Denmark resumes funding to multilaterals like GEF and GAVI

In a power struggle over billions of dollars, international NGOs have successfully lobbied to keep hold of funds meant for local actors as part of an overhaul of global relief efforts, known as the Grand Bargain.  The reform states that one of four dollars should go directly to local actors, but the process is monopolised by Western donors and NGOs, a Development Today investigation shows.

Afghanistan and UNFPA are top beneficiaries as Finland’s aid budget for 2018 prioritises reproductive health, business and migration. The government hasadded EUR 9.5 million to the budget in a surprising last-minute move. Overall, Finland rolls back bilateral aid to fund a EUR 21 million expansion of multilateral aid.

Danish NGOs had been bracing for the results of a Foreign Ministry plan to reduce the number of NGO grant recipients. But Development Minister Ulla Tørnæs stepped in and added DKK 230 million to the pot.

The Swedish government has announced SEK 5 billion for climate and environment next year, of which SEK 750 million are international aid-financed initiatives.