Top bilateral donors: A primer

International development has seen its donor community expand over the last few years. Amid a greater awareness on the global poor’s plight, more and more corporations, foundations and individuals – from social entrepreneurs to billionaire philanthropists – are joining the aid-giving fray. Bilateral donors, however, remain the key players in this industry. In 2010, member countries of the Organization for Economic Cooperation and Development’s Development Assistance Committee, or 23 of the world’s richest countries, disbursed nearly $129 billion, or 90 percent of the more than $143 billion total from all donors that report their official development assistance to OECD, according to preliminary data. OECD tracks aid from more than 70 donors, which also include multilateral agencies, emerging donor nations, and the Bill & Melinda Gates Foundation. Donor countries rely mainly on their own agencies to manage their ODA. Some have created offices with the sole purpose of overseeing aid programs, like the United States and Australia, while others, including the Netherlands and Denmark, have put their foreign affairs ministries in charge of development cooperation. These agencies offer lucrative funding opportunities, some exceeding $100 million. Although most bilateral donor agencies allow foreign organizations to bid on at least some of their procurements, a majority of contracts tends to end up in the hands of domestic non-governmental organizations and consultancies. Agencies that allow for global competition of grants and contracts include the Agence Francaise de Developpement, U.K. Department for International Development, Irish Aid, Luxembourg Ministry of Foreign Affairs, Millennium Challenge Account, Finnish Ministry of Foreign Affairs, Dutch Ministry of Foreign Affairs, Norwegian Agency for Development Cooperation and Swiss Agency for Development and Cooperation. AusAID also does not restrict its funding opportunities to Australian organizations except when they are funded by the Australia Indonesia Partnership for Reconstruction and Development. So, which are the world’s top bilateral donors? Using aid figures for 2009, the latest year on which OECD has detailed information on ODA, Devex ranks aid-giving government agencies from OECD-DAC member countries. Entries also indicate total ODA disbursements and recipient countries. 1. U.S. Agency for International DevelopmentJobs | Projects and tenders | NewsHeadquarters: Washington, D.C., USA Head of agency: Administrator Rajiv Shah Total ODA: $14.7 billionODA grants: $14.7 billionRecipient countries: More than 120 countries worldwide Of the more than a dozen agencies handling U.S. development funding, USAID manages the bulk, disbursing around 56 percent of the total U.S. ODA in 2009. But the volume of aid dollars the agency has at its disposal is down this year as compared to 2010, and its funding prospect for 2012 is likely to be as dim, as some lawmakers – particularly Republicans, who right now rule the House of Representatives – are keen to slash the country’s foreign affairs budget. As a way to save taxpayers’ money, Administrator Rajiv Shah has introduced procurement reforms, which he said are “crucial to delivering assistance in a much more effective and evidence-based way, generating real results faster, more sustainably and at lower cost so more people can benefit.” The reforms seek to eliminate dependence on large contractors and boost funding to local partners and entrepreneurs. 2. Japan International Cooperation AgencyJobs | Projects and tenders | NewsHeadquarters: Tokyo, Japan Head of agency: President Sadako Ogata Total ODA: $9.16 billionODA grants: $1.66 billionODA loans: $ 7.50 billion Recipient countries: 72 countries worldwide The overhaul of Japan’s development cooperation structure in 2008 placed JICA in charge of the country’s three main ODA streams: yen loans (which used to be under the aegis of the Japan Bank for International Cooperation), grants and technical cooperation. The same year saw the country’s ODA commitments soaring to $15.2 billion, but a sluggish economy has prompted the country to keep trimming its development aid. In January, Japan indicated that 2011 will be no different, and some reports suggested that JICA’s programs could be suspended or delayed with the government considering diverting a portion of the aid budget to efforts aimed at rebuilding communities devastated by the March 11 earthquake and tsunami. Before the twin disasters, the agency was eyeing to launch new projects in Africa, maintain a strong presence in Afghanistan, and increase its support for Sri Lanka and the Middle East in 2011. 3. U.K. Department for International DevelopmentJobs | Projects and tenders | NewsHeadquarters: London and East Kilbride, Glasgow, United Kingdom Head of agency: Secretary of State for International Development Andrew MitchellTotal ODA: $6 billionODA grants: $6 billionRecipient countries: 27 countries in Africa, Asia and the Middle East Since he took over DfID in May 2010, U.K. Secretary of State for International Development Andrew Mitchell has undertaken reforms under the overarching principle of value for money, especially as foreign aid spending is one of only two budget areas that the U.K.’s ruling coalition has ring-fenced. The principle guided the agency’s bilateral and multilateral aid reviews, which recommended the termination of programs in 16 countries and contributions to four multilateral organizations. It is also now prompting a more intense competition in awarding grants to civil society groups and scaled-down staffing at DfID. The department is a Devex Top 40 Development Innovator. 4. Dutch Ministry of Foreign AffairsJobs | Projects and tenders | News Headquarters: The Hague, Netherlands Head of agency: Minister of Foreign Affairs Uri Rosenthal Lead official for development cooperation: Minister for European Affairs and International Cooperation Ben Knapen Total ODA: $4.92 billionODA grants: $4.92 billionRecipient countries: Once parliament approves the new development policy, the list of partner countries will only include Bangladesh, Benin, Burundi, Ethiopia, Ghana, Indonesia, Kenya, Mali, Mozambique, Palestinian territories, Rwanda, Sudan, Uganda and Yemen In March 2011, Minister for European Affairs and International Cooperation Ben Knapen announced a new policy for Dutch development cooperation, which focuses on fewer sectors and recipient countries. The target sectors include security and the legal order, water, food security, and sexual and reproductive health and rights, areas “in which Dutch businesses, civil society organisations, and knowledge institutions can offer expertise and add special value,” according to the ministry. The number of partner countries will go down to 15 from 33, but the ministry said it will respect existing agreements, “wherever possible,” or adjust some “in exceptional cases.” It intends to draw up exit strategies for all countries that will no longer receive Dutch aid once parliament approves the new policy. 5. Norwegian Ministry of Foreign AffairsJobs | Projects and tenders | News Headquarters: Oslo, Norway Head of agency: Minister of Foreign Affairs Jonas Gahr Støre Lead officials for development cooperation: Minister of the Environment and International Development Erik Solheim, Director for Development Policy Hege Hertzberg, and Norwegian Agency for Development Cooperation Director-General Villa Kulild Total ODA (including Norad): $3.08 billion ODA grants: $3.08 billionRecipient countries: 114 but 32 are “important countries for Norwegian development cooperation” The Norwegian government eyes an increased development aid budget of $4.6 billion in 2011, according to its pronouncement in October. The sum represents 1.02 percent of the gross national income, or 1.5 times the internationally agreed target of 0.7 percent of GNI. It includes $327 million for programs promoting clean energy and supporting adaptation to climate change in the developing world. Norway also promises to intensify efforts that can help increase tax revenues of poor countries and prevent illicit capital flows that it said drain these countries’ resources. It launched in March its Taxation for Development program, with Zambia, Mozambique and Tanzania as initial partner countries, and has issued a call for proposals, primarily benefiting Norwegian entities, to “promote discussion, knowledge and a common understanding of capital flows into and out of developing countries, and of the impact of such flows on development and the fight against poverty.” Other areas of focus for Norway this year include peace and conflict resolution, human rights and humanitarian aid, women and gender equality, good governance, institution building, anti-corruption, and maternal and child health. 6. Spanish Ministry of Foreign Affairs and CooperationJobs | Projects and tenders | News Headquarters: Madrid, Spain Head of agency: Minister for Foreign Affairs and Cooperation Trinidad Jiménez Lead officials for development cooperation: Spanish Secretary of State for International Cooperation Soraya Rodriguez and Spanish Agency for International Development Cooperation Director Francisco Moza Total ODA: $2.91 billion ODA grants: $ 2.84 billionODA loans: $71.3 millionRecipient countries: 50 countries but prioritizes 23 in Asia, Africa, Latin America and the Middle East The Spanish Ministry of Foreign Affairs and Cooperation and the Spanish Agency for International Development Cooperation, or AECID, a semiautonomous agency attached to the ministry, oversee a combined aid budget of €2.9 billion ($4.7 billion) in 2011, according to a document obtained by Devex. The funding includes more than €545 million for the newly approved Fund for the Promotion of Development, or Fonprode. The government’s goal this year is to operationalize the fund, including creating an office to oversee it and guidelines to integrate this instrument into AECID’s programs. Last February, senior Spanish officials met to discuss proposed implementing regulations for Fonprode, which specify the types of activities that can be financed through the fund, procedures for approving contributions to programs, and measures for safety, assessment and rendering of accounts. 7. Agence Francaise de DeveloppementJobs | Projects and tenders | News Headquarters: Paris, France Head of agency: Director-General Dov ZerahTotal ODA: $2.38 billionODA grants: $988.6 million ODA loans: $1.4 billion Recipient countries: 65 countries worldwide The premier agency managing France’s official development assistance celebrates its 70th anniversary in 2011. Dov Zerah, who became the agency’s director-general in June, envisions a “more aggressive” AFD as it turns 70, with a stronger focus on Africa. The framework document on French development cooperation, which was released in April 2011, mirrors that intention, identifying 14 countries in sub-Saharan Africa as priority grant recipients for the next 10 years. Zerah is also aiming to increase public awareness of the work that AFD does. The agency, for those unfamiliar with its operations, has a dual role: that of a development bank and a specialized financial institution. It provides financing in various forms: grants, subsidies, guarantees, loans, equity shareholdings, cofinancing and local bank intermediation. 8. Canadian International Development AgencyJobs | Projects and tenders | News Headquarters: Gatineau, Quebec, Canada Head of agency: Minister of International Cooperation Beverley J. Oda Total ODA: $2.34 billion ODA grants: $2.34 billionRecipient countries: All developing nations but focuses on Afghanistan, Bangladesh, Bolivia, Caribbean, Colombia, Ethiopia, Ghana, Haiti, Honduras, Indonesia, Mali, Mozambique, Pakistan, Peru, Senegal, Sudan, Tanzania, Ukraine, Vietnam, and the West Bank and Gaza CIDA was embroiled in controversies under the leadership of Minister of International Cooperation Beverley J. Oda, who admitted to altering a CIDA memo that originally recommended funding for church-based group Kairos – a move that led to calls for her to be cited in contempt of parliament before the body was dissolved in late March. Previous to that scandal, her agency was criticized for the delay in the disbursement of funds to support relief efforts in flood-hit Pakistan and quake-struck Haiti. Both countries, along with Afghanistan, where Canada is expected to provide less aid after it pulls out its troops this year, are among CIDA’s 20 focus nations under the revamped Canadian aid strategy. The approach eyes channeling half of CIDA’s aid funding to these focus countries. It also seeks the increased engagement of Canadian citizens and organizations in international development initiatives and a streamlined project application process to help allocate more money to development work on the ground. 9. Swedish International Development Cooperation AgencyJobs | Projects and tenders | News Headquarters: Stockholm, Sweden Head of agency: Director-General Charlotte Petri Gornitzka Total ODA: $2.32 billion ODA grants: $2.31 billionODA loans: $7.6 millionRecipient countries: 44 countries worldwide Sida started 2011 with a budget of $17.5 billion Swedish kroner ($2.8 billion), including 1.5 billion Swedish kroner in grants to civil society groups engaged in the developing world, and a revamped organization. It now employs a “classical structure” of nine departments under the director-general’s office, replacing the old setup with “three pillars.” It has also reduced its workforce by 120. The re-organization process began in September, four months after the dismissal of Anders Nordstrom, whose leadership drew criticism from Swedish Minister for International Development Cooperation Gunilla Carlsson. Charlotte Petri Gornitzka immediately replaced him and was named acting chief of the Swiss aid agency, and last February, she officially became Sida’s director-general. 10. Australian Agency for International DevelopmentJobs | Projects and tenders | News Headquarters: Canberra, Australia Head of agency: Director-General Peter Baxter Total ODA: $2.31 billionODA grants: $2.22 billionODA loans: $88.2 millionRecipient countries: Prioritizes Asia and the Pacific but has programs in Africa, Latin America and the Caribbean, and the Middle East AusAID took a public relations beating after a May 2010 expose indicating that the agency has been relying on expensive consultants to implement its programs. Immediately, the agency announced a review of its technical adviser positions, which later recommended the phaseout of 257 adviser posts, including 181 in Papua New Guinea and 29 in East Timor, as well as reductions in adviser fees by a fourth. The government has ordered another review on remuneration packages offered to public servants working overseas as Australian aid advisers. It has also commissioned an independent review of the Australian aid program, which, according to the head of the panel leading the process, would recommend some programs to be “cut, amalgamated or consolidated.” AusAID is also a Devex Top 40 Development Innovator. 11. Danish Ministry of Foreign AffairsJobs | Projects and tenders | News Headquarters: Copenhagen, Denmark Head of agency: Minister for Foreign Affairs Lene Espersen Lead officials for development cooperation: Minister for Development Cooperation Søren Pind and State Secretary for Development Policy Ib PetersenTotal ODA: $1.67 billionODA grants: $1.67 billionRecipient countries: Afghanistan, Bhutan, Burkina Faso, Ethiopia, Kenya, Myanmar, Pakistan, Palestinian territories, Somalia, Sudan, Tanzania, Uganda, Zambia, Zimbabwe and Vietnam In September 2010, Denmark announced its development cooperation priorities between 2011 and 2015. The five-year plan focuses on 15 countries, including nine in Africa, and four areas: freedom, democracy and human rights; growth and employment; gender equality; stability and fragility; and environment and climate. The Danish ministry, through its implementing arm, the Danish International Development Agency, expects to spend 15.2 billion Danish kroner ($2.46 billion) annually through 2013 for development cooperation programs and channel 1.023 billion Danish kroner yearly in aid through non-governmental organizations for all the five years covered by the plan. 12. Gesellschaft für Internationale ZusammenarbeitJobs | Projects and tenders | News Headquarters: Bonn and Eschborn, Germany Head of agency: Chairman of the Management Board Bernd Eisenblätter Total ODA (GTZ): $1.29 billion ODA grants (GTZ): $1.29 billionRecipient countries: More than 130 countries worldwide GIZbecame operational on Jan. 1, 2011, which marked the completion of what many saw as a historic reform of German development cooperation. It is a product of a merger between three agencies that used to implement technical cooperation programs under the German Federal Ministry for Economic Cooperation and Development, namely the German Technical Cooperation, or GTZ, the German Development Service, and Inwent. Details on the new agency’s structure remain unclear, save for the creation of a management board, which had drawn criticism for being all-male, and the retention of most of the three agencies’ staff. GIZ, a Devex Top 40 Development Innovator, meanwhile, has ramped up its cooperation with other aid agencies, particularly with its Japanese and French counterparts to implement projects in Africa. 13. Belgian Ministry of Foreign Affairs, Foreign Trade and Development CooperationJobs | Projects and tenders | News Headquarters: Brussels, BelgiumHeads of agency: Deputy Prime Minister and Minister of Foreign Affairs and Institutional Reforms Steven Vanackere and Minister for Development Cooperation Olivier Chastel Total ODA: $1.15 billion ODA grants: $1.11 billion ODA loans: $39.5 million Recipient countries: Algeria, Benin, Bolivia, Burundi, the Democratic Republic of Congo, Ecuador, Mali, Morocco, Mozambique, Niger, Palestinian territories, Peru, Rwanda, Senegal, South Africa, Tanzania, Uganda, Vietnam Belgium earned positive marks in a donor peer review conducted by Canada and Switzerland in 2010. The review commended Belgium for focusing its development cooperation on a limited number of sectors – basic health care; education and training; agriculture and food security; basic infrastructure; and conflict prevention and the strengthening of societies by promoting respect for human dignity, human rights and fundamental freedoms – as well as fewer cross-cutting issues, including environment, gender equality and women’s rights, social economy, and children’s rights. Within the ministry, the Belgian Technical Cooperation is the entity in charge of implementing the European donor nation’s programs in 18 partner countries. BTC has a wide array of employment opportunities for Belgians, nationals in partner countries and consultants. The ministry, meanwhile, offers traineeship and scholarship grants to developing country nationals wishing to study in Belgium, cofinancing for non-governmental organizations, and support for activities to raise Belgian public awareness about the importance of development cooperation. 14. Millennium Challenge Corp.Jobs | Projects and tenders | NewsHeadquarters: Washington, D.C., USA Head of agency: CEO Daniel Yohannes Total ODA: $932.4 millionODA grants: $932.4 millionRecipient countries: 23 with compacts, 18 with threshold programs With the conclusion of its early compacts, the Millennium Challenge Corp., an organization revered in the development community for its effectiveness in aid delivery, has been exploring new partnership approaches, such as forging second, concurrent and longer compacts as well as extending compacts in “exceptional circumstances.” So far, only three countries – Cape Verde, Georgia and Ghana – have been deemed eligible for second compacts. MCC expects to sign multibillion-dollar grant agreements with the latter two, along with Indonesia, in 2011, and it seeks $1.125 billion for this purpose. MCC is the implementing agency of the Millennium Challenge Account. 15. Swiss Agency for Development and CooperationJobs | Projects and tenders | News Headquarters: Berne, Switzerland Head of agency: Ambassador and Director-General Martin Dahinden Total ODA: $887 millionODA grants: $887 millionRecipient countries: Active in Africa, Asia, Latin America and the Middle East, but prioritizes Bangladesh, Benin, Bhutan, Bolivia, Burkina Faso, Chad, Laos, Mali, Mozambique, Nepal, Nicaragua, Niger, Pakistan and Tanzania as well as supports special programs in Afghanistan, Cuba, Great Lakes, Mongolia, North Korea, southern Africa, and the West Bank and Gaza in 2011 SDC has a budget of 1.73 billion Swiss francs ($1.9 billion) for 2011, the year it celebrates its golden jubilee. It expects to close its bilateral cooperation programs or shift its focus in Bhutan, India, North Korea, Pakistan and Peru by 2012. The agency supports projects under 13 themes, namely agriculture and rural development, climate change and environment, conflict prevention and transformation, economic integration, education, emergency assistance and reconstruction, employment and the economy, gender, governance, health, migration, rule of law and democracy, and water. 16. Finnish Ministry for Foreign AffairsJobs | Projects and tenders | News Headquarters: Helsinki, Finland Head of agency: Minister for Foreign Affairs Alexander Stubb Lead official for development cooperation: Minister for Foreign Trade and Development Paavo VäyrynenTotal ODA: $752.01 millionODA grants: $752.01 millionRecipient countries: Long-term partner countries include Ethiopia, Kenya, Mozambique, Nepal, Nicaragua, Tanzania, Vietnam and Zambia, and partner countries recovering from crises are Afghanistan, Bosnia and Herzegovina, Kosovo, Sudan and the Palestinian territories 17. Kreditanstalt für WiederaufbauJobs | Projects and tenders | News Headquarters: Frankfurt, Germany Head of agency: Chief Executive Officer Ulrich Schröder Total ODA: $734.3 millionODA loans: $734.3 millionRecipient countries: 75 countries worldwide 18. Irish Department of Foreign Affairs/Irish AidJobs | Projects and tenders | NewsHeadquarters: Dublin, Ireland (DFA); Limerick, Ireland (Irish Aid) Head of agency: Minister of State for Trade and Development Jan O’Sullivan Total ODA: $687 million ODA grants: $687 millionRecipient countries: Prioritizes East Timor, Ethiopia, Lesotho, Malawi, Mozambique, Uganda, Tanzania and Vietnam and supports specific projects in Eastern Europe, Liberia, the Palestinian territories, Sierra Leone, South Africa, Western Balkans and Zimbabwe 19. Italian Ministry of Foreign Affairs’ Directorate General for Development CooperationJobs | Projects and tenders | News Headquarters: Rome, Italy Head of agency: Director-General Elisabetta Belloni Total ODA: $451.7 million ODA grants: $451.7 millionRecipient countries: More than 100 countries worldwide 20. Korea International Cooperation AgencyJobs | Projects and tenders | NewsHeadquarters: Gyeonggi-do, South Korea Head of agency: President Park Dae-won Total ODA: $272.8 millionODA grants: $272.8 millionRecipient countries: Supported more than 110 countries worldwide in 2009 21. Luxembourg Ministry of Foreign AffairsJobs | Projects and tenders | NewsHeadquarters: Luxembourg, Luxembourg Head of agency: Deputy Prime Minister and Minister of Foreign Affairs Jean Asselborn Lead official for development cooperation: Minister for Development Cooperation and Humanitarian Action Marie-Josee Jacobs Total ODA: $265.3 millionODA grants: $265.3 millionRecipient countries: Burkina Faso, Cape Verde, El Salvador, Laos, Mali, Namibia, Nicaragua, Niger, Senegal and Vietnam 22. New Zealand Aid Program (formerly NZAid)Jobs | Projects and tenders | News Headquarters: Wellington, New Zealand Head of agency: Deputy Secretary for International Development Amanda Ellis Total ODA: $212.9 millionODA grants: $212.9 millionRecipient countries: Cambodia, Cook Islands, East Timor Fiji, French Pacific Territories, Indonesia, Kiribati, Laos, Niue, Papua New Guinea, the Philippines, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu, Vanuatu and Vietnam 23. Austrian Development AgencyJobs | Projects and tenders | News Headquarters: Vienna, Austria Head of agency: Managing Director and Ambassador Brigitte Öppinger-Walchshofer Total ODA: $136.34 millionODA grants: $136.34 millionRecipient countries: Prioritizes Albania, Armenia, Bosnia-Herzegovina, Bhutan, Burkina Faso, Cape Verde, Georgia, Kosovo, Macedonia, Moldova, Montenegro, Mozambique, Nicaragua, the Palestinian territories, Serbia and Uganda 24. Greek Ministry of Foreign AffairsJobs | Projects and tenders | News Headquarters: Athens, Greece Head of agency: Foreign Minister Dimitris Droutsas Lead official for development cooperation: Hellenic Aid Director-General Athanassios Theodorakis Total ODA: $52.46 millionODA grants: $52.46 millionRecipient countries: Prioritizes Albania, Armenia, Azerbaijan, Egypt, Ethiopia, Georgia, Moldova, Pakistan, Serbia and Syria 25. Portuguese Institute for Development SupportJobs | Projects and tenders | News Headquarters: Lisbon, Portugal Head of agency: President Augusto Manuel Nogueira Gomes Correia Total ODA: $44.7 million ODA grants: $44.7 millionRecipient countries: Prioritizes Angola, Cape Verde, East Timor, Guinea-Bissau, Mozambique, and Sao Tome and Principe