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‘Reforms overdue’. Sweden slashes number of recipient countries

The Swedish government this week launched the most significant change in aid policy in decades, dramatically reducing the number of recipient countries by half. Minister Carlsson says reforms in Swedish aid were long overdue.

Norway is scrutinising an aid portfolio of 45 projects in Ethiopia to identify where it will make cuts. The move comes in response to the Ethiopian government's decision to kick out six Norwegian diplomats last month.

Denmark is waiting for a refund of DKK 6 million by the Mozambican government to close the biggest aid corruption case in Danish history. DKK 9 million in misused aid funds have already been refunded by Maputo. (See DT 10-11/06)

A revival of project support, more concentration on Finnish expertise, and a return to the heyday of forestry aid. Development Minister Paavo Väyrynen hints at Finland's new aid agenda.

Norway is pushing the World Bank to conduct a comprehensive study on tax havens and capital flight.

Ethiopia claims that it had no other option than to ask Norway to reduce its number of diplomatic staff.