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Strategy for the Danish Neighbourhood Programme 2013-17

January 2013

January 2013

2012/13 : 23

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Strategy for the Danish

Neighbourhood Programme

2013-17

541 TRYKSAG 457

More than two decades have passed since the fall of the Iron Curtain, which for almost half a century cut the European continent in half. Important progress has since been achieved in the transition towards democracy and respect for human rights, an open economy and accountable public institutions based on the rule of law. Many countries in the region can take pride in having successfully overcome many of the daunting challenges they were facing twenty years ago.

And yet it is clear that not all of the promises of the dramatic events of the late 1980s and early 1990s have been fulfilled. A successful transition to democracy and a modern economy can be a long and complicated process. Success is never guaranteed but is dependent on sustained dedication by the transition country – and by its neighbours.

Christian Friis BachMinister for Development Cooperation

Nicolai WammenMinister for European Affairs

The Danish Neighbourhood Programme 2013-17 is an expression of our continued commitment to assist our neighbours to the East, for their benefit as well as for ours. At the heart of our efforts lies a wish that all people of our continent may enjoy the benefits and protection of human rights in accordance with commitments made by the neighbourhood countries themselves.

It is our sincere hope that the Danish Neighbourhood Programme will contribute to bringing the countries and peoples of Europe closer together, by contributing to consolidating democracy, human rights and prosperity in all parts of Europe.

Introduction

4 Strategy For The Danish Neighbourhood Programme 2013 -17

Strategy For The Danish Neighbourhood Programme 2013 -17 5

Contents

A European neighbourhood on the move . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Building human rights and democracy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Promoting sustainable and inclusive economic development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Focusing on selected countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Allocating funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Creating dynamic partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Do you want to know more . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26


A peaceful and stable Europe with freedom and progress for its citizens is closely dependent on the development of democratic societies with accountable authorities, vibrant civil societies, well-functioning markets and conflict resolution mechanisms across the continent. To this end, the Danish Neighbourhood Programme seeks to promote civil, political, social and economic rights – from the promotion of democratic rights to the right of people to benefit from basic economic opportunities in order to escape poverty and social marginalisation.

A European neighbourhood on the move

Successive enlargements of the European Union have brought the countries in our Eastern and South-Eastern neighbourhood closer to the EU. Their security, stability and prosperity increasingly impact on ours. Most of the countries are in a transition phase involving reforms in the political, social and economic spheres, though at different stages and paces. Most of the countries have to varying degrees stated a wish to develop closer relations with the EU. In a number of countries, the EU plays an important role as a driving force for reforms.

From its inception in the early 1990s, Danish assistance to this region has aimed at supporting these positive developments based on the policies and needs formu-lated by the partner countries themselves. Following the fall of the Iron Curtain, it became clear that a sustained effort was needed in order to help the transition societies build democracy and achieve sustainable growth. This led to a number of cooperation initiatives, which laid the foundations for the present-day Danish Neighbourhood Programme.

While lives and opportunities for many people in our European neighbourhood have improved over the past decades, important challenges remain. These include high levels of unemployment, especially amongst youths. The low-quality industrial production of the inefficient command economies was never able to compete on the global market. In many countries industrial output has still not fully recovered, thus hampering the prospects for job growth. This has exacerbated an already grave demographic crisis by forcing many to migrate either within the region or to the EU and beyond. In some countries, private ownership of assets is in the hands of a relatively narrow group of people with little interest in changes to the status quo.

Politically, all neighbourhood countries adhere to democratic principles of government. Challenges remain in some places, however, for a truly democratic culture to take root. These include the full enjoyment of human


The human rights-based approach

The Neighbourhood Programme applies a human rights-based approach in line with the strategy for Denmark’s Development Cooperation The Right to a Better Life (2012). International human rights are part of Denmark’s core values. They are a powerful driver of change because they are based on commitments made by the countries themselves.

The realisation of human rights requires a state willing and able to respect and uphold these rights. At the same time it requires well-informed citizens and organisations with access to reliable and independent information and opportunities to participate actively in society and resume responsibility for the development of society. Implementation of the Neighbourhood Programme is based on partnerships founded on shared values, underpinning efforts to realise human rights, be they civil, political, economic, social, cultural, sexual or gender-based. Support to a strong and independent civil society is fundamental when applying a human rights-based approach since civil society often gives voice to the most vulnerable and marginalised groups. Equal participation of men and women in both economic activities and development of society as such is essential to the Neighbourhood Programme. Consequently, gender equality and equal access in preparation and implementa-tion of projects and programmes are actively encouraged. Promotion and protection of minority rights is also vital to the rights-based approach and the Neighbourhood Programme will avail support for targeted interventions.

Denmark will:

– Apply human rights as a core value in our partnerships and use principles of non-discrimination, participation, transparency and accountability in all phases of our development cooperation.

– Work to promote all human rights – economic, social, cultural, civil and political – with a special focus on women’s rights and equal access to decision-making, resources and opportunities.

– Systematically strengthen capacity of public authorities, civil societies and rights holders.

“The Right to a Better Life” 2012

rights, non-discrimination, respect for the rule of law, the acceptance of independent media and a vibrant civil society capable of holding the authorities to account. Latent ethnic conflicts remain in some parts of the region as do a number of so-called frozen conflicts. In addition to these political challenges, the region struggles with a legacy of severe degradation of the environment with significant energy inefficiencies and polluting techno logies for power generation that remain in place to this day. The high number of challenges facing the region combined with the budgetary frame of the Danish Neighbourhood Programme 2013-17 necessitates a clear focus for the programme. The programme seeks to act as a catalyst for change in the neighbourhood region in order to contribute to the fulfilment of two major objectives:

Major objective 1

Human rights and democracy, including good governance, conflict resolution and peace-building, gender equality, minority rights, indigenous peoples’ rights, as well as strengthening of civil society and independent media.

Major objective 2

Sustainable and inclusive economic development, including private sector development aiming at promoting sustainable growth, skills development, job creation, energy efficiency and green technology.


The European neighbourhood and enlargement policies

The European neighbourhood policy covers the EU’s neighbours to the south (the Mediterranean area) and in the east (the Eastern partners). The purpose of the neighbourhood policy is to avoid the creation of new dividing lines between an enlarged EU and its neighbours and instead to promote prosperity, stability and security for everyone. The European enlargement policy covers all the countries in the Balkans that are not members of the EU, as well as Turkey and Iceland. The strict requirements for accession to the EU have, in practice, efficiently driven reforms in the countries to the east.

The neighbourhood and enlargement policies are both comprehensive approaches that cover a large number of policy areas, from foreign and trade policy over a number of sector policies to cooperation aid to promote reforms, economic development, infrastructure, people-to-people exchanges etc.

In both cases the approach is merit-based. The enlargement policy is based on requirements to the candidate countries. To become a candidate country, a country must i.a. fulfil the so-called Copenhagen criteria, including democracy, human rights, free market economy etc. To become a member of the

EU, all EU rules (the so-called ’acquis’) must be incorporated and implemented in the candidate country’s legislation. The actual rules are non-negotiable, and the responsibility for fulfilling the rules is exclusively that of the individual candidate country. In return, the EU provides considerable financial and administrative resources to support the necessary reform processes. Similarly, the neighbourhood policy is based on a ”more for more” principle where the neighbouring countries that make progress in their reform efforts are also eligible for closer cooperation with the EU. The EU will, however, seek to continue the dialogue and cooperation with countries that cannot deliver the necessary reforms, and the “more for more” approach has no influence on the EU’s humanitarian aid and support to the civil society.

Denmark supports a strong EU commitment in the neigh-bourhood region and an EU that speaks with one voice in the region. Denmark has participated actively in the preparation and adoption of the European neighbourhood and enlargement policies and continuously works to ensure that Danish points of view are reflected in the overall EU policy.

The Neighbourhood Programme is an integral part of Denmark’s overall foreign policy with respect to the neighbourhood region. The programme is based on the principles outlined in the strategy for Denmark’s development cooperation, The Right to a Better Life (2012). The Neighbourhood Programme serves to reinforce Denmark’s bilateral relations with individual countries in the region, including strengthening personal, professional and economic ties between private actors, as well as to promote regional cooperation and integration.

In the business sector, employee organisations, civil society organisations and public institutions, including educational and research organisations, Denmark has developed valuable expertise and know-how that is often in demand among the partners in the neighbourhood region. Where relevant, the Neighbourhood Programme seeks synergies with existing instruments with a view to exchanging expertise and know-how and to promoting business and trade relations between Danish companies and counterparties in the neighbourhood region. Denmark’s Export and Credit Agency (EKF) and the

Investment Fund for Developing Countries (IFU) which both offer advice and risk capital to Danish companies wanting to develop business relations are examples of such instruments.

Denmark is actively engaged in a range of EU policies relevant to the region. Danish bilateral efforts are and will be in line with the strategic framework of the European Neighbourhood Policy and the EU enlargement process, as well as specific political initiatives such as the EU’s Eastern Partnership and deep and comprehensive free-trade agreements with selected countries in the region based on common values.

To most of the countries supported under the Danish Neighbourhood Programme, the EU is by far the biggest partner in terms of assistance, through financial instru-ments such as EU pre-accession assistance (IPA) and the European Neighbourhood Partnership Instrument (ENPI). The Danish assistance aims at complementing the EU assistance through targeted and flexible interventions in selected priority areas.


Aligning Danish support to the EU’s interventions in the neighbourhood region

The EU is by far the most important donor to the countries covered by the Danish Neighbourhood Programme. The majority of EU support to the region is channelled through two instruments:

European Neighbourhood and Partnership Instrument (ENPI)The ENPI covers six Eastern Partnership countries (Belarus, Ukraine, Moldova, Georgia, Armenia and Azerbaijan) and Russia (as well as ten Mediterranean countries). The main purpose of the ENPI is to create an area of shared values, stability and prosperity, enhanced cooperation and deeper economic and regional integration within a wide range of cooperation areas. The overall allocation of the ENPI amounts to almost EUR 12 billion (DK K 89 billion) for the seven-year period 2007-2013. The ENPI covers an extensive list of intervention areas, including a dialogue about necessary reforms, whether political, economic or social, a more equitable development, regulated trade and reforms, liberalisation of certain sectors and a competitive European internal market, justice and home affairs, energy, transport, the information society, environmental sustainability, research and innovation and trade development. The EU prepares detailed strategy papers for the individual neighbouring countries and for the regions covered by the ENPI. Building on the achievements of the ENPI, the European Neighbourhood Instrument (ENI) will cover the period 2014-2020. It will contribute to strengthening bilateral relations with partner countries and bring tangible benefits to both the EU and its partners in areas such as democracy and human rights, the rule of law, good governance and sustainable development.

Instrument for Pre-Accession Assistance (IPA)The IPA provides assistance to the Western Balkan countries and Turkey (and Iceland). The EU support is primarily

provided in the form of technical and financial assistance to reforms in the candidate countries, i.e. the Western Balkan countries, Turkey and Iceland. The IPA provides almost EUR 11.5 billion (DK K 86 billion) in support to these countries in the period 2007–2013. During the pre-accession process the IPA provides support to the countries’ capacity building and helps implementing reforms. The IPA is intended as a flexible instrument, and consequently the support depends on the progress made by the recipient countries and their individual needs. The IPA provides assistance through five components: 1. transition assistance and institution-building2. cross-border cooperation, 3. regional development financing investments

in transport, environment and economic cohesion4. human resources development supporting

the development of human capital and combating social exclusion and

5. rural development providing support for restructuring of agriculture and adaptation to EU standards.

How the Danish Neighbourhood Programme fits inAs an EU member state, Denmark contributes actively to the ENPI/ENI and the IPA and the Danish Neighbourhood Programme must be regarded as complementary to the EU support. The EU support to the individual countries and to the region as a whole is taken into consideration at all stages of the programming and the implementation of projects financed through the Danish Neighbourhood Programme. Compared to the EU instruments, the Danish Neighbourhood Programme focuses on fewer intervention areas and fewer countries. The relatively modest extent of the Neighbourhood Programme provides for considerable flexibility in the interventions. The interventions reflect Danish core values and, where relevant, focus on areas where Denmark has special know-how.


Most countries in Europe’s Eastern neighbourhood are young democracies. One of the challenges facing the region is to consolidate and expand the important gains made towards the establishment of deep and sustainable democracies with equal rights and opportunities for all, regardless of gender, religion, ethnicity, age, disability, sexual orientation or gender identity. At the same time, a stable democratic structure with accountable public institutions is a prerequisite for sustained economic growth and economic integration with the rest of Europe. The promotion of human rights and democracy through targeted support for agents of change is therefore one of the pillars of the Neighbourhood Programme.

Assistance under this pillar focuses on the following four key intervention areas:

Civil society organisations

A strong, independent and diversified civil society is an essential part of a democratic society. Civil society actors contribute to promoting the rights of citizens, to express views, formulate demands and expectations to public authorities and other stakeholders and to act as watch-dogs and agents of change. A strong civil society enables citizens to pursue their rights and interests – including social and economic rights – and contributes to inclusive-ness and cohesion in society. Assistance from the Neighbourhood Programme may include capacity

Building human rights and democracy

building of local, national and regional organisations as well as networks and umbrella organisations. Partner-ships between civil society organisations (CSOs) in the region as well as with Danish and other European CSOs are promoted. Such capacity building will empower civil society to undertake advocacy and information campaigns, contribute to public hearings, enter into constructive dialogue with authorities, implement smaller projects and strengthen their own democratic and financial foundation.

Accountable and effective public administration

Public institutions with the capacity to efficiently perform their roles and which are accountable to the citizens are essential in any democracy. This includes adherence to the principles of rule of law, equal access for all citizens to fair legal proceedings, transparent administration of public funds, access to independent and objective statistics on societal issues and inclusion of citizens in open decision-making processes. The Neighbourhood Programme will collaborate with selected national and local public authorities to this end. Assistance could encompass support for preparation and implementation of national policies and reforms, development and application of anti-corruption measures, alignment to international best practices and EU standards and enhanced capacity to interact with civil society actors.


Independent public institutions

Integration of human rights and good governance principles into national constitutions and legislation – as well as their translation into action – is crucial for the development and consolidation of democracy. Independent public institutions with a mandate to uphold human rights and ensure the rule of law are therefore vital to any democratic society. The Danish Neighbourhood Programme supports institutions such as ombudsmen and national human rights institutions to enable them to fulfil their mandates. Assistance could encompass capacity development, training of staff, establishment of complaints mechanisms, facilitation of dialogue with government representatives, study visits and cross-border collaboration.

Conflict resolution and cross-border cooperation

A number of national and regional conflicts are latent in the region, often due to the presence of ethnic minorities and unresolved situations for refugees and internally displaced persons. Some of these latent conflicts have turned violent in past decades. The Neighbourhood Programme supports efforts at conflict prevention and resolution as well as peace-building. Assistance could encompass surveys and hearings, mediation between conflicting parties and support to regional cooperation.

Effective solutions to challenges like organised crime, migration, environmental protection and climate change will often require joint and coordinated efforts between several countries and actors in the region. Assistance under the Neighbourhood Programme may include the promotion of regional cooperation, capacity building of existing structures and support for preparation of joint policies and training.


Experience from interventions to promote human rights and democracy under the Danish Neighbourhood Programme 2008-12

In the most recent five-year period the Danish Neighbour-hood Programme used about 50 % of its total funds on promoting human rights, democracy, civil society as well as on implementing public sector reforms. The funds were i.a. used for capacity building and promotion of strong partnerships. The experience gathered from the many different programmes was generally very positive and demonstrated that strong and important results had been achieved. The experience gathered and results from 2008-12 have informed the continued focus of the strategy on human rights and democracy as well as the choice of intervention areas under this main theme. A number of examples illustrate practice so far:

– In Belarus support was provided for civil society groups, human rights groups and independent professional organisations. These interventions will continue to be a priority with a view to promoting a democratic development and respect for human rights for vulnerable groups in Belarus and in the entire region.

– In Ukraine the Danish support in 2008-12 i.a. contrib-uted to improving the legislation and the framework for the democratic activities of the civil society organisations. Denmark will build on this experience and continue its activities in the region to promote the political, economic and social conditions that secure the basic rights of the civil society and its active participation in the democratic development.

– In Moldova steps have been taken to enhance the efficiency of the parliament’s functions by improving the parliamentarians’ and citizens’ access to informa-tion and dialogue with regard to the pre-legislative work. This work can be continued by making broad Danish support for democratic and independent public institutions a priority.

– Thematic programmes have i.a. supported free media and freedom of speech as well as minority rights and indigenous peoples’ rights. The interventions have contributed to ensuring that many independent and critical media have strengthened the democratic dialogue, improved freedom of speech and the population’s knowledge about and participation in decision-making processes. Similarly, attention on minority rights in i.a. Georgia has increased and more focus has been created on the rights of indigenous people in Russia. These themes will also be part of the Neighbourhood programme 2013-17.


Securing the right of people to benefit from basic economic opportunities in order to escape poverty and social degradation constitutes the second pillar of the Neighbourhood Programme. Sustainable economic development, including promotion of growth and job creation for all citizens, is essential for securing stability both within the neighbourhood region and in Europe as a whole. Poverty reduction and improved living conditions are also preconditions for broad democratic participation and active engagement in political processes.

Assistance under this pillar focuses on the following three key intervention areas:

Economic growth and job creation

The economies in many countries of the region are characterised by low productivity, high levels of unemployment and impediments to private sector development. To fully develop the economic potential and create jobs in the region, it is particularly important to improve the conditions and prospects of micro, small and medium-sized enterprises (MSME). Based on positive experiences with value chain approaches, the Neigh-bourhood Programme continues to support MSMEs as parts of selected value chains with strong growth potential. In particular, MSMEs in agriculture and agribusiness is supported due to the central importance of these sectors for the majority of the neighbourhood countries. Interventions may include: Support for policies that improve the general business environment; capacity building of relevant public institutions, business organi-sations and individual businesses; as well as improved access to financial services.

Promoting sustainable and inclusive economic development

Experience from interventions to promote economic development under the Danish Neighbourhood Programme 2008-12

In the most recent five-year period the Danish Neighbour-hood Programme used about 40 % of its total funds on promoting economic development and job creation in the neighbourhood region. The private-sector interventions have undergone an external evaluation that was published in November 2011. The evaluation was learning-focused and provided a number of recommendations with regard to the future support. The general conclusion is that the private-sector support of the Neighbourhood Programme is relatively weighty and is becoming increasingly strategi-cally important as other donors are withdrawing from the neighbourhood region. Furthermore, it is pointed out that the support is highly relevant, well-adapted to national government priorities and flexible with regard to methods of implementation. Central recommendations to be taken into account in the organisation of the continued support within this main theme include:

– Support to value-chain development in agriculture is in high demand and should be continued.

– Support to vocational education and training is an important element in long-term and sustainable growth and should consequently remain key to the programme.

– Short programme time frames leave limited time for implementation. Timeframes of four to five years should be standard.


Skills development

Low productivity and high unemployment of many countries in the region are partly explained by an insufficiently skilled labour force. The Neighbourhood Programme supports skills development through vocational training relevant to the value chains selected for interventions aimed at promoting economic growth and job creation. The focus on skills development and creation of new jobs serves to mitigate possible negative effects on employment due to productivity gains. When relevant, skills development is part of interventions and support given to the MSMEs to promote economic growth and job creation. Interventions may also include specific gender-oriented activities as supplement to the general mainstreaming of gender and support to vulnerable groups.

Energy efficiency and green technology

In terms of energy consumption most countries of the region face a double challenge: Firstly, they are highly dependent on imports for their energy needs, which constitute a major burden on their economies. Secondly, consumption and production patterns in these countries are highly wasteful and characterised by inefficiency, and sustainable economic growth would require significant changes to these patterns. Consequently, the Danish Neighbourhood Programme will, as a new intervention area, promote energy efficiency and green technologies, areas where Denmark has significant know-how. Interventions may include support to policy planning and regulation integrating environmental and energy efficiency considerations, support for multilateral financing facilities to modernise energy production and energy networks, and development of pilot projects to promote innovation and application of energy efficiency measures and green technologies.


Geographically, the Danish Neighbourhood Programme covers all Eastern and South-Eastern neighbourhood countries. To ensure effectiveness and synergy, however, efforts will be focussed on longer-term programmes in a limited number of countries. Seven priority countries in the region have been selected on the basis of an assessment of possible impact, presence of relevant partners, lessons learned from previous programmes and political considerations.

The following priority countries have been identified:

Eastern PartnersBelarusUkraineMoldovaArmenia

Western BalkansAlbaniaBosnia and HerzegovinaKosovo

The majority of the funds under the Neighbourhood Programme will be used for interventions in these countries.

Amongst the Eastern Partners, all three countries sharing a border with the EU are included – namely Belarus, Ukraine and Moldova. At present, cooperation

Focusing on selected countries

with Belarus is hampered by the policies and practices of the current authoritarian regime. Assistance is therefore limited to the pillar of Human Rights and Democracy. When developments in Belarus merit more extensive engagement, Danish assistance to the country may include the whole range of assistance programmes offered to priority countries. To focus Danish assistance in the Neighbourhood Programme 2013-17, Armenia is selected as a priority country in the Caucasus.

Albania, Bosnia and Herzegovina and Kosovo are amongst the poorest countries of the Balkans in terms of GNI per capita. All three face a number of challenges in securing sustainable economic growth and the political reforms needed to realise their EU membership perspective.

In addition to the funds allocated for interventions in the priority countries, funds have been allocated for regional and thematic programmes as well as flexible interven-tions, which may also cover non-priority countries. Such countries could e.g. be countries where Denmark has previously had substantial commitments. Consequently, Denmark will continue to support Georgia and Serbia with focus on the main theme ‘human rights and democracy’, including reforms in relation to the countries’ rapprochement to the EU. Limited assistance in connection with target-oriented interventions will be provided to Russia and Turkey, particularly within the areas civil society, indigenous peoples’ rights and media.

Turkey

Georgia

Moldova

AlbaniaMacedoniaii

Bosnia andHerzegovina

Belarus

Serbia

Kosovo

Russia

Armenia Azerbaijan

Montenegro

Ukraine

EU countriesi

EU Neighourhood countries

Priori� countries

Other countries


The seven priority countries in the Danish Neighbourhood Programme

AlbaniaBosnia and

Herzegovina Kosovo Armenia Belarus Moldova Ukraine Denmark

GNI per capita (USD) 3,980 4,780 3,520 3,360 5,830 1,980 3,120 60,390

Human Development Index* 0.739 0.733 0.713 0.716 0.756 0.649 0.729 0.895

Government Effectiveness** 48 25 38 52 14 34 22 100

Rule of Law** 38 46 33 44 14 45 23 99

Voice and Accountability** 53 41 40 28 5 48 46 99

Female Members of Parliament, 2012 16 % 21 % 33 % 11 % 27 % 20 % 8 % 39 %

Turkey

Georgia

Moldova

AlbaniaMacedoniaii

Bosnia andHerzegovina

Belarus

Serbia

Kosovo

Russia

Armenia Azerbaijan

Montenegro

Ukraine

EU countriesi

EU Neighourhood countries

Priori� countries

Other countries


AlbaniaBosnia and

Herzegovina Kosovo Armenia Belarus Moldova Ukraine Denmark

GNI per capita (USD) 3,980 4,780 3,520 3,360 5,830 1,980 3,120 60,390

Human Development Index* 0.739 0.733 0.713 0.716 0.756 0.649 0.729 0.895

Government Effectiveness** 48 25 38 52 14 34 22 100

Rule of Law** 38 46 33 44 14 45 23 99

Voice and Accountability** 53 41 40 28 5 48 46 99

Female Members of Parliament, 2012 16 % 21 % 33 % 11 % 27 % 20 % 8 % 39 %

i Croatia is expected to become a member of the EU on 1 July 2013, provided the accession treaty has been ratified by all EU member states and Croatia

ii Former Yugoslav Republic of Macedonia (FYROM)

SourceWorld Bank and United Nations Development Programme. Data from 2011 unless otherwise stated.

* Human Development Index of the UNDP. Maximum score: 1.0

** Worldwide Governance Indicators of the World Bank. Maximum score: 100


The thematic focus of the two overall pillars and the selection of seven priority countries will guide the budget and programming of a grand total of DKK 1 billion (EUR 133 million) to be allocated over the five-year strategy period. Given the need to focus the assistance on larger and fewer interventions, it will not be possible to cover all key intervention areas in all seven priority countries within the five-year time span of the strategy. The Neighbourhood Programme is expected to launch two to four long-term interventions (typically three to five years) per year in selected priority countries and within selected key intervention areas.

As a general guideline approximately 80 % of the annual budgetary frame will be allocated to long-term support to the priority countries. Under current budgetary projections this will amount to DKK 160 million (EUR 21.5 million) annually. Over the entire strategy period, approx. 30 % of the entire budgetary frame is expected

Allocating funds

to be allocated to the Western Balkans, while 30 % will be allocated to the eastern partner countries and 20 % to regional or thematic programmes which may cover other countries than the priority countries.

The remaining approximately 20 % will be available for more flexible interventions in the entire Neighbourhood region, e.g. responses to sudden conflicts or the appear-ance of new political opportunities. This will amount to DKK 40 million (EUR 5.5 million) annually under current budgetary projections. Secondments of experts to international organisations and participation of Danish institutions in EU twinning programmes will also be financed under this part of the budget.

The general allocation of funds between countries and specific programmes will be outlined annually in the Danish Finance Act. Information about overall programming will be published on the website of the Ministry of Foreign Affairs upon approval of the Finance Act.


The overall responsibility for the implementation and administration of the Neighbourhood Programme rests with the Ministry of Foreign Affairs with the active involvement, where possible, of Denmark’s embassies in the region. Interventions will be based on mutually committing partnerships. The aim is to promote an equal partnership where all sides contribute their part.

Selection of partners

The Ministry of Foreign Affairs will cooperate with agents of change and those partners considered most suitable to further the objectives of the Neighbourhood Programme. These can be national governments, ministries, local authorities, regional or international organisations, civil society organisations, private businesses, research institutions, associations, as well as networks of media and journalists. The partnerships must be flexible in order to respond to challenges and changes of a political or economic nature. Capacity building of partners will be an essential part of most projects and programmes.

The Neighbourhood Programme is implemented by public and private partners and CSOs of both Danish, regional and international origin. The Ministry of Foreign Affairs will cooperate directly with multilateral organisa-tions in areas where they possess the required capacity.

Key criteria will be formulated when selecting private partners, including through tender procedures. Criteria may include the ability to:

– Build and sustain partnerships in recipient countries.

– Transfer knowledge, technology and innovative solutions to promote economic development.

– Transfer experience and methods to national and local partners in support of human rights and democracy.

Creating dynamic partnerships

The use of Danish expertise will be promoted where possible.

Monitoring

All grant holders will submit progress reports to the Ministry of Foreign Affairs based on agreed guidelines and formats laid down in the Ministry’s Aid Management Guidelines.

The Ministry of Foreign Affairs is responsible for moni toring the implementation of the Neighbourhood Programme based on input from programme partners. Monitoring will take place on a number of levels, including project, programme, country and thematic levels.

Core principles of the development cooperation

The Danish Aid Management Guidelines, along with international aid effectiveness principles constitute the implementation framework of the Neighbourhood Programme. In line with the Busan Partnership for Effective Development Co-operation (2011) the main principles include ownership, results-based management, inclusive development partnerships and transparency and accountability:

OwnershipInterventions are aligned with national policies and/or priority conditions in the recipient countries to ensure national ownership. When supporting civil society actors support is based on clear visions and strategies of partners and – where relevant – reflecting national priorities and policies.


ResultsInterventions are designed to deliver measurable and sustainable results. Where relevant, components include building of partner capacity to develop and measure indicators in order for partners to exercise timely adjust-ments of activities and to ensure fulfilment of agreed objectives.

Inclusive development partnershipsOpenness, trust, mutual respect and learning will be at the core of the partnerships, recognising the different and complementary roles of all actors.

Transparency and accountabilityThe Ministry of Foreign Affairs will hold partners accountable and promote transparency and openness in the dialogue with partners and other development stakeholders, as well as in the administration of projects and programmes.

Intervention types

In order to address the objectives of the Neighbourhood Programme, the implementation will be based on various tailored types of intervention:

Multi-annual sector-specific programmes The main part of support under the Neighbourhood Programme is envisaged to take this form. These programmes could be national, regional or thematic in scope and typically run three to five years. The relatively long grant periods aim to ensure strong partnerships and sustainable results while allowing for flexibility in implementation.

Ad hoc interventions Smaller projects and ad hoc interventions are suited to address immediate challenges or new possibilities. Such interventions are primarily used when flexible and immediate responses to suddenly occurred situations or favourable political developments are appropriate. These interventions will typically have a shorter time span.

SecondmentsAs a supplement to traditional interventions based on partnerships, a limited amount of the budget will be used for secondment of staff to international organisations with activities relevant for the Neighbourhood Programme. This instrument is used strategically to advance Danish priorities. The secondment of staff should contribute to reinforcing internationally established monitoring missions and to support the work of selected multilateral organisations. Until now, experts have primarily been seconded to the OSCE and the EU, including to their field missions.

TwinningSupport to Danish public sector institutions to facilitate their participation in EU Twinning Programmes is an activity with relatively small budgetary impact but with significant multiplier effects. The aim of the twinning facility is to help EU candidate countries and other EU neighbouring countries develop modern and efficient public administrations with the structures, human resources and management skills needed to implement EU regulations and standards. The Ministry of Foreign Affairs provides advice and guidance on rules for the twinning arrangements and can also provide funding to facilitate participation of Danish public institutions in EU selection procedures regarding twinning projects.


You will find additional information about the Danish Neighbourhood Programme on the web page of the Ministry of Foreign Affairs

um.dk/en/neighbourhoodprogramme

Here you will find information about programmes under implementation, country specific background information as well as relevant links.

Do you want to know more

January 2013

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Strategy for the Danish

Neighbourhood Programme

2013-17

541 TRYKSAG 457

Strategy for the Danish Neighbourhood Programme 2013-17

January 2013

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