The organisations received relatively small grants from the aid budget in 1999; last year they ranked No. 7 and No. 10, respectively, among more than 400 NGO recipients.

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Danes, Swedes freeze aid to Zambia. Millions more in budget support at risk

The two Nordic donors have frozen DKK 100 million in aid funds to Zambia after revelations of embezzlement in the health sector and suspected irregularities in the road sector. Millions more in budget support funding are now at risk.

The definition of aid could face dramatic change as climate grants for developing countries are negotiated in the months leading up to the Copenhagen Summit. The Swedish EU Presidency will play a key role in setting the new rules.

The process of reforming the governing system of the World Bank is moving slowly forward. A proposal to include funding commitments to the Bank in the new formula on voting power would soften the impression of too many Europeans on the Board.

A new Finnish framework programme on Africa opens for an increased focus on initiatives that extend Finland’s reach to countries beyond its main recipients.

The OECD hails Sweden’s aid policy reforms and leading role in the donor community, but warns the government against cutting more staff. OECD is concerned about the independence of Sida evaluations and wants the mandate of the evaluation agency SADEV to cover the efforts of all ministries within the development field.

The Climate Commission, initiated by Sweden, concluded in May that the costs of helping developing countries adapt to climate change will be high. Short term costs are estimated at USD 6-11 billion a year, and medium term financing is in the order of USD 12-29 billion per year.