Swiss Parliament decides development aid increase

The petition «0.7% – together against poverty» was at the origin of the protracted wrangling over the increase in Swiss development cooperation spending. It had been launched in 2007 at the midway point to the Millennium Development Goals (MDGs) by over 70 development, women's and environmental organizations, churches and trade unions. The aim of the campaign was to hold Switzerland to its MDG obligations and bring about stronger commitment. Switzerland had indeed always maintained its wholehearted support for the MDGs at international conferences. But it had never followed through with action.

Successful petition

The campaign was highly successful: more than 200,000 people signed the petition, calling for aid to be increased to 0.7 per cent of Gross National Income (GNI). The large number of signatures made an impression on the conservative-dominated Parliament. In early 2008 a group of parliamentarians from all parties (except for the right-wing conservative SVP) took up the cause. As a compromise, however, they suggested a mere 0.5 per cent increase – they considered anything above that as not politically feasible. Switzerland’s ODA at the time was 0.37 per cent, whilst the Government's official target was 0.4 per cent. Besides, some parts of the media were engaged in a campaign against development cooperation, which they denounced as «useless», even «harmful», and many politicians even wanted to scale it back.

Parliament versus Government

The «0.7% – together against poverty» campaign succeeded in turning this mood around. The 0.5 per cent proposal found a majority in Parliament, only to be followed by a tug of war with the Government. It refused to carry out the Parliament's mandate to table a motion for a credit increase by 2012 and to explain where the additional funds should be used. Its justification was that whilst much did indeed speak for an increase, it could not be funded owing to the economic and financial crisis.

It was only after the Parliament reaffirmed its mandate that the Government, two years later, in late summer 2010, put forward a motion for an increase. The Parliament approved it by a clear majority in winter 2010 (Small Chamber) and in spring 2011 (Large Chamber). This was also helped by the fact that Switzerland’s financial situation was excellent – despite international financial and economic crisis: the 2010 national accounts closed with a surplus of CHF 3.6 billion – 5 billion more than originally budgeted!

More funds for climate and water

The Parliament's first move was to increase development aid for 2011 and 2012 by a total of CHF 640 million (some EUR 490 million). Of the additional funds, 60 per cent go to bilateral cooperation (climate change adaptation measures and water projects), 40 per cent to multilateral cooperation (United Nations Development Programme UNDP, African Development Fund, Multilateral Debt Reduction Initiative MDRI).

Only in 2012 during its debate on the next multi-year credit line the Parliament will determine development spending for 2013–2015. We will then see whether it retains the 0.5 per cent target and in fact approves the corresponding credits. This will depend not least of all on the outcome of the autumn 2011 elections. Alliance Sud and other development organizations will however continue their endeavours to that end and will be monitoring whether the quality of Swiss development cooperation is preserved – in other words whether it is benefiting the poorest people in the poorest countries and is not being used to further Switzerland’s self-interest.

Pepo Hofstetter, Alliance Sud

Article published in: Alliance Sud News no. 67, Spring 2011

Box

ODA 2010: Switzerland in mid-field

In 2010 Switzerland spent 2.3 billion dollars or 0.41 per cent of its Gross National Income (GNI) on official development assistance (2009: 0.45%). In terms of GNI share, Switzerland ranked 12th amongst all 23 OECD DAC countries. About one sixth (17.5%) of Swiss ODA was so-called phantom aid: the share of debt reduction measures did admittedly decline from 6.9 per cent (2009) to 1.3 per cent. But the share of spending on asylum seekers in Switzerland did increase yet again. It added up to 16.2 per cent last year.

Figures: Aid flows from OECD-DAC donor countries

Box published in: Alliance Sud News no. 67, Spring 2011