Study on EU member states operational
development structures
VOL 2 - Country fiches
CZECH REPUBLIC
June 2019
Alexei Jones
Pauline Veron Joanna Czaplicka
James Mackie
The country fiches contain information on the key aspects of the operational development structures and systems of each EU Member State. They are structured in a standard form to allow for easier comparison. The information contained in the country fiche is based on publicly available sources and data, including from relevant ministries and public administration websites, EU reports, OECD- DAC peer reviews and statistics. This information was also complemented by data and feedback gathered through questionnaires and interviews with EU Member States’ focal points. Unless specified otherwise, all country fiches have been reviewed and approved by the Member States’ focal points. The fiches provide a snapshot at a given moment in time, and will need to be updated regularly and as appropriate in order to remain relevant.
CZECH REPUBLIC
At a glance ● Development Cooperation Strategy 2018-2030 ● Policy ministry with dedicated implementing or financing entity ● Total aid for 2017: €242 million (0.13% of GNI) ● Multilateral ODA: 74% (of which 84% was allocated to the EU); Bilateral ODA: 26% (2017), of which approx. 45% is channelled through CzechAid ● Thematic priorities: building stable and democratic institutions, sustainable management of natural resources, agriculture and rural development, inclusive social development and economic growth ● Geographic priorities: Bosnia and Herzegovina, Cambodia, Ethiopia, Georgia, Moldova, Zambia ● CzechAid (2010): implements bilateral development cooperation (21 staff in HQ + 2 development diplomats in the field; budget of approx. €20 million). - Works in the six priority countries defined by the government. - Sectoral priorities: agriculture and forestry; water and sanitation; other social infrastructure and services; public administration and civic society; education; energy generation and supply; healthcare. ● Czech-Moravian Guarantee and Development Bank (1992): fully state-owned banking entity which facilitates SMEs’ access to financing (in the Czech Republic); implementing the Guarantee Programme for Development Cooperation (€2 million) as of April 2019, which aim is sustainable investment in developing countries (could potentially become a DFI in the future).
1. Political and legal framework for development and international cooperation i. Legislation
The Czech Republic’s development cooperation is based on the Act on Development Cooperation and Humanitarian Aid (Act No.151/2010), which lays down conditions for the provision of development cooperation and humanitarian aid financed from the national budget, and the competence of government authorities (mostly the Ministry of Foreign Affairs), and the Czech Development Agency in this area. There is no plan to update this act but to complement it at the policy level with implementing documents. ii. Development policies - policy framework
The Development Cooperation Strategy 2018-2030 was adopted in 2017. It describes the main areas of cooperation in the development and humanitarian sectors (geographic and sectoral priorities), the instruments and partnerships used as well as how the strategy will be implemented. The Czech Republic’s development activities will focus on five thematic priorities: from building stable and democratic institutions, through sustainable management of natural resources, agriculture and rural development to inclusive social development and economic growth. In its choice of partner countries, the Czech Republic focuses, in a balanced way, on cooperation with low-income countries (LDCs) and middle-income countries. A Development Cooperation Plan is also developed every year, which describes the thematic areas per region/country and the budget allocated. It also presents the budget allocated to the different actors (Ministry of Foreign Affairs, line ministries, international organisations).
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iii. Overall institutional setting
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Another important actor which does not appear on this infographic is the Czech-Moravian Guarantee and Development Bank (CMZRB), which implements the Guarantee Programme for Development Cooperation as of April 2019 and is in the process of pillar assessment). iv. Key figures for country ODA
● total annual volumes 2015 to 2017 (or 2018 if/when available)
2015 2016 2017
Million € (% of GNI)2 179 (0.12%) 235 (0.14%) 242 (0.13%)
● share multilateral/bilateral (share to EU and other multilaterals)
Bilateral ODA in 2017: 27.4% (of which 15.6% was allocated to specific projects implemented by multilateral organisations – “multi-bi”/non-core) Core contributions to multilateral organisations: 72.6% (EU: 84%; UN agencies: 9%; World Bank Group: 4%; Other multilaterals: 3)3
1 OECD DAC Peer Review 2016 2 European Commission, Investing in Sustainable Development, The EU at the forefront in implementing the Addis Ababa Action Agenda, Staff Working Document, April 2018
2 ● share channelled through MFA and through other entities (e.g. line ministries, agencies)4 - if available, figures on share of aid per type of beneficiary (e.g. NGOs, public administrations…)
MFA CzechAid MEYS5 MH6
Million € 19 20 5 0.1
In 2016, 24% of bilateral ODA was channelled to and through civil society organisations (CSOs).7
● main partner countries (top 10 recipient countries)
In compliance with the Development Cooperation Strategy 2018–2030, the Czech Republic has defined six priority partner countries (in which it has 6-year development cooperation programmes, negotiated with the partner countries).
Priority countries: Bosnia and Herzegovina, Cambodia, Ethiopia, Georgia, Moldova, Zambia Specific countries: Afghanistan,, Syria, Ukraine, Palestine8
In the countries whose priority status terminates in 2017 (Mongolia, Kosovo and Serbia), there will be a transition period (2018-2020) for completing any ongoing projects and phasing out the Czech development cooperation. Cooperation with these countries will continue in other forms (mainly through commercial activities).
In 2016, bilateral ODA was primarily focused on (Eastern) Europe (27%) and the Middle East and North Africa (16%). 8% of bilateral ODA went to Sub-Saharan Africa. 39.4% of bilateral ODA went to the Czech Republic’s top 10 recipients: Moldova, Jordan, Ethiopia, Bosnia and Herzegovina, Georgia, Ukraine, Afghanistan, Serbia, Mongolia and Iraq. Four of its priority countries are among its top 10 recipients.9
● sectoral distribution of aid
The Strategy 2018-2030 identifies the following thematic priorities (which are SDGs): good democratic governance, sustainable management of natural resources, economic transformation and growth, agriculture and rural development, inclusive social development. More specific thematic areas are listed in bilateral ODA programmes with individual priority countries, based on experience and partnerships.
Cross-cutting priorities The priorities to be streamlined across the above-mentioned objectives include promotion of peaceful and inclusive societies, access to justice for all, accountable, participatory and representative decision-making,
4 Information provided by the MFA. The figures are derived from national annual plans (budget) for development cooperation and do not include bilateral ODA allocated to specific projects implemented by multilateral organisations, program for assisting refugees in their regions of origin (Ministry of the Interior) and other programs (which are part of official ODA statistics – this explains the difference between the €72 million of bilateral ODA for 2017 and the amounts in this table). The share of ODA channelled by the Czech Development Agency, as well as by the Ministry of Foreign Affairs and other ministries are counted in the annual plan. 5 Ministry of Education, Youth and Sports (mainly development scholarships) 6 Ministry of Health (Health services for scholarship awardees) 7 OECD Development Cooperation Report 2018 8 According to Government Resolution No. 631/2016, the list of specific countries may be amended and supplemented by government resolutions to reflect, inter alia, the Government’s interest to developing partnerships or targeted support of selected countries in the context of a post-conflict stabilization and reconstruction processes. 9 OECD Development Cooperation Report 2018
3 and building of effective, accountable and transparent institutions at all levels. In partner countries as well as in international organisations, the Czech Republic will place emphasis on the development of democracy and respect for human rights, including gender equality and empowerment of women and girls. The activities of the Czech Republic also maintain its commitment to sustainable use of natural resources, and to environmental protection and biodiversity.
In 2016, 33.7% of bilateral ODA was allocated to social infrastructure and services, with a strong focus on support to education and government and civil society. Humanitarian aid amounted to approx. €11 million. The Czech Republic committed 13.6% of bilateral allocable aid to promote aid for trade and to improve developing countries’ trade performance and integration into the world economy in 2016.10 v. EU joint action The 2016 OECD DAC peer review found that “[g]iven its limited resources and capacity in the field, the Czech Republic is pragmatic in how it partners with other donors: it focuses on division of labour, EU joint programming and, when it can, leading sector work. For example, in Moldova, it leads the joint analysis of the social sectors.”
The Strategy 2018-2030 mentions “coordination with other donors, including EU Joint Programming” as one of the criteria to be considered in the choice of priority partner countries. It also states that “[t]he Czech Republic will continue to support EU Joint Programming and joint implementation of development cooperation wherever these processes contribute to a positive impact.”
Embassies got the instruction to get involved in joint programming, and it has taken place in Ethiopia, Cambodia (where the experience was reportedly good), Georgia, Moldova (where the embassy was very involved). The extent to which joint programming takes place depends on the country, the situation on the ground and the way the EU Delegation deals with this process. As a matter of principle, embassies are always discussing with the EU delegation and other partners.11
The Czech Republic has experience in joint implementation on specific projects, notably in Bosnia and Herzegovina where it cooperated with Sida, but also in Moldova and Georgia where it cooperated with ADA and GIZ. The Czech Republic is very interested in broadening this type of cooperation.
2. Operational structures for aid implementation/management
Based on the Act on Development Cooperation and Humanitarian Aid (Act No.151/2010), the Ministry has political, strategic and programming role while the Czech Development Agency is responsible for the provision of development cooperation and project implementation. i. MFA
● management structure and responsibilities (specialised units, etc) The Development Cooperation & Humanitarian Aid Department is the main department responsible for development cooperation in the MFA. It has the primary task to initiate and coordinate the inter-ministerial dialogue and to facilitate civil society engagement in the formulation and implementation of strategies. 12 The
10 The rest was allocated to production sectors, multisector aid, other and unspecified. See OECD Development Cooperation Report 2018 11 Interview with the Development Cooperation & Humanitarian Aid Department of the MFA 12 MFA (2016), OECD Development Assistance Committee peer review: memorandum of the Czech Republic
4 departments for human rights, for multilateral economic relations (SDGs) and for economic diplomacy are also relevant, although they are not directly involved in development cooperation.
● mandate The Ministry of Foreign Affairs of the Czech Republic is responsible for overall policy and strategic coordination of development cooperation.
● staff and resources (HQ and field level) 16 people work in the development cooperation and humanitarian aid department.
● country presence (through Embassies) The Czech Republic has embassies in all its priority countries. 7 development diplomats are present in total in all six priority countries (two in Ethiopia).13 Their role includes identifying and monitoring development projects and dialogue with the partner government. They also engage in EU joint programming processes. There is also a local project coordinator.14
● type of instruments/tools and means of implementation Bilateral development cooperation is provided in the following forms: technical cooperation, cooperation in the fields of economic and social infrastructure, financial cooperation, debt relief, assistance for refugees in the Czech Republic, the granting of government scholarships, development guidance, development cooperation training and awareness, development research, and the building of the capacities of nongovernmental organizations active in development cooperation.15
Projects in cooperation with Sum allocated in 2019 (thousand €) international organisations
Projects in cooperation with UNDP 663
Czech Volunteers in UNV 390
Projects in cooperation with other 429 organisations (i.e. UNFPA, FAO, ILO, etc.)
Sending Czech experts to international 19 organisations
Cooperation with other sectoral ministries
Transformation economic and financial 117 cooperation (in cooperation with the Ministry of Finance)
13 All the development diplomats answer to the Ministry, but the positions are offered to either Ministry diplomats or CzechAid – at present 2 of the development diplomats (one of them in Ethiopia, the other in Cambodia) come from CzechAid, the rest are employees of the Ministry. 14 OECD DAC peer review 2016 15 https://www.mzv.cz/jnp/en/foreign_relations/development_cooperation_and_humanitarian/bilateral_development_coo peration/index.html
5 Aid for Trade projects (in cooperation 390 with the Ministry of Industry and Trade)
Projects in the safety area (in cooperation 390 with the Ministry of the Interior)
Global development education (in 156 cooperation with the Ministry of Education, Youth and Sports)
Other
Guarantee Program with ČMZRB 1,949
Humanitarian Aid 8,496
Transformation cooperation (including 10 3,118 mio. for a restoration and support of a democratic transformation of Ukraine)
Afghanistan (Specific countries) 1,559 ii. Main development agency: Czech Aid
● legal institutive act or applicable regulation It was established by the Ministry of Foreign Affairs by the Act on Development Cooperation and Humanitarian Assistance (2010).
● date of creation: 2010
● legal status/type of organisation Government administrative unit
● mandate Czech Aid is responsible for the implementation of bilateral cooperation in accordance with the development cooperation plan (it identifies suitable projects, organises selection procedures, signs contracts and monitors projects). It is also responsible for implementing humanitarian aid projects and for granting subsidies to entities in the Czech Republic in accordance with the development cooperation plan.
● organisational setting The organizational structure of the Agency consists of four Departments and the Director. - The Territorial Department focuses on identification of development needs in partner countries and on monitoring of on-going projects. It is also responsible for communication with authorities of partner countries and identification of project proposals in those countries. - The Formulation Department manages project documents and tenders as well as grant proposals.
6 - Among the responsibilities of the Partner Relations Department are local projects, international cooperation, projects focused on engaging the private sector in development cooperation of the Czech Republic and informing the public about results of development cooperation of the Czech Republic. - The Administration Department provides support for the Agency’s activities and daily tasks and manages its finances and human resources.16 - ● governance and type of relations with supervisory Ministry Czech Aid has a very close relationship to the MFA. They get instructions and meet with the MFA on a regular basis. They propose an annual plan that is approved by the ministry. ● staff and resources Total staff in HQ: 21 Some of the development diplomats are offered to CzechAid – at present 2 of the development diplomats come from CzechAid. CzechAid also cooperates with a number of external consultants, who are hired ad hoc for preparing individual projects (both in the Czech Republic and in partner countries).
● field presence CzechAid staff are integrated in the embassies and are under the authority of the ambassador. There are currently one CzechAid in Ethiopia and one in Cambodia.
● sectoral and geographical priorities Czech Aid has programmes in the six priority countries defined by the strategy 2018-2030 as well as in the specific countries. Some horizontal programmes (such as the Development Partnership Programme for Private Sector or trilateral projects) are open to all developing countries, not just the priority countries.
16 http://www.czechaid.cz/en/about-us/organization-and-the-employees/
7 Czech Aid works in the following sectors:
17 ● sources of funding Czech government budgetary resources (100 %)
● volume of operations (figures by sector if available and/or geographically) 525,166,000 CZK – approx. €20 million (2019)
● type of instruments/tools and means of implementation (e.g. grants, loans, guarantees, technical assistance, twinning or TAIEX, scholarships…) - figures for each Project and programme cooperation: - Grants - public procurement - budgetary measures - financial donations - Trust funds - Co-funding Technical cooperation: - technical assistance - sending experts - sending teachers - development scholarships Other: - delegated cooperation (since Czech Aid has been pillar-assessed in 2016, it started negotiations in partner countries for delegated cooperation; an agreement with GIZ and the EU delegation in Moldova is on track, while it is being developed in Bosnia and Herzegovina, Ukraine and Georgia) - cash-based activities
17 http://www.czechaid.cz/wp-content/uploads/2016/09/CRA_leaflet_2018.pdf
8 Type of project Thousand € (2017)
Bilateral projects 13,555
Budgetary measures 2,278
Business to business (B2B) programme 1,057
Temporary Expert Assignments Programme 187
Sending teachers 430
Trilateral projects 1,377
Domestic projects 919
The Strategy 2018-2030 states that “[t]he Czech Republic will promote innovative financial instruments (guarantees, venture capital, concessional loans and other soft instruments) as a way to increase the effectiveness of development cooperation and mobilise additional financial resources. These tools use public resources to stimulate and multiply private financing, and also to stimulate higher sustainability of development projects. The use of innovative financial instruments will be effectively linked to grant instruments, especially technical assistance (blending). Involving private investors in sustainable development will be one of the important aims for implementing the financial instruments in practice.” iii. Other important entity: the Czech-Moravian Guarantee and Development Bank (CMZRB)
The 2018-2030 Strategy states that “[f]or the future, the Czech Republic intends to establish its own development financial institution which will participate in sustainable development funding in the partner countries.” The Czech-Moravian Guarantee and Development Bank could potentially play that role in the future. ● legal institutive act or applicable regulation: Banking Act (No. 21/1992 Coll.) ● date of creation: 1992 ● legal status/type of organisation
Specialized fully state-owned banking entity
● Mandate CMZRB contributes to the efficient economic development of Czech Republic. The main mission of CMZRB is to facilitate SMEs’ access to financing through specialised banking products and to assist in developing other selected areas of the economy that require public support.18 While it is now mainly active in the Czech Republic, it aims at opening up and is implementing the Guarantee Programme for Development Cooperation (€2 million) as of April 2019, which aim is sustainable investment in developing countries according to the OECD (it thus goes beyond the priority countries).19
● governance and type of relations with supervisory Ministry Shareholders rights of the Czech Republic are executed by three ministries: Ministry of Industry and Trade, Ministry of Regional Development and the Ministry of Finance. It is supervised by the Czech National Bank.
● staff and resources The bank employs about 215 people.
18 https://aecm.eu/cmzrb-czech-moravian-guarantee-and-development-bank/ 19 Interview with the Development Cooperation & Humanitarian Aid Department of the MFA
9 ● sectoral and geographical priorities Geographic priorities: Czech Republic; for the new Guarantee Programme, developing countries (according to the OECD)
Sectoral priorities: assistance to SMEs; municipal infrastructure development
● sources of funding The Guarantee Programme is financed from the budget of the MFA.
● volume of operations (figures by sector if available and/or geographically) €913 million in 201720 (this is the total volume of operations of CMZRB – in 2017 this was totally unrelated to international development cooperation, since until the launch of the Guarantee Programme (worth €2 million), CMZRB was focused on domestic development only).
● type of instruments/tools and means of implementation (e.g. grants, loans, guarantees, technical assistance, twinning or TAIEX, scholarships…) - figures for each CMZRB provides its clients with bank guarantees, preferential loans and financial subsidies funded from national resources as well as EU structural funds. It is in the process of pillar assessment to be able to engage in financial instruments. iv. Other relevant actors
Implementing partners include: NGOs, the private sector, line Ministries, the academic sector, research institutions, regional and municipal entities. All of these actors involved in implementing development cooperation (also including the MFA, Czech Aid, the Czech-Moravian Guarantee and Development Bank) regularly meet within the Council for Development Coordination, which is the main body for ensuring policy coherence for development.
The process for implementing the 2030 Agenda for Sustainable Development in the Czech Republic is led at the highest political level through the work of the Government Council for Sustainable Development which is chaired by the Prime Minister and supported by the Unit for Sustainable Development in the Office of the Government. This Council is coordinating efforts to integrate the SDGs into national policy. The Government Council for Sustainable Development is also playing a key role, acting as a suitable platform for discussions on inter-ministerial issues and cross-cutting agendas.21
1. Line ministries The Ministry of Finance is responsible for the Czech Republic’s engagement in international financial organizations, financial bodies of the OECD, EU and other international financial institutions. With regard to multilateral ODA, the MoF is responsible for payments to the EU, EDF and IFIs (EBRD, EIB, WB Group etc.). It is also an important partner in the approval process of the annual ODA Plan.22
The Ministries of Interior, Environment, Education, Industry and Trade, Agriculture (among others) and the public institutions managed by them implement specific thematic development cooperation programmes (mostly technical assistance and exchange of experts). For instance,the Ministry of Education, Youth and Sports in cooperation with the MFA and the Ministry of Health is responsible for providing governmental scholarships for students from developing countries. The Ministry of Interior manages the Security
20 https://www.cmzrb.cz/wp-content/uploads/2018/11/CMZRB_ENG_2017_fin.pdf?rc 21 OECD DAC Peer Review 2016 22 MFA (2016), OECD Development Assistance Committee peer review: memorandum of the Czech Republic
10 Development Cooperation Programme for countries of Western Balkans that is aimed at capacity building of local security forces. The Ministry of Industry and Trade is in charge of the Aid of Trade Programme that primarily entails assistance for the formation of trade policies, supporting a regulatory trade framework, with particular assistance for state administration in removing administrative barriers.23
2. NGOs Czech Aid cooperates with the Czech Forum for Development Cooperation, a platform of Czech non- governmental organizations (NGOs) and other non-profit entities that deal with development cooperation, development education and humanitarian assistance. Czech Aid has financially supported the CSO platform regularly in an annual capacity-building scheme. With regard to aid implementation, Czech Aid supports CSOs project proposals in tenders or calls for proposals. It also provides financial support to entities that have succeeded in EU projects or financed by other donors.24
3. The private sector Czech Aid also cooperates with the Business Platform for Development Cooperation, which includes representatives of Czech private sector organisations. Its objective is to motivate Czech businesses to get involved in development cooperation, to respect corporate social responsibility principles and to develop inclusive business models that offer the potential for both commercial success and development impact. 25 Czech Aid provides subsidies on a regular basis to support the activities of this umbrella organization.26
4. Regional and municipal entities There is a special programme of cooperation of regions, towns and municipalities, under which interested units cooperate with their partners in developing countries – i.e. cooperation between a town in the Czech Republic and a town in Serbia has led to exchanging expertise on flood prevention etc.
4. Contact details of the focal point
Eva Kordova, Codev delegate, Permanent Representation of the Czech Republic to the EU
23 MFA (2016), OECD Development Assistance Committee peer review: memorandum of the Czech Republic 24 MFA (2016), OECD Development Assistance Committee peer review: memorandum of the Czech Republic 25 OECD DAC Peer Review 2016 26 MFA (2016), OECD Development Assistance Committee peer review: memorandum of the Czech Republic
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