ABC of Development Policy

ABC of
Development
Policy
ABC of Development Policy 1

Contents
Introduction 3
Switzerland’s development cooperation 8
Glossary 10
2 ABC of Development Policy

Introduction
Over the past quarter of a century, real incomes in developing countries

have almost doubled. Child mortality has fallen by half and the number
of people receiving a basic education has risen sharply. Nowadays,
two-thirds of all states are elected democracies. These success stories,
which, in no small measure, are the result of development cooperation,
contrast sharply with media reports of famine, epidemics and conflicts.
It is those reports that remind us that there are no simple solutions to
ensure global peace and prosperity. The problems associated with de-
velopment are always complex and can never be attributed to any single
cause, or solved by stand-alone measures. This glossary is intended
to illustrate the diversity of issues associated with development policy.
It also provides insight into the most important concepts and themes
relating to development cooperation.
Development – an evolving concept

What is development? In order to gain a clearer understanding of the
term “development cooperation”, we must first clarify the meaning of
“development”, which has evolved over the decades. As our under-
standing of development has changed, so too has the focus of develop-
ment cooperation.
Development issues first became widely discussed in the 1950s and

1960s, in the wake of decolonialisation in Africa and the ambitious aid
programmes launched by the United Nations. Development was regard-
ed as synonymous with the evolution of a country from a poor, tradition-
ally rural-based economy to a prosperous industrial nation. Both the
route and objective of development were considered as self-evident and
involved the transposition of Western economic, social, cultural and po-
litical ways of living upon non-European societies. The only uncertainty

in the minds of development planners of the time was the pace of devel-
opment, which depended on the resources available in each country.
Back then, development cooperation was likened to the Marshall Plan.

The prevailing opinion was that post-colonial countries needed financial
stimulus to set catch-up processes in motion, just as Germany had re-
quired such aid in the aftermath of World War II. People widely believed
that in a few decades, with enough capital and forced industrialisation,
developing countries would be able to achieve the same level of pros-
perity as in Western Europe.
In practice, however, the predicted level of progress failed to materialise.

As a result, the capital-injection model that had been intended to allow
developing countries to catch up was called into question. Capital alone
was not sufficient. During the political turmoil of the late 1960s and the
1970s, greater emphasis was placed on the role of people in the devel-
opment process. International development aid began to flow heavily to
human resources and social infrastructure. As a result, roads and water
pipelines were built and healthcare and education systems were estab-
lished and expanded.
From catch-up to sustainable development

The previous view that issues were primarily limited to southern hemi-
sphere countries gradually gave way to a more global perspective. Un-
fair trading practices and international dependency were portrayed as
the structural causes of slow or stagnant development and became the
subject of political debate. Civil society organisations called for reform
of international trade relations and for developing countries to be grant-
ed genuine rights of co-determination within international bodies. The
export of Western-style development models to southern hemisphere
countries whose socio-cultural conditions were very different from those
in Europe or North America also drew criticism. Discussions began to
focus on a new development policy that would consider the specific

needs and different starting points of individual southern hemisphere
countries.
In the 1980s and 1990s, the model intended to help developing coun-
tries catch up with their Western counterparts was supplanted by the
sustainable development model. In 1987, a report by the World Com-
mission on Environment and Development (known as the Brundtland
Report) introduced the concept of sustainable development. The report
stated that development had to satisfy the needs of the present without
undermining the development prospects of future generations. The re-
port formed the starting point for the United Nations Conference on En-
vironment and Development in Rio in 1992. This summit meeting called
for the careful use of natural resources in northern and southern hemi-
sphere countries. The development concept once again evolved, away
from a purely economic and social focus to a more comprehensive one
that included environmental issues.
Accelerated by the fall of the Berlin Wall in 1989 and rapid technological
advances (e.g. the Internet), globalisation expanded the development
concept by bringing human rights and universal standards to the fore-
front. In the year 2000, 189 Heads of State and Government laid down
a number of requirements in the Millennium Declaration. Principles such
as respect for human rights, equal opportunities for men and women,
the fair distribution of wealth and good governance were added to the
development concept. Since then, development has no longer been a
national or bilateral affair, but rather a global challenge with binding ob-
jectives and a binding timeframe. As part of the Millennium Develop-
ment Goals (MDGs), industrialised and developing countries undertook
to work together to halve global poverty by 2015.
The MDGs marked a paradigm shift: until then, development aid had
connotations of charity as well as a clear division of roles between donor
countries (which provided available funding and development models)

and recipient countries (which implemented proscribed measures). With
the MDGs, development aid gave way to a new concept of development
cooperation, which set out to develop and implement programmes in
consultation with the authorities and civil society in partner countries.
Partnership-based approaches combined with mutual and differenti-
ated responsibilities took centre stage.
Advance of emerging countries

What is development? It is impossible to give a conclusive answer to
this question. As a concept, development is closely associated with in-
dividual and collective values, which vary with distance and time. The
shift in development policy attitudes and activities is a reflection of the
upheavals taking place in world politics. In past decades, developing
countries could be categorised as a fairly homogenous group of coun-
tries with similar underlying structural problems. It was during this time
that the term “Third World” was coined. However, the term no longer
applies since the map of the world has become much more nuanced.
There is still a group of extremely poor countries that rely on external
aid. At the same time, there are many large and medium-sized devel-
oping countries that have progressed considerably and have managed
to significantly reduce poverty. Moreover, emerging countries such as
China, India and Brazil now play an important role in the global economy
and are helping to shape international policies. Other countries, such
as South Africa, Mexico, Chile, Indonesia, Thailand, Vietnam and many
others are making rapid economic and social advances. The power to
influence world economic and policy matters is rapidly shifting and new
realities are now upsetting conventional worldviews.
Emerging countries, the cross-border movement of goods and people

combined with new communication technologies have blurred the divi-
sions between northern and southern hemisphere countries. The world
has become one global village. The increasing interdependence of in-
dustrialised, emerging and developing countries has also made Earth

more vulnerable to climate change, the increasing scarcity of water and
other vital resources and major migration flows. Globalisation coupled
with the strong economic growth of the past 20 years has exacerbated
latent problems while simultaneously creating new ones. The fragility of
our ecosystems and the loss of biodiversity have now become develop-
ment cooperation issues.
This vulnerability means that international cooperation has become

more important than ever. Global problems cannot be resolved by the
richer countries acting in isolation, but rather through close coopera-
tion with developing and emerging countries. Development is therefore
a common worldwide endeavour to secure the foundations for the long-
term social and economic development of humankind.

Switzerland’s development cooperation
In 1961, the Federal Council appointed the first delegate from the Tech-
nical Cooperation Service. This event marked the start of Switzerland’s
state-run development aid. Switzerland’s development work in those
early days typically involved building bridges, setting up dairy farms to
produce cheese and facilitating development in mountainous regions.
Today, Switzerland is active in areas such as health and education, mi-
crofinance, the water sector, decentralisation and the promotion of de-
mocracy.
While the themes and methods may have changed, one aspect of Swiss
development cooperation that remains constant is the grassroots prin-
ciple, i.e. that development must grow upwards from local community
level. This is why local community involvement is included in the plan-
ning of all programmes and projects. Switzerland enjoys a solid reputa-
tion for its development cooperation work thanks to its grassroots ap-
proach and other Swiss virtues such as continuity, professionalism and
neutrality. Swiss development cooperation is free of geopolitical inter-
ests. Nowadays, Switzerland is active in over 40 partner countries and
regions of the southern hemisphere as well as in Central/Eastern Europe
and the Commonwealth of Independent States (CIS). In 2009, Switzer-
land earmarked CHF 2.5 billion in public funding for global poverty re-
duction, humanitarian aid and institutional reforms in Eastern Europe
(for more information, visit www.sdc.admin.ch).
Federal development cooperation focuses on the needs of impoverished

countries and involves initiatives designed to encourage people to help
themselves. The aim is to transfer the knowledge and technology that a
country needs so that people, organisations and society can proactively
and sustainably improve their living conditions.

Global shared responsibility
Nowadays, Swiss development cooperation is a multi-disciplinary activ-
ity spanning various federal departments and policy areas. The Swiss
Agency for Development and Cooperation (SDC), which is part of the
Federal Department of Foreign Affairs (FDFA), is responsible for coor-
dinating all development cooperation activities. Important contribu-
tions to development cooperation are also made by other federal agen-
cies: the State Secretariat for Economic Affairs (SECO), which is part
of the Federal Department of Economic Affairs, the Federal Office for
Migration (FOM), which is part of the Federal Department of Justice and
Police, the various Political Affairs Divisions of the FDFA and many non-
governmental organisations. In order to achieve sustainable improve-
ment, all sub-policy areas that have a bearing on development issues
must be coordinated. Improving development coherence is a specific
challenge for all donor countries, including Switzerland.
Over the past 50 years, Swiss development cooperation activities have

adapted to provide an appropriate and effective response to chang-
ing demands. One thing that has not changed, however, is the strong
level of support that the Swiss population shows for development co-
operation. This support that began back in the 1960s has never faltered.
A representative survey conducted in 2009 showed that 83% of the
Swiss people want their country’s development cooperation activities
to remain at the same or a higher level. Switzerland is an economically
strong and technologically advanced country that nurtures extensive in-
ternational ties. As such, Switzerland is in the good position to make a
relevant contribution to worldwide poverty reduction. The aid we pro-
vide is therefore more than merely a gesture of solidarity. We bear our
share of overall international commitments through our cooperation ef-
forts and are investing in a sustainable future for our planet. This is an
investment that benefits all of us.

Glossary
Anchor countries
A Countries, which, when viewed in the relevant regional context, enjoy
prominent economic and political significance, are known as anchor
countries. Anchor countries maintain good commercial ties with other
countries and are active participants in regional integration processes.
A number of anchor countries are becoming increasingly self-confident
and active in international economic and political affairs. These popu-
lous countries also play a key role in efforts to solve global issues such
as climate change, > food security and water shortages. Alongside
China, India and Brazil, other anchor countries include medium-sized
states such as Indonesia, Pakistan, Thailand, Egypt, Nigeria, South
Africa, Mexico and Turkey.
Assessing effectiveness
The effectiveness of development cooperation cannot be assessed
solely on the basis of what is done, but rather (and more importantly)
on what is achieved. As such, greater attention is now being paid to
the outcomes of development cooperation expenditure. Three different
levels are used to assess the effectiveness of development programmes
and projects.
• Outputs (i.e. individual results)
• Outcomes (i.e. overall results)
• Impact (i.e. effectiveness)
Assessing the effectiveness of development programmes and projects
is quite an ambitious undertaking. The effects within social processes
are not always easy to ascertain. In some cases, it may not be possi-
ble to irrefutably prove that observed changes are directly the result of
the support provided. Development cooperation takes place within a

dynamic setting and involves a large number of players and influenc-
ing factors. Nevertheless, the effects of development cooperation can
clearly be seen in certain sectors such as: > education, > health, water,
> food security.
Swiss development policy is intended to achieve results and make an
impact. When planning their programmes and projects, the > SDC and
> SECO decide what effectiveness criteria, what indicators and what
monitoring mechanisms should be used to determine whether ongoing
projects are actually making progress towards established objectives.
At regular intervals, the SDC and SECO produce impact reports on the
effectiveness of their activities.
1960s
Swiss development activities in the field begin with
a pioneering spirit and a willingness to help others:
Agricultural project in Kerala/India.

Bilateral development cooperation
B Bilateral development cooperation is intended to help countries to ad-
dress poverty and development issues. Development cooperation part-
ners include national, regional or local authorities, > civil society and the
private sector. Bilateral development cooperation is not solely confined
to specific projects (> project-based aid). Some programmes focus on
structural changes needed to sustainably improve the living conditions
of the poor (> programme-based aid). These programmes seek to im-
prove local healthcare services by introducing reforms to the national
healthcare system.
Bottom-up approach
“Bottom-up” literally means working from the bottom to the top. In
> development cooperation, the term refers to an approach that starts
by addressing the needs of the people on the ground. By improving
their living conditions, development is stimulated from the bottom up.
It is particularly important for local stakeholders to be involved in the
search for suitable solutions. The “top-down” approach involves the use
of government policy measures to set development processes in mo-
tion. Depending on the context, either approach may achieve the de-
sired results. In some cases, both may be implemented in conjunction
with one another.
Switzerland’s strong federal tradition, coupled with a well-developed
system of direct democracy, explains why the bottom-up approach
plays such a prominent role in Swiss development aid. This is illustrated
by the importance that Switzerland gives to strengthening local commu-
nities, improving > rural development and providing assistance to small
and medium enterprises.

Bretton Woods Institutions
In 1944, the ministers of finance of the countries that would later achieve
victory in World War II gathered at the Bretton Woods Conference in the
United States. Decisions were taken regarding reconstruction as well as
the financial and economic policies to be adopted in the post-war pe-
riod. In order to implement the policies agreed at Bretton Woods, inter-
national financial institutions such as the World Bank, the International
Bank for Reconstruction and Development and the International
Monetary Fund (IMF) were established. Though their role has since
evolved, these same institutions still play an important role in develop-
ment cooperation and > development finance. The World Bank extends
long-term loans to > developing countries at preferential rates. In times
of emergency, the IMF helps stabilise national economies by providing
cash injections. Its activities focus on developing and emerging coun-
tries. In 2010, the IMF was also involved in measures to contain the debt
crises in Greece and Ireland.
Budgetary aid
When providing budgetary aid, the donor does not channel funding to
individual projects, but rather contributes funding to state coffers in-
stead. There are two forms of budgetary aid: unallocated budgetary aid,
where funding helps to sustain the overall budget of the partner country,
and allocated budgetary aid, where funding may be used only for spe-
cific development sectors (such as > education or > health).
The advantage of budgetary aid over project-based aid is that it strength-
ens state institutions and reduces the costs associated with the provi-
sion of aid. The recipient country is free to develop more suitable, and
often more cost-effective, solutions. Budgetary aid is most successful
when funding is tied to specific conditions and verification. According
to estimates made by the Organisation for Economic Co-operation and
Development’s (> OECD) Development Assistance Committee (> DAC),
experiences with budgetary aid have been positive in most recipient

countries. Despite this, budgetary aid still accounts for only 10% of all
development aid flows. This percentage is expected to increase since
it enables donor countries to pool their contributions together into a
single large-scale contribution, thereby reducing the amount of planning
required. Switzerland currently devotes around 3% of its total develop-
ment expenditure to budgetary aid.
Civil society organisations

C In the field of development cooperation, there are three main partici-
pants with overlapping roles: state institutions, private sector and civil
society organisations (CSOs). CSOs include > non-governmental organ-
isations and other non-profit organisations that represent the interests
of citizens. CSOs include: consumer groups, trade unions, human rights
groups, grassroots movements, non state-run media and environmen-
tal organisations. Strengthening civil society is an important priority in
development cooperation activities. CSOs encourage citizens to take
responsibility and proactively address issues associated with poverty
and development.
The concept of civil society originated within the dissident movements
in Eastern Europe. Through their own organisations, dissidents attempt-
ed to broaden their range of action so as to achieve greater freedom for
society. In the period following 1989, the term found currency in inter-
national politics.

Climate protection
Droughts and floods caused by climate change have the power to con-
siderably worsen poverty. Climate protection is therefore one of the most
pressing concerns of > development cooperation. Two main strategies
have been adopted:
• Adaptation. With this strategy, countries are able to face the un
avoidable consequences of climate change by taking appropriate
adaptation measures, e.g. irrigating fields, building protective dams
or developing drought-resistant seeds.
• Mitigation. This strategy addresses one of the main causes of cli-
mate change by reducing overall emissions of greenhouse gases.
Current measures include the introduction of energy- and resource-
efficient processes in the manufacture of building materials as well
as targeted reforestation. Mitigation measures are particularly critical
in emerging countries, where rapid growth is coupled with sharply
rising emissions of greenhouse gases.
The transfer of know-how and climate protection techniques can poten-
tially become the driving force for a sustainable development model. In
the development field, greater emphasis is placed on innovation as well
as on scientific and technological cooperation.
1960s
Infrastructure projects launched to improve
the living standards of local inhabitants: road
building in Rwanda.

Coherence
Coherence refers to a situation where various policy areas within a
country are coordinated so as to ensure that they do not run counter
to one another. > Development policy is regarded as coherent if foreign
policy, trade policy, financial policy, economic policy, agricultural policy,
research policy, labour market policy, refugee policy and migration pol-
icy have all been aligned so as not to undermine the country’s develop-
ment policy objectives. A state is regarded as acting inconsistently, for
example, if it provides development aid while at the same time pursuing
a foreign trade policy that defeats its own development policy objec-
tives. Since conflicting objectives are unavoidable, development policy
coherence remains an ongoing challenge for all donor countries.
Conditions
A donor country may attach specific conditions to the > development
cooperation it provides. Political conditions would require compliance
with certain ground rules relating to development cooperation (such as
good > governance, respect for human rights, a willingness to imple-
ment reforms, etc.). Economic conditions, on the other hand, might link
the provision of aid to certain financial and economic policies of the
recipient country. Imposing political and especially economic conditions
as a standard practice is a contentious matter. Nowadays, more atten-
tion is devoted to linkages between pragmatic conditions and political
and economic reform processes.
Conflict prevention > Peacebuilding
Contribution to EU enlargement
Switzerland’s contribution to EU enlargement helps to preserve secu-
rity and prosperity in Europe. Based on the criteria established by the

> OECD/> DAC, this contribution is not considered as official develop-
ment assistance (ODA). The enlargement of the EU into Eastern Europe
has stimulated the economy and has improved security in Europe. Both
outcomes have been of benefit to Switzerland, which is why efforts are
also being made to reduce prosperity gaps between the original EU-15
member states and the 12 new EU member states. As part of its con-
tribution to EU enlargement, Switzerland implements projects in four
development-related areas:
• Security, stability and reforms
• Environment and infrastructure
• Promotion of the private sector
• Human and social development
Poland, Hungary, the Czech Republic, Slovakia, Estonia, Latvia, Lithua-
nia, Malta and Cyprus have received support since 2007. Rumania and
Bulgaria became recipient countries in 2010. Funding is jointly used by
the > SDC and > SECO in remote regions that have derived little benefit
from previous growth. Specific examples of the use of funding include:
modernisation of hospitals in Estonia, boosting small and medium en-
terprises in Poland and awarding fellowship grants for young scientists.
Around one-third of the projects are carried out with the involvement of
Swiss companies.
www.erweiterungsbeitrag.admin.ch/en/Home
Cooperation offices
Swiss > development cooperation is based on maintaining a strong lo-
cal presence, pursuing outcome-oriented dialogue with local authorities
and > civil society, and carefully monitoring programmes. The > Swiss
Agency for Development and Cooperation therefore runs its own coop-
eration offices in various > priority countries in the southern hemisphere
as well as in Eastern Europe and the CIS. Each cooperation office has
its own team of Swiss experts. This team then works with locally hired
staff in the partner country to implement programmes and projects.

The proximity to the places where programmes and projects are being
implemented enables Swiss cooperation offices to observe first hand
whether the programmes and projects, which represent a cost of be-
tween CHF 5 million and CHF 25 million per country per year, actually
address local needs. It also enables cooperation offices to determine
whether resources are being used effectively.
Corruption
Corruption generally refers to the abuse of power for personal gain. It
is one of the fundamental causes of inefficiency for a number of states.
Not only does corruption take place at state level, it also has a negative
impact on everyday business and corporate life in many countries. Cor-
ruption may give rise to a situation where individuals cannot gain access
to public services unless they pay a bribe. The healthcare and education
sectors are two areas in which this occurs.
Tackling corruption is a constant challenge, both within > development
cooperation programmes as well as within politics and public life. Ex-
perience shows that although stringent legislation and clear rules may
reduce incidences of corruption in the awarding of public contracts,
it is not possible to entirely halt corrupt practices in this manner. The
approach nevertheless instils an awareness that corrupt practices are
wrong.
Culture and development

Cultural values and orientations drive development processes in a
country. Within the context of > development cooperation, culture is
increasingly being regarded as a cross-cutting task that serves to pro-
mote understanding across cultural boundaries and encourages joint
efforts to handle common tasks. The acknowledgement of cultural
diversity is an important pre-condition for sustainable development.

DAC
D The Development Assistance Committee (DAC) is part of the Organisa-
tion for Economic Co-operation and Development (> OECD). Its role is
to audit and assess the development aid performance of industrialised
countries and to establish key development policy parameters. Swiss
development cooperation activities are also assessed on a regular ba-
sis. The DAC’s report for 20091 gave Switzerland positive reviews. Swiss
aid was seen to be reliable and innovative, especially its > humanitarian
aid. The report also highlighted the constructive role that Switzerland
plays in the context of > multilateral aid. One of the strengths noted by
the DAC was the > bottom-up approach. On a more negative note, the
DAC felt that the overall level of Swiss official development assistance
(ODA) was insufficient, since it corresponded to only 0.47% of Switzer-
land’s gross national income (GNI) (2009). They pointed out that Swit-
zerland’s ODA/GNI ratio is significantly lower than the 0.7% of ODA/GNI
target recommended by the > United Nations and also lower than the
ODA/GNI of comparable industrialised countries.
1970s
Swiss integrated projects seek to intensify the impact
of development aid by bringing simultaneous improve-
ments to several areas of life. These integrated pro-
jects include sub-projects such as building hanging
bridges in Nepal.
____________________
1
www.oecd.org/dac/peerreviews/switzerland

Decentralisation
In many > developing countries, political power and economic growth are
concentrated in a small number of major cities, while rural areas scarcely
benefit from any progress at all. Highly centralised political systems also
serve to perpetuate this situation. The consequences of uneven develop-
ment include a rural exodus to urban areas, the emergence of slums and
high levels of unemployment.
Decentralisation and the transfer of resources (decision-making powers,
financial resources) from the central government to regional and local au-
thorities is one way to reduce disparity. Municipalities and regions should
be involved in decision-making processes. They should also be given
the authority to improve services (> education, > health, water etc.) at a
local level. Finally, the role of local authorities needs to be strengthened
so that they plan and implement projects in close cooperation with local
communities.
Switzerland works with local authorities and institutions to facilitate de-
centralisation processes in the Western Balkans, Africa, Latin America
and Asia. As a federal country with a decentralised structure, Switzerland
has both experience and credibility when it comes to decentralisation.
Developing country
This is the term usually used to refer to poor countries. The > UN uses
the > Human Development Index (HDI) as a means of determining pov-
erty levels. In addition to considering such things as per capita income,
the HDI also takes education levels and life expectancy into account.
Many developing countries suffer from widespread poverty (> poverty
reduction), high levels of unemployment and limited access to health-
care and education.

Development aid/Development cooperation
Nowadays, development practitioners tend to use the term “develop-
ment cooperation” rather than “development aid”. This is because de-
velopment cooperation emphasises the partnership approach needed
to solve problems relating to poverty and development. The purpose
of development cooperation is to reduce global poverty and help coun-
tries to overcome local, regional and global factors that inhibit develop-
ment. Development cooperation includes both > bilateral cooperation
with partner countries and the co-drafting of international regulations
and agreements that encourage development. Unlike > humanitarian
aid, which is generally emergency relief provided in response to natural
disasters or armed conflict, development cooperation seeks to bring
about long-term, structural changes.
Development funding
Development funding comes from a variety of sources. In addition to
> official development assistance (ODA) from industrialised countries,
funding also comes from > international financial institutions, the > Unit-
ed Nations and > non-governmental organisations. An important devel-
opment funding milestone was the United Nations International Con-
ference on Financing for Development, which took place in Monterrey
(Mexico) in 2002. The Monterrey Consensus requires developed coun-
tries to devote at least 0.7% of their gross national income (GNI) for
ODA to achieve the > Millennium Development Goals. The Monterrey
Consensus also called for regulations to be established to ensure that
the movement of goods between industrialised and developing coun-
tries would favour development objectives. (> fair trade).

Development policy
Development policy refers to all political, economic and social measures
taken by a donor country to achieve sustainable improvements in living
conditions in developing and > transition countries. Development policy
is not a clearly defined field in its own right, however, since trade policy
and agricultural policy also include development policy-related aspects.
One of the main development policy challenges is how to coordinate all
sub-policy areas into a coherent whole (> coherence).
In Switzerland, development policy is determined by statutory guide-
lines established by the Swiss Parliament. The legal basis for develop-
ment policy is the Federal Act of 19 March 1976 on International Devel-
opment Cooperation and Humanitarian Aid (SR 974.0). Budget requests
are submitted to the Swiss Parliament in four- to five-year cycles in the
form of a Federal Council Dispatch. When allocating budget funding, the
Swiss Parliament sets specific development policy objectives as well as
thematic and geographical priorities.
1970s
Swiss development efforts bring
improvements in agriculture and
forestry, the promotion of health
and water supply. Swiss integrated
projects include sub-projects to
establish schools, build roads and
encourage local trade.

Do no harm
“Do no harm” refers to a set of principles intended to ensure conflict-
sensitive planning of aid measures, especially in conflict zones. This
approach, which was developed by the American economist Mary B.
Anderson, has also proved its worth in the context of Swiss develop-
ment cooperation.
The “do no harm” approach acknowledges that development projects
and the supply of material aid can have both intended and unintended
consequences. A less than cautious approach may do harm, for exam-
ple, if the aid provided strengthens a warring party. In order to avoid
negative consequences, it is therefore essential to investigate the con-
text and the parties involved before any material aid is distributed or any
development projects are implemented. In the case of violent conflicts,
certain parties involved may fuel tensions between the warring par-
ties (“dividers”), while others may manage to ease tensions (“connec-
tors”). All external support measures should be consciously intended
to strengthen the position of the “connectors”. This can be particularly
difficult to achieve in a situation of war.
Donor committees
Donor committees are groups of donor countries that coordinate their
> development policy with one another. By working together in this fash-
ion, donor committees are able to align international aid according to
shared objectives and standards. The pooling of resources also lends
more weight to policy discussions with the government of the recipient
country. Donor committees play a particularly important role in coordi-
nating > budgetary aid.

Education
E Education opens the door to better prospects. Educated people more
easily find gainful employment and can better provide for their own
material needs. Those who lack an education often remain trapped in
poverty. It is for this reason that > development cooperation places con-
siderable value on education. Switzerland works to help girls, women
and ethnic minorities to gain access to basic education. Switzerland
also encourages the development of upper-secondary level vocational
education and training (VET). Local languages are used as the language
of instruction, thereby making it easier for students to acquire the skills
needed on the local labour market. Generally speaking, development
cooperation in the field of education has been successful: globally, il-
literacy rates are falling and the number of people admitted to school is
increasing. In addition, fewer girls and women are being excluded from
education.
Emerging countries
Emerging countries are countries that are well on their way to becoming
industrialised nations, but have not yet joined the club of the wealthy
industrialised countries. The term “newly industrialised countries” ex-
presses the idea that emerging countries differ from > developing coun-
tries both in terms of extent of industrialisation and economic strength.
In emerging countries, social development often lags behind economic
development.
As economic powers, emerging countries can play an important role in
the development of entire regions. One example of this is the fact that
the BRICS group of countries (Brazil, Russia, India, China and South Af-
rica) is causing shifts in the balance of global political power. Populous
and rapidly expanding emerging countries are therefore in a position to
influence international climate policy and find solutions to global prob-
lems. As a result, emerging countries are now demanding stronger rep-

resentation in multilateral institutions. Power and prosperity are being
redistributed in this multi-polar world that is now taking shape. In view
of the fact that resources are becoming increasingly scarce, competition
on world markets will only intensify.
Empowerment
Empowerment refers to efforts to reduce poverty by strengthening the
position of disadvantaged groups within the population. Literally speak-
ing, the verb “to empower” means to “authorise” and “give power”. In
the context of > development aid empowerment means enabling dis-
advantaged people to proactively shape and improve their living condi-
tions. Poverty is always an expression of limited social, economic and
political prospects and power. These must be overcome so that people
are able to identify their own needs and develop adequate solutions
thus enabling them to exert greater influence over local and national
> poverty reduction policies.
Fair trade
F International trade is a strong driver of development and is an impor-
tant source of foreign currency. Trade can also contribute to sustainable
development (> sustainability) if producers receive a suitable share of
the profits and are able to earn a viable income for their work. Fair-
trade products are produced in a socially justifiable and environmentally
friendly manner and are therefore slightly more expensive than compet-
ing products. Fair trade mainly flourishes whenever access to markets
in industrialised countries is not subject to excessively high trade bar-
riers.
The market share of fair-trade products is constantly growing in Switzer-
land and the main supermarket chains have included fair-trade products
in their product range for many years now.

1980s
Greater recognition is given to the role of women in
the development process. Gender is mainstreamed
into development cooperation activities. (Women at
a hand pump in Lesotho)
Food security
Despite the continual expansion of arable land, the number of people
suffering from malnutrition exceeded one billion in 2009. Improving food
security is therefore an urgent requirement. Food security is achieved
when a sufficient quantity of good and healthy food is available to every-
one. However, not only must sufficient food be available, the poor must
also be able to afford it.
For many decades now, Switzerland has focussed mainly on the produc-
tion and distribution of agricultural products as a means of fighting hun-
ger. It also invests in applied agricultural research and provides small-
holder farmers with access to high-quality, drought-resistant seed.
Foreign policy
Foreign policy determines the relations that a state maintains with other
states and with international organisations. It includes a number of dif-
ferent policy areas such as trade, environment, security, development
and culture. Foreign policy is intended to safeguard the interests of a
state abroad. Forward-looking foreign policy sets out to solve global
problems such as famine, climate change, > migration, scarcity of re-
sources, etc. Switzerland’s foreign-policy objectives are set forth in Arti-

cle 54 of the Federal Constitution: “The Confederation shall ensure that
the independence of Switzerland and its welfare are safeguarded; it shall
in particular assist in the alleviation of need and poverty in the world
and promote respect for human rights and democracy, the peaceful co-
existence of peoples, as well as the conservation of natural resources.”
Gender/Gender equality
G Gender refers to the gender-specific role that a person plays, as op-
posed to his/her biological sex. One’s social gender is a function of the
roles, resources, rights and obligations attributed to men and women in
society. As mothers, nurturers and caregivers, women shoulder a great
deal of responsibility, but often find themselves in disadvantaged situa-
tions. A large part of the work they do is unpaid, which narrows women’s
development potential and prevents them from enjoying equal rights. A
sustainable development strategy must therefore attempt to eliminate
gender-specific disadvantages so that men and women may receive an
equal share of the development process (gender equality).
Gender mainstreaming seeks to ensure that women hold an equal posi-
tion at all levels within society, e.g. in the training and healthcare sector,
rural development and economic life.
Globalisation
Globalisation refers to the process of global interdependence in areas
such as the economy, politics, culture, the environment, communication,
etc. The pace of that process is accelerating due to the massive reduc-
tion of transportation and communication costs as well as the removal
of barriers to the cross-border exchange of goods, services, capital,
knowledge, and – to a lesser extent – people. The effects of globalisa-
tion on developing and emerging countries are multi-faceted and vary
from country to country. Globalisation enables developing countries that
are resource-rich and export-driven to gain access to new markets and
enjoy greater political influence. At the same time, however, countries

with few products suitable for sale on world markets will be unable to
compete with cheap, mass-produced imported goods and will lose in-
fluence. Globalisation and global risks (climate change, scarcity of re-
sources, etc.) will especially affect the development prospects of poor
countries. One of Switzerland’s main > development policy objectives
is to promote a form of globalisation that fosters development. This in-
cludes closer cooperation and stronger negotiating power of southern
hemisphere countries during negotiations to establish international rules
and standards.
Global public goods

Within the space of only a few years, the concept of global public goods
(GPGs) has become a new reference framework for global environmental
and development policy. The term global public goods was first coined
in the > UNDP publication “Global Public Goods; International Coop-
eration in the 21st Century” (1999). GPGs are goods, whose usefulness
extends beyond national borders and regions, generations and groups
within society. This broad definition includes such items as peace and
security, health, an intact environment, cultural heritage, financial stabil-
ity, knowledge and information as well as fairness and equity.
As a concept, Global Public Goods is shaped by two characteristics.
First of all, no-one should be excluded from using a GPG (non-excluda-
bility) and secondly, it should be possible for a GPG to be used by vari-
ous people at the same time (non-rivalry).
Governance
The concept of governance, or rather, good governance, is based on the
premise that development cooperation will never be able to achieve sat-
isfactory outcomes without legal certainty, the rule of law and the ability
to hold those in government accountable for their actions. Governance
refers to the functioning of a state or political authority (political govern-
ance) or of the private sector (economic governance). The concept of

governance relates to the decision-making processes in various areas
within society as well as at various levels of responsibility.
The essential prerequisites for good governance include transparent
decision-making as well as reliable and efficient implementation of busi-
ness and policy decisions. In order to monitor governance, a state must
have independent institutions, an impartial judiciary and a strong > civil
society. Promoting good governance is one of the core concerns of de-
velopment cooperation, both at the level of the centralised state as well
as at the level of individual provinces and municipalities.
Governance is a cross-cutting theme in Swiss development cooperation
activities. Capacity building within municipal governments, decentrali-
sation of political structures and the development of an independent ju-
diciary are three prominent examples of governance-related activities.
Health
H Access to reliable, basic healthcare is one of the most important require-
ments for human development. The promotion of health is also among
the > Millennium Development Goals (MDGs). In addition to access to
healthcare, a person’s basic health also depends on good food, access
to clean water, family planning, prevention and vaccination campaigns,
etc. Basic health also requires a minimum level of education as well as
information about the healthcare system. This is especially important
for girls. The development of basic health is therefore associated with
aspects such as > gender and > education.
Promoting health is an important concern for Swiss development co-
operation. For one thing, activities are focussed on improving access to
basic healthcare for poor and disadvantaged groups within society. At
the same time, efforts are made to reform state healthcare systems so
that they are more effective and better able to satisfy the needs of the
population. The widespread fall in infant mortality, increased life expect-
ancy and the decreasing rate of infection with life-threatening diseases
show that health promotion activities in developing countries have been
successful.

Helping people to help themselves
Helping people to help themselves is an important principle of Swiss
development cooperation activities. It involves supporting states, soci-
eties and people in their own efforts to address poverty and develop-
ment issues. People are able to help themselves if they can be provided
with better access to knowledge, technology and resources. The aim
is to encourage institutions and organisations receiving support to take
initiative, to the extent of their capabilities, and to contribute their own
resources. The introduction of improved cultivation systems and access
to microfinance for the poor are two examples of how this objective can
be reached.
Human Development Index (HDI)

The Human Development Index (HDI) measures the quality of life and
the level of development in a given country. Developed by the United
Nations Development Programme (> UNPD) in 1990, the HDI takes three
main factors into account: life expectancy, > education and income.
Since it also includes social indicators, the HDI also provides a more
accurate picture of a country’s state of development than what would
normally be possible using the per capita income figure. Swiss devel-
opment cooperation focuses on > developing countries whose HDI is
particularly low. The index for 2009, which encompasses 182 countries,
includes several countries at the lower end of the scale that are currently
working with Switzerland: Chad (175), Burkina Faso (177), Mali (178) and
Niger (182). Switzerland held the 13th position in 2010, while Norway
held the 1st position.

Humanitarian aid
The main objective of humanitarian aid is to provide emergency relief
in the aftermath of natural disasters and violent conflicts. Saving lives,
securing drinking water supplies, building emergency shelters and ad-
ministering medical treatment to victims are the most important humani-
tarian aid tasks. Unlike > development cooperation, which is provided
over a much longer term, humanitarian aid is mostly concerned with
short-term priorities that need to be addressed right away.
The SDC’s Humanitarian Aid Division and the Swiss Humanitarian Aid
Unit (SHA) work closely together to provide humanitarian aid. The SHA
is able to deploy experts in as little as a few hours after a crisis situation
arises. In addition to emergency relief and reconstruction, other impor-
tant humanitarian aid activities include early detection of risks and risk
mitigation measures (prevention and preparedness). This may include
such things as setting up early warning systems or training rescue work-
ers in hazardous areas. Finally, humanitarian aid also involves advocacy
on behalf of the victims of humanitarian crises.
1980s
Women play a decisive role in promoting better
hygiene and health. (Health campaign in India)

Human rights
The Universal Declaration of Human Rights was adopted on 10 Decem-
ber 1948. This declaration formed the basis of over 60 international and
regional human rights conventions. Human rights are those to which all
human beings are entitled, irrespective of their nationality or skin colour,
their political or religious persuasion, social position, gender or age. The
State may not grant or deny those rights, nor may an individual forgo
them, either voluntarily or under duress. Human rights acknowledge
the value and dignity of human personality. > Development coopera-
tion itself is also based on human rights. (More information about hu-
man rights can be found in the publication entitled, “An ABC of Human
Rights”, which may be ordered from [email protected])
International financial institutions (IFIs)

I International financial institutions (IFIs) are institutions that provide
financial support and professional advice to developing and emerging
countries. Their financial resources and expertise enable them to con-
duct highly complex, large-scale projects and reform initiatives. IFIs are
also able to provide loans on favourable terms to developing countries
experiencing economic hardship. In addition, they grant loans on pref-
erential terms to the poorest countries. In cases where support is tied
to structural changes of an economic or institutional nature (such as
the opening up of local markets, good governance etc.), IFIs are able to
shape policies in loan recipient countries. It is this influence that makes
IFIs the target of recurring public criticism.
The most important IFIs are the World Bank Group and four regional
development banks (European Bank for Reconstruction and Develop-
ment, African Development Bank, Asian Development Bank and Inter-
American Development Bank). These IFIs are collectively referred to as
multilateral development banks. Another major IFI is the International
Fund for Agricultural Development. The World Bank Group extends
around CHF 25 to 30 billion in loans each year. Switzerland provides

both specialised knowledge and cash contributions to IFIs and holds a
seat on their steering bodies. It also contributes funding for loans to the
poorest countries.
Livelihood approach
L Livelihood refers to the overall living conditions of individuals. In the
context of development cooperation, the livelihood approach involves a
comprehensive analysis of the living conditions of poor population seg-
ments. Bundled measures such as the promotion of agriculture, > health
and > education are used to improve these conditions. These bundled
measures vary according to the region and population group involved.
Microfinance
M Microfinance is a collective term to describe financial services that are
mainly used by the poor. These include microloans, savings accounts,
insurance policies and money transfers. The most familiar vehicle in this
regard is the microcredit (small loan). Microcredits enable people, who
lack the collateral needed to qualify for credit by conventional banks,
to gain access to financing. Microcredits are granted to individuals and
groups who use them to lease land, purchase seed or set up a small
business. Microfinance is a cost-effective and market-based method of
> poverty reduction, which has been implemented in many countries in
Asia and Latin America. Thanks to new methods and technologies (such
as bank transfers via cell phones), microfinance services can be offered
at favourable rates in rural areas. In many partner countries, Swiss de-
velopment cooperation provides advice and start-up funding to micro-
finance institutions.

Migration
Migration is the term used to refer to the movement of people. Over the
past two decades, disparities in income between different countries,
rapid population growth in poor countries, converging labour markets
and unrelenting global demand for cheap labour have led to increased
migration between developing countries, as well as between developing
countries and industrialised countries. While this has certainly caused
problems, it has also created development policy opportunities. One
example of this are > remittances, which are money transfers that mi-
grants make to their home countries. At present, remittances are now
more than twice the total volume of > official development assistance.
Development planners now need to find ways in which legal and social
measures can be used to capitalise on the potential of migration (i.e. to
foster development in the migrants’ home countries) and minimise the
negative consequences of migration (e.g. the loss of highly qualified
workers in the home country).
1990s
Earth Summit in Rio (1992) sets new standards:
environmental and social issues can no longer
be tackled separately. Development must be
sustainable. (Water heated by solar power,
Jamkhed/India)

Millennium Development Goals (MDGs)
In order to halve extreme poverty by 2015, the international community
has agreed to a set of common development goals for the first time. The
> United Nations’ Millennium Declaration of 18 September 2000 covers
four areas:
• Peace, security and disarmament
• Development and poverty eradication
• Protecting our common environment
• Human rights, democracy and good governance
The eight development policy objectives reflect the resolutions made
at global summits held in the 1990s and apply to both developing and
industrialised countries in equal measure.
1. End poverty and hunger: the number of people living on less than
1 US dollar a day must be reduced by half by 2015.
2. Universal education: all children should be able to complete a full
course of primary schooling (> education).
3. Gender equality: gender disparity, particularly in primary and sec-
ondary education, should be eliminated (> gender).
4. Child health: the under-five mortality rate must be reduced by two-
thirds.
5. Maternal health: the maternal mortality rate must be reduced by
three-fourths.
6. Communicable diseases: the spread of AIDS, HIV infections, malar-
ia and other major diseases must be halted and eventually reversed
(> health).
7. Environmental sustainability: access to drinking water must be
improved and measures taken to halt the spread of shantytowns
around urban areas. Renewable energies should increasingly be put
to use to serve the poor.
8. Global partnership: a global development partnership between in-
dustrialised and developing countries should be established.

Each year, the UN and the World Bank publish reports showing the
amount of progress being made towards achievement of the MDGs.
Progress differs considerably in the various impoverished regions of the
world. Populous countries, such as China and India, have made consid-
erable progress, while the countries of sub-Saharan Africa have found it
more difficult to make any progress at all.
Multilateral cooperation
Problems that transcend national borders cannot be solved by individual
states acting alone. The > United Nations (UN), the international finance
institutions and global funding organisations are currently working to-
gether to address economic and social development issues. Interna-
tional institutions use approximately one-third of > official development
assistance (ODA) worldwide. The most important institutions involved
in multilateral cooperation include: the World Bank Group; the regional
development banks and their corresponding development funds; UN
agencies and programmes; as well as global funding organisations,
which also receive funding contributions from private foundations and
companies.
Due to their size and importance in the international cooperation field,
multilateral institutions are able to help governments implement reform
projects and broadly based programmes. Multilateral institutions are not
only able to influence international development objectives and agree-
ments, they also have a say on how initiatives are implemented.
Around 40% of Swiss development activities for southern hemisphere
countries take the form of multilateral cooperation. Switzerland also sits
on the steering bodies of UN organisations and > international financial
institutions. Switzerland is therefore in a position to influence interna-
tional development policy.

NGOs/Non-governmental organisations
N Non-Governmental Organisations (NGOs) are generally non-profit or-
ganisations whose activities are conducted independently of state au-
thorities. NGOs implement projects on a local level and their campaigns
can influence public opinion and perceptions. NGOs therefore play a
major role in > development cooperation and exert considerable influ-
ence within > civil society. NGOs fund their activities by selling services,
canvassing for donations and applying for state grants. Many donor
countries, including Switzerland, provide funding to specialised NGOs
for the implementation of programmes.
Official development assistance (ODA)

O Official development assistance (ODA) refers to the services and fund-
ing provided by public bodies (e.g. the Confederation, the Cantons and
local municipalities in Switzerland) for the purpose of promoting eco-
nomic and social development in developing countries. According to
the definition used by the OECD’s Development Assistance Committee
(> DAC), ODA also includes debt relief measures and expenditure relat-
ing to asylum seekers in their first year of residence.
The ratio of ODA to gross national income (GNI) is used as an interna-
tional benchmark. In order to reduce global poverty, the > UN recom-
mends that industrialised countries devote 0.7% of their GNI to ODA.
Switzerland’s development activities correspond to an ODA/GNI ratio
of 0.47% (2009), which puts Switzerland in 10th position among the
23 OECD/DAC member states.

Organisation for Economic Co-operation and Development
(OECD)
The Organisation for Economic Cooperation and Development (OECD)
was established in 1961. It is made up of 34 member states, all of which
are regarded as developed countries committed to democratic princi-
ples and market-based economies. The Development Aid Committee
(> DAC) formulates binding quality standards, informs its members of
best development cooperation practices and uses a peer review system
to monitor compliance with standards. Switzerland also aligns itself with
OECD recommendations on matters relating to development coopera-
tion.
Ownership
The concept of “ownership” is used in the context of development co-
operation to refer to how people identify with an initiative that affects
them directly. Ownership also refers to the individual responsibility as-
sumed by the target groups and partner organisations. Ownership is an
important pre-condition for the effectiveness, sustainability and success
of development cooperation initiatives.
1990s
Planting trees for future generations: sustainable
forestry becomes an important part of Swiss develop-
ment cooperation activities.

Participation
P In the context of development cooperation, participation refers to the
active role played by target groups in the design, implementation and
control of programmes and projects. Participation helps prevent de-
velopment cooperation from being regarded as a form of charity and
reduces dependency. Moreover, it serves to enhance project > sustain-
ability, promotes a culture of open exchange and reinforces democratic
processes within > civil society.
Peacebuilding
There can be no development without peace – and there can be no
peace without development. Peacebuilding creates or reinforces the
overall conditions needed to bring about sustainable > development
cooperation. In order to secure peace, both military (“peacekeeping”)
and civilian (“peacebuilding”) measures are needed. Peacebuilding in-
cludes such things as supporting transparent elections, encouraging
greater respect for > human rights, developing police institutions that
work closely with citizens, and establishing an independent judiciary.
Peacebuilding also includes peace talks. There are two specific tracks
involved in peacebuilding:
• Track 1 starts at government level and involves dialogue with those
who wield political or economic power.
• Track 2 is based on initiatives from > civil society (churches, > NGOs,
the private sector etc.).
Peacebuilding is an important tool used in Swiss foreign and develop-
ment policies. As a neutral country without a colonial history, Switzer-
land acts with a high degree of credibility.

Political dialogue
Successful development cooperation depends on favourable condi-
tions, such as political stability, economic efficiency, social justice, so-
cial > participation and environmental > sustainability. In order to effect
change across a broad spectrum, donor countries maintain regular dia-
logue with the authorities in partner countries. Political dialogue is in-
tended to raise policymaker’s awareness of the issues and enable sus-
tainable solutions to be found. In many cases, comprehensive structural
reforms are required before the state is able to make progress towards
> poverty reduction. Political dialogue is one of the main tasks carried
out by Swiss > cooperation offices in partner countries.
Poverty reduction
Poverty reduction is the main objective of > development policy and
> development cooperation. Even today, over one billion people must
live on less than one US dollar a day. Poverty is not only a material prob-
lem; it also excludes people from political and cultural life.
Securing economic, political and cultural rights is therefore a prereq-
uisite for poverty reduction. Significant progress has been made over
the past 20 years. For example, a number of Asian countries now enjoy
greater > food security thanks to efficient crop-growing methods. At the
same time, the rapid economic growth in these countries has reduced
the proportion of people living in poverty.
With the > Millennium Development Goals, the international community
committed itself to halving global poverty by 2015. Sustainable poverty
reduction can be achieved if disadvantaged groups within the popu-
lation are brought back into the economic cycle and their purchasing
power is increased. Investment in > health, > education and basic infra-
structure is also a contributing factor.

Priority countries
Swiss development cooperation work is directed towards individual
partner countries, which are known as priority countries. In each of the
selected partner countries, development cooperation focuses on a small
number of specialised themes (such as water, vocational > education
and training, support for SMEs, > health). Swiss > cooperation offices
are responsible for implementing programmes inside priority countries.
They also maintain dialogue with partner countries and other donors.
When considering Federal Council Dispatches and associated budget
requests, the Swiss Parliament decides which countries are to be con-
sidered as priority countries. The following criteria are used: amount of
need (level of poverty, propensity to crisis); good governance; added
value of Switzerland’s contribution; and likelihood that the cooperation
endeavour will be successful. The current list of priority countries in-
cludes a number of poor mountainous or land-locked countries with
similar natural landscapes as those in Switzerland. Such countries in-
clude Nepal, which was one of Switzerland’s first priority countries for
development cooperation.
Programme-based aid
Programme-based aid furthers the development of a specific sector
(such as healthcare, rural development, vocational education and train-
ing or infrastructure) or geographical region through a number of com-
plementary or coordinated measures. Programme-based aid is based
on the premise that the causes of poverty are numerous and cannot be
addressed by means of individual, stand-alone measures.

Project-based aid
Project-based aid supports implementation of individual initiatives. It is
easy to monitor and manage project-based aid and outcomes are gen-
erally easy to ascertain. The drawbacks of project-based aid include the
limited scope of individual projects, limited > sustainability of projects
after donor funding has ceased and a lack of > ownership by partners
since project-based funding is mainly intended to further the donor’s
own priorities.
Promoting democracy
Political co-determination is a > human right. Promoting democracy is
an important part of development cooperation, as countries are in a bet-
ter position to achieve sustainable development if people are included
at all levels of the policymaking process. Through this involvement, peo-
ple begin to take greater responsibility for their own lives. Democracy is
mainly promoted at the local community level in Africa, Asia and Latin
America. Promoting democracy is also important in Swiss development
aid to Eastern Europe and the Commonwealth of Independent States. In
this context, Switzerland’s role is to facilitate the development of demo-
cratic institutions and processes in countries that were formerly gov-
erned by communist regimes.
From 2000
onwards
With the Millennium Declaration of

2000, the international community
makes a commitment to halve global
poverty by 2015.

Pro-poor growth
Pro-poor growth seeks to achieve sufficient economic growth and pro-
vide poorer population segments with a suitable stake in that growth.
Developing countries are able to set pro-poor growth in motion through
various measures, e.g. raising the minimum wage, operating a fair taxa-
tion policy and making investments in > health and > education.
Public-private partnership (PPP)

Efficient institutions, good quality education and research and develop-
ment activities are the cornerstones of a dynamic economy. The private
sector also plays an extremely important role in helping to address pov-
erty and development issues. Public-private partnerships (PPPs) play
an increasingly important role in development cooperation. Such part-
nerships are intended to strengthen local markets and public services.
By tapping into the private sector’s capacity for innovation, sustainable
progress can be made towards > poverty reduction.
Switzerland has entered into public-private partnerships mainly in sec-
tors where Swiss companies are able to provide specific know-how in
such areas as effective medicines, cost-effective environmental tech-
nologies and efficient water supply systems.
Remittances
R Remittances are money transfers that migrants send to their countries
of origin to ensure that family members, relatives and friends left be-
hind will have enough money to cover their daily needs. Nowadays, total
cash flows transferred in the form of remittances are more than twice the
amount of > ODA provided worldwide.
Development planners have now recognised the importance of remit-
tances and are looking for ways to reduce transfer fees and more pro-
ductively include remittances in development processes.

Rural development
The prosperity gap between urban and rural areas in a great many
countries causes people to leave the countryside and move to the city,
which leads to the rapid development of slums. Rural development pro-
grammes must therefore improve living conditions in the countryside
in order to stave off rural migration. Rural development programmes
include such measures as promoting smallholder farming, improving
market opportunities for locally grown products and establishing edu-
cation and healthcare facilities. Switzerland has solid experience in ru-
ral development and the relevant programmes play a prominent role in
Swiss development cooperation activities.
SECO
S The State Secretariat for Economic Affairs (SECO) is part of the Federal
Department of Economic Affairs (FDEA) and is an important player in
Swiss development cooperation activities. SECO’s Economic Coopera-
tion and Development Division is responsible for economic and trade
policy measures for > developing countries and > transition countries.
SECO’s economic development activities also benefit disadvantaged
groups within the population (> pro-poor growth). SECO mainly seeks
to achieve stable economic conditions, diversify exports, promote fair
trade and improve basic infrastructure. SECO also closely monitors is-
sues relating to energy, the environment, climate (> climate protection)
and economic > governance.
Sustainability
Sustainable development meets the needs of the present without com-
promising the ability of future generations to meet their own needs. This
was the definition used by the World Commission on Environment and
Development (Brundtland Commission) in 1987. > Development coop-
eration programmes are considered sustainable if they support the local

stakeholders’ own efforts to eradicate poverty and if local stakeholders
are able to continue development programmes after the initial support
funding has been phased out. Development policy interventions only
make sense if they satisfy the criterion of sustainability.
Swiss Agency for Development and Cooperation (SDC)

In addition to providing humanitarian aid, the Swiss Agency for Develop-
ment and Cooperation (SDC) also coordinates development coopera-
tion and aid to the countries of Eastern Europe and the Commonwealth
of Independent States (CIS). Part of the Federal Department of Foreign
Affairs, the SDC employs around 1,500 people in and outside of Switzer-
land. The SDC’s activities can be broken down into four main domains:
• The SDC’s Regional Cooperation helps people, organisations and
societies in > priority countries, as well as in selected regions and
countries mired in conflict, to resolve issues associated with poverty
and development.
• The SDC’s Global Cooperation contributes funding to > UN organi-
sations and > international financial institutions, where it also plays
an active role in steering bodies. The SDC’s Global Cooperation
also influences global discussions and contributes to efforts to
overcome international challenges (climate change, > migration,
> food security and water shortages).
• The SDC’s Humanitarian Aid and Swiss Humanitarian Aid Unit (SHA)
saves lives and alleviates human suffering in disaster and conflict
zones by taking preventive measures before, and emergency re-
lief measures after, crisis situations arise. Switzerland actively takes
part in reconstruction efforts and devotes resources to help the vic-
tims of natural disasters and conflicts.
• The SDC’s Cooperation with Eastern Europe supports reform proc-
esses in the Western Balkans and the CIS. It also works with the
State Secretariat for Economic Affairs (> SECO) to implement Swit-
zerland’s > contribution to EU enlargement.

The Paris Declaration
T The Paris Declaration on Aid Effectiveness of 2005 contains measures
designed to improve the coordination and allocation of tasks among do-
nors. It also seeks to create a stronger sense of individual responsibility
on the part of recipients of ODA. The Paris Declaration establishes five
objectives:
• Ownership. Developing countries should take on greater responsi-
bility (> ownership).
• Alignment. Donors should not set up parallel structures but rather
implement programmes with existing institutions in partner coun-
tries. They also need to align their objectives with those of partner
countries.
• Harmonisation. Donors should harmonise their programmes and
processes more effectively.
• Results. Developing countries and donors should focus more on
development results and measurement rather than merely on the
services rendered.
• Mutual accountability. Donors and partners should be held account-
able to the general public for development results.
The Paris Declaration has led to greater coordination among donors and
has influenced Swiss development cooperation activities.
From 2000
onwards
By 2015, all children, both boys and girls, should

be able to attend and complete a full course of
primary schooling.

Third World
Though imprecise and outdated, the term “Third World” is frequently
used to refer to > developing countries. The term originally meant the
non-aligned countries, which during the Cold War were neither part of
the capitalist West (the First World) nor the communist East (the Second
World). It was only later that the term became equated with developing
countries.
As a collective term, the “Third World” encompassed a broad range of
countries such as India, Nigeria and Honduras that, despite their differ-
ences, shared similar problems. Nowadays, > development cooperation
is based on the premise that the problems experienced by developing
countries can be attributed to a variety of causes that all need to be ad-
dressed on an individual basis. In some cases, the most sensible option
is to adopt a variety of approaches that take into account the raw mate-
rials, resources and potential of the country concerned. Based on cur-
rent perceptions, there is only “one world” comprised of interdependent
poor, emerging and wealthy countries.
Tied aid
Tied aid is a term used to describe a situation where the recipient coun-
try is obliged to purchase specific products and services from the donor
country. With this type of aid, the recipient country must be willing to
develop market outlets for the donor country’s products and services.
Nowadays, this approach is rarely used because it prevents tailor-made
solutions from being applied and because it is mainly intended to impose
the donor country’s (expensive) pricing levels on the recipient country.
Moreover, tied aid also contravenes one of the rules established by the
World Trade Organisation, whereby procurement orders must be made
on the basis of international calls for tender. In 2001, the Organisation
for Economic Co-operation and Development (> OECD) recommended
that the least developed countries (LDCs) no longer be required to pur-
chase a donor country’s goods in exchange for the provision of aid.

Switzerland also shares this concern and supplies almost no tied aid to
developing countries. Some of the funding for infrastructure projects in
the transition countries of Eastern Europe is partly tied to certain condi-
tions.
Transitional aid
Transition implies a shift from one situation to another. Under the head-
ing of transitional aid, Switzerland helps countries of Central and Eastern
Europe to shift from planned economies, which were prevalent under
the communist system, towards democracy and market-based econo-
mies. Transitional aid was first provided shortly after the fall of the Berlin
Wall in 1989. Working closely with other Western European states, Swit-
zerland provided technical and financial support to countries wishing
to implement reforms. Thanks to rapid economic and institutional ad-
vances, ten former communist countries in Central and Eastern Europe
were admitted to the European Union in 2004 and 2007.
Since 1990, Switzerland has provided transitional aid worth a total of
CHF 4 billion (as of 2010). The specific priorities of transitional aid in-
clude the following: development of democratic institutions, reform of
healthcare and education sectors, support for small and medium enter-
prises (SMEs) and consolidating the position of > civil society. Nowa-
days, the transitional aid provided by the > SDC and > SECO goes to
countries in the Western Balkans and the former Soviet Union (the Re-
public of Moldova, Ukraine, the Southern Caucasus and Central Asia).
In these countries and regions, the transition process has not yet been
completed.

UNDP
U With offices in New York, the United Nations Development Programme
(UNDP) is one of the largest institutions involved in > multilateral cooper-
ation. As such, it plays a decisive role in shaping international develop-
ment policy. The UNDP was established in 1965 and its global presence
has enabled it to play a key role in > poverty reduction and pursuit of the
> Millennium Development Goals. The UNDP is active in almost every
area of development cooperation and maintains a worldwide network
of employees. It is funded through voluntary contributions from > UN
member states. Switzerland is one of the UNDP’s top 10 contributors
and is also home to the UNDP’s European headquarters, which are lo-
cated in Geneva.
From 2000
onwards
The Millennium Declaration includes the objective of

providing access to clean drinking water. Swiss devel-
opment efforts over the past five years have made this
a reality for 370,000 people.

United Nations (UN)
The United Nations (UN) is an organisation comprised of 192 member
states. The most important tasks of the UN are to secure world peace,
uphold international law, protect human rights and promote internation-
al cooperation. Around 70% of the UN’s total expenditure is directed
towards development work. The UN also includes a number of affiliated
institutions that are responsible for various development policy-related
activities. The most prominent of these UN institutions is the United Na-
tions Development Programme (> UNDP). The UN General Assembly is
another major catalyst for development cooperation. In 2000, for exam-
ple, it adopted the Millennium Declaration, in which 189 Heads of State
and Government committed to achieve the > Millennium Development
Goals.
Switzerland has been a full-fledged member of the United Nations since

September 2002. Thanks to the presence of the United Nations Eco-
nomic Commission for Europe (UNECE) and various sub-organisations
of the UN, Geneva is the UN’s most important location in Europe.
Additional terms
An explanation of other specialised terms relating to development cooperation
can be found in the web-based glossary of the Swiss Agency for Development
and Cooperation (SDC): www.deza.admin.ch/en/Home/glossar

Imprint
Published by
Federal Department of Foreign Affairs (FDFA)
3003 Bern
Switzerland
www.eda.admin.ch
Design
Swiss Federal Chancellery / Peter Auchli
Pictures
All pictures are taken from the SDC archive
Printing
Werner Druck AG, Basel
Orders
FDFA Information
Tel.: +41 (0)31 322 31 53
E-Mail: [email protected]
Contact
Swiss Agency for Development and Cooperation (SDC)
Tel.: +41 (0)31 322 34 75
E-Mail: [email protected]
This publication is also available in German, French and Italian.
Berne, 2011

ABC of Development Policy

Uploaded by

Copyright:

Available Formats

ABC of Development Policy

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ABC of Development Policy

Uploaded by

Copyright:

Available Formats

ABC of

ABC of Development Policy 1

Switzerland’s development cooperation 8

2 ABC of Development Policy

Over the past quarter of a century, real incomes in developing countries

Development – an evolving concept

Development issues first became widely discussed in the 1950s and

ABC of Development Policy 3

Back then, development cooperation was likened to the Marshall Plan.

In practice, however, the predicted level of progress failed to materialise.

From catch-up to sustainable development

4 ABC of Development Policy

ABC of Development Policy 5

Advance of emerging countries

Emerging countries, the cross-border movement of goods and people

6 ABC of Development Policy

This vulnerability means that international cooperation has become

ABC of Development Policy 7

Federal development cooperation focuses on the needs of impoverished

8 ABC of Development Policy

Over the past 50 years, Swiss development cooperation activities have

ABC of Development Policy 9

10 ABC of Development Policy

ABC of Development Policy 11

12 ABC of Development Policy

ABC of Development Policy 13

Civil society organisations

14 ABC of Development Policy

ABC of Development Policy 15

Conflict prevention > Peacebuilding

16 ABC of Development Policy

ABC of Development Policy 17

Culture and development

18 ABC of Development Policy

ABC of Development Policy 19

20 ABC of Development Policy

ABC of Development Policy 21

22 ABC of Development Policy

ABC of Development Policy 23

24 ABC of Development Policy

ABC of Development Policy 25

26 ABC of Development Policy

ABC of Development Policy 27

Global public goods

28 ABC of Development Policy

ABC of Development Policy 29

Human Development Index (HDI)

30 ABC of Development Policy

ABC of Development Policy 31

International financial institutions (IFIs)

32 ABC of Development Policy

ABC of Development Policy 33

34 ABC of Development Policy

ABC of Development Policy 35

36 ABC of Development Policy

Official development assistance (ODA)

ABC of Development Policy 37

38 ABC of Development Policy

ABC of Development Policy 39