The German government has committed itself to achieve the overarching goal of reducing poverty and to contribute towards the realization of the millennium development goals mentioned in the UN Millennium Declaration, the Monterrey Consensus and the Johannesburg Plan of Action.

According to the „Aktionsprogramm 2015“, German development co-operation focuses on the following goals to address global poverty:

• Stimulating economic growth and participation of the poor
• Realizing the right to food and implementing rural reforms
• Creating possibilities for just worldwide trade
• Reducing the debt burden and providing more financial aid
• Guaranteeing basic social services and improving social security
• Safeguarding access to vital resources and preserving the environment
• Realizing human rights and respecting basic worker’s rights
• Promoting gender equality
• Fostering political participation and good governance
• Promoting human security and disarmament

The Federal Ministry for Economic Co-operation (BMZ) is responsible for formulating, steering and monitoring German development co-operation. Technical co-operation projects are primarily implemented by the semi-governmental GTZ (German Agency for Technical Co-operation), which operates in more than 130 partner countries under commission of the German government. Financial co-operation in the forms of loans or grants is mainly administered by the “Kreditanstalt für Wiederaufbau” (KfW, credit institution for reconstruction), which serves as a development financing bank.

In 2005, Germany was the world’s fifth-largest donor of ODA. The German government spent US$ 9,915 billion according to preliminary OECD figures, an increase of 31.6% compared to 2004. However, Germany’s ODA as a percentage of its gross national income (GNI) was still only 0.35% in 2005. In order to achieve the UN target of 0.7% of GNI, Germany has committed itself to increase its ODA to 0.51% of GNI by 2010 and 0.7% by 2015.

Bilateral co-operation is the main instrument of German development co-operation, with the bulk of Germany’s ODA funding bilateral programmes. The BMZ 2005 budget dedicated Euro 1.97 billion for co-operation activities with developing countries.
In order to improve the effectiveness and impact of its bilateral aid, Germany has reduced the number of recipient countries. Countries receiving German development aid are grouped into the following categories: partner countries (full development co-operation), transformation countries (co-operation with Eastern European and CIS states) and potential partner countries (presently no basis for successful co-operation). The list of partner countries is constantly reviewed.
Germany’s partner countries on which development co-operation is focused are:

• Mediterranean, Middle East: Algeria, Egypt, Jordan, Morocco, Palestinian Territories, Syria, Tunisia, Yemen
• Europe: Turkey (approx. until 2007/2008)
• Sub-Saharan Africa: Benin, Burkina Faso, Burundi, Cameroon, Chad, Côte d’Ivoire, Eritrea, Ethiopia, Ghana, Guinea, Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritania, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, South Africa, Tanzania, Uganda, Zambia
• Asia and Oceania: Afghanistan, Bangladesh, Cambodia, China, India, Indonesia, Laos, Mongolia, Nepal, Pakistan, Philippines, Sri Lanka, Thailand (approx. until 2006) Timor-Leste, Viet Nam
• Latin America: Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Paraguay, Peru.

Development co-operation with partner countries is based on selected thematic areas of operation agreed upon with the recipient country in so-called „focal point strategies“. The criteria for selection of partner countries are the need and necessity for aid with respect to achievements in social, economic, ecological and political dimensions of development and also German interests in the above-mentioned areas.
The following thematic areas serve as a framework for Germany’s bilateral co-operation programmes:

• Democracy, Civil Society and Public Administration
• Peace-building and Crisis Prevention
• Education
• Health, Family Planning, HIV/AIDS
• Water, Water/Waste Management
• Food Security, Agriculture and Fisheries
• Environmental Policy, Sustainable Development
• Sustainable Economic Development
• Energy, Renewable Resources
• Transport and Communication

In order to find out about the sectors of German co-operation for a particular country, please consult the country strategy papers published by the BMZ. Proposals to the BMZ by NGOs are not bound by the focal sectors specified, although these sectors will usually receive most of the financial resources provided by the BMZ.

The BMZ channels about a third of its aid to developing countries through multilateral institutions. Other federal ministries also support multilateral Organisations such as the UN and its specialied agencies (e.g. UNESCO, FAO, WHO) and programmes (e.g. UNDP, UNFPA, UNICEF), making Germany the third-largest contributor to the regular UN budget.
International financing institutions, such as the World Bank group and regional development banks also play an important role in Germany’s multilateral development strategy. Moreover, the German government supports multilateral aid instruments such as the Global Environmental Facility (GEF), the HIPC-Initiative and the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM).

As the largest contributor to the European Union (EU) budget, Germany also influences the principles and aims of the EU’s Development Policy. It aims to strengthen development co-operation at the EU level by supporting the following goals.

• Focussing on poverty reduction as the overarching goal
• Improving the efficiency and effectiveness of EU aid
• Improving the co-ordination between the Commission and the member states
• Improving the coherence with other EU policy areas

As a strong supporter of the ICPD agenda, Germany has defined sexual and reproductive health and rights (SRHR) and HIV/AIDS as a priority sector for its bilateral co-operation programmes. The government’s “Aktionsprogramm 2015” stresses the aim to give the young population, especially girls, unrestricted access to SRHR information and services, to realize their right to sexual self-determination and to meet the unmet need for contraceptives. According to its own figures, the BMZ has contributed over Euro 1 billion in support of the ICPD Plan of Action since 1994 through bilateral programmes in more than fifty countries and by supporting multilateral initiatives, such as the International Planned Parenthood Federation (IPPF).
In 2005, the government passed a new HIV/AIDS strategy that confirms Germany’s commitment to the fight against the pandemic. The German government’s response to the HIV/AIDS pandemic follows a comprehensive reproductive health approach, emphasizing prevention, as well as treatment and care. The BMZ position paper on HIV/AIDS (see “BMZ Spezial Nr. 109”) stresses interventions in six areas to successfully fight the spread of the disease:

• Political dialogue with partner countries and international organisations
• Strengthening the health sector in affected countries
• Innovative prevention programmes
• New bilateral and multilateral co-operation schemes
• Treatment through better access to affordable drugs
• Mainstreaming of HIV/AIDS in all development areas

According to estimations by the Resource Flows Project, Germany has donated US$ 132 million in primary funds for population and HIV/AIDS activities in 2003, making it the third-largest donor after the United States and the Netherlands. In 2005, the German government supported UNFPA with Euro 22 million, including Euro 6 million for SRHR aid to the Tsunami victims. Moreover, Germany contributed Euro 3.8 million to the IPPF budget in 2005 and has pledged to donate Euro 300 million to the Global Fund to Fight AIDS, Malaria and Tuberculosis (GFATM) by 2007.

Supporting the work of development-related NGOs is an important feature of German development co-operation. The churches, political foundations as well as a multitude of other initiatives and organisations in Germany are involved in North-South co-operation projects. Apart from funding NGO programmes and projects, the BMZ has also increased its co-operation with civil society on thematic and regional issues over the last couple of years. Private organisations and initiatives, as well as the churches are invited to participate in the drafting of regional and country strategies and sector programmes.
Since 1962, the German government has supported civil society development projects with around Euro 9.64 billion. In 2005, the BMZ funded NGO operations with Euro 468 million from its core budget (12% of the total budget).
In order to facilitate NGO access to German development funds, the BMZ has set up a centre for private organisations in development co-operation (BENGO). BENGO advises NGOs on all matters related to project applications and administration: www.paritaet.org/bengo .
The following funding instruments for development NGOs are available from the German government:

• Embassy projects
• Small-scale projects for NGOs
• Large-scale projects for NGOs
• Transportation costs

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Federal Ministry for Economic Co-operation and Development (BMZ): Medien-Handbuch Entwicklungspolitik 2006/2007
Federal Ministry for Economic Co-operation and Development (BMZ): Armutsbekämpfung – eine globale Aufgabe. BMZ-Materialien Nr. 106.
Federal Ministry for Economic Co-operation and Development (BMZ): Sexuelle und reproduktive Gesundheit (SRG). BMZ-Spezial 082.
Federal Ministry for Economic Co-operation and Development (BMZ): Der deutsche Beitrag zur Bekämpfung der HIV/AIDS-Pandemie und ihrer Auswirkungen in Entwicklungsländern. BMZ-Spezial Nr. 109.
OECD DAC: Net Official Development Assistance in 2005 (preliminary data)
UNFPA: Donor payments and pledges for 2004
UNFPA/UNAIDS/NIDI: Projections of Funds for Population and AIDS Activities, 2004-2006
Federal Ministry for Economic Co-operation and Development (BMZ): www.bmz.de
OECD Development Assistance Committee: www.oecd.org/dac