Approved with Cabinet
Order No. 258
of 18 April 2016)

Development Co-operation Policy Plan for 2016

I. Summary of the Plan

The Development Co-operation Policy Plan for 2016 (hereinafter - the Plan) lays down the utilisation of the development co-operation funding allocated in the budget of the Ministry of Foreign Affairs. The Plan has been developed in accordance with Section 6, Clause 1 of the Law On International Assistance.

In planning and implementation of the development co-operation policy the Ministry of Foreign Affairs co-operates with the responsible public administration institutions, non-governmental organisations (hereinafter - NGOs), and social partners. In the course of development of the Plan, the Ministry of Foreign Affairs organised a meeting of the Consultative Council for Development Co-operation Policy on 13 November 2015, during which the society "Latvian Platform for Development Co-operation" (hereinafter - the LPDC) expressed objections against non-transparent process for inclusion of measures in the Plan. Members of the Consultative Council do not decide on measures included in the Plan.

EUR 451,400 were allocated in the budget of the Ministry of Foreign Affairs for implementation of bilateral development co-operation in 2016.

By using these funds, firstly, grant project tenders will be organised. A grant project tender will be organised for implementation of development co-operation projects to support the countries of the European Union (hereinafter - the EU) Eastern Partnership - Georgia, Moldova, and Ukraine, as well as Central Asian countries - Kyrgyzstan, Tajikistan, Uzbekistan. A tender will also be organised for the allocation of co-funding to development co-operation and development education projects implemented by NGOs, social partners, and local governments, which have obtained funding from the financial instruments provided for external activities of the European Commission (hereinafter - the EC) and other providers of international assistance.

Secondly, long-term development co-operation projects will be implemented according to the needs expressed by the partner countries and the Latvian expert-examination and/or projects, for the implementation of which co-funding of other donors in the amount of at least 50 % will be attracted. The project for regional development will be continued in Moldova. By attracting 50% co-funding from the Emerging Donors Challenge Fund of the USA, projects will be implemented for support to Ukraine in the field of agriculture and anti-corruption, as well as for support to Uzbekistan for improving the customs procedures. Support for implementation of training programmes for representatives of the European Neighbourhood Policy countries, Central Asian and Western Balkan countries in Riga Graduate School of Law will be continued; also scholarships for Ukrainian students at the University of Latvia will be funded. A project will be implemented by the State Audit Office of the Republic of Latvia for support to Georgia, Moldova and Ukraine to strengthen the Supreme Audit Institutions of these countries in establishment of a transparent and efficient control system of State funds. Funding will also be provided to ensure a wider participation of Latvian experts in other international projects funded by providers of international assistance.

Thirdly, to promote public awareness and support to the development co-operation objectives and policy, support will be provided to NGOs and the Latvian Association of Local and Regional Governments for implementation of measures and projects, including through participation in EU development co-operation platforms.

II. Characterisation of the Current Situation

The Development Co-operation Policy Plan has been drawn up in accordance with Section 6, Clause 1 of the Law On International Assistance, and it lays down the utilisation of the development co-operation funding allocated in the budget of the Ministry of Foreign Affairs for 2016. The Plan also includes a description of the measures to be implemented.

EUR 451,400 were allocated in the budget of the Ministry of Foreign Affairs for implementation of bilateral development co-operation in 2016, which is EUR 37,587 more than in 2015. With the allocated funding the co-operation activities already initiated will be continued and new development co-operation initiatives will be supported.

The Development Co-operation Policy Plan for 2016 prioritises implementation of bilateral and trilateral development co-operation for support to the partner countries by supporting also promotion of public awareness and support to the development co-operation objectives and policy, including involvement of NGOs and social partners, as much as possible.

In order to ensure sustainability and efficiency of the assistance provided by Latvia, it is necessary to continue to focus on certain priority countries and range of priorities, as well as to develop the possibilities of co-operation with other providers of international assistance.

In order to achieve more effective results of the measures implemented and provide a significantly wider target audience of projects and more varied opinions on the problems to be solved, it is necessary to promote implementation of such development co-operation projects and measures that contribute to co-operation of Latvian State institutions, NGOs, private sector, and social partners.

According to the recommendation made in the meeting of 14 October 2015 of the Economic Co-operation and Development Organisation (OECD) Working Group on Bribery in International Business Transactions, regarding the Latvian official development assistance in implementation of the Development Co-operation Policy Plan for 2016, appropriate measures for prevention of bribery of foreign officials, detection and reporting thereof will be ensured. Also, natural persons who have been convicted of bribery, as well as legal persons who have been applied coercive means due to bribery, will be excluded from implementation of official development assistance projects.

Within the framework of the Development Co-operation Policy Plan for 2016, firstly, grant project tenders in the amount of EUR 115,800 will be organised.

In response to the current political developments in the neighbouring region, taking into account the Latvian foreign policy priorities and according to EU and international efficiency principles of assistance, in 2016 it is planned to announce a grant project tender for the implementation of projects for support to the EU Eastern Partnership countries - Georgia, Moldova, and Ukraine, as well as to the Central Asian states - Kyrgyzstan, Tajikistan, and Uzbekistan. The priority areas of co-operation are determined on the basis of the previous co-operation of Latvia and recognised experience of reforms, the information provided by the Latvian embassies, and taking into account the areas of co-operation set by the EU in these countries. 50 % of the funding available in the grant project tender are planned to be marked for implementation of projects of NGOs and social partners. The grant project tender will be announced in accordance with the Law On International Assistance and Cabinet Regulation No. 2 of 5 January 2010, Procedures for Implementation of Grant Project Tenders. (If within the scope of the budget for 2016 additional funds are allocated for implementation of grant project tenders, then these funds are intended to be channelled for the implementation of projects for support to Ukraine.)

In 2015 four grant projects were implemented from the State budget programme "Development Co-operation Projects and International Assistance", of which three projects were for support to Moldova and one project for support to Georgia. Similarly, in 2015 additional funding was allocated from the State budget funds for unforeseen cases for support to Ukraine, which made it possible to implement six grant projects in this country. The grant projects funded in 2015 covered areas such as promotion of economic development, support for the reform process of local governments and regional development, for strengthening capacity of the border police of partner countries, support to the agricultural sector, strengthening of good governance and the rule of law, support for civil society and public participation.

Ensuring continuation of the practice commenced in 2012, in 2016 a grant project tender will be organised for allocating co-funding to development co-operation and development education projects implemented by NGOs, social partners, and local governments, which have acquired funding from financial instruments intended for the EC external actions and from other providers of international assistance. The Plan provides for that the amount of co-funding in 2016 is maintained at the level of the previous year, primarily for support to the development co-operation projects. In 2015 co-funding was allocated to two projects in the field of development of education, which had obtained funding from the EC. In 2015 no projects were submitted for development co-operation projects. The grant project tender will be announced in accordance with the Law On International Assistance and Cabinet Regulation No. 2 of 5 January 2010, Procedures for Implementation of Grant Project Tenders.

Secondly, long-term development co-operation projects will be implemented according to the needs expressed by the partner countries and the Latvian expertise and/or projects, for the implementation of which co-funding of other donors in the amount of at least 50 % will be attracted. These projects will be implemented in the amount of EUR 312,600.

The Development Co-operation Plan for 2016 provides for allocation of funding for continuation of the project initiated in 2012 by the Ministry of Environmental Protection and Regional Developmentt for support to Moldova in the field of regional development. The successful results of the previous years in the project implementation and the willingness expressed by Moldova to continue the co-operation confirms the significance of the contribution of Latvia in provision of long-term support to Moldova in its reform process.

It is planned to continue two projects in co-operation with the USA, which were commenced and successfully implemented in 2015 for support to Ukraine - the project implemented by the Riga Graduate School of Law in the field of anti-corruption, and the project implemented by the Latvian Rural Advisory and Training Centre in the field of agriculture. It is planned that the USA will participate in these two projects with a 50 % co-funding.

Following up on the current situation in Ukraine, its European integration efforts and processes of democratisation, it is planned to continue the practice of 2015 by allocating funds for scholarships for Ukrainian students at the University of Latvia.

On the basis of long-term development co-operation with partner countries implemented by the State Audit Office of the Republic of Latvia since 2010, which is highly appreciated and demanded by these countries, in 2016 it is planned to finance a project for support to Georgia, Moldova, and Ukraine to strengthen the capacity of the Supreme Audit Institutions of these countries in creation of a transparent and efficient control system of public funds.

Taking into account the previous professional and highly evaluated activity of the Latvian customs experts in Central Asia, in 2015 it was planned to implement a project of the State Revenue Service Customs Administration in Uzbekistan in co-operation with the USA. Due to unforeseen circumstances with respect to internal administrative procedures of the USA, as well as complex and time-consuming project harmonisation process with the customs of Uzbekistan, it was not possible to start the project provided for in the Plan in 2015. The USA participates in the project with a 50 % co-funding, therefore, taking into account the situation and the interest of Latvia to implement the project in Uzbekistan, financial support is intended for this activity in the Plan in 2016.

The communique of the First Meeting of EU and Central Asian Ministers for Education organised within the framework of the Latvian Presidency of the Council of the EU outlines a comprehensive framework for co-operation between the EU and Central Asia in the field of higher and vocational education. From 2015 to 2018 Latvia carries out the functions of the EU co-ordinating country in the project "Central Asian Education Platform" funded by the EC Directorate-General for Cooperation Development, within the framework of which Latvian experts convey their experience in development of education policy, methodology and process organisation to Central Asian countries. Within the framework of project activities Latvian education institutions, State and private sector co-operation partners, as well as social partners are visited, thereby giving an opportunity to develop further development co-operation projects.

In evaluating the successful results of 2014 and 2015 and substantial interest in the training programme offered by the Riga Graduate School of Law, within the framework of the budget for 2016 it is planned to continue to co-finance the training programme for representatives of the European Neighbourhood Policy countries, Central Asian and Western Balkan countries regarding international policy, economic and legal matters, including theoretical and practical training, as well as exchange of experience in Latvian and EU institutions. The training programme of the Riga Graduate School of Law is a dedicated 3-month programme that includes an intensive training course not only in Riga, but also visits to Brussels and Luxembourg. In 2014 and 2015 already 70 representatives of public administration and civil society were trained within the framework of this programme. During this period of time, Latvia has provided funding in the amount of EUR 319,550 for implementation of the programme, attracting funding of other donors in the amount of EUR 440,000, which accounts for 58 % of the total costs of the programme. The quality of the programme is evaluated on a regular basis and improved accordingly.

To find an opportunity within the framework of 2016 to respond to the needs expressed by the partner countries, funding is planned for involvement of Latvian experts in broader projects of other donors, also by continuing the co-operation commenced in 2015 with the representative office of the United Nations Development Programme (hereinafter - the UNDP) in Uzbekistan. In 2015 within the framework of a broader project implemented by the UNDP in Uzbekistan, a visit of Uzbek experts to Latvia took place to get acquainted with the experience of the Ministry of Welfare in social policy issues related to determination of disability and rehabilitation. In 2016 it is intended to extend this type of co-operation to other beneficiary countries for priority areas.

Thirdly, to raise public awareness and support to development co-operation objectives and policy, support will be provided to NGOs and the Latvian Association of Local and Regional Governments in implementation of measures and projects, including through participation in development co-operation platforms. Measures and projects will be implemented in the amount of EUR 23,000.

Taking into account the previous co-operation, it is planned to continue to provide financial support to NGOs working in the field of development co-operation and for strengthening their capacity - for operation of the LPDC, evaluating the needs expressed by the LPDC co-relating them with the possibilities of the development co-operation budget. Support will be provided to the LPDC capacity with the aim to organise and co-ordinate thematic measures for informing the public, including for implementation of sustainable development objectives, as well as for continuing the measures undertaken within the framework of the European Year for Development.

In examining the request of the Latvian Association of Local and Regional Governments (hereinafter - the LALRG), funding will be allocated for participation of the LALRG in the European Platform for Local and Regional Governments for Development "PLATFORMA" to continue awareness-raising of Latvian local governments in development co-operation issues.

In the Development Co-operation Policy Guidelines for 2016-2020 according to Section 5, Clause 6 of the Law On International Assistance, the Latvian foreign policy priorities, and international principles of efficiency of international assistance, it is planned to include the criteria for inclusion of projects and financial support in the annual Development Co-operation Policy Plan.

The Plan has been co-ordinated with Paragraph 62 of the Declaration Regarding Intended Activities of the Cabinet Led by Māris Kučinskis.

The Plan is linked to the priority "Security Capabilities" of the Latvian National Development Plan 2014-2020 (hereinafter - NDP) (Paragraph 339 of the NDP and justification document of the indicative financial framework of NDP priorities, action directions, and tasks), which lays down the following action - tender regarding development co-operation and development education projects and project co-funding for NGOs.

The Plan has been developed according the new global long-term development framework approved by the UN member states in 2015 - 2030 Agenda. The 2030 Agenda replaces the Millennium Development Goals adopted in 2000 and includes 17 sustainable development objectives and implementation and monitoring tools thereof. The new framework ensures interdependence of three dimensions of sustainable development (economic, social, environmental), thus providing for poverty eradication and economic growth that does not harm the environment.

The Plan has also been harmonised with the Treaty of Lisbon amending the Treaty on European Union and the Treaty establishing the European Community, signed at Lisbon on 13 December 2007 and which states that the Union policy in the field of development co-operation shall be conducted within the framework of the principles and objectives of the Union's external action. The Treaty also states that Union's development cooperation policy and that of the Member States complement and reinforce each other.

The Plan is based on the first European consensus European Consensus on Development, adopted jointly by the Council of the European Union, the European Parliament and the European Commission on 20 December 2005, which is the first common document of the Community institutions and Member States, which lays down the action of the Commission and Member States in the field of development policy.

The Plan is also based on the EU Agenda for Change, adopted in 2011, which is a strategy for poverty reduction, significantly changing the way the EU assistance is provided, including focusing assistance on fewer sectors, provision of assistance to least developed countries, emphasis on human rights, democracy and good governance, etc.

The objectives of the Latvian development co-operation funding arise from the Addis Ababa Action Agenda adopted by the UN in July 2015, and funding obligations approved within framework of the EU. In conformity with these obligations, the EU and its Member States must by 2030 allocate 0.7 % of gross national income (hereinafter - GNI) to the development co-operation, of which 0.2 % must be allocated to least developed countries. According to the EU obligations Latvia shall allocate 0.33 % of GNI for development co-operation by 2030. Currently the amount of the Official Development Assistance provided by Latvia accounts for 0.08 % of the GNI, which is EUR 19 million.

If, upon implementing the measures laid down in the plan for 2016, a situation arises when it is not possible to implement any of the measures provided for in the Plan or funding from implementation of the relevant measure has remained unutilised, the Ministry of Foreign Affairs shall decide on utilisation of the available funding in accordance with the Law On International Assistance, according to the priority directions set out in the Plan, also including the opportunity to provide additional financial support for the co-funding tender, taking into account its results. When deciding on the utilisation of the unutilised funding, the Ministry of Foreign Affairs shall co-ordinate the decision with the Consultative Council for Development Co-operation Policy.

III. Territorial perspective (not topical)

IV. Impact assessment on the State and local government budget