Luxembourg's development cooperation - Annual report 2018

Dear friends of Luxembourg’s development cooperation,

I was honoured to be appointed to lead Luxembourg’s Department for Development Cooperation and Humanitarian Affairs in December 2018. Development cooperation is the expression of the Luxembourg people’s solidarity with the most disadvantaged populations and countries and bears witness to our shared global responsibility. The people of Luxembourg understand the importance of international cohesion and, even though we are a small country, we are regarded as a respected partner with an impressive record in the field of international development cooperation. Our voice is heard and we propose concrete solutions on the ground in countries and contexts that are often very difficult.

Although the overall poverty level has fallen in recent decades, almost 800 million persons are still living in extreme poverty and this figure is continuing to grow, especially in fragile countries. Moreover, global challenges such as climate change, poverty, conflicts and humanitarian crises are becoming increasingly complex and interconnected. Millions of people are being displaced by force and no single country can deal with all these challenges alone. This is why Luxembourg’s development cooperation is relying on genuine, diversified partnerships to achieve the Sustainable Development Goals by 2030.

Under my predecessor, Romain Schneider, in 2018 a new general strategy for development cooperation was drawn up in a participatory manner involving the main Luxembourg actors: the many NGOs, the agency LuxDev, the ministries for Finance and the Environment, Parliament and representatives of the private sector and the research community. Using the principle of “leaving no one behind”, this strategy is based on four thematic areas: basic social services, socio-economic inclusion of women and young people, sustainable growth and inclusive governance. The issues of gender, the environment and human rights are taken into account via a cross-cutting approach.

The strategy was presented during the Development Cooperation conferences, which once again involved over 200 national and international actors and partners and were also an opportunity to unveil the new visual identity of Luxembourg’s development cooperation. Another key event at the conferences was the celebration of the 40th anniversary of LuxDev. Using video testimonials and round table discussions, the agency demonstrated the impact of its activity on the ground and the development of its working methods over the last four decades.

It is important to be able to show the concrete impact of official development assistance (ODA). ODA rose to 401 million euros in 2018 – this amounts to 0.98 % of gross national income (GNI), placing Luxembourg as the second-most generous country in terms of ODA. Only five member countries of the Organization for Economic Cooperation and Development (OECD) exceeded the target of 0.7 % of gross national income as ODA: Sweden, Luxembourg, Norway, Denmark and the United Kingdom. Furthermore, it is worrying to see that global official aid, which was USD 153 billion in 2018, dropped by 2.7 % compared to last year and, in particular, the portion allocated to the least developed countries has fallen. Together with “like-minded” countries, Luxembourg is therefore continuing to advocate within the OECD and the European Union for large-scale official development assistance that will drive the mobilisation of private investments.

The 2018-2023 governmental programme specifies that Luxembourg’s contribution to development cooperation should remain at 1 % of GNI. In addition, Luxembourg will continue to apply the additional value of the funds invested to finance international climate work and to host refugees. In order to ensure maximal impact, our bilateral aid will continue to be focused geographically on a limited number of priority partner countries, especially the least developed countries in West Africa and the Sahel area. In parallel, Luxembourg’s development cooperation will maintain its presence in Asia and Latin America and will develop its work in new countries.

The new government’s activity will thus be based on continuity, while also relying on a more integrated approach, and on innovation, especially in the areas in which Luxembourg has specific expertise. We will apply a pan-governmental approach in the priority partner countries in order to enhance consistency and the synergies between development actions and actions in other areas, such as in combating climate change and in economic, cultural, political and security-based relations. The official visit to Senegal by His Royal Highness the Grand Duke in January 2018 demonstrated the relevance of this approach: the Grand Duke was accompanied by the Minister for Development Cooperation and Humanitarian Affairs, the Minister for the Environment and the Secretary of State for the Economy and by an economic task force made up of representatives of Luxembourg’s private sector. In addition, during this visit, the fourth Indicative Cooperation Programme between Luxembourg and Senegal was signed.

While maintaining the non-binding nature of our assistance, I would like to encourage the responsible involvement of the private sector, especially via innovative public-private partnerships that can contribute to inclusive, sustainable growth. Since Luxembourg is a leading financial centre, it seems logical to me to use our expertise to promote the mobilisation of financial resources for developing countries, especially via innovative financial mechanisms and responsible impact investments. Using the same logic, Luxembourg’s skills in the information and communication technologies (ICT) and digital data sector seem to me indispensable assets for innovative, effective development cooperation. ICT also play an important role in the field of humanitarian aid, as we realised during the annual meeting of the Emergency Telecommunications Cluster (ETC) held in Luxembourg in May 2018 attended by the international humanitarian community active in the field of emergency communications. Through emergency.lu, our flagship project in the field, implemented via a public-private partnership and in collaboration with the World Food Programme, Luxembourg is an innovative partner in this field.

Another aspect specific to Luxembourg’s development cooperation which is very close to my heart is the importance given to development NGOs. NGOs implemented 19,39 % of our ODA in 2018 and they work very closely with the beneficiaries on the ground. Furthermore, they are indispensable actors in strengthening the capacities of civil society in our partner countries, which in turn promotes good governance. Together with the Cercle de Coopération, I intend to strengthen partnerships with civil society, in particular working on cooperation effectiveness with NGOs.

This report, which I hope you will enjoy reading, also responds to the need to be transparent and accountable to the Luxembourg people with regard to the good use of public funds and the impact of our programmes on the ground. It shows how Luxembourg is committed to helping the least advantaged populations and countries and how we are working to achieve the Sustainable Development Goals. I would like, therefore, to take this opportunity to give my warmest thanks to all of Luxembourg’s development cooperation actors who were active in 2018 and who continue their commitment every day to a better, more responsible world.

Paulette Lenert

Minister for Development Cooperation and Humanitarian Affairs