The fight against poverty is at a crossroads. In 2009, the number of people living in hunger increased. A rise in global food prices and the financial crisis have had a devastating impact on the lives and livelihood of poor people around the globe. A climate crisis is looming. Failure to respond to these challenges will have disastrous effects for world poverty. Rarely has international cooperation and global action been more important for the poor. Reining in global carbon emissions and fighting global poverty must go hand in hand. Failure to combat climate change could threaten the lives of billions. Failure to combat poverty will have detrimental climatic and wide-ranging environmental consequences. We live in a globalised world. The present and future welfare of rich and poor countries are intricately tied together. We face a common destiny.
Reaching global goals requires national action. Well-functioning, responsible states must execute policies that contribute both to the well-being of their citizens, as well as to the global community. History shows that development is first and foremost a product of local and national efforts, emerging from a synergy between the state, civil-society and the private sector. Assistance from other countries or well-wishers can support such efforts, but never replace them. This was also a key premise for the Marshall Aid and its role in the reconstruction of Europe after World War II.
The first Norwegian development assistance programme started more than fifty years ago. Today, Norway currently dedicates 1 percent of its gross national income to international development, well above the agreed international target of 0.7 percent. This is a policy that has broad support in the Norwegian parliament, and the Norwegian people. Our efforts are based on the principle of solidarity, and profound commitment to international human rights.
We recognise that globalisation and geopolitical changes provide new opportunities and constraints for development. Our aim is to ensure that Norwegian development assistance – of roughly USD 4 billion annually – has real and positive impacts for the poor. This requires strategic use of resources, as well as the identification of clear priorities, as set out in Norway’s new development policy, presented in a White Paper: Climate, conflict and capital – Norwegian development policy adapting to change.
In pursuit of good results from our development efforts, we must bear in mind that our contribution represents less than 5 percent of the global aid. More importantly, we recognise that other capital flows – from trade, from migrants, from foreign investors – have a larger impact on economic growth and development than aid. Illegal capital flight from developing countries, through tax evasion, corruption and criminal activity, amounts to more than USD 750 billion a year. Working for greater transparency and regulation of tax havens is a major goal for Norwegian development policy.
Similarly, we believe that Norway’s experience in turning petroleum wealth into a source of development and growth can be useful for poor, but resource-rich countries. In far too many developing countries, abundance of natural resources has been a curse – causing rampant corruption and violent conflict. The Norwegian Oil-for-Development programme, offers on-demand expert advice and technical assistance related to all aspects of petroleum management to resource-rich developing countries. Through strategic use of development assistance, we want to influence and harness the value of other capital flows that have impacts on development.
While the world generally has become a more peaceful place in the last twenty years, an increasing proportion of today’s wars and violent conflicts take place in and between poor countries. Violent conflicts and insecurity cause great human suffering, and are an impediment to development and growth. One-third of those living in extreme poverty, live in fragile states. Preventing and ending conflict is a key to achieving the UN Millennium Development Goals. Norway will continue to focus a greater share of its resources towards fragile states. Women and children are particularly vulnerable to abuse in conflict situation. Sexual violence as a strategy of war increases the level of conflict and prevents women from taking part in the reconciliation process. The UN Security Council has called for international cooperation to prevent such atrocities, and to promote women’s participation in peace efforts. Norway strongly supports these efforts.
Norway believes in equal rights between women and men. Facilitating women’s entry into the workforce contributes to economic growth and prosperity. Violence and discrimination against women and girls is not only a breach of human rights, but also an impediment for sustainable development. Norway is committed to work for greater gender equality at home, and in its international cooperation.
Climate change and environmental degradation threaten the very foundation of human life and prosperity. These are truly global concerns. But the impact will differ between countries and regions. Climate change intensifies other development challenges: food security, disaster prevention and access to clean water are just some of the areas in which climate change is making the fight against poverty harder. Norway has made combating and adapting to climate change the number one priority of our development policy.
Greenhouse gas emissions from deforestation and forest degradation in developing countries account for about 20 percent of the world’s total annual CO2 emissions. Around 350 million of the world’s poorest people depend almost entirely for their subsistence and survival on forests - while another billion people depend on the forest as an important part of their livelihoods and as a safeguard against poverty. Through The Norwegian Climate and Forest Initiative, the goal is to include emissions from deforestation and forest degradation in a new international climate regime, and in a global carbon market. This will provide forest-rich developing countries with a sustainable source of income, as well as contributing to reduced carbon emissions and maintaining the carbon storage capacity of natural forests.
International development assistance is one – but not the only way in which rich countries can contribute to global development. Norway is fully aware that our domestic policy in a range of areas, such as trade, energy, migration, environment, and defence, matters for the world, and for developing countries. Effective policies to secure public health at the national level prevent the spread of disease across borders. Substituting polluting energy sources with clean energy can improve air quality in whole regions. A stable climate, clean air, and defence against disease are examples of global public goods, to which we all contribute in one way or another. Norway is committed to work towards better coherence between its development policy and other policy areas. We will also take national and international measures to promote increased investment in global public goods that are particularly important for development.
Globalisation and geopolitical change have greatly increased the number of international actors that partake in the fight against poverty. This requires Norway and other traditional donors to re-consider policy approaches and to seek new partnerships and alliances. This is the time for global cooperation and partnership. Norway is a firm supporter of the UN. We believe that a global order based on the rule of law and respect for human rights is paramount to securing global development and peace. At the same time, we recognise the importance of bilateral and regional leadership in instituting change. The overriding concern is to find common solutions to the challenges of poverty and climate change. We stand or fall together.