Donor Profile
Denmark
Last updated: January 20, 2024
ODA Spending
How much ODA does Denmark contribute?
How is Denmark's ODA changing?
How is Denmark's ODA allocated?
Bilateral Spending
Multilateral Spending and Commitments
What is the future of Denmark's ODA?
As the Danish government has a budget adjustment mechanism which ensures that ODA spending averages a 0.7% ODA/GNI ratio over a three-year period, it is expected that there will be a continuation of the 0.7% ODA/GNI spending ratio.
Politics & Priorities
What is the current state of Denmark's politics?
The Frederiksen government (2022-2026), led by the Social Democrat Mette Frederiksen, is a centrist coalition comprising the Social Democrats, the Liberals, and the Moderates. This government holds a majority, which is unusual for the Danish parliamentary system. Typically, minority governments are more common in Denmark, allowing more influence to opposition parties that form alliances with the government.
The current government is not very popular in polls, and changes to Liberal party leadership have challenged the coalition's stability.
For the first time, Dan Jørgensen, the Minister for Development Cooperation, has assumed a dual role, taking responsibility for Global Climate Policy. This dual portfolio presents both risks and opportunities. There is concern that new initiatives may disproportionately focus on climate issues, potentially neglecting other development priorities. Conversely, there is the potential to closely align broader development and climate agendas and access new funding streams.
The next general election will be held by October 2026.
Who is responsible for allocating ODA?
The Danish MFA is responsible for the policy, coordination, and implementation of the country’s development cooperation, and oversees the majority of Denmark’s ODA budget. The MFA hosts public consultations to receive feedback on its international development policies and strategies.
What are Denmark's development priorities?
Denmark’s 2021-2025 policy The World We Share strives for a more secure and sustainable world free from poverty. Development cooperation aims to:
- Help more people where it is hardest by preventing and fighting poverty and inequality, conflict and displacement, irregular migration, and fragility; and
- Lead the fight against climate change and restore balance to the planet.
In achieving these objectives, Denmark centers its development assistance around democratic values and human rights as the foundation of development cooperation, with a strong focus on the following priorities:
- Democracy, human rights and free civil societies in the era of digitization;
- Rights and dignity of marginalized groups;
- Gender equality, girls and women’s rights;
- Meaningful participation of young People; and
- Effective, democratic and responsible states.
Budget
The Finance Act serves as Denmark's budget for the upcoming year, and is proposed and negotiated on an annual basis. The Finance Act can also be adjusted during the current fiscal year to allow for changes in expenditure.
Budget Cycle
- January: The Ministry of Finance prepares the draft budget priorities. CSOs are engaged in formal consultations on Denmark's development priorities.
- March-May: The ministries prepare budget submissions and proposals to the Ministry of Finance
- May-August: The relevant ministers negotiate spending, and the draft budget is submitted to the Ministry of Finance.
- End of August: The proposed budget (Finance bill) is presented to Parliament.
- September: The Finance bill is debated in Parliament.
- December: All proposed changes to the Finance bill are approved during the third and final budget reading.
Latest Updates:
Denmark
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At Donor Tracker, we prefer not to call it aid.
Our Denmark Experts
Lauren Ashmore
Consultant
The Donor Tracker team, along with many DAC donor countries, no longer uses the term "foreign aid". In the modern world, "foreign aid" is monodirectional and insufficient to describe the complex nature of global development work, which, when done right, involves the establishment of profound economic and cultural ties between partners.
We strongly prefer the term Official Development Assistance (ODA) and utilize specific terms such as grant funding, loans, private sector investment, etc., which provide a clearer picture of what is concretely occurring. “Foreign aid” will be referenced for accuracy when referring to specific policies that use the term. Read more in this Donor Tracker Insight.
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Our Denmark Experts
Lauren Ashmore
Consultant