In 1996, the Czech Republic was one of the first post-Soviet countries to re-introduce an official government development co-operation policy. Indeed, during the Cold War, the Czech Republic had been a significant provider of aid to less developed countries. However, in the process of political and economic transformation, it had become a recipient of development assistance itself. At present, the volume of foreign aid received is gradually decreasing, and the Czech Republic is becoming more and more involved in international development co-operation as a donor country. 

The Czech Republic is an OECD member and has been a member of the EU since 2004, two factors which have a bearing on its development policy, as the Czech Republic adopts OECD and EU standards. The Czech Republic has a multi-dimensional approach to the reduction of poverty, that is, accepting that poverty cannot be understood just in economic terms but also taking into account other social and environmental factors. Hence, the Czech Republic fully supports the Millennium Development Goals (MDGs). 

Development assistance is an integral part of the Czech foreign policy, and its main objectives include:

• reduction of poverty;
• social development;
• economic and industrial development;
• gradual integration of partner countries into the world economy;
• agricultural development;
• development and strengthening of democracy;
• human rights and good governance;
• the introduction of legal principles;
• migration management;
• sustainable development with a special emphasis on its environmental aspects; and
• post-conflict renewal.

In 2005, Czech Official Development Assistance (ODA) increased by 16% in real terms and reached € 103 million, which represents 0.11% of gross national income (GNI). The increase was due primarily to the US$ 62 million Czech contribution to the EU development budget and partly due to humanitarian operations in Asia after the tsunami disaster. In 2006, Czech ODA reached 0.12% of GNI. In accordance with the decision of the European Council of May 2005, the Czech Republic will strive to reach an ODA target of 0.17% of GNI by 2010 and 0.33% by 2015.

In the long term, Czech development assistance will focus on the following priority countries: Angola, Zambia, Viet Nam, Mongolia, Yemen, Moldova, Bosnia and Herzegovina, Serbia and Montenegro, Afghanistan, and Iraq.

Its main goals were defined in the Principles of International Development Co-operation after the accession of the Czech Republic to the EU, which were approved by the government in 2004. In October 2005, the government published the new ‘Principles for Tender Procedures of Development Assistance Projects’ and in April 2006, ‘Guidelines for Project Cycle Management’. At present, a law on development co-operation and humanitarian aid is being prepared which is expected to be approved by the parliament next year.

The structure set up at the Czech Ministry of Foreign Affairs unifies and centralises development co-operation under one department, the Department for Development Co-operation and Humanitarian Aid, covering both bilateral and multilateral development co-operation as well as humanitarian aid.

The Ministry of Foreign Affairs will be exercising its role as co-ordinator by convening regular meetings with representatives of those departments engaged in ODA projects. Its tasks include the following:

• defining development co-operation policies, setting out the territorial and sectoral priorities as well as the volume and structure of funding;
• preparing annual ODA plans and presenting annual evaluation reports;
• negotiating agreements and co-operating with aid-receiving countries, and co-ordinating development activities with the EU, OECD and other international institutions;
• providing information and educating the Czech people.

In September 2001, a joint agreement was signed by the Ministry of Foreign Affairs, the United Nations Development Programme and the Institute of International Relations (IIR) Prague to establish a development co-operation implementation agency – the Development Centre – which started its activities in June 2002. Its roles are the following:

• assessing proposals for long-term programmes and aid projects;
• co-operating with relevant departments in the process of implementing individual projects;
• monitoring the implementation of programmes and projects;
• co-operating with other donors;
• co-ordinating the work of government and non-government institutions and the private sector;
• co-ordinating research in the area of foreign aid, in co-operation with the IIR.

Additionally, the Foreign Aid Council has an advisory role to the Minister of Foreign Affairs in the areas of foreign and humanitarian aid. The members of the council are representatives of the Czech foreign aid platform, comprising government and non-government organisations (NGOs), political parties, the academic community, mass media, union organisations and members of the general public.

In 2005, 42% of Czech ODA was bilateral, a sum of € 44 million. Technical aid (consultations, provision of expertise, seminars, etc.) currently represents and in future is expected to represent a significant part of Czech foreign aid (in 2005, 11% of the total). Other bilateral aid funds investment projects (5% of total ODA), special programmes in the Middle East and the Balkans (7%), humanitarian aid and assistance to refugees (14%), debt relief (7%), and administrative costs, including public awareness (3%).

The Czech Republic prefers to provide grants rather than loans, because it is more conducive to maintaining the non-commercial character of foreign aid without increasing the debt of an aid-receiving country. In a special form of bilateral aid the Czech Republic is also prepared to provide so-called 'soft loans'. These loans are provided on the basis of a document adopted by the Czech government no. 389/1999 and entitled ‘Supporting Exports by Providing Long-term Government Loans under Advantageous Conditions’.

In 2005, multilateral assistance (including funds channelled into EU development co-operations policies) amounted to 58% of total ODA, a sum of € 59 million. The Czech Republic considers multilateral foreign aid to be an important part of the Czech foreign aid programme. In addition to the mandatory contributions arising from membership of international organisations (e.g. UN organisations, the World Bank and the International Monetary Fund), the Czech Republic also makes selective contributions on a voluntary basis, mostly for specific purposes, through various agencies. The Czech Republic also takes part in the development activities of the UN and its various organisations. Within the UN system the Czech Republic gives priority to so-called 'trust funds' to allow the Czech Republic to join international development projects which may also serve Czech interests and priorities.

The concept of the Czech Republic foreign aid programme for 2002–2007 fully supports the MDGs. This includes the fight against HIV/AIDS. In practice, the Czech Republic currently incorporates HIV/AIDS prevention into its projects targeting Serbia and Montenegro. Also, the Ministry of Labour and Social Affairs implements a project in Namibia aiming at stabilising the social and economic situation of families and communities affected by HIV/AIDS (US$ 988,000). The Ministry of Health conducts a project establishing preventive health care services (including HIV/AIDS prevention) in Malawi (US$ 206,000). Apart from that, SRHR and HIV/AIDS are not priority areas for Czech development co-operation. Interestingly, in recent years, the Ministry of Health has not devoted significant funds to that area. Nevertheless, in 2004, the Czech Republic contributed US$ 115,888 to the UNFPA budget and US$ 131,022 to UNAIDS. UNIFEM received US$ 43,000 in 2005.

Along with traditional foreign aid projects developed by various government departments, an important part of bilateral foreign aid is the joint financing of foreign aid projects by NGOs. In 2005, 33% of all projects approved by the government were implemented through NGOs (in 2004: 29%). NGOs also play an important role in particular in increasing awareness of global solidarity among the Czech general public, and in the area of development training (e.g. training volunteers or specialist workers in the area of foreign aid).

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Czech Ministry of Foreign Affairs
Czech Ministry of Foreign Affairs, Development Co-operation of the Czech Republic in 2004
Development Centre
Development Centre, Development Co-operation of the Czech Republic in 2005
Halaxa, P., Development Centre, Role and Functions of the Development Centre
Halaxa, P., Development Centre, Project Cycle Management, Project Appraisal and Approval
Institute of International Relations Prague
Krouzek, J., Development Centre, The Development Centre and the Project Cycle Management: Project Design.
Vejrazka, Stepan, Czech Ministry of Health, International Department
Workshop on the Czech Experience in Development Co-operation, Prague, Czech Republic, 6–8 October 2003, Summary of the discussions and main conclusions