copy the linklink copied!Latvia

copy the linklink copied!Introduction

Latvia’s development co-operation is provided in line with the Development Co-operation Policy Guidelines 2016-20, which define the goals, principles and directions of Latvia’s development co-operation. The objective of Latvia’s development co-operation policy is to contribute to the implementation of the 2030 Agenda in developing countries, particularly in priority partner countries, by promoting sustainable development, rule of law, good governance and the eradication of poverty. Latvia’s development co-operation policy focuses on the EU’s Eastern Partnership countries (particularly Georgia, Moldova and Ukraine) and Central Asia (particularly Kyrgyzstan, Tajikistan and Uzbekistan). Priority sectors are development and strengthening the capacity of the public administration, promoting entrepreneurship and export capacity, peace and security, promoting democratic participation and civil society development, and education.

The majority of Latvia’s official development assistance (ODA) is channelled through multilateral organisations. Bilateral ODA is provided in a decentralised manner. The Latvian Ministry of Foreign Affairs funds ODA activities from dedicated funds for development co-operation; however, other government institutions and local governments also engage in development co-operation in a systematic or ad hoc manner.

copy the linklink copied!Official development assistance

In 2018, Latvia provided USD 33.8 million in total ODA (preliminary data). This represented 0.10% of gross national income (GNI). Since Latvia did not extend any loans in 2018, its total ODA is the same using the new “grant-equivalent” methodology (see the methodological notes for further details) adopted by DAC members on their reporting of 2018 data as a more accurate way to count the donor effort in development loans and the “cash-flow basis” methodology used in the past. Total ODA for 2018 represented a decrease of 2.1% in real terms from 2017, due to a decrease in its bilateral aid.

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In 2017, 14% of gross ODA was provided bilaterally, of which 54% was channelled through multilateral organisations (multi-bi/non-core contributions). Latvia allocated 86% of total ODA as core contributions to multilateral organisations.

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In 2017, 34.3% of bilateral ODA was programmed with partner countries, making Latvia’s share of country programmable aid slightly higher than the average for development providers beyond the DAC of 27.4% (see the methodological notes for further details on country programmable aid). Project-type interventions accounted for 28.7% of this aid.

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In 2017, Latvia channelled 22.4% of gross bilateral ODA through the public sector (down from 44.7% in 2016). In 2017, Latvia channelled 15% of its ODA through universities or other teaching and research institutions and 2.9% through public-private partnerships, but did not channel its ODA through private sector institutions. See the methodological notes for further details on channels of delivery.

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In 2017, USD 0.2 million of gross bilateral ODA was channelled to and through civil society organisations (CSOs). Between 2016 and 2017, ODA channelled to and through CSOs decreased as a share of bilateral aid (from 9.5% to 5.2%).

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In 2017, bilateral ODA was primarily focused on Europe. USD 2.3 million was allocated to Europe, USD 0.8 million to Asia and USD 0.3 million to Africa. Bilateral allocations to Africa increased compared to 2016.

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In 2017, 59.8% of gross bilateral ODA went to Latvia’s top 10 recipients. Its top 10 recipients are in Europe and Asia, where Latvia has programmes with six countries, in line with its focus on its immediate neighbourhood and the Middle East. Support to fragile contexts reached USD 0.1 million in 2017 (2.9% of gross bilateral ODA). Learn more about support to fragile contexts.

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In 2017, Latvia did not make any bilateral ODA allocations to the least developed countries (LDCs). This is down from 1.7% in 2016 and is lower than the average of providers beyond the DAC of 12.3% in 2017. Upper middle-income countries received the highest share of bilateral ODA in 2017 (41.9%), followed by lower middle-income countries (18.8%), noting that 39.3% was unallocated by income group.

At 0.02% of GNI in 2017, total ODA to the LDCs was lower than the UN target of 0.15-0.20% of GNI. This includes imputed multilateral flows, i.e. making allowance for contributions through multilateral organisations, calculated using the geographical distribution of multilateral disbursements.

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In 2017, 33% of bilateral ODA commitments was allocated to social infrastructure and services, for a total of USD 1.5 million, with a strong focus on support to government and civil society (USD 0.9 million) and education (USD 0.6 million). Humanitarian aid amounted to USD 1.8 million. Latvia also committed USD 0.04 million (1.1% of bilateral allocable aid) to promote aid for trade and improve developing countries’ trade performance and integration into the world economy in 2017.

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USD 4 million of gross bilateral allocable ODA supported gender equality. In 2017, 5.4% of Latvia’s bilateral sector-allocable aid had gender equality and women’s empowerment as a principal or significant objective (down from 3.2% in 2016). Learn more about ODA focused on gender equality and the DAC Network on Gender Equality.

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USD 0.1 million of bilateral ODA commitments supported the environment. In 2017, 2.46% of its gross bilateral allocable aid supported the environment and 0.7% (USD 0.03 million) focused on climate change.

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Learn more about climate-related development finance.

copy the linklink copied!Institutional set-up

The Ministry of Foreign Affairs is responsible for formulating development co-operation policy and for co-ordinating activities. Policy is designed and implemented in consultation with the Consultative Council that includes representatives from the parliament (Saeima), line ministries, civil society organisations and social partners.

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copy the linklink copied!Additional resources

Ministry of Foreign Affairs of the Republic of Latvia, Development Co-operation: https://www.mfa.gov.lv/en/policy/development-co-operation

Member of the OECD since 2016. Not a member of the OECD Development Assistance Committee (DAC). Reporting to the OECD since 2002.

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https://doi.org/10.1787/2dcf1367-en

© OECD 2019

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