HELLENIC REPUBLIC MINISTRY OF FOREIGN AFFAIRS MEMORANDUM submitted by the Greek Authorities to the Development Assistance Committee/DAC of the in view of the 4th Peer Review of Greece scheduled for November 28, 2018 ATHENS, GREECE APRIL 2018 Source of the map on the cover: Ministry of National Defence, Hellenic Military Geographical Service (HMGS) ii EXECUTIVE SUMMARY Being a Development Assistance Committee (DAC) member since 1999, Greece values the peer review exercise as an important input to its internal learning process. This Memorandum has been drafted in view of the 4th Peer Review of Greece’s international development cooperation policy and systems (scheduled for November 2018), using a whole-of-government approach, i.e. involving a significant number of Ministries and other public sector entities, according to their specific areas of competence and comparative advantages. The Memorandum covers the entire period since the 3rd Peer Review of Greece in 2011. During the period 2011-2017, the economic crisis that had begun in Greece earlier reached its peak, whilst fiscal consolidation had an adverse impact on Official Development Assistance (ODA). In a world characterized by an increasing interdependence between countries, Greece pursues a transparent, affordable and effective aid program, which focuses primarily on multilateral interventions and on in-donor refugee costs, taking into account budgetary constraints. Total Greek ODA increased as a percentage of GNI between 2015 (0.13%) and 2016 (0.19%), thus reaching the pre-crisis level (of 2009). Greece intends to pursue further increases of its total ODA expenditure in the future to the extent that economic conditions allow. As a member of the EU and the UN, Greece concentrates its diplomatic and development efforts inter alia in contributing to the reduction of poverty and inequality in the world, consolidating peace and stability, fostering respect for and preservation of cultural heritage and promoting a better management of migration flows. Ιn synergy with humanitarian assistance, it provides targeted support for stabilization of countries affected by conflicts and disasters, with a direct link to recovery and development. The allocation of Greek bilateral and multilateral aid is driven mainly by Greece’s international commitments on the one hand and by the need to respond to the basic needs (temporary sustenance) of refugees in Greece and promote the Sustainable Development Goals (SDGs) on the other. Hence, Greece contributes to global development efforts mainly through multilateral contributions to partner international organizations. Greece makes these contributions bearing in mind the need to maximize the positive impact of multilateral aid on the achievement of the SDGs. Furthermore, Greece remains committed to assisting its partner countries through capacity-building, by means of transfer of know-how and expertise. Greece’s external (development and humanitarian) aid responds to calls from international organizations and/or countries concerned, making use of the valuable input received from Greek Authorities abroad, i.e. from an extensive global network of Hellenic Embassies and Permanent Representations/Missions. As the main competent national authority, which shapes and coordinates Greek development policy, the Directorate-General of International Development Cooperation (HELLENIC AID) is an autonomous but integral part of the Hellenic Ministry of Foreign Affairs. HELLENIC AID stands ready to continue playing its salient and leading role as regards the delivery of the Greek aid program, based on its clear mandate and vision, which are to be reflected also in the future legal framework (currently under preparation) for its operations. Other line Ministries or agencies are also involved in the undertaking. Overall, the program of Greece’s development aid (including humanitarian assistance) faces a number of important challenges, which are highlighted throughout the text (in italics). With a forward-looking perspective, the main stakes involved in the Greek aid program refer to the possibility of: maintaining a positive momentum of total ODA flows in the future (Chapter 1); iii supporting EU’s activities with additional extra-budgetary contributions (besides Greece’s annual contributions to the EDF) (Chapter 1); dealing with the low percentage (32%) of the public opinion that believes that tackling poverty in developing countries should be a main priority (Chapter 1); overcoming HELLENIC AID’s human resource challenges in order to respond to pressing needs (Chapter 4); ensuring that engagement with international organizations and other partners always takes place on an effective and transparent basis (Chapter 6); and providing predictable and adequate humanitarian funding in times of austerity (Chapter 7). iv CONTENTS 1. GLOBAL EFFORTS FOR SUSTAINABLE DEVELOPMENT .......................................................................... 1 1.1. Efforts to support global sustainable development ................................................................................................. 1 1.1.1. An increased focus on multilateral aid ................................................................................................................... 1 1.1.2. Provision of scholarships ........................................................................................................................................ 4 1.1.3. In-donor refugee costs ............................................................................................................................................ 5 1.2. Policy coherence for sustainable development ....................................................................................................... 6 1.3. Awareness and accountability ................................................................................................................................. 9 2. POLICY VISION AND FRAMEWORK ..................................................................................................... 12 2.1. Framework ............................................................................................................................................................ 12 2.2. Principles and guidance ......................................................................................................................................... 13 2.3. Basis for decision-making ...................................................................................................................................... 13 3. FINANCING FOR DEVELOPMENT ........................................................................................................ 16 3.1. Overall ODA volume .............................................................................................................................................. 16 3.2. Bilateral ODA allocations ....................................................................................................................................... 18 3.3. Multilateral ODA allocations ................................................................................................................................. 21 3.4. Financing for development .................................................................................................................................... 23 4. STRUCTURE AND SYSTEMS ................................................................................................................ 25 4.1. Authority, mandate and coordination ................................................................................................................... 25 4.2. Systems ................................................................................................................................................................. 26 4.3. Capabilities throughout the system ....................................................................................................................... 28 4.4. Key developments since the 3rd Peer Review in 2011 ........................................................................................... 28 5. DELIVERY MODALITIES AND PARTNERSHIPS ...................................................................................... 33 5.1. Promoting sustainable and effective partnerships................................................................................................. 33 5.2. Country level engagement ..................................................................................................................................... 35 6. RESULTS MANAGEMENT, EVALUATION AND LEARNING .................................................................... 38 6.1. Management for development results .................................................................................................................. 38 6.2. Monitoring and evaluation .................................................................................................................................... 38 6.2.1. Auditing of HELLENIC AID Contracts by external auditors .................................................................................... 38 6.2.2. Case-law ................................................................................................................................................................ 39 6.2.3. Recovery of funds: NGO contracts .......................................................................................................................