In 2005, Greece provided a total of US$ 535 million in Official Development Assistance (ODA), representing 0.24% of its gross national income (GNI). As a result of its geographical location, Greece’s own security and welfare is closely linked to stability and economic prosperity in developing and transition countries in the Balkans, the Black Sea area and the eastern Mediterranean. As a developed and stable country in these complicated multicultural regions, Greece responds to development challenges in its neighbourhood. More than four-fifths of Greece’s bilateral ODA is provided to developing countries in south-eastern Europe. Greece also perceives it has a significant comparative advantage in promoting understanding, good political and trade links, and Greece’s own recent development experience.

Greece was a net recipient of ODA from after the Second World War until the 1980s. Following its accession to the European Union (EU) in 1981, its multilateral assistance grew in the form of its pro rata share of the community’s budget for development programmes implemented by the European Commission. In response to the collapse of the centrally planned economies in eastern and central Europe and the escalation of conflicts in the former Yugoslavia, Greece’s bilateral aid started to expand during the 1990s, and its focus shifted from Africa and the Middle East to the Balkans and the Black Sea area. In August 1996, and with OECD Development Assistance Committee (DAC) membership in mind, the Greek government decided to launch a five-year programme to develop a more substantial bilateral aid programme, committing US$ 400.6 million for this purpose over the period 1997 to 2001. This decision is notable as it coincided with the period during which Greece was pursuing tight macro-economic policies to meet the conditions for joining the Euro zone. Dramatic events since 1997 in Albania, Bosnia, Kosovo and FYROM have further sharpened the Greek aid programme’s focus on the Balkans because of assistance provided in response to emergencies in these countries. The DAC welcomed Greece as its 23rd member in December 1999. This event foreshadowed more substantial participation by Greece in co-ordinated international efforts aimed at reducing global poverty and achieving the Millennium Development Goals (MDGs). Its goals generally coincide with and follow EU development policy.

Six specific objectives are spelled out for Greek aid activities in developing countries:

• combating starvation and poverty;
• steady and sustainable economic and social growth, and the integration of developing countries into the world economy;
• promotion of peace and growth;
• enhancement of democratic principles, the rule of law and the functioning of societies where human rights are respected;
• mobilisation and development of human resources, particularly the equitable participation of men and women; and
• protection of the environment and natural resources.

The fundamental objectives of Greece’s development assistance to countries in south-eastern Europe are to increase prosperity and reduce poverty for all people living in the region. Establishing peace, stability and sustainable growth are essential for achieving these objectives.

Within the Ministry of Foreign Affairs, the Hellenic International Development Co-operation Department – Hellenic Aid – was established in 1999. It is mainly responsible for the supervision, co-ordination, monitoring and promotion of emergency humanitarian and food aid actions, as well as aid for the reorganisation and restoration of the infrastructures of developing countries conducted by ministries, universities, non-government organisations (NGOs) or other players.

The main responsibilities of the International Development Co-operation Department, within the framework of development diplomacy, include:

• Handling all development assistance funding provided by the state budget, as well as all the funding from ministries, organisations, and public and private agencies within the country and abroad;
• Monitoring and facilitating development programmes and projects carried out by public agencies, universities, NGOs and other civil society organisations;
• Collecting and processing statistical data on the provision of development assistance and sending it to the DAC;.
• Monitoring meetings of DAC and EU working groups and networks;
• Submitting proposals to the Committee for the Organisation and Co-ordination of International Economic Relations with regard to the future planning of development policy for priority countries, with the objective of maximising the positive results from the implementation of viable programmes;
• Funding emergency humanitarian aid activities and programmes, restructuring and development programmes and projects, and development education and information regarding the promotion of voluntary work in Greece and developing countries;
• Supporting Greek participation in ECHO and EUROPE-AID programmes, as well as in programmes of the EU and other UN international development organisations. 

In 2005, Greece’s bilateral ODA amounted to US$ 360 million. As a consequence of its geographical priorities, Greece’s bilateral development assistance is provided to both developing countries eligible for ODA (such as Albania, FYROM, Turkey and Palestinian Administered Areas) and transition countries eligible for official aid (such as Bulgaria, Romania and Ukraine). The destination of Greece’s bilateral ODA shows a strong focus on developing countries in Europe. In 2000, more than four-fifths of Greece’s available bilateral ODA was directed to developing countries in Europe, compared to the DAC average of 7%.

As set out in the Hellenic Plan for the Economic Reconstructions of the Balkans (2002–2006) – Greece’s current strategy document – the target geographical areas for Greece’s bilateral activities are: the Balkans; the Black Sea area; the Middle East; the horn of Africa; and central and south Asia. Hellenic Aid has prepared short strategies for its 16 priority countries (Albania, Armenia, Bosnia and Herzegovina, Bulgaria, Eritrea, Ethiopia, Georgia, Jordan, Lebanon, FYROM, Palestinian Administered Areas, Romania, Syria, Turkey, Ukraine and the Federal Republic of Yugoslavia). In the medium term, some of Greece’s main priority countries will eventually become ineligible to receive ODA, should they accede to the EU or DAC. Indeed, Greece is already considering possibilities for increasing its development aid activity in the Middle East and sub-Saharan Africa (to some extent through the OECD MENA Initiative and NEPAD).

Hellenic Aid’s development activities place special emphasis on: health, education, environment and agriculture, and culture and sports. In some of its priority countries, independent support for democratisation and human rights activities, institution building and human rights, and micro-credit and income generation will be areas of focus. Greek development assistance is usually extended as grants and principally finances technical assistance.

In 2005, Greece spent US$ 175 million on multilateral ODA. Greece is a committed multilateralist and a member of many multilateral development institutions. The largest single component of the Greek aid programme is its contributions to development programmes implemented by the European Commission. Greece’s contributions amounted to US$ 98 million in 2000, more than three-quarters of its total multilateral ODA and just over 40% of its total ODA. Greece’s remaining multilateral ODA is fragmented among a large number of multilateral organisations which does not allow it to have a significant voice in the agencies it supports. Primary responsibility for Greece’s relationships with these agencies is spread across a range of directorates in a number of ministries.  

According to projections of the Resource Flows Project, Greece contributed US$ 9.293 million to population and HIV/AIDS activities in 2003. While this represents a drastic increase compared to previous years, Greece still ranks 14^th out of 16 western European countries. In 2004, Greece contributed US$ 10,000 to the UNFPA budget, UNAIDS received US$ 106,101 in 2004, and UNIFEM received US$ 15,000.

Funding available for Hellenic Aid’s NGO co-financing activities has been modest. In 2005, € 10.61 million was channelled through NGOs. This was a strong decline compared to 2004 when € 14.096 million was allocated to NGOs. Law 2731 provides the foundations for an NGO co-financing scheme. It sets out the requirements for registering NGOs – a prerequisite for receiving co-financing – and defines the conditions under which public funds can be used to co-finance NGO activities. The official Greek aid programme now co-finances NGO development projects in the areas of education, institution building, support for civil society institutions and empowerment of vulnerable groups within societies. Particular emphasis is placed on activities within the Balkans and the Black Sea area that encourage regional integration and on actions at grassroots level. An important issue for Hellenic Aid is building up within Greece a broad range of competent and experienced NGOs able to tackle international development issues. Hellenic Aid has so far included over 150 Greek NGOs on its register.

Law 2731 established a National Advisory Committee on NGOs, chaired by the Minister for Foreign Affairs and with representatives from other government ministries and agencies and civil society institutions. This committee meets twice a year to formulate and recommend policies related to activities by development NGOs and address implementation issues of a systemic nature.

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Markoulakis, Prodormos, Director, Y.D.A.S. 2 (Rehabilitation and Development), Hellenic Republic Ministry of Foreign Affairs, Hellenic Aid Assistance Disbursed through NGOs.

Hellenic Republic Ministry of Foreign Affairs

OECD, DAC, 2006, Greece Peer Review

OECD, DAC, 2002, Greece Peer Review

UNIFEM: Annual Report, Contributions from Governments and Other Donors in 2005

UNAIDS: Donor contribution table 1995–2005

UNFPA: Donor payments and pledges for 2004

UNFPA/UNAIDS/NIDI: Projections of Funds for Population and AIDS Activities, 2004-2006