A redefined role for Norad

The role of the Norwegian Agency for International Development changed dramatically in 2004. Starting April 1 of that year, Norad - as the agency is otherwise known - no longer handled bilateral aid programs. “The government-to-government and bilateral aid is at the Ministry [of Foreign Affairs] and the embassies,” according to Oskar Oskarsson, senior adviser at Norad’s Department of Quality Assurance. Specifically, Norway’s Ministry of Foreign Affairs took charge of planning and executing bilateral aid activities and decentralized decision making. The embassies, meanwhile, became responsible for program implementation and coordination. “I think we have pluses and minuses,” Oskarsson said about the effects of the 2004 reforms on Norad’s operations. “We are still defining our roles.” Norad’s current main thrust is to promote effective aid administration as well as evaluate and ensure the quality of Norway’s development cooperation. Though it lost oversight of the money going to aid projects, the agency remains involved in the procurement process, particularly for programs valued at more than NOK50 million (US$7.5 million). In such instances, embassies should consult Norad, which may opt to directly handle procurements or recommend another organization, whether in the government or private sector, for the job. The Oil for Development scheme is another exception to the policy. Norad is coordinating and implementing the program, which the Norwegian government launched in 2005 to help petroleum-producing developing countries use oil and gas revenues to promote economic growth and improve the welfare of their people. Norad likewise provides funding to Norwegian non-governmental organizations, which, according to the Web site of the Norwegian embassy in the Philippines, “are important partners in Norwegian development co-operation.” According to Oskarsson, “Norad’s role is in general terms advisory.” The agency renders advice to the Norwegian foreign ministry and embassies upon request, and in matters concerning humanitarian assistance as well as Norway’s involvement in the United Nations and other multilateral institutions. “There are pros and cons of the 2004 change-it has increased the political engagement in aid,” Asbjørn Eidhammer, director of Norad’s Department of Evaluations, said. Oskarsson acknowledged that bringing aid closer to the political arena, with the Norwegian foreign ministry at the helm of the aid structure, could make it easier to implement initiatives like the 2005 Paris Declaration on Aid Effectiveness. Norway is one of the signatories to the declaration. “We have still a lot of work with the Paris Declaration,” Oskarsson said, adding that implementing the accord will depend on whether or not politicians see its importance. Budget support is a similar case. “We have generally seen a trend towards more budget support, but this is also politically challenged,” Eidhammer said.