The two Nordic donors have frozen DKK 100 million in aid funds to Zambia after revelations of embezzlement in the health sector and suspected irregularities in the road sector. Millions more in budget support funding are now at risk.
The definition of aid could face dramatic change as climate grants for developing countries are negotiated in the months leading up to the Copenhagen Summit. The Swedish EU Presidency will play a key role in setting the new rules.
The process of reforming the governing system of the World Bank is moving slowly forward. A proposal to include funding commitments to the Bank in the new formula on voting power would soften the impression of too many Europeans on the Board.
The Norwegian environmental NGOs, Rainforest Foundation and WWF Norway, have experienced a huge increase in aid financing. Last year Rainforest Foundation received NOK 83 million from the aid budget, ranking No. 7 out of some 400 NGOs.
The OECD hails Sweden’s aid policy reforms and leading role in the donor community, but warns the government against cutting more staff.
OECD is concerned about the independence of Sida evaluations and wants the mandate of the evaluation agency SADEV to cover the efforts of all ministries within the development field.
The Climate Commission, initiated by Sweden, concluded in May that the costs of helping developing countries adapt to climate change will be high. Short term costs are estimated at USD 6-11 billion a year, and medium term financing is in the order of USD 12-29 billion per year.