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DE RUEHSM #0342/01 1550615
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P 040615Z JUN 09
FM AMEMBASSY STOCKHOLM
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RUEHUNV/USMISSION UNVIE VIENNA PRIORITY 0091
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UNCLAS SECTION 01 OF 02 STOCKHOLM 000342 
 
SIPDIS 
 
DEPARTMENT PLEASE PASS TO USAID 
 
E.O. 12958: N/A 
TAGS: EAID ECON ECIN EFIN PGOV SW
SUBJECT: SWEDEN'S FOREIGN AID REFORM 
 
REF: STOCKHOLM 204 
 
¶1.  Summary:  Swedish Minister for International Development 
Cooperation Gunilla Carlsson told journalists on May 7 that 
Swedish assistance still has a "long way to go" when she 
presented a comprehensive report of development assistance. 
She commented that Sweden must prepare and monitor programs 
more efficiently.  Carlsson said Sweden will: 
 
- facilitate better measurement and evaluation of the impact 
of development aid, 
 
- focus on results rather than targets, 
 
- task SIDA to set up a unified system for evaluation of aid 
efforts and risk analysis by October 1,2009, 
 
- exert greater control over support to multilateral 
organizations, 
 
- increase international cooperation with donors to perform 
evaluations. 
 
End Summary. 
 
Background 
---------- 
 
¶2.  Sweden has one of the largest assistance programs in the 
world and is setting aside $4.3 billion for international 
development cooperation in the 2009 budget.  In 2008, Sweden 
was ranked as number two in a "Commitment of Development 
Index" by the Center for Global Development (the U.S. ranked 
number 17).  The Organization for Economic Cooperation and 
Development (OECD) ranked Sweden as number one in the world, 
with an aid volume as a proportion of Gross National Income 
(GNI) of 0.98 percent in 2008, according to preliminary 
statistics. 
 
¶3. In 2007, the latest year for which full figures are 
available, Sweden contributed some $3.6 billion in official 
development assistance, which corresponded to 0.93 percent of 
GNI.  The top four recipient countries of Swedish aid are in 
Africa with Afghanistan ranked at number five.  While the 
Swedish MFA sets the overall amount of development 
assistance, SIDA has traditionally enjoyed a great degree of 
independence in determining how and where the money is spent. 
 The current center-right alliance government will be 
watching SIDA much more closely to ensure Sweden's aid money 
achieves positive results. 
 
 
¶4. After having spent a few years on tougher prioritizing, 
such as limiting the number of countries receiving 
development aid, and more efficient structures, Swedish 
Minister for International Development Cooperation Gunilla 
Carlsson now aims to facilitate better measuring and 
evaluation of the impact of development aid.  On May 7, 
Carlsson presented the first ever comprehensive report of 
bilateral and multilateral development assistance performance 
to the Parliament.  The findings of the 150-page report 
present a thorough account of what Sweden's extensive foreign 
aid programs have achieved. 
 
Must learn from our mistakes 
---------------------------- 
 
¶5.  Carlsson told journalists that Sweden must learn from its 
mistakes.  Swedish development assistance has not been 
successful on all counts, according to Carlsson.  "There are 
many good examples of development assistance initiatives that 
have made a difference to people's lives, but we still have a 
long way to go before we have development assistance that we 
can prove leads to long-term results," Carlsson opined. 
 
¶6. To help achieve this, Sweden has trimmed the number of 
countries receiving development assistance from over 120 to 
slightly more than 30, and SIDA is to set up a unified system 
for evaluation of aid efforts and risk analysis by October 1, 
2009, according to Swedish Director-General of International 
Development Cooperation Jan Knutsson.  Knutsson underscored 
Carlsson's statement, adding that in addition to focusing on 
results rather than meeting targets, such as one percent of 
GNI, Sweden will concentrate on integrating political, 
civilian and military efforts more efficiently in conflict 
countries. 
 
¶7.  In 2007, the government began implementing more stringent 
 
STOCKHOLM 00000342  002 OF 002 
 
 
monitoring and evaluation procedures designed to use 
performance data to make Swedish assistance more focused and 
more effective.  Carlsson said the inaugural report shows the 
difficulties involved in describing the long-term effects of 
Swedish assistance activities, and that Sweden must learn 
from its mistakes.  "We have not been sufficiently focused on 
results nor have we prepared and monitored programs and 
projects sufficiently," Carlsson opined.  She added that 
Sweden has failed to pay enough attention to how projects 
improve quality of life for the poor. 
 
Strengthen performance culture 
------------------------------ 
 
¶8.  Carlsson opined that it is impossible in many cases to 
establish a causal connection between a specific activity, or 
to change and identify a positive connection between 
development assistance and development itself.  She stated 
that this inaugural report will enable Sweden to improve its 
performance reporting to Parliament and improve the 
management of development assistance.  The government has 
urged SIDA to strengthen its "performance culture" by 
establishing a uniform system for results-based management 
and by focusing on expected and actual performance in the 
preparation and implementation of individual aid programs. 
 
¶9. Carlsson commented that Sweden also needs to exert greater 
control over support to multilateral organizations and 
increase international cooperation with donors to perform 
evaluations.  Anders Bengtcen, Head of Department for 
Multilateral Development Cooperation at the MFA, stressed 
that Sweden uses up to 30 different indicators to evaluate 
Sweden's cooperation with multilateral organizations and is 
working hard to get Swedish representatives on the boards of 
these organizations. 
 
 
SILVERMAN