Luxembourg's development cooperation - Annual report 2013

The increasingly systematic use of national systems is certainly among the greatest changes and challenges that has occurred over time in Luxembourg’s cooperation with its partner countries. The methods of alignment with the national systems vary dependent on the degree of maturity and transparency of the partner countries’ financial systems. Thus Cabo Verde is the only country in 2013 to which Luxembourg gave sector-based budget support (in the vocational training sector). The appraisals by the budget support group were generally positive in 2013, but the financing of the vocational training sector remains fragile. Luxembourg therefore decided to increase its sector-based budget support from 2.5 million euros to 5.5 million euros for the overall duration of the ICP 2011-2015. Furthermore, an agreement for technical assistance which will be provided by Lux-Development was signed in 2013 in order to accompany this sector-based budget aid.

In Senegal, the formulation of the various components of ICP III has been completed and it is planned that some 40% of the budget of the ICP will be disbursed through the national implementation arrangement and therefore recorded in the Senegalese state’s consolidated investment budget.

In other countries, Luxembourg aid is channelled through joint funds and implemented with other donors with a view to harmonising and coordinating aid. This is especially the case in El Salvador with the FOCAP (joint fund of development partners supporting the “solidarity network”), in Nicaragua with the FONDSALUD in the health sector and in Burkina Faso with the CAST (Compte d’Affectation Spécial du Trésor), in support of the national programme for development of the basic education sector.