1 Background: Brief History of Norwegian support to Ethiopia through the Embassy
Norway officially opened its Embassy in Addis Ababa in 1992 and began to provide Official Development Assistance the following year. However, cooperation between Ethiopia and Norway started much earlier. A major area of collaboration was the development of the Etiopian Navy(1955 to 1965), and in the 1960s support was also given to infrastructure development.
The ODA support of 1993 focused on funding to the energy sector, environment and natural resources management, mineral resources mapping and support to the democratisation process and regional universities. In 1995 a memorandum of understanding was signed between Norway and Ethiopia framing the areas of cooperation within the overall goal of reinforcing Ethiopia’s endeavours to strengthen human rights and democratic institutions and continue the market-oriented development policy.
Norway pledged NOK 40 million (first considerable funding) for 1995 to be made available for emergency relief and humanitarian assistance, democratisation activities, research programmes and parallel financing with international financial institutions. The annual consultations between Norway and Ethiopia continued until the war between Ethiopia and Eritrea broke out in 1998. There have not been any consultations since then and the MoU has not been revised although the volume of assistance has increased substantially. There have been some changes in the Norwegian development cooperation initiatives in Ethiopia which currently focuses on: 1) Regional integration, 2) Democracy, human rights and good governance and 3) Natural resource management and food security.
The amount of annual funding channelled through the Embassy reached NOK 100 Million between the years 2005-2007. Total Norwegian assistance, through all channels, is approximately NOK 250 million annually.
As always in the field of development cooperation MoFED is seeking support for its poverty related development plan and there is a common understanding between MoFED and the Embassy that future development cooperation should try to build on sectors where there has already been a Norwegian engagement for quite some years. Nevertheless, it should be kept in mind that there could be a need for some future adjustments based on GoE assessed needs and priorities. There is a process currently taking place on the issue of a more practical division of work among the donors.
2 Ethiopian and Norwegian policies
2.1 Ethiopia: PASDEP
The Plan for Accelerated and Sustained Development to End Poverty 2005-10 (PASDEP) of Ethiopia aspires to eradicate poverty among other efforts through mobilising resources from international development partners.
Norway is committed to this strategy and plans to contribute its share in areas it has a comparative advantage, such as natural resource management and hydropower development.
2.2 Norway: Development Cooperation - General Guidelines
The Government’s efforts to fight poverty are based on its policy platform, its inaugural and the development policy addresses to the Storting (Norwegian Parliament) of May 2006 and June 2007. They are also guided by the Storting’s deliberations on the White Paper (Report No. 35 (2003–2004) to the Storting, Fighting Poverty Together. A Comprehensive Development Policy.
The Government has decided to prepare a new White Paper on international development cooperation. The new White Paper will continue to emphasise the core values of Fighting Poverty Together as far as aid modalities and the MDGs are concerned, but the new White Paper will attempt to deal more thoroughly with issues related to e.g. globalisation and climate changes. Moreover, the White Paper will discuss how aid can be used to complement and further other drivers of development. Finally, it will reflect the Government’s increased focus on comparative advantages.
Norway is committed to implementing the principles in the 2005 Paris Declaration on Aid Effectiveness at both international and national levels. This means that Norway’s development cooperation work will be guided by the principles of national ownership, alignment with recipient countries’ systems, harmonisation among donors, results-based management and mutual accountability.
Norway no longer differentiates between main partner countries and partner countries. Hence Ethiopia is one of Norway’s 28 partner countries. According to the statistics on recipients of Norwegian bilateral assistance from 2006, Ethiopia was ranked number 9.
The Norwegian Government’s priority areas
The Norwegian Government wants to promote a better division of labour between donors, and focus more strongly on areas in which Norway has particular advantages and expertise. The five areas in which Norway can contribute most are i) climate change, the environment and sustainable development; ii) peace building, human rights and humanitarian assistance; iii) oil and clean energy; iv) women and gender equality; and v) good governance and the fight against corruption.
The above mentioned priority areas are to a large extent coherent with the focus areas for the development cooperation in Ethiopia. Similarly the current focus areas for the development cooperation cover several of the priority areas of PASDEP.
3 Development Cooperation between Ethiopia and Norway
3.1 Sector Priorities for the Development Cooperation
As stated earlier there is a common understanding between MoFED and the Embassy that future development cooperation should try to build on sectors where there has already been a Norwegian engagement for quite some years.
The three priority areas/sectors for development cooperation between Norway and Ethiopia have been identified on the basis of the Ethiopian needs and compliance with PASDEP and Norway’s comparative advantages. Further strengthening of these sectors should be the basis for further expansion.
Priority Sector 1. Hydopower development and promotion of Ministry of Mines and Energy and EEPCO
Support to Ethiopian hydropower development through the Ministry of Water Resources complies with PASDEP as developing its hydropower resources to underpin industrial development is a key to the Ethiopian development agenda. The agreement with GoE/Ministry of Water Resources (MoWR) has an indicative estimate of 70 mill. NOK over 3 years. An important motivation behind Norway's support to Ethiopia in this area stems from our understanding that the increased economic collaboration between the Nile countries that will follow from the exploitation of the Ethiopia's abundant hydrodropower resources is mutually beneficial and strengthens the basis for long term stability in the region.
The initiative will in a longer perspective give improved access to clean energy for several countries in the sub- region and will consequently contribute to fulfilling the energy needs of the region as well as the Norwegian government’s ambitions and goals in the area of clean energy and climate. Further, the hydropower initiative represents an area where Norway’s expertise is considered to have comparative advantages
Priority Sector 2. Capacity building and good governance focuses on the internal political and societal challenges. If Ethiopia is to continue to transform its political system and economy it is imperative that the democratisation process the country is going through should be maintained. This requires the strengthening of public institutions such as the legislature, the election board, human rights commission and so on and active participation of civil society organisations in civic and voter education to ensure that ordinary citizens are on board. The right of such groups as women and the youth should also be respected as they constitute the bulk of the population. Norway plans to sustain its support to such initiatives.
Another effort linked to this sector is support to “Strengthened National Humanitarian Mine Action Capacity” through Norwegian People’s Aid collaboration with the national Ethiopian Mine Action Office.
The programs and projects included in this sectorial effort cover areas that coincide with the priorities of the government of Ethiopia. The development cooperation efforts in this sector include combating corruption through support to Federal Ethics and Anti Corruption Commission (FECCA) as part of the Democratic Institutions Programme (DIP), and efforts towards improving the women/gender situation through UNICEF/UNFPA agreements and through strategic partnership with Save the Children Norway-Ethiopia on Female Genital Mutilation (FGM).
Priority sector 3. Natural Resources Management and Food Security is based on the wish to contribute to poverty reduction through focussing on sustainable management of natural resources which again will include growing enough agricultural produces for own private consumption and the market. This sectorial effort complies clearly with one of Ethiopia’s priorities within the national program for combating poverty (PASDEP). Further it complies with the Norwegian government’s effort to mitigate environmental degradation. In time of normalization between the two countries and possible increase in the volume of development cooperation, new budgetary resources should be channelled to efforts linked to this priority sector. The needs linked to environmental threats in the form of land degradation with food and water supply implications are formidable in Ethiopia, and increased efforts in the area of natural resource management including forestry will further be the focus of support the new priorities of the Norwegian government.
The aim of the UNCCD agenda as well as the Global Climate Agenda will remain relevant to the Embassy. Hence, the Embassy will continue support to some of the projects under the Natual Resources Management & Food Ssecurity (NRM & FS) pillar. Projects working on improving and diversifying livelihoods in the dry land and degraded areas of Ethiopia will be given emphasis. Moreover, continuation of capacity building programs for agricultural and environmental professionals shall be further assessed and reshaped. The Embassy shall also consider engagement in the national platform for Sustainable Land Management (SLM).
3.2 Other areas of collaboration
Culture
The two countries should look into possibilities for furthering crosscultural, lingual and ethnic understanding through cultural events and collaboration. Music and literature.
Technical collaboration
Norway and the Nordic countries have lived through a historical process of rebuilding of the state and government institutions from a situation where large parts of the economy was dominated by government controlled corporations to a more market oriented economy. What is unique in the Nordic experience is how the governments to a large extent have maintained political control through government co-ownership and the development of regulatory mechanisms and institutions. Cooperation in experience sharing in these and in the area of technical assistance could be explored in the coming years. Energy and telecommunications are examples of key sectors where Norway has developed economic and regulatory regimes that could be of interest for Ethiopia.
Ethiopia has over the last few year licenced a number of international companies in the mineral and oil development sectors. In order to strengthen negotiating skills in these technical areas, possibilities for capacity building through Petrad (International programme for petroleum management and administration) seminars and special course(s) tailored for Ethiopian needs should be looked into. Mekelle University has expressed that Faculty of Law aims at being a centre of expertise in this field.
Private sector development / Trade
Trade between Norway and Ethiopia is well below its potential. The Embassy strongly believes that trade relations could improve and that there is a potential for Norwegian exports and investment in Ethiopia as well as higher imports of Ethiopian goods to Norway. Ethiopia is in the midst of a period of strong economic growth and is diversifying its export base. The Embassy has surveyed the Ethiopian export potential and believes that a number of products could be of interest in the Norwegian market, among those organically grown agricultural products.
With a population of 83 million and growing fast, the middle class customer potential could be interesting for Norwegian exporters and for Norwegian investement. The Embassy intends to increase its engagement in promoting Norwegian companies, business and investment and facilitate joint venture initiatives as well as facilitating export to Norway.
3.3 Environment and Women/Gender as Cross Sectorial Issue
The Embassy has resigned from its role as chef de file for the United Nations Convention to Combat Desertification/UNCCD agenda. Nevertheless, with the new global climate change agenda, mainstreaming environmental issues across all sectors shall be given importance in addition to retaining natural resource management as one of the priority development clusters at the Embassy.
In the period 2009–11 the Embassy plans to sustain its focus on gender by placing it as a cross-sectoral issue in all areas of its engagement in Ethiopia. Women would remain as the main focus in the fight against FGM and other traditional practices, and the Rights- Based Approach to Adolescent and Youth Development, which gives due attention to girls and young women, will remain as two key programmes within the Embassy during this period.
3.4 Modalities of Cooperation
The Embassy will continue assessing the possibilities for the merging of agreements, and will further continue considering different versions of delegated partnerships in order to make administration simpler and more efficient for both parties. As mentioned above the process of identifying larger programmes is first of all relevant for Priority Area 3. Natural Resources and Food Security. The process will continue throughout 2008 and 2009 and the results will depend on the further normalization process between the two countries including a gradual increase of posted staff.
Norwegian development assistance has to a large extent been channelled through the UN system and Norwegian NGOs. The Embassy will aim at redirecting more of its assistance through direct government-to-government support during the strategic planning period. A major part of funds channelled through UN and NGOs is implemented in close collaboration with local government institutions and/or contributing to capacity building of local government institutions.
A major up-coming agreement is the continued Norwegian support to the energy sector, i.e. MoFED’s requested support to Mandaya and Beko-Abo feasibility studies which implies additional funds of NOK 70 mill (over three years) to Ethiopia as part of the NBI. This initiative will represent approximately ¼ of the development budget administered by the Embassy.
The Parties aim at identifying a few larger programs that in the longer perspective will take the place of several, smaller projects. So far support is channelled to a large UNICEF/UNFPA program that represents approximately ¼ of the development budget administered by the Embassy (Rights-Based Programme for Adolescent and Youth Development). The programme is planned and will be implemented in close collaboration with the local authorities in a selected number of regions (Addis, Oromia, Afar, Amhara and SNNPR).
A new phase of the support to the university collaboration between Mekelle and Awassa is planned to start in the second quarter of 2009. The main focus will be on capacity development in the area of agriculture and sustainable development to further strengthen the efforts in this sector, but it will also include cross-sectoral issues as well as interdisciplinary efforts.
A systematic process of assessing alternative options for support to the Government (GoE) and its poverty-alleviation programmes (PASDEP) was initiated in the beginning of 2008. This ongoing process is based on a close dialogue between the Parties. However, it must be noted that present, multi-annual binding agreements represent a limitation regarding possibilities of major, immediate revisions/adjustments of the programmes/projects of the development portfolio.
3.5 Tentative budget (in NOK mill)
All future allocations for development cooperation will be subject to Parliamentary approvals.
|
|
Expenditure 2007 |
Expenditure 2008 |
Planned Expenditure 2009 |
Planned Expenditure 2010 |
Planned Expenditure 2011 |
|
Total |
80 |
85.5 |
110 |
130 |
150 |
|
Sector of cooperation |
Expenditure
2007 |
Planned expenditure 2008 |
Tentative 2009 |
Tentative 2010 |
Tentative 2011 |
|
Capacity building and Governance |
47.205 |
50.981 |
|
|
|
|
Environment- Natural resources and Food Security |
26.720 |
33.65 |
|
|
|
|
Hydropower and promotion of NBI |
|
|
25 |
25 |
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other sectors |
6.074 |
0.869 |
|
|
|
|
Totalt |
80.00 |
85.5 |
110 |
130 |
150 |
Annex 1
Further presentation of the 5 general (global) priority sectors of the Norwegian Government
Climate change, the environment and sustainable development
On the background of climate change representing the greatest threat facing the world today, the Norwegian Government has launched a wide range of measures to strengthen developing countries’ determination to combat emissions. In addition, environmental development cooperation will be intensified in order to implement the Action Plan for Environment in Development Cooperation.
Peacebuilding, human rights and humanitarian assistance
Norway will continue providing extensive humanitarian assistance to alleviate suffering, provide protection and give vulnerable groups prospects for a better and safer future. A White Paper dealing specifically with the prevention of humanitarian disasters, also in the context of environmental and climate change, was presented in 2007.
Women and gender equality
A new Action Plan for Women’s Rights and Gender Equality in Development Cooperation was launched in 2007. The Government consider it important that support for the promotion of women’s rights must not only encompass activities specifically directed at women, but must also be integrated with other aspects of development cooperation. A White Paper entitled On Equal Terms was submitted by the Ministry to the Storting in January 2008.
Oil and clean energy
Global warming and climate change issues have highlighted the need to assist developing countries in establishing a clean and sustainable energy resource base. The purpose of the Clean Energy for Development initiative is to ensure full use of Norway’s considerable expertise in the fields of management of energy resources, construction and operation of hydropower plants, development and use of other clean energy sources, and energy-related research and higher education.
Good governance and the fight against corruption
Support will be provided for the growth of strong, democratic states that have both the ability and the will to fight poverty and respect human rights. The Government is deeply committed
to the international fight against corruption, money laundering and capital flight facilitated by tax havens.
Supporting the health-related Millennium Development Goals
In addition to the five main priority areas in which Norway has particular expertise, the Government has chosen to take particular responsibility for ensuring that the international community achieves the health-related Millennium Development Goals (MDGs).
Other important priority areas
The Government will maintain a high level of support to other areas that have traditionally been important in Norwegian development cooperation, of relevance to the on-going collaboration with Ethiopia can be mentioned:
· Implementing its development strategy for children and young people, by continuing to focus on a few selected global and country initiatives related to children’s rights and protection, and on synergies with other global initiatives and main priorities;
· Efforts to combat HIV and aids; these will be continued at a high level;
· Using funds from the development assistance budget and commercial/private actors and foundations in public-private partnerships for development to promote a CRS approach in the private sector;
· Strengthening trade-related development cooperation through multilateral and bilateral channels, and viewing this in connection with international efforts in this area, including those of the World Trade Organisation (WTO)