Norwegian aid works: but not well enough

This report is Norad’s first attempt to compile and present results of all Norwegian development assistance, which amounts to more than NOK 20 billion per year (approximately USD 3.5 billion).

Part I follows the Norwegian resources part of the way into international development cooperation and brings together the results achieved in eight sectors and thematic areas, which cover most of Norwegian development assistance. At the end of Part I the report tries to answer the question whether or not Norwegian aid has been effective and finds that Norway’s aid works, but not well enough.

Part II gives an in-depth analysis of the results achieved in important areas of Norwegian aid: Poverty reduction; economic growth and aid; health; peace-building; humanitarian assistance and development aid for fragile states; women and gender equality; the environment; energy supply and petroleum management; education and research; private sector development; governance; democracy and human rights.

As an example of long-term Norwegian involvement in a poor, developing African country, the report uses Zambia as a case study to analyse the results achieved because of Norwegian aid.

Some of the lessons learnt from this report are:

• reforming public financial management is a lengthy and comprehensive process, where the initial stages are easier to implement than more radical, structural changes

• the ruling elite’s willingness to strengthen human rights, the national power structures, and the principles of rule-of-law, are all influenced by the strength of the civil society, external political and economic pressure

• there is no automatic connection between economic growth and poverty reduction; however, if impoverished people are to achieve their share of progress, they must participate in production and income-generating activity

• good health contributes to economic growth and global security and is a good investment for both developing countries and donors

• joint efforts and the achievement of long-term results are undermined by the fragmentation of aid and by weak health systems and corruption in developing countries

• the absence of national prioritisation of environment as a cross-cutting issue means that environment is not being integrated into national plans, sector programmes or other public programmes in the developing countries.

Despite providing valuable insight, the report has its weaknesses, partly due to insufficient focus on management by goals and results in Norwegian development policy and aid administration. Overall the analysis shows that Norway contributes to results in individual sectors and thematic areas, but it does not compare effectiveness and results across sectors, funding channels or partners.