Swiss spend SFr1.5 billion on development aid

Swiss funding helped rebuild this school in Kosovo Keystone Archive

Switzerland spent SFr1.5 billion ($841 million) on overseas development assistance (ODA) last year, with much of the money going towards flood relief in Mozambique and aid to the Balkans. In terms of gross national product, the contribution put Switzerland well ahead of the United States, but behind the Scandinavian countries.

In GNP terms, Swiss development aid in 2000 fell slightly compared to the previous year, from 0.35 per cent to 0.34. This compares favourably to the US, which contributed only 0.1 per cent of its GNP to the developing world.

However, figures from the Organisation for Economic Cooperation and Development(OECD) show that Switzerland lags behind Denmark (1.06 per cent), Sweden (0.81 per cent) and Norway (0.8 per cent).

In its annual report, released on Wednesday, the Swiss Agency for Development and Cooperation (SADC) said Switzerland’s contribution had risen slightly in real terms, but had been squeezed by government efforts to balance the budget.

It added that Switzerland’s contribution should rise to 0.4 per cent of GNP in 2002, in line with the government’s commitment to boost overseas aid.

The lion’s share of Swiss overseas aid was spent on development cooperation (SFr836 million), and humanitarian aid (SFr262 million). Some SFr200 million was made available to the United Nations for development and humanitarian aid activities, making Switzerland the UN’s 12th most important donor, even though it is not a member of the world body.

A substantial share of the “aid” – SFr133 million – was spent on “economic and trade policy measures”, to encourage economic reforms in developing countries.

Another SFr130 million went to the World Bank and the International Monetary Fund. The SADC said this money was to fund “a new approach to ensure that poverty fighting strategies are… developed in the respective countries”. World Bank and IMF policies have long been criticised by the countries which they are meant to benefit.

Among the countries benefiting from Swiss ODA in 2000 were flood-stricken Mozambique and the Yugoslav republic of Kosovo.

In Mozambique, Swiss money paid for fresh drinking water supplies, medicines, and reconstruction; in Kosovo, Switzerland embarked on projects to restore the war-torn infrastructure and civil services, and it set up a local, multi-ethnic radio station – “Radio Blue Sky” to provide impartial, objective news programmes.

swissinfo