Strategy for Island's International Development Cooperation 2011-2014

Strategy for Iceland’s International Development
Cooperation, 2011 – 2014
Table of Contents
Abbreviations................................................................................................................ 2
1. The foundations of Iceland’s international development cooperation....... 4
2. Iceland’s international development cooperation........................................ 5
2.1. Values and focus areas ............................................................................. 5
2.2. Official Development Assistance (ODA) .................................................. 7
2.3. Multilateral and bilateral cooperation ..................................................... 7
2.4. Cooperation with NGOs. .......................................................................... 8
3. Implementation ............................................................................................ 10
3.1. Emphasis and priority sectors ................................................................ 12
3.2. Cross-cutting themes............................................................................... 15
3.3. Humanitarian and emergency assistance ............................................... 17
3.4. Countries and regional cooperation....................................................... 18
3.5. Organisations.......................................................................................... 20
4. International cooperation and criteria........................................................ 22
5. Strategic planning, internal and external work ......................................... 24

2
Abbreviations
CEDAW Convention on the Elimination of All Forms of Discrimination against
Women
CERF United Nations Central Emergency Relief Fund
DAC Development Assistance Committee
EU European Union
ESMAP Energy Sector Management Assistance Programme
FAO Food and Agriculture Organisation of the United Nations
GEST Gender Equality Studies and Training Programme
GNI Gross National Income
ICEIDA Icelandic International Development Agency
ICRU Iceland Crisis Response Unit
IDA International Development Association
ILO International Labor Organisation
IRENA International Renewable Energy Agency
ISAF International Security Assistance Force
LDCs Least Developed Countries
MDGs Millennium Development Goals
MFA Ministry for Foreign Affairs
NDF Nordic Development Fund
NGO Non Governmental Organisation
OCHA United Nations Office for the Coordination of Humanitarian Affairs
ODA Official Development Assistance
OECD Organisation for Economic Cooperation and Development
PROFISH Global Programme on Fisheries
UN United Nations
UNCCD UN Convention to Combat Desertification
UNCLS Convention on the Law of the Sea
UNDP United Nations Development Programme
UNESCO United Nations Educational, Scientific and Cultural Organisation
UNFCCC UN Framework Convention on Climate Change
UNFPA United Nations Population Fund
UNHCR Office of the United Nations High Commissioner for Refugees
UNICEF United Nations Childrens Fund
UNIFEM United Nations Development Fund for Women
UNRWA The United Nations Relief and Works Agency for Palestine Refugees in the Near
East
UNU United Nations University
UNU-FTP United Nations University – Fisheries Training Programme
UNU-GTP United Nations University – Geothermal Training Programme
UNU-LRT United Nations University – Land Restoration Programme
UN Women United Nations Entity for Gender Equality and the Empowerment of Women

3
MFA Ministry for Foreign Affairs of Iceland
WFP World Food Programme
WHO World Health Organisation
WTO World Trade Organisation

4
UN Millennium Development Goals
1. Eradicate extreme poverty and hunger .
2. Achieve universal primary education.
3. Promote gender equality and empower
women.
4. Reduce child mortality.
5. Improve maternal health.
6. Combat HIV/AIDS, malaria and other
diseases.
7. Ensure environmental sustainability.
8. Develop a global partnership for
development.
1. The foundations of Iceland’s international development cooperation
The overarching objective of Iceland’s international development cooperation is
contributing to the fight against poverty and working towards improved living
conditions in Least Developed Countries. Iceland’s active participation in
development cooperation, furthermore, represents an acknowledgement of its political
and ethical responsibilities as a responsible member of the international community.
Decisions on Official Development Assistance carry significant responsibility
towards recipients and Icelandic taxpayers. Adhering to a professional, and
systematic, approach is necessary for optimum outcomes and ensuring that
development cooperation renders sustainable results. Furthermore, it is important that
the allocation of ODA complies with strict requirements of transparency, efficiency
and integrity.
Iceland’s Strategy for International Development Cooperation 2011-2014 was
prepared on the basis of Act no. 121/2008 on Iceland’s International Development
Cooperation, which entered into force on October 1, 2008; Article 3 of the Act reads
as follows:
“Every two years the Minister shall submit a proposal for a parliamentary
resolution concerning the Icelandic Government’s Strategy for International
Development Cooperation for a four-year period.
The Programme shall cover all contributions to international development
cooperation and how they are divided between Iceland’s long- and short-term
policy objectives. Furthermore, the Strategy shall include a comprehensive
overview of how the Minister intends to achieve its goals. The Strategy shall, inter
alia, specify the percentage of the Gross National Income that is planned to be
allocated to Official Development Assistance (ODA).”
International development cooperation is an integral part of Iceland’s foreign
policy. The Strategy for International Development Cooperation focuses on the
promotion of human rights and gender equality, peace and security, as well as the
fight against poverty, social injustice, disparity in living conditions and hunger. It
furthermore attempts to ensure internal coherence in Iceland’s foreign policy with
regards to global economic, environmental and security matters.
Iceland’s membership of the United Nations is the main foundation for its
international development cooperation. As a sovereign state in the community of
nations, Iceland participates in UN activities in support of the UN charter.
The United Nations Millennium Declaration, approved by the UN General
Assembly in 2000, states that the fundamental values of international relations in the
21st
century are freedom, equality, solidarity, tolerance, respect for nature and shared
responsibility. The Declaration states that the nations of the world will strive for
peace and security and join forces in
the fight against poverty. It is resolved
to make the United Nations more
effective in resolution of disputes, post
conflict reconstruction and peace-
keeping. Furthermore, the Declaration
addresses issues that are crucial to
promote social and economic

5
development as well as prosperity. The Declaration is the foundation for the
Millennium Development Goals, the internationally agreed targets for international
development cooperation, to be achieved by 2015.
Based on the above, and with reference to Article 1 of the Act on Iceland’s
International Development Cooperation, this Strategy forms a comprehensive outline
of Iceland’s participation in international development cooperation, peace-keeping
and post conflict reconstruction, humanitarian and emergency assistance.
The Monterrey Consensus on Financing for Development was the conclusion of a
UN conference in 2002 and codifies the mutual commitments and responsibilities of
states that engage in official development assistance: donors will increase their aid
allocations to developing countries, development agencies will enhance their
efficiency through increased coordination of their actions, and recipients will promote
reforms and improved governance in public administration and the implementation of
development projects.
In addition to the above, Iceland has ratified a number of UN conventions and
agreements which entail obligations that are significant for this Strategy, including
the human rights conventions, the Convention on the Rights of the Child, the
Convention on the Elimination of All Forms of Discrimination against Women
(CEDAW), the Convention to Combat Desertification, the Convention on the Law of
the Sea and the Framework Convention on Climate Change.
2. Iceland’s international development cooperation
2.1. Values and focus areas
International development planning and policy formulation reflects viewpoints
which are based on a wealth of experience that has been amassed over time.
Experience has shown that although similar methods can be applied from one country
to the next, local conditions and circumstances, which differ from one country to
another, must always be taken into account.
The emphasis is on support for the LDCs and for poor people in countries where
there is significant disparity in living conditions. Partnerships for peace and
reconstruction in conflict-affected communities is also an important element of
development cooperation. Furthermore, a focus is put on fragile and conflict-affected
states with weak capacity and governance.
Icelandic development cooperation reflects values that Icelandic society holds
high: respect for democracy and human rights, human diversity, tolerance, justice and
solidarity. Accordingly, Iceland’s development cooperation emphasises the
following:
i. Responsibility – to be guided by accountability and transparency in
development activities and share responsibility for execution and
results with our partners.
ii. Results – all aspects of implementing development programmes –
administration, procedures and methodology – should contribute to
maximising the effectiveness of development cooperation.
iii. Reliability – earning international respect through professionalism
and integrity as a partner in development cooperation.
Iceland’s objective in its international development efforts is to support poverty
reduction strategies of partner countries, emphasising sustainable development and

6
the development of human capital. Special emphasis is placed on human rights,
gender equality, peace, security and activities that can draw on Icelandic expertise
and experience.
The Millennium Development Goals and international agreements on development
cooperation to which Iceland is a party, represent the guidelines for Iceland’s
development cooperation. Efforts are made to ensure recipients’ ownership of
projects and programmes. This contributes to lasting results, and communities carry
the responsibilities of their own development. Furthermore, efforts are made to
promote mutual understanding and solidarity between Iceland and the developing
countries through increased relations, including cultural exchange and trade.
The principal points of emphasis of Iceland’s development cooperation will be the
following:
i. In the Icelandic International Development Agency’s (ICEIDA’s)
bilateral development cooperation, emphasis will be placed on three
LDCs in Africa, where ICEIDA has experience: Malawi, Mozambique
and Uganda. In addition, assistance will be provided to regional
cooperation, with special emphasis on the sustainable utilisation of
natural resources.
ii. Peace-building will include contributions to international
organisations and the work of Icelandic experts in two countries,
which are important to international peace and security: Afghanistan
and Palestine.1
iii. Multilateral development cooperation will focus on four organisations
which are of particular importance to the priorities of this Strategy: the
World Bank Group, the United Nations Children’s Fund (UNICEF),
the United Nations Entity for Gender Equality and the Empowerment of
Women (UN Women) and the United Nations University (UNU).
iv. Humanitarian and emergency assistance will continue to be an
important factor in Iceland’s international development efforts,
primarily in collaboration with the United Nations Office for the
Coordination of Humanitarian Affairs (OCHA), the United Nations Central
Emergency Relief Fund (CERF), the United Nations World Food
Programme (WFP), and non-governmental organisations.
v. A concerted effort will be made to coordinate the work of the entities
that manage Iceland’s Official Development Assistance and enhance
the harmonisation of bilateral and multilateral development
cooperation.
vi. Collaboration with non-governmental organisations will be
strengthened further, both in the fields of international development
and humanitarian and emergency assistance.
vii. Increased public awareness and discourse about developing countries
and the implementation of Iceland’s international development
strategy will be promoted, e.g., through publications, conferences and
education.
1
Palestine refers to the occupied Palestinian territories (oPt), Gaza and the West Bank, including East
Jerusalem.

7
GNI
(ISK million)
Proportion of
GNI (%)
ODA
(ISK
million)
2005 989,764 0.17 1.728
2006 1,100,397 0.26 2.895
2007 1,236,756 0.25 3.037
2008 1,196,403 0.36 4.277
2009 1,344,632 0.32 4.261
Projection
2010 1,367,001 0.23 3.238
2011 1,342,565 0.21 2.765
2012 1,468,071 0.21 3.083
2013 1,538,568 0.25 3.846
2014 1,657,441 0.28 4.640
2.2. Official Development Assistance (ODA)
Iceland is committed to the UN target, to which the developed countries have
pledged to allocate 0.7% of their gross national income (GNI) to official development
assistance. Based on UN General Assembly resolutions dating back to 1970 and the
UN Consensus on Financing for Development adopted in Monterrey in 2002 and in
Doha 2008, this Strategy introduces a schedule for bringing Iceland into the ranks of
those states that contribute more than 0.7% of their GNI to ODA within the next 8
years.
Iceland’s neighbouring countries, Norway, Sweden and Denmark, in addition to the
Netherlands and Luxembourg, have all allocated at least 0.7% of their GNI to
development cooperation for a number of years. Several other countries have set
time-bound schedules to achieve the 0.7% target, including the EU Member States,
which intend to achieve the collective target of 0.7% of GNI by 2015.
Iceland’s contributions to
development cooperation have
increased significantly in recent
years, reaching ISK 4.3 billion,
or 0.36% of GNI in 2008.
However, following the
economic crisis it was
unavoidable to reduce all state
expenditures, including
contributions to development
cooperation. According to
budget projections, ODA in
2011 will correspond to 0.21%
of GNI, and then grow
gradually to 0.28% of GNI2
in
2014, as shown in the table
above.
During the revision of the
International Development
Cooperation Strategy in 2013
increases in ODA will be
accelerated so as to reach 0.5% of GNI in 2017 and 0.7% in 2019.
This schedule is based on current forecasts of economic growth. Should economic
growth prove stronger than projected, budget appropriations to ODA will be
reviewed.
2.3. Multilateral and bilateral cooperation
Bilateral and multilateral development operations are complementary and closely
linked, both in strategic planning and work in the field.3
The comprehensive
framework for international development cooperation, established by the Act on
Iceland’s International Development Cooperation, laid the foundation for forging
closer links between bilateral and multilateral development. In this way the
2
GNI pursuant to figures from Statistics Iceland.
3
Contributions to international organisations which are earmarked for specific states or delimited
projects are termed “multi-bilateral contributions” and are classified as bilateral contributions in DAC
statistics.

8
accumulated experience of bilateral development cooperation can complement
Iceland’s participation within international bodies, and vice versa, resulting in an
overall strengthening of Iceland’s contribution to international development.
The public administration is responsible for the overall effectiveness of
development cooperation. Results, efficiency, and conscientious professionalism are
key factors in the decision-making process on the allocation of ODA. Periodic
monitoring and evaluation of implementing agencies and their programmes are a
prerequisite for such decisions. The same applies to collaboration with NGOs,
contributions to international organisations and/or bilateral projects undertaken by
ICEIDA. The Act establishes a comprehensive approach to all Icelandic international
development efforts, which entails the requirement that all of Iceland’s development
cooperation should be judged by the same criteria to the extent possible. To this end it
is important to apply clear working processes in the conduct of external reviews and
disclosure of information, which both contribute to enhanced transparency in
development cooperation.
2.4. Cooperation with NGOs.
NGOs are important participants in development cooperation as well as in
humanitarian and emergency assistance. Their strength is often their closeness to the
grass roots in the recipient communities and they play an important advocacy role for
vulnerable communities. Support for NGOs therefore serves to strengthen grassroots
and reinforce democracy.
Approximately 5% of Icelandic ODA is allocated to projects implemented by
NGOs. Cooperation with NGOs will be strengthened in the coming years and
accordingly a separate item in the State Budget will be dedicated to such cooperation
as of 2012. Cooperation between the authorities and NGOs will furthermore be
simplified by joint working procedures and a single application process for all
projects, whether it be humanitarian and emergency assistance carried out with the
MFA or development projects carried out in partnership with ICEIDA. In addition,
ICEIDA will continue its focus on partnerships with local NGOs in Iceland’s partner
countries, where the same working procedures will be observed as in the cooperation
between Icelandic and international NGOs. The authorities also aim to use framework
agreements as one of the underpinnings of collaboration with NGOs in the future.
In 2011, allocations to new projects implemented by NGOs will derive exclusively
from the Ministry for Foreign Affairs, but as of 2012 they will be itemised separately
in the State Budget, as outlined earlier. Emergency assistance in the wake of natural
catastrophes and other events calling for immediate action will, as before, be paid out
of the State Budget under humanitarian and emergency assistance, including
allocations to NGOs.
The principal points of emphasis as regards Iceland’s ODA will be the following:
Premises Focus Actions
UN 0.7% goal The UN General Assembly has
agreed that 0.7% of GNI of
developed countries should be
allocated to development
cooperation.
Most developed countries have
established a time-bound schedule
to reach the 0.7% target.
The Nordic countries are among
the most generous in the world and
Iceland is committed to the 0.7%
target.
Iceland to become one of the
countries with proportionally the
highest contributions to
international development
cooperation.
A time-bound schedule will be
followed to increase ODA during the
effective term of this Strategy from
0.21% to 0.28% of GNI in 2011-2014.
The increases in ODA will be
accelerated when this Strategy is
reviewed in 2013.
By 2019, 0.7% of GNI should be
allocated to ODA.

9
place great emphasis on the 0.7%
target in their international
development policies.
Budget The objective of the Act on
Iceland’s International
Development Cooperation is to
enhance the role of the Althingi in
discussions on international
Improved transparency in
discussions and planning on
cooperation.
Prioritisation pursuant to the
International Development
Cooperation Strategy will be
reflected in the State Budget.
Improve efficiency and results of
international development efforts
through more focused planning.
Separate item for cooperation with
NGOs in the 2012 State Budget.
Separate item for the UNU Land
Restoration Training Programme in
the 2012 State Budget.
Separate item for cooperation with the
World Bank in the 2012 State Budget.
Separate item for environmental and
climate related issues in the 2012
State Budget.
The following plan for the division of ODA is based on the experience of recent
years, including external reviews of ICEIDA projects and the work of the
international organisations that Iceland partners with. The general division of ODA
will continue to follow the previous division.
Plan for the division of ODA by State Budget items:

10
2011 2012 2013 2014
(ISK
million)
(%) (ISK
million)
(%) (ISK
million)
(%) (ISK
million)
(%)
ICEIDA 1.166,3 42 1.234 40 1.539 40 1.856 40
Ministry for Foreign Affairs 1.599,0 58 1.670 54 2.038 53 2.413 52
Of which:
UNU Geothermal Training Programme 187,7 7 199 6
FAO 11,0 0 11 0
UNDP 22,1 1 23 1
UNICEF 112,4 4 122 4
UNU Fisheries Training Programme 147,3 5 158 5
UN Women 102,0 4 117 4
Humanitarian and emergency assistance 221,4 8 173 6
The Icelandic Crisis Response Unit 115,8 4 144 5
Development aid, other 353,3 13 169 5
Debt Relief for developing countries 20,0 1 - -
The World Bank - - 135 4
UNU Land Restoration Training Programme - - 68 2
Environmental and climate affairs - - 60 2
UN (general contr., int. peace-keeping, ILO, WHO) 56,0 2 56 2
Capital contributions (IDA, NDF) 250,0 9 230 8
Collaboration with NGOs - - 179 6 269 7 371 8
TOTAL 2.765,3 100 3.083 100 3.846 100 4.640 100
Ratio of GNI 0,21% 0,21% 0,25% 0,28%
3. Implementation
This Strategy calls for a sharper focus and clearer prioritisation in Iceland’s
development cooperation on the basis of sustainable development. The main
emphasis will be on three areas: natural resources, human capital and peace-building,
as well as on two cross-cutting themes: gender equality and environmental
sustainability. Geographically, the focus will be on five countries: Afghanistan,
Malawi, Mozambique, Palestine and Uganda. Four international organisations are
identified as key organisations in multilateral development cooperation: The World

11
Bank Group, UNICEF, UN Women and the UNU. Humanitarian and emergency
assistance will, as before, be an important element of Iceland’s international
development cooperation, with special emphasis on OCHA, CERF and WFP.
Natural
Resources
Human
Capital
Peace-
building
energy
fisheries
education
health
good governance
reconstruction
Humanitarian
Assistance
Gender equality / Environment
NGOs
Bilateral
cooperation
Malawi
Mozambique
Uganda
Palestine*
Afghanistan
World Bank
Multilateral
cooperation
UNICEF
UN WOMEN
UNU
ImplementationPolicy
MFA ICEIDA MFA
MFA
WFP
OCHA
CERF
NGOs
In recent years approximately 75% of allocations earmarked for specific issues
have fallen within the framework of the priority areas and cross-cutting themes
emphasised in this Strategy. In the implementation of the Strategy, this will represent
the minimum proportion to be allocated to the priority areas; in addition, there will be
a maximum of two focus areas in each partner country. Allocations and projects that
fall outside the priority areas will support the general areas of focus and goals of the
Strategy, or be projects which Iceland considers important to support, such as the
resettlement of refugees in Iceland and debt relief for developing countries.
This represents an attempt to improve the efficiency and effectiveness of Iceland’s
development cooperation and direct the work towards a course which combines the
expertise and experience available in Iceland with the needs of Iceland’s development
partners.

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3.1. Emphasis and priority sectors
Natural resources
The sustainable use of natural resources is one of the main prerequisites of
economic progress in developing countries.
Progress in fisheries4
is of particular importance to improve livelihoods in many
developing countries. Improved management of fish stocks and improved handling of
catches, together with an increase in the supply of fish from fish farming and
aquaculture, should improve the food security of the communities in question and
create a basis for increased export revenues. The development and implementation of
fisheries management programmes based on scientific advice is also important to help
developing countries adapt to the effects of climate change.
Fisheries have proved to be a challenge for many developing countries. The sector
has been at the core of Iceland´s bilateral development efforts since its inception, as a
result of requests from developing countries for cooperation in an area where Iceland
possesses both expertise and experience. Iceland has built up significant knowledge
of development cooperation in the fisheries sector through the years, and today the
fisheries sector is included in both bilateral and multilateral cooperation.
The Reykjavík Declaration on Responsible Fisheries in the Marine Ecosystem of
2001 emphasised the importance of development cooperation in the fisheries sector.
At the UN Summit on Sustainable Development in the following year, development
agencies’ focus on fisheries was sharpened, which resulted in greater attention to the
fisheries sector in recent years. With the above in mind, Iceland will continue to play
an active role in this field.
Energy is highly important for the achievement of the Millennium Development
Goals. UNDP has pointed out that the goals will be impossible to achieve without
greater access to energy for the poor. According to UNDP, approximately 1.6 million
people live without electricity, and about two billion people meet their energy needs
using primitive methods such as burning wood and biomass. The use of these
substances for household heating and cooking causes pollution which often has
particularly severe consequences for women.
It is important to support developing countries in meeting their energy needs
through the use of clean and renewable energy resources where possible and thereby
limit the impact increased energy production can have on the release of greenhouse
gasses.
Energy has been a growing area of focus in Iceland’s development cooperation in
recent years, while before the work of the UNU Geothermal Training Programme
(UNU-GTP) represented Iceland’s principal involvement in the energy sector.
Iceland’s role in this area will be expanded still further, both on a bilateral and
multilateral basis concurrently with the strong efforts of the UNU-GTP.
Human capital
The social capital inherent in the population is a major pillar of any society.
Increased education, improved health and gender equality broaden the opportunities
for people to participate in creating wealth and welfare for their communities and
thereby promote increased economic growth and social progress.
Five of the eight Millennium Development Goals relate to education and health.
Reports on the MDGs show that progress towards the goals has been uneven. Positive
4
Fisheries is used as a collective term for fisheries management, marine and freshwater fishing, fish
processing and handling, fish farming and aquaculture.

13
results have e.g. been achieved in increasing children’s education, and infant
mortality was reduced by almost 30% between 1990 and 2007. Nevertheless, much
work remains to be done. For example, 72 million children still do not attend school,
and the goal of equal schooling for girls and boys before 2005 was not achieved. The
poorest results have been in the field of maternal health. Every year, more than half a
million women and girls die as a result of pregnancy or childbirth. It is estimated that
the reduction in maternal mortality was a mere 6% between 1990 and 2005.
Weak health service and health care remain among the principal problems in
LDCs. Health will therefore remain an important part of Iceland’s development
cooperation. Special emphasis will be placed on basic services, hygiene and improved
maternal and infant care.
In spite of significant improvements in children’s access to primary education
much still remains to be done to achieve the MDGs. The drop-out rate for primary
school students remains high, and the same goes for adult illiteracy. Education will
therefore also remain a key component of Iceland’s development cooperation. The
emphasis will be on children’s education and adult training, in addition to building up
professional expertise in the focus areas.
Peace-building
Peace, security and development are closely interlinked. A peaceful environment is
a prerequisite for long-term development and economic growth. Conversely, weak
governance, stagnation and uncertainty can give rise to conflict. Armed conflict and
instability can have an impact far beyond any borders, e.g. through the increased
spread of diseases, organised crime and terrorist activities, with migration and flow of
refugees.
The basic preconditions for peace in conflict-affected countries are good
governance and reconstruction based on economic and social development. Good
governance includes, but is not limited to public confidence in the rule of law, respect
for human rights and responsible and transparent public administration.
Peace-building is a fundamental component of UN activities and a sector which
Iceland supports in a number of ways. In addition to contributions to UN international
peace-keeping,5
Iceland’s participation in crisis management and peace-building
includes secondment of civilian experts to the field in conflict-affected countries. In
recent years understanding of the importance of, and willingness to participate in,
civilian reconstruction in post conflict countries has increased. This emphasis is well
suited for Iceland, as all Icelandic personnel are civilians. The condition for Iceland’s
participation in peace-keeping tasks is that the work must be carried out under the
auspices of, or under a mandate from, the United Nations.
Iceland’s contribution to crisis management consists of the work of specialists for
international organisations. The main focus is on assistance to vulnerable groups,
such as refugees and children, emergency relief, coordination of post conflict
reconstruction and governance with emphasis on the implementation of UN Security
Council resolutions on women, peace and security.
5
6% of the annual contributions to UN peace-keeping is counted as development assistance according
to DAC criteria.

14
Premises Objectives Actions
Naturalresources
Fisheries Progress in fisheries is an
important factor for economic
development and a tool for
reaching the MDG of
eradicating hunger.
Enhance food security and
improve living conditions in the
developing countries through
sustainable fisheries, improved
utilisation of catches and
progress in fish farming and
aquaculture.
Icelandic expertise and
experience of fisheries put to use
in the interests of developing
countries.
Active participation in the
policymaking of international
organisations on fisheries.
Emphasis on work with FAO and
the World Bank.
ICEIDA will focus on fisheries in
Mozambique and Uganda.
Working Group on fisheries
established by MFA and
ICEIDA.
Active work by the UNU
Fisheries Training Programme in
Iceland. The Programme as an
integral part of Iceland’s
comprehensive strategy in this
policy area.
Energy Necessary to meet the energy
needs of developing countries
to reach the MDGs.
Living conditions and health
of people in developing
countries will improve with
increased use of renewable
energy resources.
Increase use of renewable
energy resources in developing
countries.
Icelandic expertise and
experience of renewable energy
sources put to use in the
interests of developing
countries.
Active participation in the
policymaking of international
organisations on energy.
Promotion of increased
investment by states and
development agencies in
geothermal energy for the benefit
of developing countries.
Emphasis on the UN, World
Bank, Nordic Development Fund
and IRENA.
ICEIDA to work on energy
matters in bilateral and regional
cooperation.
Working Group on energy
established by MFA and
ICEIDA.
Active work by UNU
Geothermal Training Programme
in Iceland. The Programme as an
integral part of Iceland’s
comprehensive strategy in this
policy area.
Humancapital
Education Education is the foundation of
development.
The second MDG emphasises
the importance of primary
school education.
The third MDG emphasises
girls’ and boys’ equal access
to education.
Improve primary schooling for
children and adults in
developing countries.
Strengthen professionalism in
areas based on Icelandic
expertise.
Promote gender equality and
empowerment of women
through education and training.
Special emphasis on education
and adult education in ICEIDA’s
partner countries.
Cooperation with NGOs in the
field of education.
UNU activities in the fields of
fisheries, energy and land
restoration.
UN Women and UNICEF as key
partner organisations to promote
increased education of girls and
women.

15
Health Three of eight MDGs concern
improved health, with special
emphasis on mothers and
children.
Improve primary health services
in developing countries.
Emphasis on women's and
children's health.
ICEIDA will focus on health and
sanitation in Malawi and Uganda,
especially maternal and infant
health.
Collaboration with NGOs in the
field of health.
Collaboration with UN Women,
which promotes improved health
of girls and women.
Participation in Nordic
cooperation on the importance of
sexual and reproductive health
and rights.
Emphasis on children’s health
through cooperation with
UNICEF.
Peace
Governance UN Millennium Declaration
emphasises improved
governance and support for
democracy and human rights.
Improved governance
contributes to economic and
social progress.
Special emphasis on the
campaign to combat violence
against women in the UN
Millennium Declaration.
Promote peace in conflict-
affected developing countries
through support for improved
governance.
Improve the rights and position
of women in conflict-affected
countries.
Support for UN Women’s
programmes on the Balkan
Peninsula, Afghanistan and
Palestine.
Implement the National Action
Plan on women, peace and
security.
Enrolment of experts from
conflict-affected countries at the
Gender Equality Studies and
Training Programme.
Support for humanitarian work of
the International Committee of
the Red Cross.
Reconstruction Post conflict reconstruction is
a key component in
promoting stability.
Important that post-conflict
reconstruction goes hand in
hand with peace-building.
Vast majority of victims of
abuse in conflict affected
countries are women and
children.
Participation in reconstruction in
conflict-affected countries.
Contribution to improved
coordination of reconstruction
activities in conflict-affected
countries.
Promotion of better conditions
for women, children and
refugees in conflict-affected
countries.
Contribution to the coordination
of post conflict reconstruction in
Afghanistan.
Support for Palestinian refugees
through contributions to the UN
(UNRWA/UNHCR).
Support for the coordination of
humanitarian action in Palestine
in partnership with OCHA.
Support for the projects of UN
Women and UNICEF.
3.2. Cross-cutting themes
Gender equality and environmental sustainability are cross-cutting themes in this
Strategy, and all development cooperation should take these viewpoints into
consideration. Experience has shown that assistance which is based on equal rights of
women and men results in more effective development programmes. Projects which
are based on the participation of both men and women and take the interests of both
genders into account are more likely to generate sustainable results.
Improving the position of women and increasing equality in international
cooperation are also separate goals to be worked on through mainstreaming gender
equality in official development assistance. Mainstreaming entails that equal rights
constitute a guideline in policymaking, strategic planning, project preparation and
implementation in the field, as well as in work within international organisations. UN
Security Council resolutions on women, peace and security are also an important
foundation for Iceland’s participation in peace-building and post conflict
reconstruction.6
6
Resolutions No. 1325, 1820, 1888 and 1889.

16
It is important for both women and men to have equal opportunities for
influencing, participating in and benefiting from Iceland’s development cooperation.
The government’s policy on gender budgeting will also serve as a guideline in
international development efforts. External reviews should specifically assess the
effectiveness of policies and programmes, with regards to gender equality.
Furthermore, emphasis will be placed on achieving gender equality among the
personnel engaging in development cooperation, both in the field and in headquarters.
A comprehensive gender equality policy will be adopted for development cooperation
which will take into account the review of ICEIDA’s policy from 2004.
Iceland’s development cooperation is based on the principles of environmental
sustainability, which means that development should meet the needs of the present
without compromising the ability of future generations to meet their own needs. The
Millennium Development Goals emphasise that the resources of the earth should not
be depleted in an unsustainable manner. Environmental sustainability is therefore a
criterion in all Iceland’s development cooperation, although it carries the greatest
weight in projects that relate to the utilisation of natural resources.
An environmental policy will be formulated for Iceland’s development
cooperation based on the government’s comprehensive environmental policy and it
will reflect international resolutions relating to development cooperation, including
the conclusions of the UN Conference on Environment and Development in Rio de
Janeiro and the Conference on Sustainable Development in Johannesburg in 2002.
Climate change resulting from human causes has serious consequences for living
conditions on earth. If there is no response to this trend, future generations will not
retain the same living standards as the present generations. Climatic changes that
bring about natural disasters, e.g. as a result of abnormal draughts or floods, are
particularly difficult for developing countries. At the UN Climate Change Conference
held in Cancun in December 2010, an agreement was concluded to provide the
developing countries with fast start finance for enhanced action on mitigation,
adaptation, technology development and transfer as well as capacity building in
relation to climate change. There, developed countries committed themselves to
contribute USD 30 billion to development cooperation in the area of climate change
for the period 2010-2012. The Icelandic government will participate in this agreement
through a special contribution during this period. The contribution will constitute a
net addition to current ODA, and for this reason a separate item will be included on
environmental and climatic matters in the State budget as of 2012.
Gender equality and environmental sustainability will be mainstreamed into
Iceland’s development cooperation as follows:
Gender
equality
Assistance to women contributes to
more effective development
cooperation
Assistance that is based on gender
equality reinforces the progress
towards the MDGs.
Women and children are the vast
majority of victims of abuse in
conflict-affected countries.
The Millennium Declaration
emphasises the implementation of
the Convention on the Elimination
of All Forms of Discrimination
against Women (CEDAW),
Mainstreaming gender equality into
all development projects. Promote
the implementation of UN Security
Council resolutions on women,
peace and security.
Implement Action Plan on UN
Security Council Resolution 1325.
Observation of gender budgeting in
Increase the weight of gender
equality in policymaking and
projects of international
organisations.
Working Group on gender equality
established by MFA and ICEIDA.
Preparation of a gender equality
policy based on revision of
ICEIDA’s policy. Completed:
January 2012.
Review of the National Action Plan
on women, peace and security.
Completed: March 2011.
Support the pilot project on Gender
Equality Studies and Training
Programme (GEST)
External reviews of development
projects will specifically assess

17
gender mainstreaming.
Gender equality among development
cooperation personnel.
Systematic work on gender equality
issues and implementation of UN
Security Council resolutions on
women, peace and security in
international organisations.
Environment Environmental sustainability is one
of the MDGs.
The UN Convention on Climate
Change entails increased
Iceland has extensive knowledge and
experience of renewable energy
sources.
Extensive knowledge and experience
of utilising geothermal energy,
ecological restoration and
sustainable land use.
UN resolutions on environment and
sustainable development, 1992 and
2002.
Iceland to participate in international
actions to assist developing countries
in adapting to and mitigating the
effects of climate change.
Icelandic technical expertise to
promote the MDG on sustainable
development.
Formulation of environmental policy
in development cooperation.
Completed: April 2012.
Separate item on environmental and
climate change issues in the 2012
State Budget.
Environmental sustainability
specifically addressed in the
preparation and implementation of
development projects.
Active participation in the work of
international organisations in the
field of renewable energy .
Active work by UNU Geothermal
and Land Restoration Training
Programmes.
Contribution to a fund under the
UNFCCC.
Support for small island developing
states in adapting to and mitigating
the effects of climate change.
3.3. Humanitarian and emergency assistance
Iceland’s humanitarian and emergency assistance is designed to safeguard human
lives and reduce suffering in crisis situations. As in the case of projects that contribute
to long-term reconstruction and development, it is important to provide humanitarian
and emergency assistance through efficient, responsible and coordinated actions.
Iceland’s assistance in this field is based on eventual emerging needs. The
assistance is provided through NGOs and UN agencies and funds. Three UN agencies
have the largest role in this field: WPF, which operates in the main disaster areas in
the world, CERF, which enables the organisation to respond quickly in cases of
sudden disasters, and OCHA, which coordinates actions. NGOs also play a key role
in humanitarian and emergency operations; collaboration with NGOs is subject to
specific rules of procedure, as recounted above.
The year 2003 saw the launch of an international Good Humanitarian Donorship
initiative under which donors observe procedures and criteria designed to ensure
coherent and effective assistance. The emphasis is on respect for human rights,
humanitarian law and refugee law when providing humanitarian aid, on supporting
and promoting UN’s unique leadership role in humanitarian action and on
recognising the key role of NGOs, in particular the International Red Cross and Red
Crescent Movement. It is also emphasised that states supporting humanitarian action
by the UN should strive towards more timely funding
The Icelandic government supports the areas of focus of the Good Humanitarian
Donorship initiative. Reforms have been made in the arrangement of humanitarian
and emergency assistance provided by the Ministry for Foreign Affairs. More
stringent requirements are made for the programmes supported, e.g. in terms of
preparation, planning as well as monitoring and evaluation, adaptation to the needs of
beneficiaries and fiduciary requirements.

18
OCHA Iceland’s knowledge and
experience of working with OCHA,
including the work of experts
seconded by the MFA
Careful coordination of actions is
the foundation for effective
humanitarian and emergency
assistance.
OCHA’s role has been
strengthened in recent years.
Strive for enhanced effectiveness of
emergency assistance through well-
coordinated actions.
Regular contributions to OCHA.
Special contributions in the event
of unanticipated need.
Short-term work of seconded
experts by the MFA to OCHA in
the field.
Active participation in the policy
work of the Nordic countries on
UN emergency assistance.
CERF Rapid response to sudden crises is a
prerequisite to save human lives.
The UN operates in most countries
of the world and is a key player in
crisis response.
Enable the UN to respond rapidly
to sudden crises.
Regular contributions to CERF.
UN emergency assistance.
WFP Iceland’s knowledge and
experience of working with WFP.
Seconded experts by the MFA to
WFP.
Largest provider of food aid in the
world.
Activities in all the main crisis
areas in the world.
WFP plays a key part in
progressing towards the MDG of
hunger eradication.
WFP has a clear and well-defined
role.
Experience gained from training
Icelandic experts by WFP.
WFP to be enabled to provide food
assistance in crisis areas in an
efficient and effective manner.
WFP to continue to play a key role
in the progress towards the MDGs.
Contributions to WFP crisis
responses where the need arises.
Short-term work of seconded
experts by the MFA to WFP in the
field.
WFP.
NGOs NGOs are an important partner in
carrying out humanitarian and
emergency assistance.
Vigorous activities of NGOs in
Iceland and their active
participation in the work of
international organisations.
Strong grassroots and assistance to
the most vulnerable groups.
Promote more efficient emergency
assistance through support to the
actors who are best suited to
provide assistance at any given
time.
Separate item for cooperation with
NGOs in the State Budget as of
2012.
Current operational procedures for
applications and grants enforced.
Review of operational procedures.
Completed: August 2012
International
initiative on Good
Humanitarian
Donorship Group
International criteria and
procedures to strengthen and
increase the effectiveness of
humanitarian aid.
Iceland’s humanitarian aid to yield
maximum results and to be
supplied to those who are in the
greatest need.
Iceland to become a party to the
Good Humanitarian Donorship
Group within two years.
Work will be organised pursuant to
the procedures and criteria of the
Initiative as of 2012.
3.4. Countries and regional cooperation.
Iceland will focus on assistance to the countries and regions where poverty and
need are greatest. Afghanistan, Malawi, Mozambique and Uganda all figure among
the Least Developed Countries, and there is great need for economic and social
assistance in Palestine. The conditions in these countries are difficult yet different,
and some are fragile and conflict-affected.
Palestine Uganda Malawi Afghanistan Mozambique
UN Human Development Index (rank) ... 143 153 155 165

19
Life expectancy (years) 73.9 54.1 54.6 44.6 48.4
Infant mortality (< 5 years per 1000) 27 135 100 257 130
Literacy (%, older than 15 yrs) 94.1 74.6 72.8 ... 54
Proportion of population without water (%) 9 33 20 52 53
Source: UNDP Human Development Report (HDR) 2010
There is greater economic and political stability in Malawi, Mozambique and
Uganda than in Afghanistan and Palestine, where the progress of post conflict
reconstruction is impacted by the difficult security conditions and political situation.
Assistance to the three African countries is based on the reasoning that the need for
assistance is great and ICEIDA has long-standing experience in all of them. Since the
situation in these countries is relatively stable, the cooperation can be based on long-
term plans which are prepared and implemented in collaboration with the respective
governments. Country Strategy Plans will be drawn up, where Iceland’s assistance
will be based on the focus and needs of the partner countries, as stated in their
respective Poverty Reduction Strategy Papers.
Implementation will be based on the Act on Iceland’s International Development
Cooperation, which enables ICEIDA to address its tasks using the most suitable
approaches in each case, e.g. programme based approaches and joint funding in
cooperation with other donors. Emphasis will be placed on observing best practice in
international development cooperation. In selecting tasks, ICEIDA will emphasise
that mutual accountability, competence to deliver assistance and absorptive capacity
are fundamental to sustainability and development effectiveness.
As regards Afghanistan and Palestine, Plans of Action will take account of
changing needs as the situation develops. In these countries Iceland does not have a
permanent presence. For this reason, the assistance will be granted in cooperation
with international organisations by channelling contributions to joint funds or
individual projects undertaken by these organisations and through secondment of
Icelandic experts to the field.
The focus on these countries will not exclude the possibility of undertaking
projects that involve other countries. Participation in regional cooperation could, for
example, be important for progress of projects in Iceland’s focus areas. Separate
points of emphasis and criteria will be formulated for participation in regional
cooperation and multilateral cooperation in the area of fisheries and energy. Support
will also be provided to the particularly vulnerable Small Island Developing States,
as regards the impact of climate change, as emphasised in the conclusions of the UN
Conference on Climate Change.
The principal areas of focus in the cooperation with the five states are laid down in
the following overview:
Implementation Partners Iceland’s areas of focus
Afghanistan The Ministry for Foreign
Affairs
ISAF
The Nordic countries
UN Women
EU
NGOs
Preparation of a Plan of Action 2012-2014.
Completed: November 2011
Nordic cooperation based, inter alia, on a joint Nordic
review from 2009.
Promote better coordination of international
assistance.
Work on gender equality and women’s empowerment.
Emergency and humanitarian assistance provided by
international organisations and NGOs.

20
Malawi ICEIDA The Government of Malawi
Local government in Mangochi
Other donors
NGOs
Preparation of a Country Strategy Plan 2012-2014.
Completed: October 2011.
Human capital: Focus on education, health and
sanitation.
Mozambique ICEIDA The Government of Mozambique
Local government in Inhambane
Other donors
NGOs
Preparation of a Country Strategy Plan 2012-2014.
Completed: October 2011.
Natural resources and human capital: Focus on
fisheries and health.
Palestine The Ministry for Foreign
Affairs
UNICEF
UN Women
UNRWA
OCHA
UNHCR
EU
NGOs
Implement current Plan of Action for 2008-2010.
Preparation of a Plan of Action2012-2014.
Emergency and humanitarian assistance provided by
international organisations and NGOs.
Assistance to refugees.
Assistance to women and children.
Uganda ICEIDA The Government of Uganda
Local government in Kalangala
Other donors
NGOs
Preparation of CSP 2012-2014. Completed: October
2011.
Natural resources and human capital: Focus on
fisheries, health, education and district development.
3.5. Organisations
Clearer prioritisation is also reflected in the fact that special emphasis will be
placed on the work of four international organisations: the World Bank, UNICEF, UN
Women and the United Nations University. This means that in addition to providing
contributions to and support for their projects in the developing countries, Iceland
will seek to become an active participant at the policy level within the respective
priority organisation. Contributions to these organisations have amounted to
approximately 55% of ODA to international organisations in recent years. With the
current Strategy, the aim is to increase this proportion to 75%. Contributions to other
organisations, apart from these four, will take specific account of the need for
assistance in Afghanistan and Palestine, and, in addition, special consideration will be
given to potential Icelandic participation in international health initiatives. A new
budget item earmarked for cooperation with the World Bank will be included in the
State Budget for 2011, and the item relating to debt relief for developing countries
will be eliminated as of then.
In September 2009, the UN General Assembly approved the merger of the four
previously distinct parts of the UN system, which focused exclusively on gender
equality and women’s empowerment. The purpose of the changes was to increase the
weight of gender equality and women’s empowerment within the UN and enhance the
ability of the Organisation to achieve results in this field. Iceland supported the
merger and will emphasise support for the new agency which was created; the UN
Entity for Gender Equality and the Empowerment of Women, UN Women.
The principal points of focus in Iceland’s cooperation with these four key
organisations are laid down in the following overview:
Premises of cooperation Areas of focus Actions
World Bank Iceland’s knowledge and experience
of working with the Bank.
Efficient work pursuant to reviews.
Increased emphasis by the Bank on
energy and fisheries.
Gender equality and its
mainstreaming into the Bank’s
projects.
Support by the Bank for developing
countries in the field of renewable
energy sources.
IDA16 Replenishment , 2011.
Gender Action Plan (GAP)
Assessment of possible continuation
of cooperation. Completed: October
2011.
Fisheries projects (PROFISH).

21
Bank’s focus on the UN MDGs.
Iceland has direct involvement in the
policy work in the Bank’s board of
directors.
Extensive Nordic-Baltic Cooperation
Increased participation by the Bank
in fisheries projects.
Increased emphasis on human rights
in the Bank’s work.
of cooperation. Completed: June
2011
Energy projects (ESMAP).
of cooperation. Completed: October
2012.
Active participation in policy work
of the Nordic Baltic Constituency for
the Board.
Joint project of the Nordic-Baltic
constituency on human rights.
UNICEF UNICEF’s work is a key for
achieving the MDGs.
Active support for UNICEF is an
element of Iceland’s human rights
policy.
UNICEF has a clear and well-
defined role.
UNICEF’s projects in the field
return good results.
Children’s education and health are
one of the basic premises for
development.
UNICEF’s important role in fragile
and conflict-affected countries and
good experience of Icelander’s work
for the agency.
Active UNICEF grassroots work in
Iceland.
UNICEF to maintain its role as a key
UN agency for children.
Reinforcement of UNICEF’s work
in the field.
UNICEF to lead the improved
coordination of donors who assist
children in the field.
Support for current reforms in
UNICEF’s work, which aim for
more efficient operations and result-
oriented projects.
Secondment of Icelandic experts in
the field.
Stand-by partner agreement for surge
capacity in emergency situations,
UNICEF.
Work of JPOs in the field for
UNICEF.
Cooperation UNICEF National
Committee in Iceland.
UN Women Iceland’s knowledge and experience
of working with UNIFEM.
Active participation by women in all
aspects of life promotes progress and
development.
Women’s participation in and
support for women enhances the
results of development projects.
Role and mandate of UN Women a
key element for achieving the UN
MDGs.
Important role of UN Women in
fragile and conflict-affected
countries.
Active support for UN Women is an
element of Iceland’s human rights
policy.
Iceland has extensive knowledge and
experience related to gender
equality.
Active grassroots work in Iceland.
Support for reforms of UN activities
with increased emphasis on gender
equality.
Plans for UN reforms to be based on
the knowledge and experience of UN
Women.
UN Women’s fieldwork to be
strengthened and given increased
weight in the coordination of UN
development assistance.
Implement UN Security Council
resolutions on women, peace and
security.
Secondment of Icelandic experts in
the field.
Active participation in UN policy
work on gender equality.
Work of JPOs in the field for UN
Women.
Support to the UN Trust fund in
support to Actions to Eliminate
Violence against Women.
Cooperation with UN Women
National Committee in Iceland.
Participation in Nordic cooperation
on UN Women.
UNU Iceland’s knowledge and experience
of operating UNU training
programmes.
Iceland’s knowledge and experience
of working with the UNU and
Iceland’s reputation within the UNU.
Importance of education and
scientific work for economic and
social development.
Increased focus of UNU on
cooperation with the academic
society in developing countries.
The academic society in Iceland has
gained in strength, providing a wider
basis for cooperation with
Quality teaching and training for
experts which is useful for the
economic development of their
home country.
Strengthen links between the UNU
and the UN development agencies
and bilateral agencies, including
ICEIDA.
Increase the dissemination of
practical knowledge through
partnerships in the developing
countries.
Strengthen the contribution of the
UNU to the MDGs.
Operation of the UNU Geothermal
Training Programme in Iceland and
its training courses in developing
countries.
Operation of the UNU Fisheries
Training Programme in Iceland and
its training courses in developing
countries.
Operation of the UNU Land
Restoration Training Programme in
Iceland and its training courses in
developing countries.
Pilot project on the Gender Equality
Studies and Training Programme.
Preparation for the future
arrangements of UNU’s operations in

22
developing countries. Iceland during the implementation
period of the Strategy.
Many of the UN agencies have an important role in providing development
assistance, but they work on a broader foundation, i.e. they address issues of interest
to all the nations of the world. These agencies include the Food and Agriculture
Organisation (FAO), the World Health Organisation (WHO) and the World Trade
Organisation (WTO), which Iceland considers very important, even though they are
not among the priority organisations referred to above.
4. International cooperation and criteria
4.1. United Nations
Iceland’s membership of the United Nations is one of the foundations of this
Strategy. In the United Nations, the countries of the world participate in discussions
on the challenges faced by the community of nations, ranging from security and
human rights affairs in individual countries or regions to global environmental and
health issues. Participation in the work of the UN will remain at the core of Iceland’s
contribution to international cooperation and an important element of general
development work. Iceland’s Permanent Mission in New York is an active participant
in the work of the UN on the environment, natural resources and development, in
addition to engaging in the work of the UN in crisis and humanitarian assistance,
peace-keeping and peace-building. Iceland’s Permanent Mission in Geneva also
contributes in the field of humanitarian and emergency assistance. Furthermore, the
UN agencies in Rome have a special role in the implementation of this Strategy.
4.2. Collaboration of OECD states
Participation in the work of the Development Assistance Committee of the OECD,
is an important element in Iceland’s development cooperation. DAC is an
international forum for donor countries with the principal role of establishing
international guidelines for development cooperation and providing professional
discipline through regular peer reviews. Iceland wishes to follow best international
practice. Active participation in DAC is an important element of this endeavour.
Iceland is not a member of DAC, but can participate in the work of the committee as
an observer. The principal precondition for full membership is that Iceland must be
able to provide the OECD with statistical information on the scope and break-down
of its ODA in line with DAC procedures, and must also have the capacity to
participate in the work of the Committee and selected Working Groups. Iceland will
work in compliance with DAC procedures, criteria and definitions. A DAC special
review of Iceland’s development cooperation will be requested during the period, to
be followed by full membership of the Committee.
ICEIDA’s financial system is organised so that it is easy to itemise contributions in
accordance with DAC criteria, and work is under way on a similar adaptation of
Iceland's multilateral contributions.
4.3. The Paris Declaration
Following the Millennium Declaration a great deal of policy work on international
development cooperation has been undertaken. There are two key documents in this

23
regard: The first is the Paris Declaration of 2005, which is intended to create a
framework for more coherent and disciplined development cooperation aimed at
achieving better results and increased aid effectiveness. The Declaration states in a
clear manner, that it is the norm for aid recipients to forge their own national
development strategies and exercise leadership in developing and implementing those
strategies. The second key document is the Accra Agenda for Action of October
2008, where the recipient countries’ ownership of development programmes and the
importance of harmonisation are reiterated.
The Paris Declaration assumes that donors should work with and rely on partner
country systems to the extent possible. Attempts should be made to strengthen the
country systems and prepare them for the challenges of the future. Donors should
endeavour to pool their funding so that organisations will complement one another
with the aim of increased effectiveness. It is also emphasised that the assistance is
aligned with existing development programmes in partner countries.
The changes made with the Act on Iceland’s International Development
Cooperation will enable the government to begin the implementation of the goals of
the declaration.
International guidelines and commitments will be enforced in Iceland’s
development cooperation as follows:
United Nations Iceland’s participation in
development cooperation is
based on its membership of the
UN.
The Strategy is based on the UN
Charter and the UN Millennium
Declaration.
The UN and its agencies play a
key role in development
cooperation.
Support reforms that increase the
results and efficiency of the UN's
work on development and peace-
building.
Promote the progress of Iceland’s
areas of focus pursuant to the
Strategy.
Special emphasis on cooperation
with the UN agencies that are
involved in Iceland’s areas of
focus.
Active participation in UN policy
work by the MFA and permanent
missions.
Active cooperation with the
United Nations Association in
Iceland.
Cooperation with the
OECD
DAC is the OECD countries’
donor forum. DAC establishes
common criteria for the
implementation of development
assistance and promotes
professional discipline.
Icelandic development
cooperation to be of high quality,
professional and follow best
international practices.
Iceland to become a member of
DAC during the implementation
period of the Strategy.
International reporting Quality data on development
cooperation are the basis for
comparison between countries
and a means of improving
results.
Iceland to be prepared to meet
DAC’s reporting requirements.
Reforms in the arrangements of
operation and accounting for
ODA. Completed: December
2011
Peer reviews Professional discipline is the
foundation for quality working
procedures and results in
Increase the effectiveness of
Icelandic development
cooperation and make it
comparable with the best
international practices.
Special Review of Iceland’s
development cooperation to take
place before the review of the
Development Cooperation
Strategy.
Paris Declaration and
Accra Agenda for
Action
Harmonised activities and
recipient ownership strengthens
results.
Iceland to participate in the
international initiative to increase
aid effectiveness through
implementation of the goals of the
Paris Declaration and Accra
Agenda for Action.
Formulation of scheduled targets
in Iceland’s development
cooperation with reference to the
Paris Declaration and Accra
Agenda for Action. Completed:
February 2010.
Active participation in DAC’s
work on implementing the
Declaration.

24
5. Strategic planning, internal and external work
The Act on Iceland’s Development Cooperation provides for active participation
by the Althingi in deliberations on development cooperation. In addition to informing
the Foreign Affairs Committee and Finance Committee regularly on the progress of
international development cooperation, the Minister for Foreign Affairs will deliver
to the Parliament a biannual report on the implementation of this Strategy. Also, the
Development Cooperation Committee and the Council on International Development
Cooperation act in an advisory capacity in matters of policy making in Icelandic
One of the principal objectives of the Act is to create a comprehensive foundation
for all of Iceland’s development cooperation, whether conducted in partnership with
individual developing countries, international organisations or non-governmental
organisations. All Icelandic ODA should rest on a single foundation and have clear
objectives. A comprehensive legislation entails increased interaction of bilateral and
multilateral cooperation, which enables the Icelandic authorities to work in a more
effective and organised manner toward progress of the priority areas of this Strategy.
As recounted earlier, there are constant changes in the planning and
implementation of development cooperation, as new methods are constantly being
sought to increase effectiveness. The knowledge and experience of personnel working
in the field of development are the foundation of professional procedures. These
resources must be utilised to enable Iceland to exercise care in the preparation,
implementation and monitoring of development projects and participate actively in
the policy work and cooperation of international organisations. The formulation of a
joint human resource policy for the Ministry for Foreign Affairs and ICEIDA is
therefore a key element in maintaining and strengthening the professional foundation
of Iceland´s development cooperation.
The academic community also plays an important role in creating a fertile soil for
high-quality, progressive development cooperation. Support for teaching, research
and advisory work in development studies will strengthen the pillars of our
development cooperation, create increased opportunities for cooperation and fit well
with Iceland’s focus on the work of the United Nations University.
Increased emphasis on promotion and education is a key element in Iceland’s
future vision. Open and objective discourse on development cooperation will deepen
knowledge of the actions of the international community in the struggle against
poverty and deprivation and serve as an important scrutiny on the ways in which
public funds are utilised.
Society’s contribution to development cooperation is also important. The
foundation of the work of Icelandic non-governmental organisations is active
fundraising, which depends on the support of individuals and corporations.
Parallel with social development, economic progress is dependent on investments
in the economic sector and employment opportunities. Work in this area should be
based on business ethics, where the mutual interests of all parties and social
responsibility are the norm. Icelandic entities have in recent years increased their
business ties in developing countries and participated more actively in projects that
promote progress and prosperity, e.g. in the fields of renewable energy sources. In
light of the changed circumstance in the Icelandic economy and business sector, there

25
is reason to assess in what way Icelandic participation in this area could best be
promoted.
The principal areas of focus in internal and external work will be the following:

26
Policymaking and
supervision
Democratic discourse on
policymaking and monitoring of
the implementation of
development cooperation
promotes increased results.
Iceland’s policy is based on
discussions in the Althingi on
focus areas and prioritisation in
Reviewed Strategy submitted to
the Althingi in 2013.
The Minister for Foreign Affairs
will report to the Althingi on the
implementation of the Strategy in
2013.
Regular reports to the Foreign
Affairs Committee and Finance
Committee.
Interaction of bilateral
and multilateral
development
cooperation
Development cooperation returns
better results when development
agencies harmonise their
assistance, and multilateral and
bilateral agencies work together.
Improve effectiveness and focus
the implementation of Iceland’s
Iceland’s policy work in
international organisation to be
based on experience and
knowledge of bilateral work.
Make use of Iceland’s
participation in the work of
international organisations to
strengthen bilateral cooperation.
Formation of joint working groups
by the MFA and ICEIDA in the
following fields to strengthen
bilateral and multilateral
cooperation:
- Gender equality
- Natural resources
- Development Effectiveness
Formulation of an Environmental
policy.
Formulation of a Gender equality
policy.
Human resource
management
Quality development cooperation
is based on the knowledge,
experience and training of
personnel.
Promote better and higher
quality development cooperation
through an active human
resource policy.
Enable Iceland’s embassies and
permanent missions to
participate actively in the
implementation of this Strategy.
Make use of the opportunities
inherent in the provisions of the
Act on Iceland’s Development
Cooperation for staff exchanges
between the MFA and ICEIDA.
Enforce the gender equality
policy.
Formulate a joint human resource
policy of the MFA and ICEIDA
for development cooperation.
Joint seminars and training
courses held by the MFA and
ICEIDA.
Introduce staff exchanges with
international organisations and
development agencies of other
donors.
Gender balance of employees
pursuant to the development
cooperation gender equality
policy.
Cooperation with NGOs NGOs are important partners in
implementing development
cooperation and humanitarian
and emergency assistance.
NGOs are important advocates
for developing countries.
Strong grassroots work
strengthens development work.
Non-governmental organisations
to be reinforced as partners in
cooperation.
The government to work with
NGOs where that is likely to
show the best results.
The government to exert scrutiny
on NGOs in the implementation
of projects.
Separate item in the State Budget
for cooperation with NGOs in the
2012 budget.
Increase in the proportion of ODA
to cooperation with NGOs during
the period.
Joint rules of procedure and a
single application process for all
collaboration between the
government and NGOs.
The government to maintain good
relations with the the partnership
group of NGOs.
NGOs to be subjected to reviews
and other supervisory measures
used in development cooperation.
Cooperation with the
academic community
Teaching and research in
development cooperation is the
foundation for progress and for
learning lessons from experience
and results of development work.
Strengthen the academic and
functional pillars of Iceland’s
development cooperation
through increased participation
by the academic community in
teaching, research and advisory
work.
Points of emphasis in the
cooperation between the
government and the academic
community in development
affairs. Completed: May 2012
Promotion and
discourse
Transparency, which depends,
among other things, on education
and public information on the
use of public funds, imposes
Organise active promotion and
information on Iceland’s
Annual joint promotion campaign
of the MFA and ICEIDA.
Conferences and seminars to be
organised in consultation with

27
discipline and promotes a higher
quality of development
cooperation.
NGOs and the academic
community.
Private sector
participation in
development
Economic progress depends on
investments in industrial
development and the creation of
job opportunities.
Responsible participation by
Icelandic entities in development
cooperation based on mutual
interests and social
responsibility.
Analysis to be made of the
possibility for participation by
Icelandic entities in development
cooperation. Completed: June
2012

Strategy for Island's International Development Cooperation 2011-2014

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Strategy for Island's International Development Cooperation 2011-2014