the 1980s, many countries in Latin America action plan for new and broader partnership have had very high levels of national debt. between the EU and Latin America/the Following the economic reverses of the Caribbean. A new summit will be held in 1980s and the subsequent positive growth in Spain during the first half of 2002. Starting 1998–1999, the Latin American economy on 1 July 2000, a free trade area will gradu- declined overall in 1999. Taking into ally be introduced between the EU and account population growth in the region, Mexico. Negotiations are under way betwe- economic growth would have to amount to en the EU and Mercosur, and the EU and 6% of gross domestic product (GDP) per Chile, aimed at achieving an association year in order to reduce poverty, according to agreement, the effects of which will include the World Bank. However, during the liberalisation of trade. 1990s, growth in the region averaged slightly less than 3% of GDP per year. In the final Democracy and human rights two decades of the 20th century, poverty In Latin America and the Caribbean, there thus increased in Latin America. Argentina, are still deficiencies in terms of respect for Chile, Peru and Guyana nonetheless enjoyed civil, political, economic, social and cultural positive rates of growth in the 1990s. Other human rights. The differences between the countries, including Venezuela, Colombia, countries in the region are substantial in this Ecuador and Jamaica, now have a lower per respect. There is democratic rule in all capita GDP than ten years ago. In 2000, the countries in the region, except Cuba. Latin American economy as a whole, is Countries such as Uruguay and Costa Rica expected to improve as an effect of such fac- have well-developed democratic systems. In tors as growth in other markets. many of the other countries in the region, Latin America is definitely the continent however, democracy is characterised by pro- with the world’s most skewed income distri- blems and deficiencies, although in many bution. In practice, this means that large areas developments are under way which are groups in society have restricted political strengthening and expanding democracy.

138 There are also examples of negative tenden- Ecuador, a controversial process of constitu- cies. In some countries, presidential power is tional change in Venezuela and continued almost total and is practised without any sig- centralisation of presidential power in Peru. nificant parliamentary influence. The gene- In Central America, there are special ral public tends to have little confidence in question marks regarding developments in democratic institutions and procedures. Nicaragua, where the president, empowered Important features of a democratic culture by a pact with the largest opposition party, are still lacking in many countries in the has implemented amendments to the consti- region. In certain cases, extensive corruption tution and electoral laws which may restrict further undermines confidence in public democracy. In Guatemala, the peace process authorities. Dissatisfaction among large initiated under the previous government groups of voters has created a breeding could only be partially implemented. The ground for populism and support for autho- question now is how President Portillo can ritarian leaders, albeit democratically elec- complete this process in accordance with the ted. The poverty in which 210 million Latin ambitions he has expressed. The regional Americans live is the main obstacle to the integration process in Central America is consolidation of democracy in the region. being disrupted by border disputes between In several countries, there is an imbalance Guatemala and Belize, and also between between executive, legislative and judicial Nicaragua and Honduras. institutions. This imbalance is often reinfor- Most countries in the Caribbean have ced by an ineffective judiciary, which neit- well-established democratic procedures and her offers protection under the rule of law institutions, and effective judicial systems. nor enjoys the confidence of the people. Democratic developments in Haiti were and Impunity – when culprits are not tried for are associated with major difficulties, and their crimes – is a serious and widespread the situation regarding respect for human problem in the region. rights and fundamental freedoms gives cause The often serious lack of respect for eco- for concern. In Cuba, the situation regarding nomic, social and cultural rights particularly respect for human rights and fundamental affects the poor, and women and children. freedoms continues to be very serious. People who belong to the indigenous popu- Supporting efforts to strengthen democra- lation and ethnic minorities are often even cy and human rights has been an important more vulnerable. The rural population tends feature of Sweden’s assistance to Latin to live in greater poverty and have less influ- America for many years. This aspect of cur- ence, which increases the risk of violations rent development cooperation has its roots of human rights. in Swedish support for people suffering Growing crime and violence give cause for from political oppression at the height of the concern in many parts of Latin America. In military dictatorships of the 1970s in South several countries, these phenomena are lin- America, and in Central America in the ked to narcotics production or drug traffick- 1980s. Public authorities and NGOs have ing. Narcotics crimes, accompanied by incre- received assistance to strengthen public asing drug-abuse problems, often lead the democratic organisations, such as the public authorities to consider that they are ombudsman institution for human rights obliged to use a greater degree of force to and reform of the judicial system, and also combat these crimes. to increase awareness of and establish an In the Andean countries, the democracy interest in human rights in organisations and and human rights situation gives cause for among individuals. A large amount of valu- particular concern. Progress in certain able experience has been gained as a result, restricted areas in recent years is balanced by for example in the human rights cooperation stagnation and decline in others. The pro- that has developed between Swedish NGOs, blem factors in the region include intensified and Latin American NGOs or other sections internal armed conflict in Colombia, the of the civil society. protracted economic and political crisis in Sweden’s membership of the European

139 Union has meant new opportunities to deve- countries most seriously affected. NGOs lop cooperation with Latin America in the have played a prominent role in the dialogue democracy and human rights field. This also between the donor community and govern- applies to the common development coope- ments. ration programmes implemented by the EC During the 1999–2001 period, Swedish which, overall, are the largest in the region. support for reconstruction after Hurricane Sweden is endeavouring to ensure that EC Mitch represents a total of SEK 1.4 billion. development cooperation focuses more on Approximately half this sum is being devo- measures to support peace and reconcilia- ted to building up the infrastructure – brid- tion initiatives, human rights and democra- ges, roads, sewage systems, etc. The remain- cy. der has been allocated for initiatives in the social sector, environmental projects and Natural disasters debt relief. Although many investments are Latin America and the Caribbean are regions related to acute needs, the starting point has that have been affected by extensive natural been to provide support in a long-term per- disasters over the years. In recent years, the spective. Funds have also been provided for El Niño weather phenomenon has primarily measures to prevent disasters. Support has affected the Andean countries, where it cau- been allocated in proportion to the damage sed widespread devastation. In 1999, Vene- in the countries concerned. Assistance has zuela was hit by serious floods. Nearly every been channelled through UN agencies, inter- year, there are powerful hurricanes in national organisations and Swedish NGOs Central America and the Caribbean which operating in Central America. The Swedish cause major devastation and affect the lives Rescue Services Agency and companies such and health of people, as well as environmen- as Skanska and NCC have also participated tal and economic development. in the reconstruction process. Sweden is playing an important role in the international community in developing a Swedish development long-term strategy for sustainable develop- cooperation in Latin America ment within the framework of activities fol- Cooperation with Latin America accounted lowing Hurricane Mitch, which hit large are- for 16% of total Swedish development coo- as of Central America in October 1998. This peration via Sida in 1999 – an increase of strategy is not confined to physical recon- 25% in comparison with 1998. This is due struction. An international donors’ meeting to the Swedish Government’s decision to in Stockholm in May 1999 drew up the allocate SEK 1.4 billion in 1999–2001 for “Stockholm Declaration”, under which the reconstruction in Central America, following countries in the region undertake to work the damage caused by Hurricane Mitch. for reconstruction and transformation in In order to be in a better position to utilise Central America by reducing social and eco- the new development opportunities in Latin logical vulnerability and achieving decentra- America, the Swedish Ministry for Foreign lisation and good governance. This integra- Affairs and Sida have prepared strategies for ted platform for sustainable development development cooperation with South and has subsequently guided relations between Central America, and also for two of the the countries concerned and the internatio- region’s poorest countries, Bolivia and Nica- nal community as regards continued coope- ragua. A common feature of these strategies ration. Sweden is responsible for following is that the emphasis continues to be on the up the Stockholm Declaration, together promotion of human rights and democracy, with the US, Spain, Germany, Canada and social initiatives in the health care and Japan. education sectors, and administrative and The follow-up process has primarily invol- institutional development. The strategies ved local representatives of countries in the also establish that partnerships should be region, and has had the greatest impact in expanded and strengthened with respect to Nicaragua and Honduras, which were the technical cooperation, research and econo-

140 Foto: Tomas Jonsson

Indigenous populations and ethnic minorities are the most vulnerable people in Latin America. Lack of respect for human rights often affects women and children most. The photo shows Guatemalan refugees returning from Mexico.

mic cooperation. cooperation with South America. In March Swedish development cooperation with 1998, the Government approved a regional Central America (except Nicaragua) has strategy for Swedish development coopera- been governed by a five-year regional strate- tion with South America for the period pri- gy since 1 January 1997. This cooperation or to 2002. This strategy describes the chal- focuses on five areas: peace and reconcilia- lenges faced by the region – poverty reduc- tion, democracy, human rights, central tion, stable economic development and government reforms, and economic and growth, and the consolidation of democracy social development, with an emphasis on and human rights. poverty reduction. In Central America, spe- cial emphasis has been placed on Guatemala and El Salvador, where Sweden is actively promoting reconciliation. As one of the poo- CENTRAL AMERICA rest countries in Latin America, there is an AND THE CARIBBEAN increasing focus on Honduras in Sweden’s Following the Guatemala peace agreement development cooperation. A new strategy in December 1996, an epoch of armed con- for development cooperation with Central flict which had characterised the region for America (including Nicaragua) and the several decades was brought to a close. The Caribbean is currently being prepared, and is consolidation of peace, democracy, human expected to apply from 2001. rights and development is a fragile process, Bolivia, which receives some SEK 130 M however. Despite relatively favourable eco- per year, receives the highest proportion of nomic development, it is evident that

141 Central America continues to be permeated rage openness and change. In 1999, some by the uneven distribution of power and support for democratic development and resources. These structural barriers to sustai- respect for human rights commenced in nable peace and development that benefit Haiti. the majority of people remain largely Agriculture and tourism are the dominant unchanged. The democratic systems sources of income in the Caribbean region, established after the wars have not gained although industry is relatively important in the confidence of the people. Large popula- some countries. In certain countries, infor- tion groups, such as women, indigenous mation technology offers increasing potenti- peoples and the population on the Atlantic al for greater diversification of the economy. coast continue to be marginalised. The The level of economic development varies major challenge faced by the region is achie- considerably from one country to another. ving increased growth and a genuine shift in There are several regional cooperation bodi- the uneven distribution of power and es. There is strong interest in improving regi- resources. onal integration in the Caribbean, and this is The countries concerned have achieved supported by the EU and EC development varying degrees of economic development. cooperation programmes. The poorest countries, Nicaragua and Hon- duras, have per capita GDP incomes that correspond to those in Sweden’s partner countries in Africa, while Costa Rica and SOUTH AMERICA Panama are on roughly the same level as the During the 1990s, South America has been Baltic states. Guatemala and El Salvador are characterised by a return to democratic rule somewhere in between, but social conditions and economic recovery after the problems of are nonetheless more serious in certain the 1980s. In the past ten-year period, all respects than in Nicaragua, for example, the countries in the region have had at least which is a poorer country. two democratic presidential elections in suc- So far, endeavours to achieve institutional cession. However, several countries still face integration in Central America have encoun- major challenges in consolidating and deepe- tered major obstacles, such as the special ning democracy – building up effective judi- interests of individual countries and explosi- cial systems, efficient and capable central ve border disputes. However, regional and local government administrations, and interests should become increasingly domi- safeguarding respect for human rights. nant in the long term, and this has already Democratic developments vary conside- occurred in the economic area to some rably within the region. The democratic pro- extent, as a result of capital movements and cess has been especially difficult in the cross-border investments. The regional Andean region and in Paraguay. dimension is especially important in rela- Increased regional cooperation within the tions with the EU. The “San José process” framework of bodies such as Mercosur and provides a regular forum for dialogue and the Andean Community is important, both cooperation for the EU and the countries of for economic development and for the rein- Central America. forcement of democracy in the region. In the At the moment, there is no strategy for next few years, the EU will face a special Swedish development cooperation with the challenge in the form of an association countries of the Caribbean region, but a agreement with Mercosur and with Chile. regional strategy is currently being prepared which will be completed by the end of the year 2000. The existing technical coopera- tion in the region has primarily concentrated on the Dominican Republic and Jamaica, while cooperation with Cuba aims to pro- mote an exchange of experience and encou-

142 BOLIVIA Area...... 1,099 thousand km2 (1998) Since August 1997, Bolivia has been ruled by President Hugo Banzer, a former general, Population ...... 8 million (1998) and a coalition which enjoys a relatively lar- GNP per capita...... USD 1,010 (1998) ge degree of parliamentary support, despite Life expectancy...... 62 (1998) increasingly widespread popular dissatisfac- Infant mortality per 1,000 tion with social and economic conditions. children under 5 years ...... 78 (1998) Demonstrations and disturbances occurred Percentage of illiterate people during the spring of 2000, leading to the aged 15–24 years (male/female) ...... 2 / 7 (1998) introduction of martial law in April 2000 for Total assistance as a a few weeks. Bolivia continues to be one of percentage of GNP ...... 7.5 % (1998) the poorest countries in Latin America. Swedish assistance...... SEK 109.3 M (1999) Poverty affects 66% of the Bolivian popula- tion, and 81% in rural areas. In 1999, the government presented a five-year develop- ment plan focusing on continued reform, the maintenance of macro-economic stability, ment cooperation with Bolivia. Balance of and the reinforcement of democracy, for payments’ support for 2000 amounted to example as a result of modernisation of the SEK 50 M for the Bolivian multilateral debt judicial system and the central government fund. In January, the Board of the World administration. Bank took a supplementary decision regar- Within the framework of the national ding debt relief for Bolivia, which may mean development plan, there is far-reaching and that Bolivia will receive of as much as USD effective donor coordination for develop- 854 M, in accordance with the Heavily Inde- Foto: Victor Lenson Brott/Global Reporting Sweden

Hygiene and looking after your teeth are important, even when you live in meagre circumstances. The photo shows Bolivian children who are being taught how to brush their teeth.

143 bted Poor Countries (HIPC) initiative, on were established in 1999, in cooperation condition that the Bolivian government can with Swedish universities. Support for social present a poverty-reduction strategy. development in the poorest parts of the country, via UNICEF, has contributed to Democracy and human rights improved availability of housing and drin- Although respect for human rights is gradu- king water. Support is also being provided ally improving, there are still many pro- for the national equality programme and in blems. Torture is used by security forces in the form of technical cooperation, mainly in the coca-growing region of Chapare, alt- the forestry sector. hough no deaths have been reported in Development cooperation primarily focu- recent years. The situation in prisons is ses on reforms in central government admi- extremely serious – 70% of prisoners have nistration, education (bilingual teaching and not been tried, and many have been incarce- literacy programmes), and poverty reduction rated for six to eight years without trial. (housing improvements and access to drin- Discrimination against the indigenous popu- king water). Some of this assistance is chan- lation is widespread. Child labour has beco- nelled via multilateral bodies, particularly me increasingly common. An increasing UNICEF. number of children start work at the age of In 1999, SEK 107.5 M was disbursed for four, mainly hawking goods on the street. assistance to Bolivia. Child labour is more widespread among girls than boys and this has negative impact on girls’ education opportunities. On the positi- ve side, an independent ombudsman institu- tion for human rights has been established, with five local offices in different parts of the country. The judicial system has been modernised and a new constitutional court has been established. Everyone is entitled to health care in theory, but in practice few people can exercise this right. The position in the education sector is gradually impro- ving as a result of the current education reform process. Violence against women is widespread, and in many cases the state fails to take effective measures to prevent crime and take offenders to court. Swedish development cooperation Since December 1996, Swedish develop- ment cooperation with Bolivia has been based on a country strategy for the period 1997–2001. Annual support of approxima- tely SEK 130 M is budgeted for this purpo- se. The country strategy for Bolivia states that the overriding objective for cooperation is the promotion of equal, sustainable and democratic development. Support for the education reform process has mainly focused on improvements in primary education, bilingual teaching and opportunities for girls to complete their basic education. In addi- tion, seven new teacher training institutions

144 COLOMBIA 2 Since the 1950s, the Colombian people Area...... 1,139 thousand km (1998) have been living in a situation permeated by Population ...... 41 million (1998) violence resulting from the internal armed GNP per capita...... USD 2,470 (1998) conflict between the country’s guerrilla Life expectancy...... 70 (1998) movements, paramilitary groups and the Infant mortality per 1,000 army. The conflict intensified in the late children under 5 years ...... 28 (1998) 1990s. One contributory factor is the drug Percentage of illiterate people problem, which extends from cultivation to aged 15–24 years (male/female) ...... 4 / 3 (1998) manufacture, sales and laundering the pro- Total assistance as a fits. percentage of GNP ...... 0.2 % (1998) President Andrés Pastrana, who assumed Swedish assistance...... SEK 34.4 M (1999) office in August 1998, has, however, given considerable priority to peace endeavours in his political agenda. Following extensive discussions, peace negotiations between the government and the largest guerrilla organi- hensive improvements of the Colombian sation (FARC) commenced in January economy can hardly be expected in the 2000. The negotiations cover a broad agen- short term, however. da, including economic and social issues, land distribution and human rights. In April Democracy and human rights 2000, an agreement was also reached on The human rights situation in Colombia peace negotiations with the smaller guerrilla continues to be extremely serious, with no organisation, the ELN. Although the negoti- immediate improvement in sight. The peace ations are likely to be protracted and the negotiations did not lead to a reduction in results are uncertain, no previous peace pro- intensity of the hostilities. Serious violations cess has carried so much political weight or of human rights and international humani- been so strongly supported by the Colombi- tarian law continue to occur, and the civili- an people. an population, particularly women and In the late 1990s, the steady growth achi- children, are seriously affected by the con- eved during the past 30 years in the tradi- flict. Murder, torture, kidnapping and inter- tionally well-managed Colombian economy nal displacement are part of daily life. The was replaced by the worst economic reces- number of internally displaced persons is sion since the 1930s. The contributory fac- estimated to be more than 1.3 million. tors were the Asian crisis, falling prices for Impunity from legal sanctions is widespread such important export commodities as oil in Colombia, and 75% of crimes are never and coffee, and limited demand in signifi- investigated. cant export markets. Growth was negative International attention and concern about in 1998 and 1999, with a decline of approx- developments in Colombia are considerable imately 3.5% in 1999. Unemployment rose and increasing. The UN High Commissio- to about 20%. The government has been ner for Human Rights (UNHCHR) has had forced to implement an austerity package, an office in Bogotá since 1997, in order to which has meant a further deterioration in monitor the human rights situation in living conditions for the majority of the Colombia. The UN High Commissioner for people. It is estimated that the internal con- Refugees (UNHCR) opened an office in flict costs the country 1.5–2% of GDP 1998. The EC has increased its humanitari- annually. The first signs of an end to the an support to Colombia, and its presence in recession were noted in the autumn of the country, via the ECHO programme. 1999. In 2000, it is estimated that the Colombian economy may grow by approxi- Swedish development cooperation mately 2%, resulting in the reinforcement of Swedish development cooperation with national finances and some decline in the Colombia is guided by the strategy for high level of unemployment. More compre- South America. Cooperation with Colom-

145 Foto: Victor Lenson Brott/Global Reporting Sweden

Colombia currently has the worst record in Latin America for violations of human rights. But more and more people are starting to react to the violence and abuses. This photo was taken at a demonstration to support the rights of the indigenous population.

146 bia has progressively increased in recent order. Cooperation is conducted via inter- years, from SEK 16 M in 1996 to more than national organisations and Swedish and SEK 34.4 M during 1999. Cooperation Colombian NGOs – including the Interna- focuses on support for human rights, con- tional Committee of the Red Cross, flict prevention, conflict management and UNHCHR, UNHCR, Diakonia, Caritas and support for the victims of the conflict. Mea- the Voluntary Organizations’ Human sures are also being implemented to reinfor- Rights Fund. ce the civil society and the rule of law and

147 GUATEMALA 2 Area ...... 109 thousand km (1998) possible to assess his chances of actually Population ...... 11 million (1998) achieving this. GDP per capita ...... USD 1,640 (1998) Life expectancy ...... 64 (1998) Democracy and human rights Infant mortality per The peace agreement and the presence of 1,000 children under 5 years ...... 52 (1998) MINUGUA (UN Mission for the Verifica- Percent of illiterate people tion of Human Rights in Guatemala) in the aged 15–24 years (male/female) ...... 15 / 28 (1998) country have resulted in a positive trend, Total assistance as a with fewer violations attributable to public percentage of GNP ...... 1.2 % (1998) authorities, the police or the army. This was due to police reforms and improvements in Swedish assistance ...... SEK 150.1 M (1999) the judicial system, for example. There con- tinue to be serious structural problems, however, and the existence of criminal groups that are assumed to have links with In Guatemala, the government and the guer- the authorities, lynchings in rural areas, and rillas finally signed a peace agreement in social cleansing are signs that more compre- December 1996, after 36 years of civil war. hensive measures will be required. Implementation of the peace agreement, Large sections of the population have which comprised a substantial and multifa- limited access to education and health care. ceted agenda for national development, soon This mainly applies to the indigenous popu- ran into difficulties, and the ambitious time- lation, which accounts for slightly more than table could not be met. Although the guer- half the total population. The peace agree- rillas and irregular army units were demobi- ment included commitments by the govern- lised and a formal peace was achieved, other ment regarding an increased emphasis on items on the agenda could only be imple- education and health care, but these have mented in certain respects. The lack of only been partially fulfilled. popular support for the peace process – an essential factor in successful implementation Swedish development cooperation – was apparent in April 1999, when a refe- Development cooperation in Guatemala is rendum was held on the constitutional governed by the regional strategy for Central amendments required in connection with America, which has applied since 1997. the peace agreement. Only 20% of the elec- Support for implementation of the peace torate participated, and the changes were process has been the starting point for activi- rejected, following the mobilisation of criti- ties related to human rights, such as reconci- cism in the media in Guatemala City. liation, demobilisation, reform of the judicial Guatemala has been able to benefit from system and the police, land registration, lite- the extensive international support for the racy, the indigenous population and local peace process, but the anticipated economic development. In 1999, Sweden also contri- development has not taken place. The tax buted to the reconstruction of bridges, due rate of 10% of GDP is the lowest in Latin to the destruction caused by Hurricane Mit- America. Since it proved impossible to raise ch. Cooperation has been mainly been chan- the rate to 12%, in accordance with the pea- nelled via the UNDP, MINUGUA and Swe- ce agreement, essential social investments dish NGOs. During 1999, cooperation total- could not be implemented. led SEK 153 M, including activities as a Alfonso Portillo has been president of result of Hurricane Mitch. Guatemala since January 2000. He repre- sents the FRG party, which also appointed Rios Montt, a former general and founder of the FRG, as chairman of congress. Portillo has expressed strong ambitions to complete the stranded peace process, but it is not yet

148 Foto: Peter Ottosson

Following a protracted conflict, Guatemala has established some degree of macroeconomic stability, although the changes experienced by poorer population groups are still very modest.

149 HONDURAS 2 Area ...... 112 thousand km (1998) approved for the HIPC initiative. Population ...... 6 million (1998) GDP per capita ...... USD 740 (1998) Democracy and human rights Life expectancy ...... 69 (1998) The human rights situation gradually improved Infant mortality per during the 1990s. The police force has been 1,000 children under 5 years ...... 46 (1998) transformed from a military to a civilian autho- Percent of illiterate people rity. The human rights ombudsman institution aged 15–24 years (male/female) ...... 19 / 16 (1998) has also been developed and, for the most part, can operate without pressure from the political Total assistance as a percentage of GNP ...... 6.2 % (1998) sphere. Corruption remains widespread and it also affects the judicial system. There are plans Swedish assistance ...... SEK 239.6 M (1999) for far-reaching reforms of the judicial system. Legal proceedings against members of the armed forces who were involved in corruption and serious human rights crimes in the 1980s, Although Honduras is one of the poorer have been under way since 1995. There are countries in the region, it has only been instances of police brutality and violence indirectly affected by the conflicts in Central against street children and homeless young America in recent years – a large number of people. Violence against women and children refugees from El Salvador and Nicaragua is widespread, and Honduras was the last sought asylum in Honduras, for example. Hon- country in the region to introduce legislation duras also became an unofficial base for opposi- for more severe penalties for violence against tion to the Sandinistas in Nicaragua in the women and children. The public authorities 1980s. But Honduras nonetheless largely shares often fail to take effective measures to prevent its neighbours’ history, both in terms of inter- crime and bring the culprits to trial. nal problems with military governments and The availability of medical care is very une- dependence on large multinational companies. venly distributed, and there are still areas that The 1990s represented a turning point in terms do not have access to basic services. In addition, of democratisation, modernisation and econo- more than 30% of children do not have access mic development. In October 1998, however, to education, although the law entitles all Honduras was hit by one of the worst natural children up to the age of ten to free education. disasters in its history in the form of Hurricane Mitch, whose flood waves caused a large num- Swedish development cooperation ber of deaths and disappearances, as well as tre- Prior to Hurricane Mitch, development assi- mendous physical damage to the infrastructure, stance amounted to approximately SEK 20 M housing and agricultural land. per year – mainly for initiatives in the health, President Carlos Roberto Flores, who took water and sanitation, equality and human rights office in January 1998, has played a dynamic areas and for the establishment of a national role in the reconstruction process. Based on the statistics authority. This cooperation is based Stockholm Declaration, the reconstruction on the five-year strategy for development coo- agenda has also involved broader commit- peration with Central America, which has ments. In addition to the reconstruction of pro- applied since 1997. After the disaster, Swedish duction facilities and the infrastructure, a investments of about SEK 770 M over a three- modernisation and democratisation process has year period were promised for reconstruction. also gathered pace as a result of extensive inter- So far, this has taken the form of infrastructure national support. projects (bridges, roads and water facilities), In macroeconomic terms, Honduras has balance of payments support, the construction begun to recover after Hurricane Mitch, but in of housing and schools, support for agricultural 1999, growth was still negative (–1.9%) and cooperatives, etc. In 1999, cooperation with the inflation rate was 10.9%. Since 1999, Hon- Honduras totalled SEK 263 M, most of which duras has been undergoing a three-year IMF is attributable to reconstruction after Hurricane structural adjustment programme and may be Mitch.

150 NICARAGUA 2 Nicaragua is still suffering from the after- Area ...... 130 thousand km (1998) math of repeated civil wars, decades of dic- Population ...... 5 million (1998) tatorship, and the serious political and eco- GNP per capita ...... USD 370 (1998) nomic crises of the 1980s. These economic Life expectancy...... 68 (1998) setbacks have made Nicaragua the second Infant mortality per 1,000 poorest country in Latin America. During children under 5 years ...... 42 (1998) the 1980s, social improvements were achie- Percentage of illiterate people ved in many areas, but at the political level aged 15–24 years (male/female) ...... 30 / 24 (1998) there continue to be a number of unsettled Total assistance as a conflicts, and deep mistrust between various percentage of GNP ...... 31.6 % (1998) groups in society. The lack of a democratic Swedish assistance...... SEK 275.1 M (1999) tradition and widespread poverty exacerbate these antagonisms. From the mid-1990s, Nicaragua has expe- rienced significant changes in the political and economic spheres. Following the imple- deficits. The high level of foreign debt is a mentation of major structural adjustment further factor impeding economic develop- measures, GNP growth has been restored ment. Since the end of 1999, Nicaragua has and inflation has declined. Although the been officially included in the HIPC initiati- infrastructure, homes and agricultural land ve, and is negotiating with the IMF and the were seriously damaged by Hurricane Mitch development banks for debt relief. in October 1998, economic growth was esti- President Arnoldo Alemán has tried to mated to be 7% of GDP in 1999. The rate reinforce his position by establishing a pact of inflation was 7.2%. However, Nicaragua between the ruling Liberal Party and the lar- has substantial budget and balance of trade gest opposition party, the Sandinistas. In Foto: Victor Lenson Brott/Global Reporting Sweden

Refugees are receiving emergency aid in the aftermath of Hurricane Mitch. Two years have passed since the ravages caused by the hurricane, but the need for assistance is still substantial. The pro- blem for many donors is how to provide assistance for reconstruction without increasing dependence on assistance, which is already considerable.

151 addition to constitutional changes (see democratic development, with priority for below), electoral legislation has also been the following areas: good governance, recon- amended as a result of the pact. In combina- ciliation, increased respect for human rights, tion with signs of corruption and abuse of equality between men and women, and the power, the pact indicates that democratic reduction of poverty. The current three-year development may be at risk. It has also led cooperation agreement, which amounts to to increased polarisation in society. Munici- SEK 240 M, will expire in 2000. In addition, pal elections are due to take place in Nicara- Sweden is contributing to national recon- gua in December 2000. struction after the serious damage caused by Relations with Honduras have deteriora- Hurricane Mitch. This involves SEK 435 M ted as a result of a dispute concerning terri- over a three-year period and includes areas torial waters. The conflict has been subject such as health, the infrastructure and to mediation by the OAS, and may hinder agriculture. In 1999, total development coo- future regional cooperation. There is also a peration with Sweden amounted to SEK dispute with Costa Rica concerning naviga- 275.1 M, including operations within the tion rights on the San Juan River on the reconstruction framework after Hurricane frontier between the two countries. Mitch. Democracy and human rights Some improvement in respect for human rights can be discerned in Nicaragua in the past year. Human rights issues have greater priority and appear more frequently on the political agenda. There are still major pro- blems, however, primarily in the form of conditions in prisons and detention centres. Economic and social rights are also limited, due to Nicaragua’s deep and widespread poverty. Despite certain positive measures, there is still a lack of effective protection from violence against women and children within the family, and this continues to be a major problem. An ombudsman for human rights has been appointed. As described above, the congress recently approved new forms of governance for inde- pendent government institutions such as the national audit office, the supreme electoral council and the supreme court. There is a risk that this will cause increased politicisa- tion in the future. The new electoral legisla- tion makes the establishment of new politi- cal parties more difficult. Swedish development cooperation Nicaragua was previously a model country in development cooperation in areas such as decentralised health care, microcredits, infrastructure at the municipal level and equality of opportunity. Since 1998, deve- lopment cooperation has been based on a five-year strategy which aims to promote

152 EL SALVADOR 2 Politics in El Salvador have been dominated Area ...... 21 thousand km (1998) by the conservative ARENA Party since the Population ...... 6 million (1998) late 1980s. Francisco Flores, the current pre- GNP per capita...... USD 1,850 (1998) sident, was ARENA’s candidate in the 1999 Life expectancy...... 69 (1998) elections. In the parliamentary and munici- Infant mortality per 1,000 pal elections held in 2000, FMLN, the for- children under 5 years ...... 36 (1998) mer guerrilla movement, won more seats in Percentage of illiterate people the congress than ARENA and a large num- aged 15–24 years (male/female) ...... 12 / 13 (1998) ber of mayoral posts, including the strategi- Total assistance as a cally important post of mayor of the capital, percentage of GNP ...... 1.5 % (1998) San Salvador. The current government is Swedish assistance...... SEK 58.2 M (1999) endeavouring to combine an economic poli- cy to promote growth with increased initia- tives in the social sector, but has so far been unable to obtain sufficient support, even within the ruling party. After the conclusion Sweden Aid. In 1999, Swedish development of peace, it has been possible to maintain assistance totalled SEK 58 M, of which a macroeconomic stability, combined with a small proportion was for reconstruction after certain amount of growth. This growth has Hurricane Mitch. scarcely benefited the high proportion of Salvadorean who are living in poverty – approximately 50% of the population. Democracy and human rights The level of violence remains high after the conclusion of peace, and the murder-rate is the highest in the world. One result of the peace process has been the establishment of a civilian police authority, which has develo- ped well on the whole. In addition, a human rights ombudsman was appointed after pea- ce was established, and this institution has been of major importance for respect for human rights in El Salvador. The judicial system was improved during the 1990s. A number of NGOs are conducting active and effective operations for the promotion of human rights. The high level of violence also involves a considerable strain on the police and the judicial system. Abuses still occur, but it has been possible to tackle the struc- tural aspects which characterised human rights violations in the past. Swedish development assistance Cooperation mainly involves initiatives to promote democracy and human rights, the construction of social housing, local democ- racy/local development and health. Support has been primarily channelled via UN agencies and Swedish NGOs, such as Diakonia, Save the Children and Church of

153 PERU 2 Area ...... 1,285 thousand km (1998) are still serious deficiencies regarding respect Population ...... 25 million (1998) for human rights, despite some improve- GDP per capita ...... USD 2,440 (1998) ments. The problems include torture and Life expectancy ...... 69 (1998) the poor conditions in Peru’s prisons, the Infant mortality per lack of impartiality in the judicial system 1,000 children under 5 years ...... 47 (1998) and the extensive jurisdiction of the military Percent of illiterate people courts. In addition, there are deficiencies in aged 15–24 years (male/female) ...... 2 / 5 (1998) freedom of expression and freedom of the Total assistance as a press, which take the form of harassment, percentage of GNP ...... 0.8 % (1998) particularly of journalists and media repre- sentatives. The decision in July 1999 on Swedish assistance ...... SEK 27.8 M (1999) Peru’s partial withdrawal from the jurisdic- tion of the Inter-American Court was a furt- her retrograde step in terms of human rights.

Since his “autogolpe” in 1992, when the Swedish development cooperation parliament was dissolved, President Fujimori Swedish development cooperation with has symbolised an authoritarian style of lea- Peru is based on the South America strategy dership in the region. Despite his ten years and mainly focuses on support for democra- in power, Fujimori was thoroughly determi- cy and human rights. In 1999, this support ned to seek a third term of office, supported amounted to approximately SEK 35 M. The by a law involving a controversial interpreta- primary focus was on conflict prevention tion of the current constitutional rules regar- and conflict management, human rights, ding the re-election of presidents. At the equality, reinforcement of the rule of law same time, several economic reforms have and the civil society, the position of child- been implemented with favourable results ren, and internal refugees. Cooperation in during President Fujimori’s term of office. Peru is implemented via international, Swe- Notwithstanding reduced demand and fal- dish and Peruvian NGOs such as Caritas, ling investments, Peru was one of the few the International Committee of the Red countries in the region to achieve positive Cross and Save the Children, and multilate- growth (3.8%) during 1999, partly due to an ral bodies such as UNICEF. Valuable institu- upturn in the business cycle during the last tional support for the Peruvian parliamenta- few months of the year in the main industri- ry ombudsman institution was initiated in es, which are fishing, agriculture and the 1996. Sweden provided further extensive extraction of minerals. The inflation rate has support for observer activities during the fallen to approximately 3.7%, but a deterio- elections in 2000, mainly for the parliamen- ration in national finances resulted in an inc- tary ombudsman. reased budget deficit. Despite relatively favourable economic development, there are still substantial income differences, and some groups in society are in an extremely vulnerable position. Democracy and human rights In addition to putting the economy in a sound position, President Fujimori won con- siderable popular support by successfully combating the terrorist organisations which, for many years, threatened to push the country into turmoil. The struggle against Peru’s production and trafficking in narco- tics has also been successful. However, there

154 MOLDOVA SWITZERLAND AUSTRIA HUNGARY SLOVENIA ROMANIA ITALY CROATIA YUGOSLAV FEDERAL REPUBLIC BOSNIA- HERCEGOVINA

BULGARIA

FYROM (MACEDONIA) TURKEY ALBANIA

GREECE

Europe

The situation in Kosovo, slightly more UN administration in the province, thus than a year after NATO’s intervention in destabilising the entire region. The industrial Yugoslavia, is hardly in accordance with town of Mitrovica in northern Kosovo is the the wishes of the international communi- only major urban centre in Kosovo with an ty. Although Slobodan Milosevic, the ethnic mix, but all attempts to establish Yugoslav President, accepted the wit- coexistence have failed and the situation hdrawal of his troops from Kosovo in June remains tense, with recurrent unrest. During 1999, thousands of Kosovo-Albanians were 1999, the situation in the area continues killed by Serbs, and more than 800,000 to be extremely tense. Kosovo’s future Albanians were forced to flee. At the end of status is still an open question. For the July, the majority of the 750,000 Albanian time being, Kosovo will be administered refugees had returned to Kosovo from Mace- by the UN, in accordance with Resolution donia and Albania. During the summer, the- 1244 of the UN Security Council, under re were reports of reprisals against Serb civi- which Kosovo remains a part of the Yugo- lians. Approximately 400 Kosovo-Serbs slav Federal Republic. have been killed since the Serb troops wit- hdrew in June. Many Serbs have fled. In April 2000, it was estimated that there were There is a risk that continued demands for only 60,000–70,000 Serbs left in Kosovo, an independent Kosovo made by ethnic compared with an estimated 250,000 two Albanians will result in a conflict with the years ago. It is considered that groups which

155 have evolved from the UCK (Kosovo Libe- levels be brought forward. Milosevic gradu- ration Army) are responsible for some of the ally stepped up his harassment of dissidents terrorist acts directed against the civilian and the independent media. He also used population. They mainly attack Serbs and state-controlled media to present the oppo- Roma people, but also dissident Kosovo sition as traitors financed by the West. Milo- Albanians. The UCK was formally disarmed sevic’s presidential term of office is due to in September 1999. In January 2000, a new expire in the mid-2001. Federal parliamen- Albanian guerrilla group, the UCPMB, tary elections and local elections must be appeared in southern Serbia and some batt- held by the end of 2000. les with Serbian police took place. There are Milo Djukanovic, the President of Monte- fears that this area will become a new hot- negro, has toned down his talk of holding a bed of conflict. referendum on independence from the The most pressing problem in the provin- Federal Republic, and Montenegrins are ce is the widespread lawlessness. An interna- divided on this issue. The risk of conflict tional presence, in the form of the United cannot be ruled out, although neither side is Nations Interim Administration Mission in currently seeking a physical confrontation. Kosovo (UNMIK) and the NATO-led pea- The West has urged Montenegro to main- cekeeping force (KFOR), with more than tain its federal status, but it has also warned 40,000 soldiers, has not yet succeeded in Milosevic not to start a new war in Monte- establishing law and order. The law courts negro. are not functioning, which means that Croatia has experienced beneficial changes suspects are not brought to justice. More during the year. Croatia’s explicit objective than 2,000 international police officers are is to achieve closer ties with the EU, and it in place, but their task is made considerably has announced far-reaching economic more difficult by the fact that their interven- reforms. The death of President Franjo Tudj- tion seldom leads to judicial measures. The man in December 1999 and the defeat of his UN has also been criticised for its failure to party, the HDZ, in the parliamentary elec- provide basic social services, such as heating, tions in January 2000, have changed the water and electricity. political situation in Croatia. The HDZ lost Until Kosovo’s final status is resolved, the power to a coalition of social democrats and renewal of open hostilities will continue to social liberals which wants to implement be an imminent threat. This means continu- major political reforms and work for the ed political and economic uncertainty, whi- return of refugees and free media, while also ch will affect not only Kosovo but the entire fighting corruption and cooperating with the region. A continued massive international ICTY tribunal in the Hague. Stipe Mesic’s presence will be necessary for some time to victory in the presidential elections on 7 come. February marked the end of the Tudjman The situation in the Federal Republic of era. It remains to be seen whether the new Yugoslavia continues to be unstable. Slobo- government can live up to expectations, and dan Milosevic, the President of Yugoslavia, succeed in fulfilling its commitments. was charged with war crimes by the Interna- The peace process In Bosnia-Hercegovina tional Criminal Tribunal for the Former is moving forward slowly. Continued nor- Yugoslavia (ICTY) in May 1999, but he malisation has meant that the SFOR force retained his hold on power and his immedia- has gradually reduced its military presence te position was not threatened. The opposi- in the country during the year. The process tion is split – Milosevic exploited this – but of repatriating refugees is still very sluggish, it is trying to unite. During the summer of however. Only 625,000 of the estimated 1999, tens of thousands of people took part two million refugees – nearly half of the in demonstrations against the regime in Bel- country’s population – have returned since grade and other cities. In January, 15 opposi- the war ended in 1995. Very few of those tion parties agreed to undertake joint protest who have returned have gone to areas where actions and to demand that elections at all they would constitute an ethnic minority.

156 This applies, in particular, to the Republic of dequate protection under the law as a result Srpska. About 44,000 refugees and 33,000 of a highly politicised judicial system is one internal refugees returned during 1999. of the primary problems. Discrimination and However, the effects of political changes in harassment of national minorities is another Croatia may accelerate the repatriation pro- pervasive problem, and persecution of the cess, since the new Croatian government is Roma people is particularly severe. Freedom expected to permit Croatian Serbs to return of the press and freedom of speech are also from the Republic of Srpska, which would deficient in most countries, due to state-con- create scope for the return of Muslims and trolled media – especially TV – combined Bosnian Croats. The local elections in Bosnia with the harassment of independent media in April were conducted without incident. and investigative journalists. Voluntary orga- The Social Democrats made strong gains at nisations, particularly human rights bodies, the expense of the Muslim SDA and will also have difficulty in operating freely in now take over control of Sarajevo, Zenica many countries. In terms of social, economic and Goradze, in addition to Tuzla. On the and cultural rights, this region is one of the other hand, the Croatian nationalist HDZ poorest in Europe, with deep social and eco- and the Serb nationalist SDS parties succee- nomic divisions and tangible deficiencies in ded in retaining power in a number of muni- meeting obligations in these areas. cipalities. Parliamentary elections are sche- duled to take place in October. Swedish development assistance Albania and Macedonia were both serious- It is estimated that total Swedish develop- ly affected by the temporary influx of refu- ment assistance to the western Balkan region gees as a result of the Kosovo crisis. In Alba- amounted to more than SEK 2 billion during nia, which is largely ethnically homogene- the 1991–1999 period. More than SEK 530 ous, it can be said that the consequences M has been allocated for cooperation measu- have been less traumatic than in Macedonia. res in the western Balkans in the year 2000. The main problem in Albania – Europe’s Swedish initiatives in this area are characte- poorest country – continues to be the extre- rised by a regional approach. Assistance mely weak governmental structure, which must contribute to sustainable peace and an contributes to the prevalence of anarchy and integration of the region into European coo- lawlessness in many parts of the country. peration. It should also be designed to persu- Nonetheless, Albania has taken its first step ade countries in the region to find peaceful towards a stabilisation and association agree- solutions for ethnic conflicts and other ten- ment with the EU, following completion of sions. Priority is given to the establishment a feasibility study. In Macedonia, the ten- of democratic and economic structures and sions between the Slav majority and the cross-border initiatives, while continuing to Albanian minority are the main threat to take humanitarian needs into account. domestic political stability. So far, however, During 2000, Sweden has made extensive Macedonia has succeeded in avoiding inter- commitments regarding the reconstruction nal conflicts, largely due to the survival of of Kosovo. Sweden supports UNMIK, the the government coalition of leading Macedo- UN administration, and has contributed 850 nian and Albanian parties. Negotiations with soldiers to KFOR, and 50 civilian police offi- the EU regarding a stabilisation and associa- cers. The Swedish battalion also carried out tion agreement commenced in April 2000, humanitarian activities. Sida provided sup- and Macedonia is the country that has made port for such measures as rebuilding the most progress in cementing closer relations electricity network, power stations and with the EU. An agreement is expected to railways, mine clearance operations, health be signed before the end of the year. care and the reconstruction of housing and schools. During the winter of 1999-2000, Democracy and human rights considerable humanitarian efforts were The situation continues to be problematical made in Serbia and Montenegro for approxi- in all countries in the western Balkans. Ina- mately 700,000 Serb refugees from Kosovo,

157 Bosnia and Croatia. These measures mainly support is primarily provided for democracy consisted of food and hygiene packages, and and human rights projects, particularly the water and sanitation installations in refugee development of independent media. In camps. Swedish military participation in Albania, Sweden supports institution-buil- Bosnia-Hercegovina has declined during the ding in the prosecution service, measures to year as the SFOR battalion has been phased curtail the number of weapons held by the out and replaced by reduced operations civilian population, and the improvement of involving civilian and military cooperation. health care services. Participation in the IPTF police force is con- Sweden is also an active participant in the tinuing. Swedish assistance to Bosnia Stability Pact for South-eastern Europe, whi- remains at its previously high level and ch was established on the initiative of the EU includes support for the repatriation of refu- in June 1999. In combination with the stabi- gees, the privatisation process, and rebuil- lisation and association process initiated by ding of the public administration and admi- the EU at the same time, the Stability Pact is nistrative structure. In the Federal Republic an attempt to use regional cooperation as a of Yugoslavia, Croatia and Macedonia – as in platform to break the chain of conflicts that other countries in the western Balkans – have characterised the Balkan area.

158 MOLDOVA 2 Moldova is often regarded as the former Area ...... 34 thousand km (1998) Soviet republic that has most clearly demon- Population ...... 4 million (1998) strated an awareness of the need for structu- GNP per capita...... USD 380 (1998) ral reform, and a willingness to take the Life expectancy ...... 67 (1998) necessary steps. Infant mortality per 1,000 Moldova is still severely affected by the children under 5 years ...... 22 (1998) Russian crisis in 1998, and has lost approxi- Percentage of illiterate people mately 70% of its exports, including exports aged 15–24 years (male/female)...... 0 / 0 (1998) to Russia and other CIS (Commonwealth of Total assistance as a Independent States) countries. Moldova percentage of GNP ...... 2.0 % (1998) could be forced to declare national bankrup- Swedish assistance...... SEK 18.1 M (1999) tcy unless it receives support from financing institutions such as the IMF and the World Bank in the form of loans for stabilisation and reforms, and further contributions from the US, the EU and Japan. Moldova was clo- reports of discrimination in the judicial se to bankruptcy in the spring of 2000, system. Prison conditions throughout the when the financial institutions refused to country are very severe, however, and may disburse substantial loans, due to Moldova’s be regarded as unacceptable. inability to privatise key industries, such as The constitution guarantees freedom of tobacco and wine. speech and freedom of the press. By law, The reform process came to a halt in there is freedom of assembly and freedom of 1999, due to several government crises. The religion. There are no restrictions on the present government is a coalition of commu- right of women or minorities to participate nists and nationalists who have little in com- in political life. There are a number of mon. Members of parliament also have per- human rights groups, and they are allowed sonal private interests in key industries such to operate freely, without government inter- as tobacco and wine to take into account. At ference. the moment, it is difficult to see how the As in other former Soviet republics, howe- deadlock can be resolved, given the current ver, there are allegations of growing corrup- power structure. tion in the political sphere. Financial crimes, Nevertheless, there is still a commitment the slow pace of reform and lack of familia- to moving towards integration into Euro- rity with the democratic process are other pean structures and active participation as common problems in these countries, and members of international bodies, such as the they also manifest themselves in Moldova. UN, OSCE, NACC, PFF and IMF. Moldova The highly precarious economic situation is also participating in the CIS economic means that health services, the care of old programme, but it has distanced itself from people and the social insurance system have CIS military and political cooperation. Since ceased to function. Although legislation for 1998, a PSA agreement has been in force the protection of children prescribes special between the EU and Moldova. Moldova is funds in the social insurance system, there is explicitly aiming for an association agree- little or no chance that these grants will be ment, followed by future membership of the paid. Projects to assist children and old peo- EU. Moldova is also involved in the ple have started, but on a modest scale. The GUAAM group’s work and wants to beco- law does not stipulate any special measures me a full member of the Stability Pact. for persons with disabilities, and the govern- ment lacks resources for the training and Democracy and human rights rehabilitation of the disabled. According to the constitution, human civil rights are generally respected. The judicial Swedish development cooperation system was reformed in 1995, and the death Sweden has conducted development coope- penalty was also abolished. There are no ration in Moldova in recent years, and is one

159 of the largest bilateral donors. Swedish initi- government are also priority areas. Swedish atives – currently comprising about a dozen commitments totalled SEK 28.2 M in 1998 projects administered by Sida – have had a and SEK 15 M in 1999. In recent years, considerable impact. Some Swedish assistan- several Swedish experts have been assigned ce is provided in conjunction with World to the UNDP office in Moldova. The Swe- Bank initiatives, including land reform and dish Institute’s scholarship programme has activities in the social sector (with children been extended to include Moldova. as an important target group). Cooperation Sida is planning to prepare a specific will also continue to focus to a large degree country strategy for cooperation with Mol- on the social sector, but debt advisory servi- dova during the autumn. ces and the development of local self-

160 RUSSIA

BELARUS

UKRAINA UKRAINE KAZAKHSTAN

UZBEKI- GEORGIA STAN TURK– KYRGYZSTAN TURKEY ARMENIA MENISTAN TAJIKISTAN SYRIA AZERBAIJAN AFGHANISTAN CHINA IRAN PAKISTAN

Southern Caucasus and Central Asia

The countries of the Southern Caucasus security situation has so far prevented coo- (Armenia, Azerbaijan and Georgia) and peration. EU policy towards the countries in Central Asia (Kazakhstan, Kyrgyzstan, the two regions is designed to promote stabi- Tajikistan, Turkmenistan and Uzbekistan) lity and economic development. Sweden has have suffered serious economic setbacks actively contributed to the formulation of following independence. The positive eco- this policy by emphasising the development nomic trend that has occurred in recent of democracy and a market economy, main- tenance of respect for human rights and the years has been from a very low starting settlement of conflicts in both regions. point, and has been weakened by the economic crisis in Russia and low oil pri- Democracy and human rights ces. The countries that appear to have the The human rights situation gives cause for greatest potential for economic develop- concern in several countries, particularly ment in the long term are the oil and gas- Azerbaijan, Tajikistan, Turkmenistan and rich republics of Azerbaijan, Kazakhstan Uzbekistan. and Turkmenistan. However, the pro- In Azerbaijan, neither the parliament nor blems are compounded by the fact that the government have any significant influen- several countries, particularly Tajikistan, ce on national politics, and the democratisa- Georgia and Azerbaijan are seriously tion process is moving slowly. There are instances of detention without a court affected by armed conflicts. ruling. Journalists and the mass media are harassed, and there is police brutality. The EU has signed PSA agreements with all Tajikistan is still affected by the conse- the countries in the two regions, with the quences of the civil war. The human rights exception of Tajikistan where the internal situation has improved but continues to be

161 extremely poor. People disappear, prisoners although the antagonism between Armenia are maltreated, and freedom of speech and and Azerbaijan, due to the conflict over the press are severely restricted. Nagorno-Karabach, is a problem in this con- Turkmenistan is a one-party state domina- text. ted by the president. The regime is respon- As in the Southern Caucasus, cooperation sible for human rights violations, and civil with Central Asia was originally largely liberties and rights are severely restricted. based on humanitarian assistance. Due to The mass media are subject to censorship, the gradually changing political and econo- and any opposition is persecuted. mic situation in the countries concerned, In Uzbekistan, civil rights are restricted, activities have changed in character and a and there are no independent political parti- more long-term form of development coo- es. Freedom of speech is limited, and the peration is now being implemented. As a mass media are censored. Freedom of assem- result, initiatives taken in Central Asia in bly is not guaranteed. In practice, the courts 1999–2000 focused on improving people’s are controlled by the executive, and there is health and the environment around the Aral police brutality. Sea, the administrative reform process, the social sector in Kyrgyzstan, and gender equa- Swedish development cooperation lity in Kazakhstan. Swedish assistance in the Caucasus has gra- Swedish cooperation should continue to dually evolved from humanitarian activities focus on the need to establish democratic to development cooperation. Activities are and economic structures in the two regions, primarily in the form of technical coopera- and in individual countries. Democratic and tion – mainly the transfer of knowledge – for economic development, and the maintenan- strategically important sectors in the region. ce of respect for human rights, should be The priority areas are human rights, democ- monitored and supported. Environmental ratisation, public administration, the social issues, the social sector and equality issues sector and the environment. should also be given priority. So far, projects have mainly focused on The priorities to be made regarding the individual countries, primarily Georgia and individual countries obviously depend on an Armenia. However, two regional projects evaluation of where the best prerequisites focusing on civil aviation and statistics are for successful cooperation are to be found. under way, in which Azerbaijan is also parti- This, in turn, depends to a certain extent on cipating. Regional cooperation projects are the interest of these countries in knowledge considered increasingly desirable features, transfers with Sweden.

162 Sida's areas of operations

Bilateral development cooperation covers DEMOCRACY, HUMAN RIGHTS most aspects of society. Sida's areas of AND GOOD GOVERNANCE operations are: This area of operations covers the public • Democracy, human rights sector and civil society in partner countries, and good governance and also the activities of Swedish and inter- • Social sectors national organisations in this field. • Infrastructure and the private sector Operations are designed to contribute to • Utilisation of natural resources the democratic development of society and • Research greater respect for human rights. There is an • Economic reform increasing emphasis on the importance of a • Humanitarian assistance holistic approach to the interaction between • Non-governmental organisations “core institutions in society”, the civil society • Other areas and the market place. Support is provided for the development The allocation of expenditures under the of democratic institutions and procedures – various operational headings in 1999 is indi- for example parliament, the judiciary and cated in the table. The various areas of ope- the electoral system. The focus is on democ- rations are described in the following pages. ratic processes involving popular participa-

Costs for development cooperation by area of operations, 1999

(SEK M) Africa Asia Latin America Europe Globalt/other Total Human rights and 377 205 275 136 133 1 126 democratic governance Social sectors 622 368 135 35 218 1 378 Infrastructure, the private 417 280 80 137 119 1 033 sector and urban development Utilisation of natural resources 262 178 39 9 208 696 Economic reforms 215 0 215 0 0 430 Research cooperation 211 91 42 0 163 507 Humanitarian assistance and 473 269 402 309 81 1 534 conflict prevention Assistance via NGOs 316 180 148 14 172 830 Information, recruitment and 2 0 2 1 152 157 resource base development Cooperation with Central 0 2 0 539 5 546 and Eastern Europe

Total 2 895 1 573 1 338 1 180 1 251 8 237

163 tion, the development of a democratic cul- text of Swedish development cooperation, ture and respect for human rights. Opera- providing practical advice on application of tions are also designed to improve the effici- the children’s rights perspective in the draf- ency of the public sector, and promote ting and evaluation process. The policy for transparency and the assumption of respon- children with functional disabilities has been sibility. One of the fundamental principles is revised. Sida has posted a regional adviser a public administration in the service of for democracy and human rights to democracy. This includes the ability to Bangkok, in addition to the two advisers in mobilise resources for public-sector activities Harare and Nairobi. One aspect of the fol- and to operate in a democratic and egalitari- low-up of the Government report is the an society which offers equal opportunities establishment of a special post involving to all. There is a growing emphasis on responsibility for children and functionally efforts to counter corruption and other types disabled persons. Women’s rights are integ- of abuses. rated into sectoral cooperation, and are also A Government report entitled Democracy promoted by special projects. and Human Rights in Sweden’s Development Sida cooperated with a total of 49 interna- Cooperation (skr. 1997/98:76) was submit- tional organisations during 1999 – including ted to Parliament in March 1998. This 19 in the human rights field, seven with a report is the key management tool in this gender equality focus, seven with a specific area, and there is an active follow-up process children’s rights orientation, four supporting to ensure that the intentions expressed in minority groups, two concerned with the the document are implemented. The report elimination of torture, and 10 in the democ- emphasises the importance of integrating racy field. Support for capacity building is democracy and human rights in all forms of achieved by means of cooperation with the development cooperation, while giving grea- UNDP, and support is also provided for a ter priority to direct support for democracy joint UNDP/UNHCR programme for the and human rights. Follow-up and implemen- promotion and protection of human rights tation focus on the development of methods at the national level. and training programmes, in close coopera- Almost half the total number of initiatives tion between the Ministry for Foreign involve assistance to the public sector, inclu- Affairs and Sida. The joint consultative ding the judicial system. Measures focusing group established by the Ministry and Sida on the civil society represent less that half in 1999 has conducted a pilot project with a the total, and approximately 5% of all initia- special emphasis on the rights of the child in tives are designed to promote local democra- the democracy/human rights context. This cy/democratisation. A limited number of project has been incorporated in the propo- initiatives have contributed directly to the sal for a revised country strategy for Zim- development of parliamentary assemblies. babwe. Sida has financed support for political par- Long-term plans for initiatives to promote ties in partner countries via organisations democracy and human rights in Mozambi- attached to the seven parties represented in que and Zimbabwe have been drawn up, the Swedish Parliament. Evaluation of the and the South African democracy/human impact of this type of support was initiated rights programme which was launched in in 1999. 1995 has been followed up. Sida has initia- Sida’s initiatives in the democracy, human ted four projects to develop expertise and rights and good governance field covered 79 capacity in the following areas: local democ- countries, 63 of which were in the southern racy/popular participation, the judicial hemisphere. Honduras was one of the 10 system, good governance and democratic major partnership countries in 1999 since a institutions. In combination, these projects substantial proportion of the significant con- provide a basis for a policy for democratic tributions to the reconstruction process in governance. Sida has prepared a position the aftermath of Hurricane Mitch had a paper on the rights of the child in the con- democracy and human rights orientation.

164 There was an increase in initiatives with a which 56 were in the southern hemisphere. focus on children compared with 1998, Approximately half the disbursements went reflecting greater efforts to emphasise child- to Africa, roughly a quarter to Asia and ren’s needs in development cooperation. about 10% to Latin America. Global initiati- Most direct democratic and human rights ves accounted for about 15% of the total and initiatives have a limited scope in financial initiatives in Europe and Central Asia repre- terms, but they are often personnel intensi- sented approximately 3%. ve. Both Swedish and international NGOs The stronger focus on broad programmes perform important tasks in this area. As a and reforms is continuing in the health and result, the “mainstreaming” principle – education sector. This involves new met- under which democracy and human rights hods, primarily in the form of a shift from permeate all forms of development coopera- project support to support for sector pro- tion – presents a considerable challenge. Sida grammes. During the year, policies and gui- is developing methods in all sectors, to a gre- delines for sector programme support were ater or lesser extent. drawn up, based experience in the health and education sectors. Approximately 10% of disbursements to the social sectors in 1999 took the form of sector programme SOCIAL SECTORS support. Sector programmes facilitate the This area of operations involves support for coordination by partner countries of assi- education and health care services, including stance provided by various donors. reproductive health, and also media and cul- Studies and evaluation of the social sectors tural support. The aim in this area of opera- were implemented in 1999 for Namibia, tions is to reinforce the ability of partner Cambodia, Nicaragua and Zimbabwe, and countries to build up sustainable systems to for the African Publishers Network, Action implement reform processes focusing on Magazine (an environmental publication), better education and universal access to high measures to encourage breast feeding and quality health and medical care. The aim is four networks/organisations working for to establish the prerequisites for social deve- equality and health. lopment, that is to say improved conditions for poor people. Education The poorest and most vulnerable groups Support focuses on improving the quality of tend to be old, sick, functionally disabled, education in partnership countries, with the illiterate, poorly educated, unemployed and main emphasis on basic education in the landless. Other vulnerable groups include form of in-service teacher training, teaching- war victims, refugees and minorities suffer- materials and the construction of schools. ing from discrimination. Women, children The drafting of sector programmes in and young people are often the most vulne- education has been completed for Ethiopia rable members of these groups. and Mozambique. The sector programme A wide range of long-term measures to model has also been applied in connection promote development are required, not with the signing of a new agreement for sup- merely at the national and local levels but port to the African Publishers Network also in the international and regional con- (APNET). Programmes have been termina- text. This includes far-reaching institutional ted in India, due to suspension of develop- changes which help to improve the central ment cooperation, and this also applies to government’s ability to provide social servi- Sri Lanka where programmes can now conti- ces such as education and health care, and to nue on a national basis, without the need for reinforce social networks which provide assistance. During the year, less than half the security and ensure that communities conti- total disbursements were for basic educa- nue to function. tion, and one third was channelled via Sida’s initiatives under the social sector NGOs. heading covered 67 countries in 1999, of During the year, a new programme decla-

165 Foto: Victor Lenson Brott/Global Reporting Sweden

The standard of living in India has improved dramatically in the past 20 years. Better medical care also helps to ensure that more people live longer.

ration for bilateral education support was maceutical issues. Sexual and reproductive drawn up. Revision of the policy for envi- health and rights – particularly issues con- ronmental education/training has been com- cerning HIV/AIDS – constitute a second pleted, and this also applies to the prepara- area. The third area is public health, invol- tion of a handbook on environmental issues ving links between health, development and in the education sector. poverty reduction. Support for Eritrea provides an example Health assistance in Africa is expected to of initiatives in this area. Some 20,000 peo- increase, both at the regional level and natio- ple have participated in the literacy cam- nal levels. The health situation in Africa has paign, teaching materials in local languages not improved at the same rate as in the rest have been produced and about 40 mobile of the world, partly due to poverty and ina- libraries have been equipped. In Ethiopia, dequate capacity in human and financial 42 primary schools have been constructed, terms. As a result, special priority is given to and a substantial number of teachers have continued support for broad sectoral initiati- received training. During the year, continu- ves in Africa and the development of health ed support for forestry training was appro- systems. Regional measures include efforts ved. to combat HIV/AIDS, health finance and pharmaceuticals. Health Health assistance in Central America is A programme for the orientation of assistan- expected to be maintained in terms of the ce in the health sector for the period number of initiatives. Support for the health 1999–2001 was prepared during 1999. sector is an important contribution to the Health assistance will focus on three areas current democratisation and development during the period. One area is health processes in the region. reforms, primarily health systems and phar- Health assistance in Asia is provided for a

166 mixture of very poor and medium-income objectives, priorities and target groups for countries. Reinforcement of institutions and international cooperation in this field. the reform process are key areas in the stra- The independent national cultural fund tegy for Asia. which has been established in Tanzania is Developments in the HIV/AIDS field will one example of the results achieved. Some continue to have an impact, both on health 20 scholarships were awarded during the projects and on development assistance as a year. Solar energy and studio equipment whole. All sectors are affected. Sida’s health have been installed in Tanzania and Uganda unit is coordinating the special reinforce- as part of the pilot programme for commu- ment of operations for HIV/AIDS-related nity radio in East Africa. measures. During the year, attention has been drawn to demographic and breast-feeding issues, in cooperation with other participants at the INFRASTRUCTURE AND international level. Sida has, for example, THE PRIVATE SECTOR participated in revision of the ILO Conven- This area of operations covers support for tion concerning the right of working women the infrastructure, urban development, to breast-feed their children, and a new industry and commerce, and capital markets. three-year agreement has been signed with Infrastructure support is designed to contri- the Family Planning Federation. Other bute to the establishment of an environmen- examples include support for the health sec- tally and economically viable infrastructure, tor in Bangladesh, involving innovative with a special emphasis on energy, telecom- reform of the entire public primary health munications and transport. In recent years, system. Health care and family planning the prerequisites for cooperation, and the systems, which were previously kept separa- approach employed, have been greatly influ- te, have been integrated at the regional and enced by deregulation and privatisation in local levels. This affects 397 small hospitals many partner countries. Some assistance and 63 maternity centres, involving a radical funding has been used to facilitate the switch to a more consumer-oriented appro- implementation of this process in the ach. Sites have been allocated and contracts countries concerned in a transparent and signed for the construction of more than responsible manner. This has been achieved, 1,600 village clinics. for example, by support for the develop- ment of sectoral policies and legislation, and Culture and the media by the establishment of supervisory authori- The aim is to promote democratic processes, ties and the reform of public sector institu- cultural diversity and the status of culture in tions. Energy assistance is designed to help partner countries. Cultural and media sup- partner countries meet their energy require- port, which increased during the year, is one ments in a manner which is sustainable in aspect of Swedish country programme coo- the long term. A handbook for equality in peration with Mozambique, Zimbabwe, energy cooperation has been prepared. A Vietnam, Nicaragua, the West Bank/Gaza high proportion of this assistance is financed and South Africa. The cultural and media by loans. In the case of urban development, area is part of Sida’s regional strategies for special attention has been paid to the corre- East and Southern Africa, and for Central lation between the economic infrastructure America and Asia. Regional initiatives in and the environment. West Africa and the Mediterranean region During the year, Sida has drawn up polici- are being planned. The main partners are es for its credit assistance in order to ensure ministries of culture, cultural institutions, greater predictability and consistency in its NGOs, cultural and media producers and lending operations. In consultation with the regional and global networks. A new cultural Swedish Export Credit Guarantee Board and media policy was drawn up during the (EKN), Sida has also proposed an indepen- year, specifying Sweden’s prerequisites, dent guarantee system to provide new solu-

167 tions for the financing of private-sector ple in rural areas – by supporting the long- infrastructure investments and the utilisation term, viable and sustainable utilisation of of local capital markets. renewable natural resources. The priority Support for industrial and commercial areas are agriculture, forestry, water and the development is designed to strengthen the marine environment, frequently as one prerequisites for a competitive private sector aspect of broader measures. by supporting capacity building, business Growing populations in developing development and capital supply mechanis- countries, urbanisation and higher growth ms. Initiatives within the private sector pro- rates also lead to a need for increased gramme have increasingly concentrated on agricultural production – which may repre- the following types of activity: the develop- sent a threat to basic natural resources, such ment of institutional frameworks, the reform as land, water and forests. This means that of state-owned companies, the training of steps must be taken to increase food produc- businessmen, corporate alliances, and initia- tion in a manner which is as environmentally tives in the trade and industrial environment sustainable as possible, involving for examp- field. le research, improved methods, capacity The following areas have received priority building and private sector development. It under the capital market development hea- is also important to take the "sustainable" ding: basic frameworks and regulatory struc- requirement into account in initiatives in tures, financial markets and institutions, this area. The Government’s International financial crisis management and the supply Cooperation for Sustainable Development (skr. of venture capital. 1996/97:2) report emphasises that Sweden Sida’s direct contributions to the UN Fra- must assist in the development of farming mework Convention on Climate Change systems that are compatible with sustainable (UNFCCC) are mainly in the energy sector. development, based on the intrinsic charac- Climate considerations are the primary star- teristics of the ecosystem, the maintenance ting point for Sida’s energy policy, which of biological diversity and life-cycle princi- was drawn up in 1996. Sida has decided to ples. support energy systems which are sustainab- A review of Sida’s guidelines for rural le in the long term, with a focus on rene- development, forestry, agriculture, land con- wable sources of energy and energy savings servation and water resources was comple- at various levels. Other forms of support ted in 1999. Sida has also prepared a strate- which are directly linked to the UNFCCC gy indicating how support for application of are designed to promote the participation of the Convention on Biological Diversity developing countries in the climate negotia- should be integrated into Sida’s operations. tion process, including support for projects Measures and assistance within the frame- which help developing countries to see issu- work of Sida’s development cooperation es which are subject to negotiation from programme are also proposed. Similar guide- their own viewpoint. Sida has supported lines have been drawn up for the Conven- information campaigns concerning climate tion to Combat Desertification. issues from a developing country perspecti- In recent years, forestry support has been ve. increasingly integrated with agriculture, land conservation and broader programmes for the management of natural resources. Villa- ge forest utilisation is one component in UTILISATION OF several rural development initiatives. Sida is NATURAL RESOURCES also contributing to improved land utilisa- This area of operations covers agriculture, tion in East and Southern Africa via the forestry, land conservation, fresh water sup- Regional Land Management Unit, which is plies, the marine environment and rural located in Nairobi. development, with the aim of improving During 1999, high priority was given to living conditions – particularly for poor peo- Sida’s support for integrated management of

168 water resources, particularly the manage- during 2000. Roughly one third of the ment of shared water resources in Southern research cooperation appropriation is devo- Africa, and in the Lake Victoria area. During ted to bilateral cooperation, and one third to the year, Sida continued to support the Glo- regional support. International research pro- bal Water Partnership (GWP), a network of grammes account for one quarter of the organisations and public authorities working appropriation, while support for developing- for the sustainable utilisation of water country research conducted in Sweden resources. Sida provides facilities for the accounts for about 10%. GWP secretariat. Sida has prepared for an increase in bilate- Increased attention is being paid to the ral research cooperation with developing marine environment, particularly as regards countries, in accordance with the guidelines measures to increase awareness of problems adopted during 1998. Continued research in coastal waters. Sida’s "Sea and Coast Initi- cooperation with Nicaragua, Sri Lanka and ative" focuses on communities, the environ- Vietnam has been approved, and full-scale ment and integrated maintenance/operation. preparations have been initiated for new This initiative is based on the concept that cooperation programmes with Bolivia and individual nations must pursue this issue and Uganda. A new form of cooperation was that the stakeholders must be involved, at all launched during 1999 with the signing of a levels in society. special research partnership agreement with The utilisation of funds for special envi- South Africa. Both governments are earmar- ronmental initiatives included water resour- king funds for participation in joint research ce planning, sustainable agriculture and fore- projects. Sida’s research committee has stry, and capacity development via NGOs. adopted a new policy for HIV/AIDS resear- ch, and a new malaria research network has been established, based on cooperation between research groups in Europe and RESEARCH developing countries. A new major pro- Research cooperation is designed to strengt- gramme has been initiated to improve hen the research capabilities of developing research capacity for modern biotechnology countries and promote research which focu- applications in a number of African countri- ses on development. This takes the form of es, and to improve the ability of the countri- support for research cooperation with and es concerned to participate in international between developing countries, international negotiations concerning biological resources. research focusing on developing countries Continued efforts to promote IT-related and the problems they face, and developing- research have primarily taken the form of country research in Sweden. preparations for initiatives in Ethiopia, Bilateral research cooperation aims to Mozambique and Tanzania. strengthen the research capacity of develo- ping countries by training researchers, buil- ding up research environments and impro- ving planning and prioritisation techniques. ECONOMIC REFORMS Development-related research is primarily This area of operations is designed to sup- encouraged by means of thematic regional port poor countries which are implementing and international research programmes. economic reform programmes to promote Developing-country research in Sweden is economic growth, reduce poverty and achie- strengthened by Swedish participation in ve sustainable development. During 1999, bilateral and thematic research cooperation the Government established and operationa- and special funding for this type of research. lised guidelines for determining the criteria The volume of research cooperation via to be applied for support for economic Sida (SAREC) has increased significantly in reforms and debt relief, in line with the recent years – from an appropriation of SEK objectives. This type of support should 470 M in 1999 to an estimated SEK 570 M encourage a continuing reform process and

169 be compatible with the specific needs and ce, providing the partner country endea- prerequisites of the individual countries con- vours to lay the foundations for sound finan- cerned. In addition, appropriations should cial policies. contribute to enabling poor and heavily Debt relief initiatives primarily take the indebted countries to achieve a sustainable form of contributions to "multilateral debt level of debt. funds" established by partner countries to This type of support is primarily provided service their debts to multilateral creditors. for the poorest and most heavily indebted Support is also provided in connection with countries which are implementing economic bilateral Paris Club debt-relief agreements. reform programmes supported by the Inter- Other forms of debt relief have also been national Monetary Fund (IMF), the World employed in the past, for example buying Bank and bilateral donors. During 1999, back commercial debt. support was confined to Mozambique, due to the limitations imposed by the Swedish budgetary ceiling. During the spring of 2000, however, total support of SEK 1 billi- HUMANITARIAN ASSISTANCE on was approved for Bolivia, Honduras, Humanitarian assistance is one of Sida’s Cambodia, Cape Verde, Malawi, Mozambi- major areas of operations. Swedish humani- que, Rwanda, Tanzania and Uganda. In the tarian assistance is designed to alleviate the case of Bolivia, Mozambique and Tanzania, consequences of armed conflicts and natural support was approved for periods of more disasters and to contribute to certain forms than one year. These three countries have of initial reconstruction. Funds for conflict been pursuing sound economic policies for management in the field with a bearing on some time, with a clear emphasis on poverty humanitarian operations are also included reduction. This decision is an expression of under this heading. Sida has conducted a the Swedish Government’s desire to contri- policy process in the “humanitarian assistan- bute to a more rational budgetary process, ce to promote development” area for a num- characterised by continuity, predictability ber of years. Humanitarian initiatives focus and transparency. on the encouragement and development of Support is also provided under the econo- local capacity to support and improve mic reform heading for general programmes, opportunities for development for people for example the Highly Indebted Poor who are directly affected, since this promo- Countries (HIPC) debt-relief initiative – and tes a long-term and sustainable approach. previously for IMF Enhanced Structural In 1999, approximately 60% of Swedish Adjustment Facility (ESAF). Two program- humanitarian assistance was devoted to mes designed to develop the ability of the reconstruction initiatives in the wake of con- poorest countries to handle their liabilities flicts and natural disasters. This increase also receive support: the UNCTAD compu- reflects an exceptional situation in compari- terised debt-management system (DMFAS) son with previous years, largely due to Hur- and a programme for building up capacity ricane Mitch. More than one third of the and expertise in the debt-management and humanitarian assistance provided in 1999 debt-analysis field. was used to alleviate the immediate effects Bilateral support may take the form of of armed conflicts on the civilian population. debt relief or budget support. As a result of The proportion of initiatives in connection free exchange rates, import support – which with natural disasters increased from 17% in used to be the major instrument employed 1998 to 31% in 1999. This was primarily in this area – has been largely replaced by due to Hurricane Mitch, but it also reflected budget support. However, additional finan- developments in the western Balkans. cing is often required if the national budget However, as in the past, the bulk of humani- is to provide scope for investment, for tarian assistance was devoted to measures example in the social sector. Budgetary sup- required as a result of armed conflicts. port may be an appropriate form of assistan- Humanitarian assistance to alleviate the

170 effects of armed conflicts was primarily utili- fifth of total Swedish assistance funds, or sed in Africa (approximately 30%). Other SEK 2.5 billion in 1999. This is almost a initiatives were devoted to Europe and third of the volume of development coope- Central Asia (20.1%), Latin America ration undertaken by Sida. The work carried (26.2%) and Asia (30.9%). The following out by NGOs covers a wide field, with a countries received humanitarian assistance special emphasis on democracy, human in excess of SEK 50 M during the year: rights, social development and humanitarian Angola, Afghanistan, Honduras (Hurricane assistance. The cornerstone of this coopera- Mitch), Iraq, Nicaragua, Rwanda, the wes- tion is building up and strengthening local tern Balkans/Kosovo and Sudan. organisations in partner countries, with a Humanitarian assistance is channelled via clear emphasis on partnership, skills deve- Swedish and internal NGOs, UN agencies lopment, a long-term approach and the spe- and the Red Cross movement. cific role played by NGOs in the civil socie- Sida has continued to place considerable ty. This is discussed in more detail in the fol- emphasis on the conflict prevention and lowing. conflict management aspects of humanitari- Some NGOs exert an influence on norma- an assistance. Closer cooperation has been tive issues such as human rights or the rights initiated with the Department of Peace and of the child, in cooperation with their local Conflict Research at Uppsala University and partners. Others work with a local organisa- the Department of Peace and Development tion which directly supports particularly vul- Research at Gothenburg University, in order nerable or marginalised target groups in areas to improve capacity in this area and expand such as health care or education. Many the Swedish resource base. During the year, NGOs combine these two forms of activities. Sida provided a total of SEK 183 M for pea- The major proportion of funds for the ce-building operations conducted by a large development assistance undertaken by number of NGOs. NGOs is used to finance development initia- There have been considerable calls on the tives by 13 major Swedish organisations Swedish resource base during the year. This which cooperate with Sida on a long-term primarily involves the Swedish Rescue Servi- basis under framework agreements covering ces Agency, which has undertaken major ini- periods of several years. Five of these frame- tiatives in countries such as Albania, Mace- work organisations operate as channels for donia, East Timor and Turkey. The Save the contributions to smaller Swedish organisa- Children contingency force has also been tions. In all, about 380 Swedish organisa- used in Albania, for example, with funding tions received grants in 1999 for approxima- provided by Sida. tely 2,000 initiatives in 100 countries, in Sida is participating in the ECHO Huma- cooperation with 1,500 local organisations. nitarian Aid Committee and, in the course The framework organisations also received of its dialogue with the Swedish resource grants for information activities, in company base and ECHO, has tried to ensure that a with 11 adult education associations and greater number of Swedish NGOs have four national trade union organisations. New access to funding via ECHO. guidelines for information activities in coo- peration with NGOs have been prepared, and began to be applied during the year. Actors in the civil society have sometimes SUPPORT FOR DEVELOPMENT been criticised for inadequate coordination COOPERATION CONDUCTED BY and capacity and for deficiencies in their SWEDISH NON-GOVERNMEN- internal democracy, and in some cases there has also been adverse comment regarding TAL ORGANISATIONS their representativeness and legitimacy. Swedish non-governmental organisations During the past year, Sida has implemented (NGOs) play a key role in Swedish develop- annual reviews, seminars and system audits ment cooperation, representing more than a in cooperation with NGOs to discuss impro-

171 ved methods and organisational develop- ment cooperation. This information is add- ment. Tools have been developed in the dia- ressed both to the general public and to spe- logue with Swedish NGOs to improve the cial target groups, such as the private sector, analysis of changes in the organisational NGOs and those responsible for taking deci- structure and to permit evaluation of the sions. Young people are another crucial tar- results achieved. The objectives for this type get group. of cooperation are poverty reduction, rein- These information activities involve both forcement of the organisation concerned, a broad information campaigns aimed at the long-term approach, sustainable develop- general public and a number of more preci- ment, and improved skills and knowledge. sely targeted initiatives. During 1999, activi- Each year, Sida helps to finance nearly 400 ties directed at schools, children and young volunteers and trainees working in develo- people included in-service training seminars ping countries. for teachers, a guest-teacher programme During 1999, higher standards for the ana- with teachers from various African countries lysis of skills and needs were applied. The and support for the establishment of a inter- goals for this type of activity and the new national study programme at senior seconda- instructions have had an impact on the ry school level with a focus on developing allocation of appropriations for development countries. In addition, a special forum – the initiatives undertaken by NGOs. “Global Academy” (formerly the "Develop- In order to make it easier for Swedish ment Assistance Information Academy") – NGOs to apply for EC funding and to furt- has been established for discussion of deve- her develop policies for the role played by lopment and information issues, with parti- the civil society in the development context, cipants from Sida, its NGO partners, the Sweden contributed during the year to the universities, the private sector and other formation of a management committee for central government authorities. development cooperation with European Sida commissions the Sifo organisation to NGOs. Sweden has also actively contributed conduct an annual survey of public opinion to the preparation of new and simpler guide- on development assistance issues. In 1999, lines for EC cooperation with NGOs. The the survey indicated that 83% of the Swe- new guidelines entered into force on 1 Janu- dish population considered that it was ary 2000. important for Sweden to assist developing countries – an increase of five percentage points compared with 1998 – and 77% con- sidered that Sweden should contribute to INFORMATION, RECRUITMENT development assistance, compared with 70% AND DEVELOPMENT OF THE in 1998. This trend did not apply to confi- RESOURCE BASE dence in the ability of development assistan- ce to achieve long-term results, however. Swedes believe – mistakenly – that only a Information minority of the people in developing Information activities are designed to increa- countries are literate and have access to se popular support in Sweden for develop- medical care and fresh water supplies. Furt- ment cooperation in the long term, and to hermore, only one third of the Swedish improve knowledge about and interest in population believed that living conditions in development issues. Information of this developing countries have improved sub- nature should also encourage public debate. stantially during the past 30 years (35% in Sida is responsible for information about 1999 compared with 42% in 1998). development issues, Sida’s own assistance programmes (including cooperation with Recruitment and development countries in Central and Eastern Europe), of the resource base joint EC development cooperation, and ove- Recruitment operations and resource-base rall information about multilateral develop- development are designed to extend, train

172 and increase utilisation of the Swedish 109 officers at the end of 1999, as compared resource base in bilateral and multilateral with 68 in late 1998, and 50 on 31 Decem- development cooperation, and to increase ber 1997. UNDP and UNHCR were the the proportion of experienced Swedish per- major employers of Swedish assistant sonnel in key international organisations. In experts in 1999. 20 experts were recruited addition, priority is given to the develop- for the bilateral assistance programme, com- ment of a resource base and the utilisation of pared with 12 in 1998. Swedish expertise in the democracy and The Minor Field Studies programme human rights field. (MFS), which normally entails degree pro- The Swedish Government has stated that jects in developing countries by Swedish Swedish development cooperation must give university students, is continuing to expand. priority to the development of skills and There were 528 MFS scholarships in 1999, capacity, and Sida has expanded its opera- compared with 446 in 1998 and 414 in tions in this area. The programme for junior 1997. Most MFS projects involved democra- professional officers (JPOs) in the multilate- cy, the social sectors or natural resources/the ral field has been extended, for example, to environment.

173 Swedfund

Swedfund International AB is a venture During the year, contracts for 11 new capital company owned by the Kingdom of investments were signed for a total of Sweden. Its main task is to contribute to the approximately SEK 194 M. The overall development of viable companies in develo- investment portfolio covers 64 investments ping countries and the countries of Central in 32 countries. Twelve Swedfund compani- and Eastern Europe by making of venture- es declared total dividends of SEK 9.3 M, a capital investments in the form of equity record figure. participation and loans. Swedfund also Swedfund Financial Markets AB, a wholly- endeavours to promote Swedish interests, owned subsidiary established in 1996 to build for example by giving priority to projects in up effective financial markets in the Baltic which Swedish partners are involved. In countries as a result of venture capital invest- addition, Swedfund’s investment operations ments in commercial banks, has virtually help to promote sustainable development completed its assignment. Its operating profit and a healthy environment. All investment was the highest ever, as a result of the sale of decisions are taken on a commercial basis. shares and a satisfactory return from banks in Swedfund has invested in nearly 130 pro- which the company still has holdings. jects in 45 countries for a total of almost The Swedish Government’s assignment to SEK 1.1 billion since its establishment in Swedfund to evaluate applications for the IT 1979, generating a total investment volume fund financed by the “Baltic Billion” project of more than SEK 10 billion. Swedfund’s was completed during the year. A total of investment portfolio has increased substanti- SEK 70 M has been allotted to 21 of the 22 ally in recent years. During 1999, however, projects recommended. Swedfund’s portfolio declined, despite an Since Swedfund’s incorporation as a limi- investment of SEK 93 M in the African ted company in 1991 (Swedfund was Infrastructure Fund – the largest single inve- previously a foundation), the Swedish state stment ever made by the company. On 31 has contributed SEK 229 M for investments December 1999, the investment portfolio in developing countries and SEK 165 M for amounted to slightly less than SEK 300 M. Central and Eastern Europe. The company After a profitable performance for more has requested additional capital contribu- than five years, the company reported an tions to permit further expansion, since unprecedented loss in 1999, mainly due to most of the existing equity has been utilised. writedowns of SEK 57 M, largely attributab- No additional capital contribution was made le to the economic crisis in Russia. during 1999, however.

174 Other bilateral assistance

Other bilateral assistance includes interna- years, the Fund's operations have focused on tional scholarships and exchanges via the issues such as UN reform, democracy and Swedish Institute and Sida, support to cer- development. In addition, contributions are tain Swedish organisations, and funding for made to the United World College in Nor- Ministry for Foreign Affairs reports on deve- way for scholarships for students from deve- lopment cooperation. loping countries. Studies, seminars, confe- International scholarships and exchanges rences and information are also financed via the Swedish Institute include long-term under this heading, as are contributions to scholarships for studies in Sweden, short- international studies. term exchanges and the expenses incurred in In November 1995, the Expert Group for connection with arrangements for recipients Development Issues (EGDI) was appointed of UN fellowships. There is an increasing to analyse high-priority aspects of internatio- focus on democracy and human rights, nal development cooperation. The Group including exchanges at the parliamentarian currently consists of 14 members, 10 of level and with the Islamic world, China and whom are experts in various fields, especi- Southern Africa. As from the autumn of ally economics. The State Secretary for 2000, the Government has established the International Development Cooperation Linnaeus-Palme exchange programme for chairs the Group, which has a small secreta- teacher and student exchanges with univer- riat. Issues studied by the EGDI include tra- sities in developing countries. de and financial flows, dependence on assi- The Swedish proportion of jointly-finan- stance, capacity building and the economic ced Nordic Africa Institute operations (see and social role of children. The Group's next section) is funded under this heading, work is presented in a number of publica- and contributions are also made to the Dag tions and seminars. Hammarskjöld Memorial Fund. In recent

175 Nordic Africa Institute (NAI)

The Nordic Africa Institute commenced its research projects: Aid Effectiveness in Africa, operations in 1962. Since 1981, the Institute Cultural Images in and of Africa, National has been a public authority, reporting to the Liberation in Southern Africa: The Role of the Swedish Ministry for Foreign Affairs. The Nordic Countries, and Housing in Transition: NAI currently has more than 37 employees. A Zambian Case Study. The Institute offers The NAI may be considered to be a genui- travel and study scholarships to encourage nely Nordic institution since Denmark, Fin- and promote interest in African issues land, Norway and Sweden all contribute among researchers in the Nordic countries. similar amounts (Iceland makes a smaller The Institute also has a guest research pro- contribution). Sweden finances administrati- gramme for researchers in Africa. ve expenditure. The Institute is headed by a The NAI library is the only specialist libra- director, assisted by a programme and ry in the Nordic region covering the contem- research council comprising representatives porary scene in Africa. Publication activities of all the Nordic countries. Since the have always been one of the most important autumn of 1998, the research council has aspects of the Institute's work. The Institute been headed by a Norwegian chairman. maintains a high profile in promoting an The NAI promotes and conducts scientific interest in the policies of the Nordic countri- research on Africa and disseminates informa- es in an African context, and the Institute's tion about Africa and current African issues. views are often requested when African issu- This takes the form of research, conferences es are discussed in the Nordic region, and seminars, library services and documen- making the Institute increasingly relevant for tation, publications and policy-related ope- the media and the general public. Public rations. authorities and institutions in the Nordic Research activities conducted by the Insti- countries make considerable use of the tute expanded considerably as a result of information base and expertise built up by research programmes drawn up in the the NAI for the dissemination of informa- 1980s. The research programmes are prima- tion about Africa, and to influence interna- rily designed to increase knowledge and pro- tional cooperation with African countries. In vide a deeper theoretical and empirical recent years, for example, the Institute has understanding of key topics in a develop- played an important role as catalyst and ment context. Three research programmes discussion partner in the ongoing national are currently being pursued: The Political dialogue in Burundi and Rwanda, primarily and Social Context of Structural Adjustment focusing on human rights and democracy. In in Sub-Saharan Africa, Poverty and Prosperity addition, the Institute has documented and in Africa: Local and Global Perspectives, and disseminated information about current Cities, Governance and Civil Society in research on the effectiveness of development Africa. A broad approach is maintained in assistance, within the framework of two research conducted by the Nordic research research and documentation projects. The group. The current projects are Political and NAI is also participating in long-term coope- Religious Movements in Urban Development, ration on Humanitarian Assistance and Con- AIDS Orphans of Africa: Victims or Vestiges flicts. The NAI plays a key role in providing a of Hope, Economic Development and Change basis for shaping policies for Africa in the in Islamic Africa and Historical Research and Nordic countries. Higher Education in Southern Africa. The Institute is conducting four additional major

176 Estonia Russia

Latvia

Lithuania

Belarus

Poland

Ukraine

Slovakia Moldova Hungary

Swedish cooperation with Central and Eastern Europe

Swedish cooperation with Central and larly in the case of Estonia. A high propor- Eastern Europe commenced in 1989. The tion of cooperation with all three Baltic initial phases of cooperation involved sup- countries takes the form of knowledge trans- port for the liberation of the Baltic states fers and institution building, as one aspect of and institution-building. In the current preparations for future membership of the phase, the focus is on EU enlargement EU. and broad integration with the rest of More than SEK 9.5 billion has been alloca- Europe. ted for cooperation with Central and Eastern Europe for the period prior to the end of Initially, Swedish initiatives in Central and 2000 (including total Swedish contributions Eastern Europe focused on cooperation, the to the EU Phare and Tacis cooperation pro- development of knowledge and know-how, grammes of SEK 1.84 billion). In 1999, initi- and an exchange of experience. The long- atives involving a total of SEK 794 M were term objective is to establish effective, regu- approved for cooperation with Central and lar neighbourhood cooperation at all levels. Eastern Europe. As a result, development cooperation with In March 1998, the Government submit- the Baltic countries has diminished, particu- ted proposals to Parliament in a Bill entitled

177 Developing Neighbourhood Cooperation – Swe- res in the Third Pillar area, such as policing, dish cooperation with Central and Eastern customs, border and migration duties. Europe 1999–2001. Parliament decided that the overriding objectives will continue to be Reinforcing a democratic culture promotion of common security interests, the The democratic process in Central and Eas- deepening of a democratic culture, promo- tern Europe has continued to develop in a tion of a socially-sustainable economic transi- positive direction, with some exceptions. tion, and support for environmentally-sustai- The formal foundations for democracy have nable development. In addition, all coopera- been laid. The judicial system is a strategic tion must be characterised by gender equali- factor in the achievement of democratic ty. The countries which have priority are development and increased respect for Estonia, Latvia, Lithuania, Poland, Russia human rights. Membership of the EU calls and Ukraine. Cooperation primarily focuses for a judicial infrastructure which functions on facilitating membership of the EU for smoothly, and an effective legal system. Swe- Estonia, Latvia, Lithuania and Poland, and dish contributions in this field have increa- the further integration of Russia and Ukraine sed, and are focused on strengthening institu- into European cooperation frameworks. Inc- tions such as the courts, the police, public reased cooperation in the social sector is also prosecution authorities, and the prison and stressed. probation service, and also on helping candi- date countries more directly in the judicial Promoting common security interests sphere in their membership negotiations Cooperation to promote security is designed with the EU. to increase common security in the Baltic Sea Efforts to build up local democracy and region. This cooperation primarily focuses on public administration are a key aspect of sup- Estonia. Latvia and Lithuania, but also inclu- port for democracy. Sweden, with its well- des certain projects in Russia, Ukraine and developed municipal and regional democra- Poland. Cooperation with Poland and Russia, tic institutions, has special prerequisites for including Kaliningrad, will be developed. contributing to the development of candida- Support for the promotion of security te and partner countries. At the moment, covers security policy capability, the deve- regional democratic institutions and local lopment of a democratic total defence struc- administration are not keeping pace with ture and the ability to participate in peace- developments elsewhere in society. Opera- promotion measures, border control opera- tions conducted within the framework for tions and measures to improve external bor- decentralised cooperation between Swedish der control. It also involves the capacity to municipalities, county administrative boards, tackle international and organised crime, an county councils, regional federations and asylum and migration policy capability, and Sweden’s partners in the Baltic Sea region the handling of accidents and emergencies. and Eastern Europe have continued to be an Sida has administered security-promotion important feature of cooperation during cooperation at the civilian level since 1999. 2000. Three-quarters of Swedish municipali- The Government’s directions for the use of ties and the majority of county councils and appropriations stipulate that Sida should also county administrative boards have administer certain initiatives of a military established twin-town or twin-region coope- nature. For the year 2000, SEK 35 M was ration, primarily in Poland and the Baltic sta- reserved for security-promotion cooperation, tes, but also in north-western Russia (mainly which will be subsequently handled by the in the Kaliningrad district, and also in the St. Ministry for Foreign Affairs. SEK 50 M was Petersburg and Barents regions). According allocated for initiatives prepared and appro- to very rough estimates, decentralised coope- ved by Sida. ration now involves a total of more than SEK High priority is given to projects designed 150 M on an annual basis. This decentralised to promote candidate countries’ membership cooperation in Eastern Europe is being incre- of the EU, for example as a result of measu- asingly incorporated into the overall frame-

178 work for development in the Baltic Sea regi- re was also considerable support for the soci- on, making it an increasingly important al sector. There was a greater focus on health means of facilitating EU enlargement. reforms and protection against contagious Decentralised cooperation is also playing a diseases. The establishment of modern social key role in promoting Sweden’s profile services is highly relevant, and support for amongst its neighbours in Eastern Europe. institutional development is a prominent fea- Exerting an influence on international ture in this context. Support for land reform organisations to ensure that they devote has continued and initiatives have been taken more attention to this type of decentralised in the land survey field. Private sector deve- cooperation and its potential is another lopment has been promoted within the fra- important task. This primarily applies to the mework of the Start East and Advantage East EU’s Phare and Tacis programmes (decentra- programmes, for example. In addition, 97 lised “twinning” as preparation for EU mem- Russian managers received traineeships in bership and the further development of Swedish companies. cross-border cooperation in the Baltic Sea region), but it also involves the Council of Supporting environmentally the Baltic Sea States, whose programme has sustainable development included decentralised cooperation since The various countries of Central and Eastern 1999. Europe have similar deficiencies in the envi- Academic and cultural cooperation, prima- ronmental conservation sphere. Their needs rily conducted via the Swedish Institute, is and possibilities vary considerably, however, another highly important factor in the deepe- both within countries and between them. ning of a democratic culture. Initiatives for a Rapid economic development is causing new total of SEK 89 M were approved in 1999, environmental problems, such as air pollu- including language and integration support tion due to road traffic and municipal waste for Russian-speaking population groups in management operations. Estonia and Latvia, cultural cooperation in In 1999, initiatives totalling SEK 336 M the Baltic Sea area, and the promotion of were approved in the environmental sphere. democracy in Belarus via NGOs. There is Swedish support focuses on environmental special cooperation between organisations conservation and improvements in and affiliated with Swedish political parties and around the Baltic Sea. Administrative sup- their equivalents in partner countries to pro- port, institution-building and support for mote the development of an effective, plura- sewage treatment operations within the fra- listic party system, leading to further democ- mework of the Joint Comprehensive Action ratisation. Programme are the key features of this initia- tive. Cooperation with the Baltic countries Promoting socially sustainable proceeded smoothly in the environmental economic development sphere, for the most part. Two sewage treat- Cooperation in the economic sphere has pri- ment plant were inaugurated in Kaunas and marily concentrated on encouraging and con- Riga, respectively, and the Swedish Govern- solidating the transition to a social market ment authorised Sida to sign an agreement economy in the region. The major propor- for a sewage project in Kaliningrad. It is esti- tion of this cooperation focuses on building mated that Sida’s contribution will amount up the institutions required. Reform and to SEK 120 M. Cooperation in the energy development of the social sector is one of the sector is still in the initial stages. During the prerequisites for the long-term sustainability year, the Swedish Government decided to of the economic reform process. As a result, allocate a maximum of SEK 50 M of the there has been a greater emphasis on initiati- “Baltic Billion” fund to energy sector initiati- ves in the social area in recent years. ves in Lithuania. In the nuclear radiation pro- In 1999, contributions of more than SEK tection field, Sweden has concentrated its 330 M were approved for support for a soci- support on measures to improve nuclear ally sustainable economic transition, and the- safety, especially at the Ignalina nuclear

179 Foto: Victor Lenson Brott/Global Reporting Sweden

Sweden has provided extensive support for the transformation of the Baltic countries after they achi- eved independence. However, one effect of a market economy is a dramatic increase in the divisions in society. As a result, a considerable proportion of Swedish support now focuses on the social sphe- re, in order to reinforce institutional capacity in the care sector and the transfer of know-how.

180 power plant in Latvia. Support was also pro- influence of women and men in society has vided for measures to improve safety at nuc- been reinforced in Russia. In Estonia and lear power stations on the Kola Peninsula Latvia, cooperation is continuing for the and in the Leningrad region. Spent and establishment of women’s networks at the defective nuclear fuel and radioactive waste local level. In evaluations of Sweden’s coope- from scrapped Russian atomic-powered sub- ration with Central and Eastern Europe, it marines and icebreakers are the most serious has been noted that the equality aspect has threats in the Barents region and the Arctic not yet had the desired impact. Measures Ocean. Sweden is a member of the Interna- have now been taken in the 1999–2001 coo- tional Atomic Energy Agency’s (IAEA) Con- peration programme to increase impact in tact Expert Group (CEG) which coordinates this area. international cooperation concerning the dis- posal of radioactive waste in Russia. Sweden is continuing to participate in an internatio- nal project to develop and license transport ESTONIA and storage containers for spent nuclear fuel There have been extensive political and eco- from Russian atomic submarines. As a result nomic changes in Estonia since independence of an initiative by the G 7 countries (France, was achieved in 1991. Today, Estonia is an Germany, Great Britain, the US, Italy, Japan effective parliamentary democracy. Member- and Canada), a special fund has been ship of the EU and NATO is high-priority established to maintain the safe state of the objective, and extensive integration with the sarcophagus covering the defunct reactor at EU has been achieved. Estonia is one of the Chernobyl. Sweden is contributing to this group of candidate countries which entered fund. into membership negotiations with the EU first. Subsequently, considerable progress has Equality been made in the alignment process. The Developments following the political trans- Estonian economy experienced a substantial formation of Central and Eastern Europe downturn as a result of the Russian economic have resulted in growing differences between crisis in 1998. Although the negative impact women and men in most areas of society. was more serious than initially predicted, the According to the World Bank, women Estonian economy recovered remarkably account for 70–80% of the current quickly. GDP growth accelerated once again unemployment total in Central and Eastern in the autumn of 1999 and is expected to Europe, and they are unemployed for longer increase by 4.5% during 2000. The trade periods than men. Central and Eastern Euro- balance deficit, which was previously high, is pe is the only region in the world where the also recovering. The national currency, the number of women in decision-making posi- kroon, which is tied to the German mark, tions is declining. At the same time, the situ- has been stable since its introduction in ation for men is also deteriorating, due to 1992. The EU is Estonia’s main trading part- rising alcohol consumption and related illnes- ner, and accounts for more than half of ses, and a decline in average life expectancy. exports and 65% of imports. Sweden is Esto- In 1997, an action plan to promote gender nia’s third largest national trading partner, equality in Central and Eastern Europe was and the largest foreign investor. Estonia is adopted. Equality is an important criterion in now largely independent of the Russian mar- the planning, design and evaluation of pro- ket. jects, and a number of measures specifically designed to promote equality have been Democracy and human rights implemented. Support has been provided for Estonia fulfils all the criteria for a democracy, measures to achieve greater involvement of with stable institutions that guarantee the women in politics in Ukraine and Lithuania, maintenance of the functions of a state sub- and a programme for the transfer of statisti- ject to the rule of law. Estonia has abolished cal methods for the measurement of the the death penalty and amended its citizen-

181 ship legislation in accordance with the OSCE approximately 9%. Other positive factors recommendations. In the case of the Estoni- included reduced inflation and the continued an language and franchise legislation, the strength of the national currency, the lat. government is currently preparing amend- Membership of the EU and NATO is the ments to bring them in line with internatio- Latvian government’s main priority. Latvia nal norms. It is anticipated that changes in came closer to the EU in February when the the language legislation will be presented to European Commission decided to initiate parliament in the near future. Continued negotiations for membership of the EU. measures are required to promote the integ- Deficiencies in administrative capacity are ration of the Russian-speaking population. In expected to be the chief problem in the EU March, the government approved a national membership process. Difficulties are also seven-year integration programme which will expected in the negotiations as regards fishe- provide a basis for future efforts. ry and agricultural issues, and internal judici- al questions. Swedish cooperation According to surveys in Latvia, public opi- Since Swedish support for Estonia commen- nion overwhelmingly favours EU member- ced in 1991, a total of more than SEK 785 M ship, although negative opinions have been has been disbursed for bilateral initiatives, of more to the fore than in the past. There is a which support for measures approved during total consensus in the Saeima (parliament) 1999 amounted to SEK 126.6 M. Most of concerning approval of Latvian membership this support is channelled via Sida. The ove- of the EU. rall objective is to assist Estonia’s transition to democracy and a market economy. Special Democracy and human rights priority is given to measures to support Respect for human rights is satisfactory, and democracy and promote security, socially it is considered that Latvia meets the Copen- sustainable economic development and the hagen criteria. Most of the key international environment. During 1999 – “the Baltic conventions have been adopted and the countries’ year” – Sweden had a special focus death penalty has been abolished. on the Baltic states, the most important fea- Approximately 25% of the Latvian popula- ture of which was support for efforts by the tion still do not have citizenship. The new governments of the Baltic countries to citizenship legislation provides better oppor- inform their inhabitants about the EU, and tunities for these non-citizens to acquire citi- for information about the Baltic countries in zenship if they pass tests in the Latvian the EU. Twin-town cooperation between language, history and the constitution. Since Sweden and Estonia is well established, par- the new Latvian language legislation compli- ticularly as regards exchanges of know-how es with international norms in all essential in the local government sphere. respects, it has not been criticised by the OSCE. On the other hand, the content of this legislation will be largely determined by government ordinances which have not yet LATVIA been drawn up. As a result, practical applica- Following several years of strong growth and tion of this legislation will be the key factor. favourable economic development, the rate of progress declined during 1998 and the first Swedish cooperation half of 1999, mainly due to the economic Swedish cooperation with Latvia is primarily crisis in Russia. There were signs of economic designed to support the reform process, in recovery in late 1999, however, and growth the form of strategic measures for the trans- in the final quarter resulted in a positive fer of know-how and the development of GDP growth rate for the full year of 0.1%. institutions. The overall objective is to facili- The forecast for 2000 indicates that GDP tate Latvia’s integration into the EU. Coope- may improve by 3–4% during the year. ration commenced in 1990 and, so far, has Unemployment declined slightly, but is still amounted to a total of approximately SEK

182 900 M. In addition, roughly SEK 200 M has been disbursed for regional projects. During 1999, initiatives amounting to a total of approximately SEK 100 M were approved. Twin-town cooperation has not been as extensive as in Estonia, but it has had positive effects on local democracy and administration, and has promoted good neighbourly relations and increased security. More than 40 Swedish municipalities have twin-town links with Latvia. Academic and cultural cooperation is very important for the democratisation pro- cess, for example. The School of Economics Foto: Victor Lenson Brott/Global Reporting Sweden (SSE Riga) and the School of Law (RGSL) are Swedish flagships in this field. Social develop- ment is being promoted by a programme to reform the pension and social insurance system, conducted in cooperation with the World Bank. Measures in the environmental field are being implemented to rationalise municipal energy consumption. Sweden is also participating in water and sewage treat- ment projects in Latvian towns and cities. Overall, Sweden is the largest bilateral donor country in the cooperation context.

The Latvian city of Liepaja was previously domi- LITHUANIA nated by Russian military forces. The shabby, The transformation in Lithuania, involving a half-empty housing areas which they left switch to democracy and a market economy, behind them are in dramatic contrast to the has accelerated in recent years, although the beautiful Russian-Orthodox churches. economy suffered from the crisis in Russia more than anticipated during the autumn of It is assumed that the main problems for 1998, partly due to the loss of exports, and Lithuania in connection with EU membership partly due to the Lithuanian government’s will be agriculture, energy, regional policy and compensation programme. Growth was the free movement of people. The future of negative in 1999, although the forecast is the Ignalina nuclear power plant is a special brighter for 2000. The Russian crisis and the stumbling-block. In the energy strategy pre- decline in exports to the Commonwealth of sented in October 1999, Lithuania undertook Independent States (CIS) resulted in a sud- to shut down the Ignalina 1 reactor prior to den transformation of foreign trade, resulting 2005, and to announce the date of closure for in increased business with the West. In other Ignalina 2 in the next energy strategy, which is words, there is reason to believe that 1999 due to be announced in 2004. was no more than a negative kink in Lithua- There is limited interest in EU member- nia’s strong growth trend. ship in Lithuania in comparison with the Membership of the EU and NATO is the other Baltic countries, particularly in rural main priority for Lithuanian foreign policy. areas. As a result, the dissemination of infor- Lithuania made a considerable step forward mation about the EU to the general public is on 15 February when the European Com- one of the major challenges faced by the Lit- mission decided to initiate negotiations on huanian government. However, the parties membership of the EU. represented in the Seima (parliament) and

183 Foto: Victor Lenson Brott/Global Reporting Sweden

Economic reforms have not made as much progress in Lithuania as in the other Baltic countries, but here too preparations are being made for future membership of the EU. the government agree that EU membership country in Central and Eastern Europe. In is a matter of the highest priority in foreign the 1990-1999 period, support for Lithuania policy terms. amounted to SEK 1 billion, dominated by measures to improve safety at the Ignalina Democracy and human rights nuclear plant (approximately SEK 400 M) The minorities in Lithuania are small and and support for the reinforcement of institu- relatively well-integrated into society, since tions, the reform process and the promotion they automatically received citizenship when of security. Initiatives for a total of SEK 54 the country became independent in 1991. M were approved in 1999. Lithuania has acceded to virtually all the human rights conventions, and developments in this area are positive. The death penalty has been abolished. POLAND Poland still has a high rate of economic Swedish cooperation growth. Inflation has declined substantially in Sweden’s bilateral relations with Lithuania recent years and, despite an increase in 1999, have developed very rapidly during the is still in single digits. Overall unemployment 1990s from an initial starting point of very has increased, although there are considerable limited contacts. Sweden is now the largest regional differences. The appreciable trade investor in Lithuania and one of the primary deficit gives reason for concern, however. donor countries, making it a key partner in At the end of March 1998, Poland entered both Baltic Sea cooperation and EU integra- into substantive negotiations for membership tion. Lithuania has received a higher propor- of the EU. Poland is still facing a series of tion of Swedish assistance than any other structural challenges, such as privatisation of

184 the remaining state-owned companies and and economic terms. The Russian people had modernisation of the infrastructure. The their first opportunity to witness a democra- restructuring of heavy industry (particularly tic change of presidents, following Yeltsin’s steel and coal) and the modernisation of the premature departure and Putin’s victory in agricultural sector present further challenges. the elections in March 2000. Despite his for- Much also remains to be done in the environ- mer allegiance to Yeltsin, President Putin mental field. represents a new factor in Russian politics. Little is known about his views on a number Democracy and human rights of questions, although most observers would Democracy is well established in Poland, whi- like to believe that reforms will continue, ch has achieved a degree of institutional stabi- perhaps even at a faster rate in the economic lity which safeguards democracy and provides sphere. Putin’s assumption of office coinci- a solid basis for the rule of law. Continued ded with the first continuous period of eco- progress is being made in solving the pro- nomic growth in Russia. The favourable eco- blems identified by the European Commis- nomic situation is partly due to currency sion in its review, particularly regarding the depreciation after the economic crisis of protection of civic rights and the functioning 1998 and beneficial raw material prices for of the judicial system. There is respect for the Russia’s major export commodities, but parliamentary process, and parliamentary observers do not rule out a long-awaited and institutions are working satisfactorily. During much-needed break in the economic trend. 1999, however, there were a number of The war in Chechnya has been a dark cloud major anti-government demonstrations by hanging over Russia, however. Conduct of farmers. the war has largely been supported by Russi- Respect for human rights is satisfactory, an public opinion, but aroused strong reac- and Poland meets the Copenhagen criteria. tions in other countries, and has affected Minority rights are also respected. However, Russia’s relations with the EU, for example. the European Commission’s review urges Poland to devote further attention to reinfor- Democracy and human rights cing the judicial system and continued efforts The recent Russian parliamentary and presi- to combat the widespread corruption. Proce- dential elections were probably democratic, dures to formally abolish the death penalty but election observers have unanimously were initiated in the first half of 2000. commented that there were clear deficienci- es in reporting of the election, particularly on Swedish cooperation the part of the state-controlled media. Some Swedish cooperation with Poland commen- human rights activists in Russia are concer- ced in 1989, and by late 1999 amounted to a ned that the democratic progress achieved in total of SEK 630 M. Initiatives totalling more the 1990s is disappearing under the new than SEK 20 M were approved during 1999. political regime. Similarly, reporting of the In 1999, evaluation of seven forestry coopera- war in Chechnya also indicates that Russia tion projects completed during the does not have full freedom of the press and 1995–1998 period indicated an improved freedom of expression at the moment. The level of expertise in this sector. A contribu- major problem for the weakest groups in tion of an additional SEK 50 M over a three- Russian society is probably the deep social year period to the Polish EcoFund was appro- divisions, however. ved during 1999. The EcoFund is a debt-for- environment swap arrangement. Swedish cooperation Swedish cooperation is not primarily designed to influence developments in Russia in the short term. As a result, Swedish cooperation RUSSIA largely focuses on providing impulses in areas During the past year, Russia has experienced that are strategically important for the reform what may be a turning point in both political process and which may contribute to positive

185 developments in Russia in the long term. north-western Russia. Several other social pro- Most Swedish initiatives take place at the jects are planned for various regions, for regional or local level, in the hope that they example as part of a Swedish undertaking to will create a long-term pressure for change, receive 1,000 Russian social workers for a and spread upwards to the federal structures short training programme in Sweden, desig- as a result of demonstration and dispersion ned to stress the importance of social aspects effects. in a successful reform process. Cooperation with Russia will increase, in The Swedish Institute’s (SI) exchanges of accordance with the special Bill for coopera- experts with Russia, including cooperation at tion with Central and Eastern Europe appro- the cultural and academic level, accounted ved by the Swedish Parliament. Preliminary for more than SEK 47 M during 1999. In figures indicate that the total amount devoted addition to cooperation channelled via Sida to Swedish cooperation projects in Russia inc- and SI, initiatives representing disbursements reased substantially during 1999. Overall, of approximately SEK 31 M were approved projects approved under this heading totalled by the Ministry for Foreign Affairs during approximately SEK 480 M. A high propor- 1999, including contributions (SEK 9 M) to a tion of the increase may, however, be ascri- cooperation project involving the Swedish bed to a single project approved by Sida-East Ministry of Finance and its Russian counter- during 1999 – the water and sewage treat- part concerning advice and training. In addi- ment plant in Kaliningrad. Swedish participa- tion, Russia has received more than SEK 60 tion in this project represents USD 18 M. M from the Baltic Billion I and II funds – for Most of the total Swedish cooperation – example for a district heating project in more than SEK 342 M – was approved by Archangel. Sida-East. Support designed to reinforce a democratic culture amounted to more than SEK 25 M, and mainly focused on building up local administration and local self-government UKRAINE (including a major project for the training of The reform process in Ukraine has been local public officials in Novgorod), training for remarkably slow. although some progress has journalists, equality and support to NGOs. been made, such as price liberalisation, the Cooperation projects designed to support introduction of a uniform exchange rate environmentally sustainable development system and reduced subsidies in certain key accounted for almost SEK 163 M in 1999, of sectors. There has been little economic which the major proportion was devoted to growth, however, due to the lack of compre- the water/sewage treatment project in Kali- hensive structural reforms. Parliament has ningrad. Support for socially sustainable eco- strongly resisted privatisation, but the privati- nomic development may be subdivided into sation process has nonetheless accelerated, projects focusing on public administration, and a decree was recently issued concerning and promotion of the private sector and the the privatisation of agriculture. The privatisa- social sector. Administrative support (SEK 84 tion of a number of loss-making companies is M) primarily involves a major project for the still proceeding sluggishly. establishment of a Russian property register. A new prime minister who has a strong Projects to improve the private sector account desire to introduce reforms was appointed, for more than slightly less than SEK 27 M, following the re-election of President Kuch- including Start East (partial financing of small ma in December 1999. He has promised business projects), high-level management comprehensive changes in several areas training in Kaliningrad, training/traineeships in within his first 1,000 days, but it remains to Sweden for Russian managers, and certain be seen whether they can be put into effect in projects focusing on labour market issues and a society which is dominated, in many fields, women managers. Social projects approved by by oligarchies which have acquired conside- Sida during 1998 (SEK 36 M) include the rable influence over key areas in the private training of social workers in several parts of sector.

186 Foto: Victor Lenson Brott/Global Reporting Sweden

You can buy anything in Russia today. But the new consumer goods are largely an unattainable dre- am for most people, since their economic and social situation has deteriorated dramatically.

The unofficial economy has expanded, sin- associate membership in the not too distant ce development of the private sector is hin- future. A partnership and cooperation agree- dered by a lack of deregulation, unclear legis- ment between the EU and Ukraine entered lation, licences and bureaucracy. National into force in 1998. It is designed to finances have been seriously weakened due established a forum for political dialogue and to tax collection problems, and this, in its represents the first stage in the establishment turn, affects expenditure. There has been a of a free-trade agreement between the EU drastic reduction in foreign trade, and foreign and Ukraine. investment has not yet taken off, largely due to the lack of clear legislation. The hesitant Democracy and human rights progress made in the implementation of The death penalty was finally abolished in reforms has subjected the population to con- late 1999, following a de facto moratorium. siderable strain. There is high inflation, and Attention has been drawn to the question of late payment of wages and salaries is a com- torture, and conditions in prisons and institu- mon occurrence. Ukraine is still suffering tions of correction are unsatisfactory. The extensively from the repercussions of the judicial system suffers from the same lack of economic crisis in Russia in August 1998. financial resources as other public sector ope- The IMF has currently put the brake on loan rations. As a result, individual protection disbursements, pending fulfilment of certain under the law is largely a matter of personal conditions in the reform programme. Other financial circumstances. major donors include the World Bank, the Attention has been drawn to serious defici- EU and the US. encies as regards freedom of the press. A Relations with the EU have high priority. strong tendency to control the media has been Ukraine’s long-term objective is membership noted, particularly in connection with the pre- of the EU, and it is endeavouring to achieve sidential elections in the autumn of 1999.

187 The state has an enormous debt to citizens democratic situation in Belarus has not per- in the form of unpaid wages and salaries for mitted the full development of cooperation. public employees, and pension accruals. One Sweden is prepared to develop cooperation third of the population is currently living at with Belarus when the political and econo- or below the minimum existence level. Offi- mic prerequisites are in place. cially, there is a social welfare protection system, including free medical care. Howe- Democracy and human rights ver, the economic situation ensures that this The democracy and human rights position in system does not work, and there is a shortage Belarus has gradually deteriorated in recent of pharmaceuticals and essential equipment. years. Although open repression of dissidents Children and the disabled are amongst those is uncommon, there are considerable defici- who suffer most. There are major social pro- encies in protection under the law, freedom blems, due to the economic situation. of the press and freedom of speech. There Persecution of minorities or other ethnic are instances of police brutality in connection groups is not sanctioned by the state, howe- with demonstrations, and this also applies to ver. Independent human rights organisations trials of opposition figures. Such trials may are operating freely in Ukraine. The human be regarded as politically motivated, accor- rights ombudsman institution established by ding to foreign observers. The media are parliament finds it difficult to obtain finan- totally controlled by the state, with the cing and, as a result, has problems in perfor- exception of a few independent publications ming its tasks. which have to surmount various administra- tive and financial handicaps. The Belarus aut- Swedish cooperation horities plan to hold parliamentary elections So far, Swedish cooperation with Ukraine in the autumn of 2000, but it is extremely has amounted to more than SEK 90 M, of uncertain whether they will be carried out in which SEK 24 M was allocated for encapsu- a sufficiently democratic manner to be lation of the Chernobyl reactor under the accepted as legitimate by the domestic oppo- auspices of the European Bank for Recon- sition, and by the outside world. struction and Development (EBRD). The bulk of this cooperation has involved proper- Swedish cooperation ty registration/land surveying, statistics, In September 1997, due to the deterioration municipal self-government and the training in the political situation in Belarus, the EU of social workers. New initiatives, for examp- countries decided that cooperation with le involving the situation faced by children, Belarus should focus on support for the are being planned as from the current year. democratisation process, and humanitarian In 1999, the Swedish Parliament approved and regional projects. Sweden’s cooperation a specific country strategy for Ukraine for the already concentrated on support for democ- 1999–2001 period, and Ukraine is now clas- racy prior to the EU decision, and today the sified as a high-priority country for Swedish main focus is on support for democracy and cooperation. This strategy complies with the the civil society. overall objectives for cooperation with The largest single project involves coopera- Central and Eastern Europe approved by tion between NGOs in Sweden and Belarus, Parliament. based on an international seminar to support the civil society in Belarus, held in November 1997 at the Baltic Institute in Karlskrona. To follow up the seminar, Sida-East approved BELARUS SEK 6.5 M to support such cooperation. Swedish cooperation with Belarus is more Forum Syd is acting as an NGO umbrella limited than with the high-priority countries organisation for this project and processes in Central and Eastern Europe. Originally, applications from Swedish organisations whi- Sweden intended to intensify cooperation, as ch are interested in this project. It may be it has done in Ukraine, but the political and noted that particularly favourable terms app-

188 ly for contributions to NGO cooperation with Belarus (no contribution required for CHANNELS FOR Swedish participants, financing opportunities COOPERATION IN CENTRAL AND for funding travel expenses for preliminary EASTERN EUROPE reports). Swedish NGOs have shown consi- derable interest in the implementation of The Ministry for Foreign Affairs is responsib- projects in Belarus. And in early 2000 it was le for coordinating cooperation with Central decided to extend the project, which now and Eastern Europe, and its assignments applies until the end of 2001, with additional include the preparation of Government deci- funding of SEK 15.1 M. sions on the allocation of funds. Funds are Another important area for cooperation mainly allocated to the Ministry for Foreign with Belarus is the training of journalists. Affairs, Sida, the Swedish Institute and the Sida-East has implemented several projects Stockholm Institute for Transition Economi- for the training of journalists from Belarus at es and East European Economies (SITE). the Kalmar School of Journalism in Sweden Sweden also provides support via the EU. – the most recent project was approved in the spring of 2000. Other projects include Sida support for future land reform in Belarus and Sida manages the major proportion of bilate- projects under the auspices of the Swedish ral cooperation with Central and Eastern Association of Local Authorities in the local Europe and has a special department for this self-government sphere. Belarus is also cove- type of cooperation (Sida-East), which was red by the Swedish Institute’s exchanges in formed in 1995 in connection with the the cultural area. In March 2000, a group of establishment of the new Sida. Sida uses prominent opposition politicians from other authorities to implement this coopera- Belarus visited Sweden at the invitation of tion – chiefly the National Audit Office, the the Institute. The “Partnership for Culture” National Social Insurance Board, the Natio- project, which is also run by the Institute, nal Labour Market Board, the National Land has a special focus on Belarus. In addition to Survey, the National Radiation Protection projects financed by Sida-East and the Swe- Institute and the National Environmental dish Institute, there are a number of smaller Protection Agency. The range of this coope- projects of a regional character which affect ration can be seen in the presentation of are- Belarus, including a Swedish National Envi- as of operation and countries (see above). In ronmental Protection Agency project for 1999, Sida's cooperation with Russia increa- cross-border water courses and a Swedish sed considerably, but support for the Baltic Immigration Board project for institution- countries and Ukraine was reduced. Support building in the migration sphere. for Poland continued at approximately the same level as in 1998. The Swedish Institute CENTRAL EUROPE The Swedish Institute (SI) is responsible for As a result of the negotiation and accession disseminating information about Sweden in process which has been initiated between the foreign countries and for exchanges with EU and the candidate countries in Central other countries in the cultural, education, and Eastern Europe, cooperation has also research and other fields. One of the main been implemented with Bulgaria, Rumania, objectives is the promotion of democracy in Slovakia, Slovenia, the Czech Republic and partner countries. Support includes scholar- Hungary. Special funds have been allocated ships, Swedish language training, language to support the membership endeavours of all and integration support for Estonia and the candidate countries. In December 1999, Latvia, and the production of information it was decided to allocate SEK 10 M for mea- materials in various languages. Interest in sures to promote integration, for example learning Swedish has increased considerably seminars, study visits and training. in recent years, and the Institute has

189 established 45 Swedish language lecture- SITE – the Stockholm Institute for ships. There is also a marked increase in Transition Economies and East European interest in exchanges in the education sphe- Economies re, particularly in countries around the Baltic The Stockholm Institute for Transition Eco- Sea. nomies and East European Economies (SITE) was founded in 1989 by the Swedish Swedfund International AB Government and private sector with the aim Swedfund International AB is a limited com- of increasing knowledge and information in pany, wholly-owned by the state. Its princi- Sweden about economic conditions in Eas- pal assignment is working with Swedish tern Europe. SITE’s operations primarily companies in joint-venture projects for the involve university-level research on transitio- transfer of Swedish private-sector know-how nal economies. The Institute focuses on both to developing countries and the countries of the public and private sectors, and dissemi- Central and Eastern Europe, in order to pro- nates its research results in the form of publi- mote industrial and commercial develop- cations and seminars. Its international opera- ment. Swedfund also promotes Swedish tions include participation in research pro- business operations in partner countries and jects and conferences. Since early 1998, SITE acts as a catalyst in the internationalisation of has operated the Russian-European Centre Swedish growth companies. Support may for Economic Policy (RECEP) in Moscow, take the form of share capital and loans for with Tacis funding. the development of viable companies. Slight- The Swedish Government provides an ly more than 27% of Swedfund's portfolio annual grant to the Institute, During 1999, a (SEK 296 M) is invested in companies in new agreement was signed under which the Central and Eastern Europe. During the Government undertakes to contribute SEK year, the Ministry for Foreign Affairs initia- 4.6 M each year. ted a study of the need for government- financed joint-ventures in Central and Eas- The Baltic Institute tern Europe. The study will also consider The Baltic Institute Foundation was whether Swedfund International should be established in 1992 to promote cooperation active in this area and, if so, in what forms. between the Baltic Sea countries. The Insti- tute conducts a wide variety of operations, Swedfund Financial Markets AB both under its own auspices and in coopera- Swedfund Financial Markets AB (SFM) is a tion with others. The Institute operates as an wholly-owned subsidiary of Swedfund Inter- information centre to meet the growing need national AB. It contributes to the develop- for information and to provide an overview ment of the financial sector in the Baltic sta- of Baltic Sea cooperation. The Ballad databa- tes via venture capital investments in com- se – an Internet forum for the establishment mercial banks. The Government has alloca- of networks in the Baltic Sea region – is an ted SEK 240 M for this purpose. SFM’s stra- important tool in this process. Ballad inclu- tegy is long-term management of its share- des a project database for cooperation with holdings, but with the intention of selling Central and Eastern Europe. SEK 3.5 M has when the capital markets have attained a suf- been allocated to the Institute for regular ficient level of maturity and liquidity to per- operations during 2000, and SEK 3 M for mit operations to be taken over by local Ballad. interests. SFM’s activities contribute to restoring confidence in local banks and influ- Special export credit guarantee encing the operations, orientation and ethics framework – the Swedish Export Credits of commercial banks, primarily as a result of Guarantee Board (EKN) the board memberships held by SFM. At the In 1993, the Government established an end of 1999, the investment portfolio had a export credit guarantee framework of SEK 2 value of SEK 171 M, a decline of SEK 16 M billion, primarily for the Baltic countries and compared with year-end 1998. Russia. Kazakhstan, Ukraine and Belarus

190 have also been included for loans jointly tions should be devoted to institution buil- financed with international financial institu- ding and 70% to development of the private tions. In the autumn of 1998, Parliament sector and the infrastructure. Building up approved an extension of the framework by institutions in candidate countries mainly SEK 0.5 billion, although funds have not yet takes the form of cooperation projects invol- been made available, due to the economic ving officials in EU countries and their coun- crisis in Russia. The framework is designed to terparts in candidate countries. As from contribute to the development of the private 2000, Phare will be supplemented by two sector in the countries concerned, and to new programmes – the ISPA programme for contribute to long-term cooperation between support for environmental and transport these countries and Swedish companies. Sin- investments (EUR 1 billion annually), and ce 1993, the Government has allocated SEK the SAPARD programme for agriculture and 400 M for possible losses. Prior to 1996, rural development (EUR 500 M annually). export credit guarantees primarily applied to The Tacis programme covers all the mem- the Baltic states, which represented 75–80% bers of the Commonwealth of Independent of commitments. In recent years, the Russian States (CIS), plus Mongolia. Initiatives focus proportion has increased to approximately on support for the transition to a market eco- 50% of the definite commitments. As a nomy, with a special emphasis on support for result of the increased risks in Russia, guaran- democracy and the development of a society tees for credits to Russia of more than one governed by the rule of law. New regulations year have been suspended. for Tacis operations in the 2000–2006 period were adopted at the end of 1999. The new regulations involve a greater concentration of effort, increased investment opportunities, COOPERATION VIA and new instruments such as industrial coo- THE EUROPEAN UNION peration and twinning. There is a greater emphasis on environmental issues and cross- The Phare and Tacis programmes border cooperation. In 1999, the European The European Union began cooperation with Parliament approved a reference amount of the states of Central and Eastern Europe in EUR 3,138 billion for the Tacis budget over 1989 and 1990, respectively, via the Phare a seven-year period. The budget for 1999 and Tacis programmes. was roughly EUR 450 M. The Phare programme covers all the Central European and Baltic countries, Alba- nia, and states within the former Yugoslavia. Initiatives for countries which have applied REGIONAL COOPERATION for EU membership (candidate countries) IN CENTRAL AND EASTERN focus on preparing them for EU membership EUROPE while, for obvious reasons, initiatives for the Balkan countries focus on the re-establish- ment of democratic structures and physical Nordic cooperation reconstruction in the region. During 2000, The Nordic Council and the Nordic Council the process of transferring initiatives in the of Ministers both attach the greatest impor- Balkans from Phare to a special programme tance to developments in the immediate vici- commenced. nity of the Nordic region. Nordic-Baltic coo- Phare receives an annual allocation of peration is characterised, for example, by approximately EUR 1.5 billion from the EU meetings at prime-minister level, in conjunc- budget. Following a decision taken at the tion with the annual session of the Nordic Berlin Summit in April 1999, this level will Council. The Nordic Council of Ministers’ be maintained during the 2000–2006 period. cooperation programme, which focuses on According to the guidelines for the Phare the Baltic states and north-western Russia, Programme, approximately 30% of opera- has four themes: democratic development,

191 cultural communication, viable utilisation of environmental projects in Eastern Europe resources and the development of an effective which are of interest for the Nordic countri- market economy. This "Neighbourhood Pro- es. Operations focus on the modernisation of gramme", which had a budget of DKK 66 M production processes, the production of envi- in 1999 (Swedish share approximately 35%), ronmental equipment, and environmental is financed from the Nordic Council of Minis- services. Participation may take the form of ters' budget. equity, loans or guarantees on market terms. The future orientation of the Neighbour- Slightly more than 70% of operations are hood Programme is currently under review. A located in Estonia, Latvia, Lithuania and report will be presented during the autumn. Poland. A special Nordic Environmental Fund of DKK 100 M for environmental inve- Nordic Investment Bank stments in the Nordic neighbourhood has The Nordic Investment Bank (NIB) is owned been established to supplement NEFCO’s by the Nordic countries. NIB operations in regular operations. The Swedish share (38%) Central and Eastern Europe involve three of the basic paid-up capital for NEFCO types of loans: project investment loans (PIL), amounted to EUR 30.4 M at year-end 1999. special investment loans for projects in the Baltic countries (including Baltic Investment Council of the Baltic Sea States Loans (BIL) specifically designed for small and The Council of the Baltic Sea States (CBSS) medium-sized companies), and environmental is a forum for the promotion and deepening investment loans. Environmental investment of cooperation between countries in the Bal- loans have been granted by the NIB since tic Sea region. It was founded in 1992 to re- 1997 for environmental projects in the Baltic establish the Baltic Sea area as a natural regi- Sea area and north-western Russia. The Swe- on for cooperation, to ensure genuine dish contribution to this loan category invol- democratic development in the area, to take ved a risk provision of SEK 6 M in 1998, and advantage of its considerable growth potenti- SEK 44 M for the 1999–2001 period. al, and to help to achieve sustainable deve- lopment. Members of the Council include The Baltic Investment Programme the five Nordic countries, the three Baltic The Baltic Investment Programme (BIP) was states, Germany, Poland, Russia, and the initiated in 1992 by the ministries of finance European Commission. In 1998, the Council and economics in the Nordic countries. The established a secretariat, located in Stock- aim is to promote the development of small holm. and medium-size companies in the three Bal- Some aspects of the Council’s operations tic states, and cooperation between compani- resemble development cooperation. The es Nordic region and the Baltic countries. Council has a commissioner for democratic National investment banks have been institutions and human rights to assist the established in the countries concerned to pro- development of new democracies, and the mote the development of financial markets. EuroFaculty university project is involved in The Baltic Investment Programme is adminis- the modernisation of higher education in tered by the European Bank for Reconstruc- Tartu, Riga and Vilnius, and plans to tion and Development (EBRD), the Nordic establish operations in Kaliningrad. Investment Bank (NIB) and the Nordic Pro- Sweden has organised and funded confe- ject Export Fund (Nopef). Sweden has con- rences and seminars for an exchange of expe- tributed approximately SEK 250 M. No addi- rience and discussion of future cooperation tional funds will be contributed to this pro- in the following areas: civilian security, child- gramme, which will be phased out in the ren at risk, protection against contagious next few years. diseases, trade legislation and intellectual property rights. Nordic Environment Finance Company The Nordic Environment Finance Company Barents cooperation (NEFCO) aims to promote investment in The Barents Euro-Arctic Council was for-

192 med in 1993 by the foreign ministers of the Arctic Council Nordic countries and Russia, and a repre- The Arctic Council, which was formed in sentative of the European Commission. 1996 by the eight Arctic states (Denmark, Sessions are attended by observers from Finland, Iceland, Canada, Norway, Russia, non-Nordic countries. When the Barents Sweden and the US), promotes intergovern- Euro-Arctic Council was formed, a Regio- mental cooperation between countries nal Council was set up consisting of county around the Arctic Circle. One unique feature governors and their equivalents in the is that four Arctic indigenous peoples, inclu- north of Norway, Sweden, Finland and in ding the Sami, have permanent representati- north-western Russia. The Swedish counti- ves in the Council. es of Norrbotten and Västerbotten are par- The Council was originally established as ticipants. In 1995, a working group for an outcome of the Rovaniemi process as a indigenous people in the Barents region forum to promote cooperation and coordina- was established, with representative of the tion, particularly as regards sustainable deve- Sami people and the indigenous popula- lopment and environmental protection in tions in north-western Russia. This group northern regions. Prior to the Council’s for- has advisory status in the Barents Council mation, the countries concerned had begun and the Regional Council. to draw up a strategy for environmental pro- Russia has chaired the Barents Council tection of the Arctic region by establishing since March 2000 and will be succeeded by four working groups for the monitoring and Sweden in early 2001. During the Finnish evaluation of environmental pollution chairmanship in 1999, cooperation conti- (AMAP), the conservation of Arctic flora nued in the following areas: energy rationa- and fauna (CAFF), the protection of the lisation, nuclear safety, the environment, marine environment (OAME) and the pre- trade barriers, transport, health issues and vention of accidents and emergency prepara- scholarship exchanges. Cooperation was tions (EPPR). Considerable contributions are also initiated in the customs area, and con- made to environmental strategies, for examp- cerning forestry issues and young people. le in the form of a status report on the Arctic Rapid progress has been made in customs environment and the development of regio- cooperation. nal programmes. The environmental tasks Murmansk will chair the Regional Coun- are now pursued within the framework of cil until the end of 2000, to be succeeded the Arctic Council. by one of the Norwegian counties. At the The Arctic Council’s first meeting of end of 1999, a working programme for the ministers, which was held in September period 2000–2003 was adopted which 1998 at Iqaluit, the new provincial capital of gives priority to private-sector coopera- Nunavut in Canada, adopted the Iqaluit tion/the infrastructure, skills/training, the Declaration, establishing guidelines for future environment/health care, welfare/culture tasks. Procedural rules for the Council were and indigenous peoples. Cultural coopera- also adopted. A special working group for tion is very active in the Barents region. sustainable development (SDWG)was for- There is continued development of twin- med which, in principle, had the same com- town cooperation and contacts between position as the council of senior officials. At NGOs and their local counterparts in the same time, the US replaced Canada as north-western Russia. Trade within the chairman of the Council and continued to be region increased during 1999, when the host country until the autumn of 2000, economic situation in Russia stabilised after when the chairmanship passed to Finland. a serious recession in the previous year due The Iqaluit Declaration builds on previous to financial problems. During the current cooperation and continued support for envi- year, the border post at Salla is expected to ronmental objectives. An action plan to elimi- open for international traffic, which should nate environmental pollution in the Arctic is improve the prerequisites for trade and tra- being drawn up. One example of cooperation de-promotion activities in the area. is a project for the phasing out of the use of

193 PCB and the handling of PCB waste in Russia. which Sweden gives priority in its immediate The ministers attending the Iqaluit mee- neighbourhood. ting agreed to prepare a survey of the status and trends in the Arctic ecosystem, habitats The World Bank and species. They also decided to draw up a The World Bank is playing an important part programme for monitoring circumpolar bio- in the transition to a market economy in diversity. A major new climate project will Central and Eastern Europe by providing be launched to assess the impact of climate support for structural reforms. The Bank changes and UV-B radiation on the sensitive approved loans of USD 28,136 M for the Arctic ecosystem. region in the 1993–1999 period. Sweden is The new sustainable-development working co-financing a number of projects with the group has met three times and has drafted a World Bank in Central and Eastern Europe, framework programme for approval by the mainly in the energy and environmental next meeting of ministers, which is to take field, but also in the social sectors. Sweden place in Alaska in the autumn of 2000. also finances a fund for the procurement of Interest in developing an Arctic consensus Swedish or local consultancy services for on sustainable development has been mixed. World Bank projects in Central and Eastern The chairmanship country prefers a project- Europe. In all, the Swedish contribution to oriented approach. On the other hand, the this fund amounts to SEK 70 M. During working group has identified a number of 1999, preparations have been made for an areas of common interest, such as human extensive health reform programme in Lit- health, telemedicine, marine biological huania, and the first payment was made to a resources, sustainable life patterns, commu- consultancy fund for the health programme nications, rural infrastructure, cultural herita- in Latvia. ge tourism, and ecotourism. The financing of activities and projects is a The European Bank for key issue in this context. No joint commit- Reconstruction and Development (EBRD) ments have been made for funding these The European Bank for Reconstruction and activities, or for the participation of indige- Development was formed in 1991 to assist nous peoples and the various secretariat fun- the transition to a democratic market econo- ctions. Sweden should be able to contribute my and strengthen the private sector in the in appropriate manner, however. countries of Central and Eastern Europe. The Bank is also assigned to actively promote the institution-building process and the develop- ment of small and medium-sized companies. MULTILATERAL COOPERATION The Bank is active in 26 countries in Central and Eastern Europe. Operations con- International Monetary Fund (IMF) sist of lending, venture-capital investment and The International Monetary Fund’s primary the issue of guarantees. The Bank’s primary assignment is to facilitate economic reforms focus is on the private sector, but it also assi- which are designed to promote macroecono- sts the public sector to some extent. The mic stability. This is achieved by providing EBRD also plays an important part in arran- advice and loans. During the 1990–1999 ging co-financing between various parties. period, actual disbursements of 21,948 milli- Sweden co-finances several joint initiatives on Special Drawing Rights (SDR) were made with the EBRD. Most initiatives are in the in Europe. All IMF member countries in environmental field, although some are in the Central and Eastern Europe have received financial sector. The EBRD administers a financial support from the Fund, with the nuclear safety fund to which Sweden has con- exception of Turkmenistan. IMF lending ful- tributed SEK 85 M. In addition, Sweden has fils an important function in several countri- contributed to a fund for the financing of es, although the IMF’s advisory services are a small and medium-sized companies in north- more important factor in the countries to western Russia.

194 Organization for Economic bloc countries in Eastern Europe. The Fede- Cooperation and Development (OECD) ral Republic of Yugoslavia is currently sus- The Organization for Economic Cooperation pended from the organisation, however. The and Development is implementing several OSCE is a regional association under Article programmes in Central and Eastern Europe, VIII of the UN Charter, and it has some 20 coordinated via the Centre for Cooperation missions and other activities in the former with Non-members (CCNM). The OECD is Soviet Union and the western Balkans. The also conducting the SIGMA programme whi- OSCE’s special characteristic is its broad ch is helping to build up central government definition of security, which is not confined administration in Central and Eastern Europe to security policy in the military sphere. The and, since the spring of 1998, a regional Bal- OSCE also places considerable emphasis on tic programme which includes initiatives in socio-economic and environmental aspects, the financial sector and the labour market, and on human rights. In addition to contri- foreign direct investments, and the promo- butions to the OSCE regular budget, Sweden tion of the development of small and also provides support in the form of person- medium-sized companies. During 1998, nel assigned to OSCE missions, election Sweden contributed SEK 1.5 M to the regio- observer duties and certain other projects nal Baltic programme. Two further contribu- conducted under OSCE auspices. tions of SEK 1.5 M were provided for 1999 and 2000. A special programme has also Council of Europe been established for Russia. The Council of Europe currently has 40 Poland, the Czech Republic and Hungary member countries, including all the countries have become members of the OECD, and of Central and Eastern Europe (with the membership negotiations with Slovakia are exception of the three Caucasian republics), in progress. Several countries have observer Bosnia-Hercegovina, Yugoslavia and Belarus. status in one or more of the OECD's 200 The latter two countries are not covered by committees. Council of Europe's cooperation programme with Central and Eastern Europe, which United Nations Development focuses on human rights, the media, coope- Programme (UNDP) ration in the legal sphere, education, culture, The United Nations Development Program- young people and the environment. In addi- me (UNDP) coordinates UN technical assi- tion to contributions to the Council of Euro- stance. The UNDP has established a special pe’s regular budget, Swedish support inclu- fund for the Baltic states to which Sweden des a programme to increase awareness of has contributed SEK 12 M so far. The fund is human rights on the part of the police autho- designed to support democratisation, integra- rities in member states, and also a project for tion processes and the development of public young people in Lithuania. administration, and to counter the negative impact of the transition process on the social sector. Sweden has also contributed SEK 14 M to the UNDP programme for language training and human rights in Latvia, and for the reception of refugees in Lithuania. In 1999, Sweden approved an additional contri- bution of up to SEK 1.8 M for the second phase of the UNDP language programme. Organisation for Security and Cooperation in Europe (OSCE) Fifty-five countries – “from Vancouver to Vladivostok” – are participating in the OSCE, which focuses on former Communist

195 The civil society and non-governmental organisations (NGOs)

Swedish development cooperation has its directly support vulnerable target groups, for roots in the Swedish “popular move- example the poor or the disabled, and ope- ments”, which have been increasingly rate in certain specific sectors, such as health involved in the international sphere ever care or training. Many organisations combi- since Swedish missionary activities in ne these different approaches. Africa commenced in the mid-19th cen- One common denominator in the opera- tury. When official Swedish development tions of almost all these organisations is that, assistance programmes were established in addition to tangible measures, they are more than 40 years ago, popular move- also designed to reinforce local organisations ments and NGOs were the main driving and their activities at the local level. Swe- forces. In 1999, more than a fifth of total dish development cooperation wants to con- tribute to building up a strong and vigorous Swedish development assistance was pro- civil society in the long-term in developing vided through popular movements and countries. With their democratic back- NGOs. Information about development ground and adult education tradition, Swe- issues, and training in this area, have dish NGOs are a crucial factor in Sweden’s always been a significant feature of NGO support for this process. operations. NGOs are also important dia- Swedish and international NGOs are also logue partners in the development of new a key factor in the humanitarian assistance guidelines, policies and methods. sphere, where they play an important part in handling crises of this nature, often in coo- peration with their local partners. Both Swe- Objectives and operations dish development cooperation and multila- Non-governmental organisations (NGOs) teral organisations such as the WFP and play a key role in Swedish development coo- UNHCR are dependent on NGOs for the peration, representing more than a fifth of implementation of humanitarian assistance. total Swedish development funding in 1999, In 1999, the UNHCR channelled more than or SEK 2.5 billion. This is slightly more than USD 213 via 544 national and international a third of the volume of development coo- NGOs. Although measures of this nature peration undertaken by Sida. The work car- primarily involve meeting basic needs and ried out by NGOs covers a wide field, but performing certain reconstruction tasks and the main emphasis is on initiatives to pro- psycho-social functions, there is also a speci- mote social development, democracy and al emphasis on the development-promotion human rights, and for humanitarian aid. aspects of humanitarian aid. NGOs are In the development assistance field, Swe- responsible for taking the long-term effects dish NGOs cooperate to a large extent with of their initiatives into account. their counterparts in recipient countries, and Approximately one-third of Sida's support Swedish bilateral support is also extensive in for democracy and human rights is channel- this area. Some NGOs are involved in led via NGOs. Several Swedish NGOs have efforts to influence public opinion or provi- built up special expertise and know-how for de information about normative issues, such the promotion of democracy and human as the rights of the child. Other NGOs rights. NGOs are active in areas such as the

196 rights of the child, village organisation, local billion within the Swedish development democracy, support for human rights organi- cooperation framework, and they also recei- sations and trade union activities. Most Swe- ved slightly more than SEK 830 M in contri- dish NGO operations are carried out in coo- butions for their own development initiati- peration with local organisations. There has ves, entailing a contribution of 20% of the been a noticeable increase in efforts to rein- cost by the organisations themselves. In the force the capacity of these partner organisa- case of humanitarian assistance, NGOs tions in recent years. In the long-term, NGO received approximately SEK 731 M, consis- operations help to promote a democratic ting of SEK 402 M for local and internatio- culture by contributing to robust civil socie- nal organisations and SEK 329 M for Swe- ties with a strong social capital and a multi- dish organisations. NGOs received approxi- plicity of democratic organisations. Develop- mately SEK 424 M for operations in the ments in South Africa and Central America, democracy and human rights spheres, of for example, demonstrate that long-term which SEK 219 M was for Swedish organisa- support for representative and credible orga- tions and SEK 205 M for local and interna- nisations in the civil society promotes tional organisations. SEK 156 M was devo- democracy and respect for human rights, ted to measures in the social sectors, approx- even in countries dominated by dictatorship imately SEK 145 M to research, approxima- and oppression. tely SEK 130 M to utilisation of natural Special support for building democracy resources and approximately SEK 135 M to via bodies affiliated to the Swedish political the infrastructure and the private sector. parties commenced in 1995, was expanded in 1998, and has been extended for a further NGOs as partners in three years until 2000. The aim has been to development cooperation contribute to the establishment of stable NGOs are significant players and partners in democracies in developing countries and in development cooperation. This applies not Central and Eastern Europe by channelling only to Sweden, but also at the international assistance funds via bodies affiliated to the level. In 1999, the EU unit responsible for Swedish parliamentary parties. Most of the- co-financing with NGOs disbursed slightly se initiatives have been on a relatively small less than EUR 200 M to NGOs, although scale, both in scope and financial terms, and only about EUR 1.1 M was channelled via it is not yet possible to assess the results. The Swedish NGOs. Reference has already been experience gained is judged to be generally made to UN bodies such as the WFP and positive, however, and operations will be the UNHCR. At the international level, the- evaluated during 2000, at the end of the re are NGO groups with budgets of around current pilot period. During the year, an USD 500 M in their own right – for examp- evaluation of this type of initiative was also le Worldvision, CARE, Oxfam and the performed on the basis of the guidelines International Save the Children Alliance. drawn up by the Government for the 1998- In addition to playing an important part in 2000 trial period in order to determine the the implementation of development assi- orientation of future operations. stance, NGOs are active participants in the dialogue concerning development policies Scope and the methods employed. The 13 organi- More than 300 NGOs are actively involved sations which have framework agreements in Swedish development cooperation. More with Sida, and the National Council for than a third of Swedish support for NGO Swedish Youth Organizations (LSU) and operations is deployed in Africa, followed by the LO and TCO central trade union organi- Asia, Latin America and Central and Eastern sations, participate actively in the Popular Europe. Movement Council for Development Coo- During 1999, Swedish and international peration, which provides a framework for NGOs and organisations based in developing dialogue with the Government on key issu- countries received approximately SEK 2.5 es. The Council discusses matters such as

197 the participation of NGOs in the Parliamen- supply at least 20% of their funds themsel- tary Development Policy Committee, and ves – 10% in the case of organisations for the criteria for the selection of framework orga- disabled and some youth organisations. nisations. Other rules apply for volunteer activities The role played by the civil society and and information initiatives. Since organisa- NGOs will be analysed in the Development tions also receive contributions for other Policy Committee’s report. The Minister for types of operations, the size of the total con- International Development Cooperation has tribution made by the organisations themsel- invited NGOs to participate in the Commit- ves varies considerably. Some finance the tee’s work, with mandates as full members bulk of their operations themselves, while of the Committee. But there are also other others receive virtually all their funding forums for a dialogue. The Ministry for from other sources. Some only manage to Foreign Affairs has had regular meetings achieve a self-funding level of little more with Swedish members of the Liaison Com- than 3%. But the self-financing proportion is mittee of NGOs prior to all meetings of the not the only measure of independence. The EU Development Council. The Ministry has number of members and the degree of also intensified its discussions in the referen- popular support are at least as important. ce group for trade issues in connection with NGOs vary in this respect too. the WTO negotiations and UNCTAD X, Swedish NGOs achieve good results. They and has had contacts with representatives of have high levels of efficiency and they reach the Swedish “Jubilee2000” campaign and their intended beneficiaries. Most program- frequent meetings with the “Dialogue mes or projects are close to the individual Forum”. In addition, there have been mee- and are often based on participation of the tings with NGOs prior to UN human rights target group, from the planning stage to sessions. The Ministry has also developed its completion. Since large numbers of people extensive contact network at desk-officer are involved in NGO development coopera- level in a number of areas. tion, both in Sweden and in the recipient During the past year, NGOs have partici- countries, operations enjoy widespread sup- pated in the development of various country port. strategies – for example for Zimbawe and NGO operations are crucial, but there is a Bangladesh – and have taken part in semi- risk that unfavourable conditions in the reci- nars at the local level. pient country may prevent the achievement The importance of NGOs is not only of long-term effects. The problem is linking demonstrated by their operations in develo- local activities with national policy, and with ping countries – they also conduct extensive operations which others can implement information and training activities in Sweden more successfully. Thus, NGO activities on development issues. This contributes to often have to be supplemented by and coor- an understanding of developing countries dinated with other participants – bilateral or and commitment to their needs. At the multilateral – in order to achieve long-term, same time, NGOs help to ensure that Swe- sustainable development. den shares the experience and know-how of other countries and cultures. Framework organisations In other words, Swedish development In 1999, Sida had framework agreements cooperation is dependent on NGOs, both as with 13 Swedish NGOs covering funds spe- participants in development cooperation and cifically allocated for NGO development as partners in a dialogue. But this dependen- operations. Five of these framework organi- ce is mutual. Approximately 75% of Swe- sations function as umbrella organisations, dish NGO assistance is financed from channelling funds to member organisations. government sources. The remainder is con- They are responsible for evaluating applica- tributed by the general public. The special tions and reports from their member organi- allocation for support for NGO assistance sations, and framework organisations report operations stipulates that organisations must to Sida on the operations conducted by the-

198 se organisations. There are also annual revie- education and training in more than 200 ws, which permit more detailed dialogue projects conducted by cooperation organisa- concerning operations and orientations, tions in some 60 countries in Africa, Asia, including the long-term aspects. Latin America and Central and Eastern Framework organisations are placing an Europe. Assistance measures are channelled increasing emphasis on strengthening part- via various member-unions within the LO ner organisations in the recipient countries and TCO central trade-union organisations and building up a local civil society. Sida and via the international labour organisa- also stresses this in its dialogue with frame- tions to which LO, TCO and their members work organisations. In 1999, Sida conducted belong. The aim is to contribute to democra- system audits of the Swedish Mission Coun- tic development by reinforcing independent cil and PMU Interlife, in parallel with capa- and democratic labour organisations. city studies and evaluations. Church of Sweden Aid (Lutherhjälpen)- The Africa Groups are a solidarity organisa- /Church of Sweden Mission is the Church of tion with about 2,000 individual members Sweden’s development assistance organisa- working for Southern Africa, with a focus on tion and, in organisational terms, it is part of countering economic injustices between the the Foundation for National Church Opera- northern and southern hemispheres. The tions (SFRV) framework. The Church of Africa Groups have five programme areas: Sweden Mission coordinates the mission democracy and self-determination, the envi- activities conducted by the Church of Swe- ronment and food supplies, health, educa- den and its parishes. The majority of its acti- tion and social work. Operations focus on vities take the form of bilateral support for Southern Africa. churches and organisations in Africa, Asia Diakonia is a free-church development and Latin America. Church of Sweden Aid assistance organisation. Its principals are the is responsible for development assistance, Methodist Church, Interact Christian Coo- disaster relief and refugee aid. Most of this peration, the Swedish Alliance Mission, the assistance is channelled via the World Lut- Baptist Union of Sweden, the Swedish Sal- heran Federation and the World Council of vation Army and the Mission Covenant Churches. Church of Sweden. The most important pri- The Olof Palme International Centre is an orities are building democracy and respect umbrella organisation for 33 Swedish labour for human rights. Support is provided for movement organisations. Most projects are around 400 churches and organisations in run by local districts and departments in some fifty countries, via seven regional offi- cooperation with sister organisations and ces in Africa, Asia and Latin America. other movements in some 50 countries in Forum Syd is an umbrella organisation Africa, Asia, Latin America and Central and comprising slightly more than 120 member Eastern Europe. Initiatives focus on the organisations. It is assigned by Sida to pro- development of democracy through adult cess applications from more than 200 NGOs education, cooperatives and organisational for contributions to assistance and informa- development. tion programmes. In addition, Forum Syd PMU Interlife is the umbrella organisation has regional offices and assistance workers in for 228 Swedish Pentecostal parishes. It con- local projects in Central America, Tanzania, ducts more than 200 development projects Zimbabwe and Cambodia. As an umbrella in approximately 45 countries, including organisation, Forum Syd participates actively projects to improve skills, such as manage- in a number of Swedish and international ment training and education. PMU also sup- networks such as Jubilee2000. Forum Syd ports assistance for village development, also has extensive information activities, health care and support for vulnerable child- including courses and the production of ren. It has more than 100 volunteers in the materials. field. The LO/TCO Council of Trade Union Coo- Rädda Barnen (Swedish Save the Child- peration provides support for trade union ren) has approximately 90,000 members

199 and slightly more than 300 local associa- countries in Africa, Asia and Latin America. tions. All activities are based on the UN The Swedish Organization of Disabled Per- Convention on the Rights of the Child, whi- sons International Aid Association (SHIA) has ch establishes every child’s right to survival, 22 Swedish disabled people's organisations development and participation. Operations as its principals. Its development coopera- focus on practical support and development, tion with sister organisations in Africa, Asia, and influencing public opinion in the area of Latin America and Eastern and Central children in need and the rights of the child. Europe aims to reinforce disabled persons' Redder Barren concentrates its operations on organisations in other countries by enabling national programmes in approximately 15 them to influence the development of socie-

Framework allocations for Swedish NGOs in 1999

FRAMEWORK ALLOCATIONS 1999

Africa Groups 30 000 000 Diakonia 60 400 000 Forum Syd 136 500 000 LO/TCO Council of Trade Union Cooperation 66 000 000 Church of Sweden Aid (Lutherhjälpen)/ Church of Sweden Mission 70 700 000 Olof Palme International Centre 32 000 000 PMU InterLife 108 000 000 Swedish Save the Children (Rädda barnen) 102 000 000 Swedish Organization of Disabled Persons International Aid Association (SHIA) 29 000 000 Swedish Mission Council (SMR) 123 100 000 Swedish Red Cross 42 000 000 Training for Development Assistance (UBV) 15 000 000 Swedish Cooperative Centre (Utan Gränser) 63 000 000 Total 877 700 000

No disbursed due to expenditure ceiling -74 316 000 Repayment of contributions made in previous years -19 014 000

OTHER OPERATIONS

Information activities via adult education associations, etc. 37 103 000 Support for youth organisations 9 906 000 Support for international organisations, seminars, etc. 1 732 000 Other, audits, etc. 3 985 000

Not disbursed due to expenditure ceiling -4 956 000 Repayment of funds not utilised in 1999 -1 699 000

Total Swedish NGO sub-item 830 441 000

200 ty. This is achieved by supporting the indivi- development. Swedish Red Cross delegates dual as a result of rehabilitation, education participate in some 100 international assign- and income-generation projects. Overall, ments each year. Shi’s member organisations are participating Training for Development Assistance (UBV) actively in about 80 projects in some 30 is an organisation for volunteers, primarily countries. working in Latin America. UBV has some The Swedish Mission Council (SMR) is an 60 volunteers involved in cooperation pro- umbrella organisation for Christian missio- jects with local organisations in the region. nary organisations and religious groups. SMR Information activities are a significant part of distributes funds to some fifty organisations, UBV’s activities. Most of the volunteers par- of which half are member organisations or ticipate in information activities in Sweden associate members. Operations are imple- after working in Latin America. mented in more than 50 countries. The The Principals of The Swedish Cooperative focus is on education and health care. SMR Centre (Utan Gränser) include the Swedish provides support for a large number of Cooperative Union (KF), the Folksam coo- volunteers. perative insurance company, the Federation The Swedish Red Cross is one of the 171 of Swedish Farmers (LRF) and OK, the coo- national societies which constitute the Inter- perative oil company. The organisation national Red Cross and Red Crescent Fede- applies the motto “help for self-help” and ration. It has more than 350,000 members provides development and operational sup- in Sweden. The Swedish Red Cross is inde- port for cooperative societies, agricultural pendent of religion and politics and its aim is cooperatives and informal groups in some 10 to prevent and alleviate human suffering in countries in Africa, Asia and Latin America. Sweden and throughout the world. The The aim is to reinforce the position of peo- organisation assists sister societies in other ple at the local level, to promote active par- parts of the world in emergency situations, ticipation in the development process and to and also contributes resources for long-term develop a democratic culture.

Framework allocations for Swedish NGOs in 1999

BY SECTO COST PERCENTAGE

Social sectors 409 162 000 49 Democracy, human rights, good governance 185 357 000 23 Infrastructure and the private sector 19 711 000 2 Utilisation of natural resources 50 735 000 6 Information activities in Sweden 85 299 000 10 Other activities 80 177 000 10

Total 830 441 000 100

201 Swedish bilateral development assistance in 1999 SEK ‘000

1996 1997 1998 1999

Bilateral total 9 358 709 9 230 271 8 325 982 9 478 269

AFRICA 3 377 220 3 228 534 3 068 532 3 052 511 Algeria 20 321 5 621 22 326 16 079 Angola 242 606 212 438 179 125 146 805 Benin 69 43 0 1 861 Botswana 105 359 64 482 30 186 9 470 Burkina Faso 5 302 10 969 15 344 5 169 Burundi 32 758 22 666 35 679 30 283 Cameroon 215 0 0 0 Central African Republic 3 926 3 373 4 230 2 314 Cape Verde 27 096 16 819 61 757 374 Chad 1 921 3 443 2 390 1 508 Congo, Democratic Republic1 29 902 51 295 33 491 76 877 Cote d’Ivoire (Ivory Coast) 2 548 1 122 1 369 2 282 Egypt 79 348 17 170 8 310 7 400 Eritrea 14 211 38 429 22 283 35 539 Ethiopia 263 601 274 449 245 878 155 961 Gambia 8 314 5 032 5 275 5 021 Ghana 25 791 28 675 5 151 4 821 Guinea 1 829 1 759 7 313 4 678 Guinea-Bissau 41 966 41 931 72 984 45 443 Kenya 156 353 132 265 126 641 93 506 Lesotho 17 208 49 408 1 828 875 Liberia 17 931 44 036 60 135 29 631 Libya 1 596 792 0 0 Madagascar 327 0 36 309 0 Malawi 54 169 40 784 1 531 29 925 Mali 5 599 6 177 6 470 2 370 Marocco 4 404 2 600 2 608 4 892 Mauritania 2 129 1 565 1 990 1 669 Mauritius 256 303 0 0 Mozambique 410 801 397 358 253 545 424 860 Namibia 112 938 113 889 98 935 71 585 Niger 269 2 342 0 601 Nigeria 6 458 4 726 2 947 4 468 Rwanda 36 449 14 482 78 934 108 327 São Tomé and Principé 566 295 0 0 Senegal 11 729 13 662 5 610 1 280 Seychelles 467 0 0 0 Sierra Leone 14 665 5 724 30 172 20 683

202 1996 1997 1998 1999

Somalia 76 228 56 896 31 259 43 725 South Africa 222 976 313 446 247 239 337 760 Sudan 14 801 31 182 82 795 56 497 Swaziland 3 001 883 700 25 Tanzania 437 182 367 814 475 556 381 830 Togo 10 217 804 590 2 370 Tunisia 7 843 3 882 3 344 12 447 Uganda 218 962 239 225 76 703 168 072 Zambia 208 727 162 780 110 280 126 014 Zimbabwe 241 046 174 821 156 877 157 855 Regional North Africa 70 0 209 6 832 Regional Sub-Sahara 23 460 35 015 41 918 177 045 Regional Africa 147 572 202 228 222 307 228 129

ASIA 2 284 193 2 179 169 1 538 797 1 668 346

Afghanistan 98 910 93 111 99 402 85 196 Bangladesh 189 732 252 250 159 185 207 993 Bhutan 2 190 3 243 2 812 551 Cambodia 107 280 175 420 113 501 62 410 China 118 839 51 855 81 434 31 471 East Timor 0 0 3 186 12 216 Hong Kong 1 780 0 0 1 765 India 344 785 195 463 131 705 109 872 Indonesia 7 045 9 995 4 835 24 517 Iraq 230 495 340 273 59 261 71 523 Iran 55 373 28 287 0 258 Israel 3 748 0 8 000 3 890 Jordan 11 067 6 828 9 770 16 045 Kazakhstan 3 723 950 1 030 670 Kyrgyzstan 0 0 2 000 992 Korea, North- 8 520 25 786 36 456 36 532 Korea, South- 1 134 0 880 5 609 Kuwait 0 0 750 1 500 Laos 118 847 118 154 95 319 95 533 Lebanon 18 571 29 276 14 987 16 104 Malaysia 4 972 766 4 529 1 142 Maldives 0 0 0 0 Mongolia 1 906 6 044 22 361 6 174 Myanmar (Burma) 1 948 898 2 057 1 875 Nepal 10 333 9 119 8 830 8 494 Pakistan 53 079 13 342 15 981 9 835 Philippines 106 815 127 447 30 856 32 760 Singapore 0 0 0 0 Sri Lanka 83 642 106 006 102 463 117 815 Syria, Arab Republic 13 563 10 391 389 757 Tajikistan 5 025 10 188 8 800 10 150 Taiwan, Province of China 0 0 0 100 Thailand 127 692 41 000 28 938 29 842

203 Turkmenistan 25 0 0 0 Uzbekistan 0 1 029 3 617 2 357 Vietnam 310 150 272 295 267 654 273 644 West Bank/Gaza 185 352 158 836 126 953 207 741 Yemen 4 877 4 252 6 130 4 507 Regional Middle East 130 7 755 1 303 8 500 Regional Southern and Central Asia 1 095 1 300 16 470 44 322 Regional Far East 15 887 28 492 4 820 36 032 Regional Asia 35 663 49 118 62 136 87 650

LATIN AMERICA 932 656 893 857 764 036 1 362 974

Argentina 10 715 4 676 4 574 909 Belize 0 0 87 84 Bolivia 133 891 153 692 104 921 109 296 Brazil 17 536 19 899 16 070 13 471 Chile 35 328 23 016 12 315 14 039 Colombia 23 631 36 372 25 165 34 379 Costa Rica 21 087 23 307 15 664 13 805 Cuba 7 506 8 120 8 379 16 379 Dominica 0 0 0 0 Dominican Republic 4 875 1 067 656 968 Dutch Antilles 0 0 0 0 Ecuador 16 985 24 177 23 117 11 709 El Salvador 49 125 36 500 40 225 58 228 Guatemala 55 205 103 837 88 683 150 056 Guyana 2 043 248 780 0 Haiti 1 145 899 2 510 3 755 Honduras 11 493 13 741 21 905 239 581 Jamaica 1 500 24 252 1 886 1 666 Mexiko 1 769 2 425 151 1 427 Nicaragua 331 526 163 979 157 611 275 057 Panama 150 150 162 84 Paraguay 5 357 19 082 7 030 8 852 Peru 26 438 35 433 24 820 27 843 S:t Kitts and Nevis 0 0 0 0 S:t Lucia 0 0 0 0 S:t Vincent and Grenadines 0 0 0 0 Surinam 0 0 0 0 Uruguay 10 713 7 030 3 434 898 Venezuela 217 1 050 593 928 Regional Caribbean 0 3 357 1 431 2 248 Regional Central America 95 709 120 277 76 726 243 175 Regional South America 23 805 3 909 38 219 35 434 Regional Latin America 44 907 63 362 86 923 98 702

EUROPE 574 332 658 222 359 905 714 767

Albania 2 924 7 584 8 745 44 077 Armenia 18 330 10 005 4 867 2 409 Azerbaijan 10 902 2 500 6 637 4 208 Bosnia-Hercegovina 201 899 238 159 195 399 250 773

204 Croatia 23 025 22 848 13 107 15 863 Estonia2) 0 0 420 0 Georgia 9 500 4 500 10 117 16 749 Macedonia 3 539 7 504 2 942 66 200 Moldova 0 658 7 626 18 076 Poland2) 0 0 8 001 0 Russia2) 0 0 2 814 0 Slovakia2) 0 0 273 0 Slovenia 584 0 198 0 Turkey 28 300 17 069 7 530 12 390 Yugoslavia 87 270 173 381 44 201 162 116 Former Yugoslavia 109 794 75 242 0 60 609 Regional Europe 78 265 98 772 48 746 61 296

OCEANIA 2 037 3 290 2 190 2 327

Fiji 0 0 0 0 Papua New Guinea 1 693 3 029 2 190 1 126 Samoa 61 0 0 601 Regional Oceania 283 261 0 601

GLOBAL 1 542 686 1 576 987 1 933 644 1 933 333

DEVELOPMENT ASSISTANCE ADMINISTRATION 645 585 690 212 657 159 744 066

1) The name of this country was changed in may 1999 (previously Zaire). 2) Financed from the bilateral development cooperation budget.

205 Swedish multilateral development assistance in 1999 SEK ‘000

1996 1997 1998 1999 Multilateral total 4 048 800 3 985 101 4 228 140 3 991 492

UN ECONOMIC AND 1 789 000 1 687 000 1 685 008 1 831 802 SOCIAL OPERATIONS

UNDP 460 000 460 000 474 200 490 000 UNCDF 40 000 40 000 42 000 0 UNICEF 283 000 283 000 250 000 265 000 UNFPA 116 000 116 000 125 000 140 000 WFP 245 000 200 000 180 000 90 000 UNHCR 248 000 263 500 260 000 270 000 UNRWA 135 000 135 000 145 000 150 000 UNCTAD/GATT-ITC 0 5 500 9 000 0 UNDCP 32 000 32 000 36 000 0 UN – other 230 000 152 000 163 808 426 802

MULTILATERAL 1 267 800 1 422 604 1 699 606 1 397 950 DEVELOPMENT BANKS

The World Bank Group and IMF 935 000 965 545 1 017 817 865 479 World Bank (IBRD) 0 0 11 000 0 International Development 916 000 965 545 989 056 865 479 Assosiation (IDA) International Finance 19 000 0 17 761 0 Corporation (IFC) International Monetary Fund (IMF) 0 0 0 0 (of which ESAF) 0 0 0 0

Regional development banks 259 400 356 040 472 635 343 276 African Development Fund 176 400 223 677 278 194 142 599 Asian Development Bank 0 0 1 941 2 438 Asian Development Fund 83 000 114 990 177 831 186 000 Inter-american Development Bank 0 0 1 148 12 239 Inter-american Development Bank, Special Fund 0 17 373 13 521 0

Other development banks 73 400 101 019 209 154 189 195 Nordic Development Fund 73 400 101 019 209 154 158 182 Other development banks 0 0 0 31 013

206 OTHER MULTILATERAL COOPERATION 285 000 168 497 76 526 21 058

GEF 151 000 70 000 0 0 Other environmental operations 0 0 19 200 0 IFAD 37 000 38 297 1 000 6 058 Other multilateral cooperation 97 000 60 200 56 326 15 000

ASSISTANCE COOPERATION 707 000 707 000 767 000 740 682 VIA THE EU

EC 707 000 707 000 707 000 740 682 European Development Fund 0 0 60 000 0

Total bilateral 13 407 509 13 215 372 12 554 122 13 469 788 and multilateral

207 List of acronyms

ACBF African Capacity Building Foundation AfDB Afrikanska utvecklingsbanken African Development Bank AfDF Afrikanska utvecklingsfonden African Development Fund ALA Samlingsbegrepp för EG:s bistånd till Asia and Latin-America (EU) länderna i Asien och Latinamerika

AsDB Asiatiska utvecklingsbanken Asian Development Bank AsDF Asiatiska utvecklingsfonden Asian Development Fund ASEAN Sydostasiatiska samarbetsorganisationen Association of South East Asian Nations AVS Afrika, Västindien och Stillahavsområdet Africa, Caribbean and the Pacific BIP Baltiska investeringsprogrammet Baltic Investment Programme

CBSS Östersjöstaternas råd Council of the Baltic Sea States CDB Karibiska utvecklingsbanken Caribbean Development Bank CSD FN:s kommission för hållbar utveckling Commission on Sustainable Development CSocD FN:s sociala utvecklingskommission DAC OECD:s biståndskommitté Development Assistance Committee

EBRD Europeiska banken för återuppbyggnad European Bank for Reconstruction and och utveckling Development ECHO Europeiska byrån för humanitärt bistånd European Community Humanitarian Office ECOSOC FN:s råd för ekonomiska och sociala frågor Economic and Social Council of the United Nations

EDF Europeiska utvecklingsfonden European Development Fund EEG Europeiska ekonomiska gemenskapen European Economic Community EG Europeiska gemenskaperna The European Communities EIB Europeiska investeringsbanken European Investment Bank ESAF IMF:s utvidgade strukturanpassningsfacilitet Enhanced Structural Adjustment Facility

EU Europeiska unionen European Union EUF Europeiska utvecklingsfonden European Development Fund FAO FN:s livsmedels- och jordbruksorganisation Food and Agriculture Organization FN / UN Förenta Nationerna United Nations Forum Syd Enskilda organisationers biståndssamverkan

FSO Interamerikanska utvecklingsbankens fond Fund for Special Operations för särskild verksamhet GEF Globala miljöfonden Global Environmental Facility GUSP (CFSP) Gemensam utrikes- och säkerhetspolitik Common Foreign and Security Policy HIPC Skuldtyngda fattiga länder Heavily Indebted Poor Countries

IBRD Internationella banken för återuppbyggnad International Bank for Reconstruction och utveckling (Världsbanken) and Development (World Bank) ICRC Internationella Rödakorskommittén International Committee of the Red Cross IDA Internationella utvecklingsfonden International Development Association IDB Interamerikanska utvecklingsbanken Interamerican Development Bank IFAD Internationella jordbruksutvecklingsfonden International Fund for Agricultural Development

208 IFC Internationella finansieringsbolaget International Finance Corporation ILO Internationella arbetsorganisationen International Labour Office IMF Internationella valutafonden International Monetary Fund ITC Internationella handelscentrumet International Trade Centre LO Landsorganisationen Swedish Trade Union Confederation

MED EU:s medelhavsregion Mediterranean Region (EU) MIGA Multilaterala Investeringsgarantiorganet Multilateral Investment Guarantee Agency MR Mänskliga rättigheter Human Rights NACC Nordatlantiska samarbetsrådet North Atlantic Cooperation Council NAI Nordiska Afrikainstitutet The Nordic Africa Institute

NDF Nordiska utvecklingsfonden Nordic Development Fund NEFCO Nordiska miljöfinansieringsbolaget Nordic Environment Finance Corporation NGO Icke-statlig enskild organisation Non-Governmental Organization NIB Nordiska Investeringsbanken Nordic Investment Bank NOPEF Nordiska Projektexportfonden

OAU Afrikanska enhetsorganisationen Organization of African Unity OCHA FN:s kontor för humanitära frågor Office for the Coordination of Humanitarian Affairs ODI Overseas Development Institute OECD Organisationen för ekonomiskt samarbete Organisation for Economic och utveckling Co-operation and Development

OPEC De oljeexporterande ländernas organisation Organization of Petroleum Exporting Countries OSSE / OSCE Organisationen för säkerhet och Organization for Security and samarbete i Europa Cooperation in Europesamarbete PFF / FPF Partnerskap för fred Partnership for Peace

PHARE EU:s program för samarbete med Poland and Hungary: Economic Centraleuropa och de baltiska staterna Reconstruction Aid SADC Gemenskapen för utveckling i södra Afrika Southern African Development Community SHIA Svenska handikapporganisationernas Swedish Organization of the Handicapped internationella biståndsstiftelse International Aid Foundation

Sida Styrelsen för internationellt Swedish International Development utvecklingssamarbete Cooperation Agency SPA Världsbankens särskilda program för Afrika World Bank Special Program of Assistance for Africa Stabex EG-fond för stabilisering av AVS-ländernas System for the stabilisation of inkomster av export av jordbruksprodukter export earnings from till EU agricultural commodities system

Sysmin EG-fond för stabilisering av AVS-ländernas Special financing facility inkomster av export av gruvindustri- for the mining sector produkter till EU TACIS EU:s program för samarbete med Technical Assistance to the Oberoende staters Samvälde (OSS) Commonwealth of Independent States

TCO Tjänstemännens centralorganisation Confederation of Professional Employees UBV Utbildning för biståndsverksamhet Training for Development Assistance

209 UNAIDS FN:s samlade program för hiv/aids-insatser United Nations Aids Programme UNCED FN:s konferens om miljö och utveckling United Nations Conference on Environment and Development UNCDF FN:s kapitalutvecklingsfond United Nations Capital Development Fund UNCTAD FN:s konferens för handel och utveckling United Nations Conference on Trade and Development

UNDAF FN:s ramverk för utvecklingssamarbete United Nations Development Assistance Framework UNDCP FN:s narkotikaprogram United Nations Drug Control Programme UNDG FN:s utvecklingsgrupp United Nations Development Group UNDP FN:s utvecklingsprogram United Nations Development Programme

UNEP FN:s miljöprogram United Nations Environment Programme UNESCO FN:s organisation för utbildning, forskning United Nations Educational, Scientific och kultur and Cultural Organization UNFPA FN:s befolkningsfond United Nations Fund for Population Activities

UNGASS FN:s generalförsamling United Nations General Assembly UNHCR FN:s flyktingkommissarie United Nations High Commissioner for Refugees UNICEF FN:s barnfond United Nations Children´s Emergency Fund

UNIDO FN:s organisation för industriell utveckling United Nations Industrial Development Organization UNIFEM FN:s utvecklingsfond för kvinnor United Nations Development fund for Women UNOCHA FN:s fond för koordinering av humanitärt UN Office for the Coordination of bistånd till Afghanistan Humanitarian Assistance in Afghanistan

UNRWA FN:s hjälporganisation för Palestinaflyktingar United Nations Relief and Works Agency for Palestine Refugees in the Near East WFP Världslivsmedelsprogrammet World Food Programme WHO Världshälsoorganisationen World Health Organization

210 Statistical information concerning the economic situa- tion and development in countries which receive Swedish development assistance is derived from World Development Indicators 2000.

Cover photo: Victor Lenson Brott/Global Reporting Sweden

Production: Division for International Development Cooperation, Ministry for Foreign Affairs.

Graphic form: Svensk Information AB

Translation: The Bugli Company AB

ISSN: 1104-0785 ISBN: 91-7496-228-0 Artikelnr: UD00-202

Printed by: Norstedts tryckeri AB, Stockholm 2000