International Development Cooperation Case Study: Hungary

Milestones in the Hungarian development cooperation

• Before 1989. Development cooperation with traditional partners• 1996. OECD membership• 2003. Adoption of the Concept Paper of IDC and set up of the

International Development Cooperation Department in the MFA• 2004. EU membership• 2004. The contract with HUN-IDA is signed for two years, 2006: renewed• 2006. Twinning program with Finland• 2008. Reformulation of the partner country system• 2008. IDC is part of the new External Relations Strategy• Until 2009. More than 500 projects implemented

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Concept of the Hungarian IDC Policy

1. Theoretical basis of the Hungarian IDC Policy

• United Nations

• OECD

• European Union

• Hungary’s new External Relations Strategy

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United Nations

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•Millennium Development Goals•Monterrey Consensus•UNDP Trust Fund

Has one of the most extensive network, its professional experience is exemplary to other donors

Cooperation possibility with regard to the Western Balkans and neighboring states

Importance in cooperation with the civil sector Close proximity of the Bratislava and Budapest offices to

target countries

OECD

• Aid effectiveness

• Paris Declaration

• Accra Agenda for Action

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European Union

The EU (Commission and the member states) is the leading donor of the world

Development cooperation is a shared competence

• each member state and the Commission has its own IDC policy

• to secure the same trend →guidelines are adopted

o European Consensus on Development Cooperation 2000, 2005

o Joint Programming Framework

o Donor coordination

o GAERC Conclusions

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Hungary’s new External Relations Strategy

• Support the efforts of the international donor community serving the UN Millennium Development Goals.

• Response to global challenges: poverty alleviation, the support of backward regions, hunger reduction, reduction of epidemics and infectious diseases, secure schooling, gender equality and sustainable development.

• Taking part in international development co-operation, reinforcing security as well as economic ties through reducing differences in the level of development.

Hungary’s new External Relations Strategy 2

• EU commitment: earmark 0.17 percent of the national income in 2010, and 0.33 percent in 2015,

• crucial role of NGOs,• Most urgent task is to reduce poverty in Africa and ease

deprivation. At the same time, a geographically balanced development policy: Close partnership with Eastern and Southern Europe as well as with several needy Far-Eastern countries.

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Main objective: poverty reduction

• Peace and security

• Human rights

• Democracy

• Economic and social development

• Good governance

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Focus on comparative advantages• Transition management

(economic transition, EU accession)• Knowledge transfer• Health• Education• Agriculture• Environment• Water management• Infrastructure

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Scope of partner countries (revised in 2008)

• priority countries, activity based on a mid-term country strategy paper:

Bosnia-Herzegovina, Serbia, Moldova, Vietnam, Palestine Authority;

• project based cooperation: Africa (Sub-Saharan Africa), Yemen, Cambodia, Kyrgyzstan, Kosovo, Laos, Macedonia, Mongolia, Montenegro, Ukraine;

• international commitments: Afghanistan and Iraq;

• countries eligible for tied aid: all countries according to the OECD DAC list of ODA recipients

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Cooperation with the Western Balkan countries

• Stability and development of the region represents a focal point of our foreign policy, and especially of our IDC policy;

• Two priority countries: Serbia, Bosnia and Herzegovina• Project based partner countries: Kosovo, FYROM, Montenegro • Main field of activity: transition experiences, good governance

and civil society, experience of European integration and support of the region’s steps through the process, agriculture, educational and cultural projects, health and social development

• WB countries’ share of total bilateral ODA in the period of 2004-2009: 20%

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Cooperation with Eastern European and CIS countries

• Eastern Europe, as a neighbouring region, has an important place in our foreign and IDC policy;

• Priority country: Moldova

• Project based partners: Kyrgyzstan, Ukraine

• Support to democratic institutions, systems and the civil society: Belarus

• Development projects in line with LRRD (Linking Relief, Rehabilitation and Development) conception: Georgia

• The region’s share of total bilateral ODA in the period of 2004-2009: 6.8%

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Donor coordination, Trilateral co-operations

• Complementarity with, and participation in, EU’s IPA projects

• Active participation in donor coordination meetings in the field, especially in Sarajevo and Belgrade

• Cooperation in practice in Afghanistan with Greece and Japan

• In the two concerned regions: current discussions on cooperation plans with SIDA and the V4 countries, and also with USAID in Serbia

• Challenges: new policy, capacities

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Thank you for your attention!

Department for International Development CooperationMinistry of Foreign Affairs

Hungary

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