Policy Updates

On March 27, 2024, Sida announced the cessation of its agreements with about 20 CSOs by the end of 2024.

The move is part of a broader shift towards a new ODA distribution model emphasizing a more open and competitive application process, slated to commence on January 1, 2025. This restructuring was a direct response to governmental mandates aiming to enhance the efficiency and reach of Swedish development assistance.

The abrupt end to these longstanding partnerships sparked a wave of concern and criticism among the affected organizations and their global partners. With a current budget of SEK1.8 billion (US$15 million), these strategic partnerships were a cornerstone of Sweden's development assistance, extending support to nearly 2,000 organizations worldwide. The collaborations spanned a diverse array of sectors, including labor unions, faith-based groups, environmental advocates, and human rights organizations, primarily targeting support in low- and middle-income nations.

Critics, including CONCORD Sweden, argued that the sudden shift jeopardizes the sustainability of critical development projects and undermines the implementation of ongoing initiatives. This, according to critics, not only threatens the continuity of vital programs but also risks the effective use of Swedish taxpayer contributions to global development.

On 13 March 2024, Sweden announced a new agreement between Sida and the USAID, which is set to advance sustainable development initiatives, prioritizing local initiatives and engaging the private sector closely.

The agreement was officially sealed in Washington DC on 4 March by Sida's Director-General Jakob Granit and USAID Deputy Administrator Isobel Coleman.

The agreement, slated to span the next four years, introduces new focus areas including digitalization, cybersecurity, the enhancement of global public goods like food security, climate action, and the improvement of transparency and oversight in development.

On December 5, 2023, Sweden announced an additional SEK149 million (US$14 million) to address the escalating needs of the civilian population in Sudan amid ongoing armed conflict, which erupted in April and has severely impacted living conditions.

The additional funding brought Sweden's humanitarian assistance to Sudan in 2023 to SEK355 million (US$34 million). The assistance package is channeled through Sida and detailed the following allocations:

• OCHA and UNICEF: SEK89 million (US$9 million);
• Mercy Corps: SEK25 million (US$2 million). Mercy Corps is a humanitarian organization focused on food security. The funds are allocated to enhance the production capabilities and self-sufficiency of small-scale farmers, particularly women, and is expected to benefit 10,000 farmers; and
• UNHCR: SEK35 million (US$3 million) will support the OHCHR in its efforts to monitor and document human rights abuses in Sudan.

On November 17, 2023, in response to the devastating impact of Russia's 2022 full-scale invasion of Ukraine, which has led to the damage or destruction of over 3000 educational facilities, the Swedish government pledged SEK75 million (US$7 million) to the UNESCO Emergency Fund to renovate and reconstruct Ukranian educational facilities

This contribution is part of Sweden's broader development assistance to Ukraine, which has totaled over SEK3 billion (US$290 million) since the current government took office in 2021. The pledge is a direct response to the Ukrainian Ministry of Education and Science's request for assistance in rebuilding the education sector.

Sweden's contribution aims to enable thousands of Ukrainian children and students to resume in-person education and activities crucial for their social and mental well-being. The support is additionally slated to address the need for functioning shelters, which play a vital role in enabling parents to work while children are in school.

Swedish Minister for Schools Lotta Edholm emphasized the importance of ensuring that education continues without significant interruptions and that schools and preschools remain safe havens for children. The Swedish contribution will facilitate the installation of essential facilities for WASH services, heating, and insulation, as well as ensuring accessibility and providing psychosocial support and physical activities for children.

On October 18, 2023, Concord released its 2023 AidWatch Report and found that EUR20 billion (US$21.2 billion), or 22% of ODA from the EU and its Member States, was allocated to budget lines that do not directly benefit partner countries.

Concord has published AidWatch Reports annually since 2005 in an effort to provide accountability for the EU and its Member States in meeting the goal of providing 0.7% GNI/ODA.

Examining EU and Member State ODA in 2022, the report found that of the ODA that did not directly benefit partner countries, the three largest categories of "double counted" or "inflated" ODA included:

• EUR13.9 billion (US$14.7 billion) went to in-donor refugee costs to for those fleeing the war in Ukraine, allocations which are at times reported as ODA at the Member State level;
• EUR2.8 billion (US$3 billion) supported imputed student costs, or funding for students from partner countries studying in the donor country; and
• EUR1.7 billion resulting from a method of calculating and reporting ODA loans as grants, which distorted the actual value of the support.

Accounting for inflated ODA, the report found that only two Member States, Luxembourg and Sweden, met the 0.7% ODA/GNI ratio, while Germany's ratio fell to near .69%.

The report noted that these observations comprised the continuation of skewed reporting trends in the EU and Member States. It recommended increasing ODA spending to meet the goal of 0.7% ODA/GNI, not counting in-donor refugee costs as ODA, and reforming ODA reporting to ensure assistance achieves maximum impact, among others.

On June 26, 2023, the Ministry for Foreign Affairs of Sweden unveiled a comprehensive humanitarian and recovery support package for Ukraine.

Valued at SEK380 million (US$35 million), the package aimed to address the pressing needs of the country, with a particular emphasis supporting CSOs.

The destruction caused by the Kakhovka dam's collapse on June 6, 2023, exacerbated the already dire situation in Ukraine. Minister for Foreign Trade and Development Johan Forssell underlined the necessity for aid providers to be prepared to assist civilians in distress. He foregrounded the funding's role in enabling partners to implement short- and long-term measures in the areas of greatest need.

Recognizing the valuable contributions of CSOs, the Swedish Government committed to providing SEK 25 million (US$2 million) to the Ukrainian Red Cross and supporting other organizations with SEK20 million (US$2 million) through Sida.

To address various urgent needs, Sweden also allocated funds to key entities involved in relief work:

• SEK25 million (US$2 million) was allocated to the International Committee of the Red Cross to provide healthcare, medicines, water, sanitation, and protection in inaccessible regions;
• SEK50 million (US$5 million) was allocated to the WFP for essential provisions such as food and water; and
• SEK50 million (US$5 million) was allocated to the UNHCR for shelter, legal advice, and psychosocial support in areas where humanitarian needs are most critical.

Additionally, the Swedish Government extended assistance for demining, flood response, and managing air traffic control to:

• The Swedish Civil Contingencies Agency, which received SEK50 million (US$5 million);
• UNDP, which received SEK103 million (US$10 million); and
• EUROCONTROL, which received SEK13 million (US$1 million).

Finally, the government also allocated SEK45 million (US$4 million) to the National Board of Health and Welfare for coordinating and fulfilling requests for medical supplies.

The additional support brought Sweden's total assistance to Ukraine to at SEK1.9 billion (U$S176 million) for humanitarian assistance, SEK750 million (US$70 million) for recovery and further development, and SEK316 million (US$29 million) for reform support since 2022.

In an interview on June 6, 2023, Swedish Minister for International Development Cooperation and Foreign Trade Johan Forssell stated the government's ambition to bring increase private sector involvement in development policy.

Forssell emphasized the need for a modern approach to development, where trade and assistance are seen as two sides of the same coin.

Forssell explained that the Swedish government, including the right-wing populist Sweden Democrats, are working to reshape the country's ODA policy to give the business sector a key role. He also noted that the new policy aims to create partnerships that benefit both recipient countries and Sweden by promoting economic development and job creation.

This shift elicited criticism from some CSOs organizations, which accused the government of prioritizing Swedish exports over helping people in partner countries. In contrast, Forssell argued that trade, the market economy, and entrepreneurship are essential for building prosperity and fighting poverty, and that the involvement of the business sector would contribute to this goal.

According to Forssell, the government's new approach includes expanding cooperation between development organizations and businesses, focusing on areas such as green transition and investing in LICs and MICs. At the same time, government plans also reduced the aid budget and abandoned the long-standing goal of allocating 1% of GNI to ODA.

Proposed changes to Sweden's development policy also included replacing the Director-General of Sida to strengthen the agency's expertise in trade and commerce.

On May 4, 2023, Swedish Minister for International Development Johan Forssell published an article in the Dagen Daily outlining Sweden's ODA priorities.

Co-written with Gudrun Brunegård, development policy spokesperson for the governing Christian Democratic Party, the piece emphasized the importance of maintaining international solidarity and improving the effectiveness of Swedish ODA. In particular, the piece outlined nine aspects of Swedish development cooperation:

• Increased and predictable assistance: With a fixed budget framework of SEK56 billion (approximately US$5.5 billion) per year for 2023-2025, the authors outlined a clear, upward trajectory for Swedish ODA. Over the next three years, Sweden will spend a total of SEK168 billion (about US$16.5 billion) on ODA, or a SEK6 billion (US$583 million) increase from the 2020-2022 period.
• Linking ODA and international trade: The authors highlighted that development assistance and trade policy should be coordinated and deepened, while also advancing democracy and the rule of law in partner countries.
• CSO Partnerships: The authors outlined the government's ambition to develop its partnership with civil society, both in Sweden and in its partner countries, in order to deliver more effective and transparent assistance.
• Ukraine a Top Priority: The article higlighted that Ukraine will remain Sweden's top ODA priority. In particular, the authors positioned Sweden as a long-term partner to Ukraine, with increased focus on humanitarian aid while supporting Ukraine's democratic development, economy, EU integration, and sustainable reconstruction.
• Global Health: The article also reflected the government's commitment to poverty reduction and health interventions for the most vulnerable, such as preventive health education, increased vaccination coverage, and strengthened healthcare. Support will be given to women subjected to sexual violence in conflict areas. Sweden will also contribute to international efforts to prevent and manage pandemics and other health threats.
• Democracy and human rights: The article also emphasized the necessity of expanding democracy, human rights, and the rule of law to enable CSOs to work effectively in partner countries.
• Climate: The piece outlined Sweden's prioritization on expanding climate finance. Specific priorities included emissions reductions, transition to fossil-free energy, and energy efficiency, as well as support for climate adaptation in culnerable countries. The authors also applauded Sweden's doubled allocation to the Global Environment Fund (totaling SEK4.1 billion; US$431 million) for the 2022–2026 period.
• Gender Equality: Under the heading of gender equality, the authors noted Sida's upcoming strategies on SRHR and commitment to considering the needs of women, girls, youth, people with disabilities, and LGBTQ+ individuals.
• 'Aid Effectiveness': Finally, the authors argued that Sweden should concentrate on improving the efficiency and impact of its development coopration.

Minister for Foreign Affairs Tobias Billström presented Sweden's Statement of Foreign Policy, which summarizes the Government’s foreign policy priorities, to Parliament on February 15, 2023.

Billström emphasized that Ukraine will remain a Swedish foreign and development policy priority. Since Russia’s large-scale invasion in February 2022, Sweden’s support to Ukraine has totaled more than SEK14 billion (USD1.4 billion). In 2023, Ukraine is expected to become the largest recipient of Swedish bilateral development assistance.

The statement highlighted the government’s aim to use ODA as a lever to strengthen countries’ democracy and participation in the international economy. The Government emphasized its ambition to make ODA more focused, relevant, effective, and transparent. Objectives will be set in terms of quality and results.

In addition to support for Ukraine, ODA will prioritize poverty reduction and health initiatives for the most vulnerable, humanitarian support, democracy and human rights, enhanced climate action, and initiatives for the rights and opportunities of women and girls. The statement also highlighted that support will be redirected from multilateral organizations to civil society.

Sweden announced on December 12, 2022 that it will increase its support to Ukraine by SEK600 million (US$59 million).

The assistance will be channeled through a new mechanism administrated by the World Bank. The support aims to promote energy security as well as the provision of heating and healthcare to civilians. The donation will also support agricultural development and Ukraine's education system.