Annual report 2019 Enlarged EU: Reducing disparities

Official development assistance (ODA) from member countries of the Development Assistance Committee (DAC) totalled USD 153 billion in 2019. With its ODA/GNI ratio of 0.44%, Switzerland is below the average of DAC-EU countries (0.47%). Switzerland takes the 8th position in the international ranking comparing the ODA/GNI ratio of all DAC member countries.

In terms of financial volume, the largest donors are the United States, Germany, the United Kingdom, Japan and France. Switzerland take the 11th place in absolute numbers.

The share of SDC/SECO in international cooperation accounts for almost 80% of total ODA. Certain costs linked to the assistance to asylum seekers in Switzerland are recorded as ODA: their share fluctuates between 8% and 21% depending on the year. The rest includes other contributions from the Confederation, including bilateral debt relief operations in 2005 and 2009, as well as of cantons and municipalities.

The target set by the Parliament of an ODA/GNI rate of 0.5% has been reached by 2015 thanks to the growth of the means granted to international cooperation. From 2017, however, ODA has been declining as a result of reduced asylum costs and savings measures affecting international cooperation credits. The current ODA/GNI rate has fallen to 0.44%.

Multilateral ODA includes core contributions from SDC and other federal agencies to international development institutions. International financial institutions (IFIs), of which the International Development Association (IDA), were the main beneficiaries of Switzerland's multilateral ODA, followed by United Nations agencies and finally other international organisations.

During the last fitfeen years, Switzerland's share of multilateral ODA remained relatively stable, between 20% and 25% of total ODA.

Contributions to international non-governmental organisations, including the International Committee of the Red Cross (ICRC), are considered bilateral ODA and therefore do not appear in this table.

Swiss cooperation with Eastern Europe supports the Western Balkans and countries of the former Soviet Union in their transition to a social market economy and democracy. As a result, Switzerland helps to restore stability in these states and improves the opportunities available to the people living there.

In North Africa, projects focus on democratic transition and human rights, sustainable and inclusive economic development and employment, and migration and protection.

In the Middle East, SDC is working to provide protection and basic services for refugees and others in need, and to ensure sustainable water management.

Switzerland's international cooperation concentrates more than a third of its resources on sub-Saharan Africa.

The focus of development cooperation is on the access of poor people to basic social services (health, education), infrastructure (water), employment and income, and sustainable growth.

Many regions of sub-Saharan Africa are experiencing chronic crisis, with affected populations relying on humanitarian assistance on a recurring and / or prolonged basis. In those regions, humanitarian interventions take place in coordinated actions with other partners of the international cooperation.

Through its transition aid to countries in Central Asia, Switzerland supports regional and national water ressources managment, private sector development, as well as reforms in the public sector and the health sector.

Switzerland's international cooperation in East and South Asia focuses on countries and regions with persistently high multidimensional poverty rates, for example in terms of income, lack of security, limited access to services, chronic malnutrition, vulnerability to ecological and economic shocks, and social and ethnic discrimination of large population groups.

SDC's program in Latin America cover local governance and decentralisation, job and income creation, climate change and water. In fragile contexts (Honduras, Haiti), the focus is on preventing violence, promoting human rights and strengthening the state.

In Peru, SECO’s main areas of support are the development of economic institutions, private sector competitiveness and access to basic public services. In Columbia, where certain areas continue to be heavily impacted by the presence of organized armed groups and organized crime. SECO is working to create better economic prospects, thereby also contributing to lasting peace.

In order to make most effective use of the funds available for cooperation with Eastern Europe, Switzerland focuses on certain topics. In setting priorities, it takes account of the countries' needs and potential as well as Switzerland's expertise in the various thematic areas and regions. And lastly, political interests also play a role.

SDC's humanitarian aid focuses on providing help on the ground and promoting respect for international law, with a particular emphasis on protecting civil populations, who are the most affected.

SECO's economic and trade policy measures have four objectives. These include: more efficient institutions and services, more and better jobs, stronger trade and competitiveness, and a low emissions and climate resilient economy. They all contribute to sustainable and inclusive growth.

The SDC's 500 development programmes and projects focus on 10 thematic areas. The SDC adapts its priorities according to the needs of the 21 South cooperation partner countries and regions.

With a view to ensuring sustainable development, the principles of gender mainstreaming and good governance are a common thread running through all its work.

To reach the Parliament's target of 0.5% of ODA in proportion of Gross national income (GNI), the financial means awarded to international cooperation steadily grew till 2015.

Since 2016 onwards, the international cooperation credits have been deeply impacted by budgets cuts decided by the Federal Council and approved by the Parliament (stabilisation programs and debt brake).

The SDC concentrates most of its activities in the lowest income countries. In 2019, half of the bilateral spending went to Africa and the Middle East, a quarter to South and East Asia, and the remaining quarter to Latin America and to the transition assistance in Europe and Central Asia.

SECO is more active in middle-income countries. Transition assistance in Eastern countries accounts for more than a third of 2019 expenditure. South and East Asia, sub-Saharan Africa and Latin America are, in almost equal parts, the other main recipient regions.