Before 1989, the Hungarian government provided considerable assistance to developing countries, mainly in education and training, but this aid served basically ideological and political purposes. After the political transformation of 1989–90, the centrally guided international development policy of Hungary practically disappeared. Later, while joining the OECD (in 1996), and the European Union (EU) (in 2004), Hungary aimed to tie in with its past donor experience and made a new start in international development policy in accordance with internationally recognised norms and obligations.

In 2005, HUF 21 billion (about € 84.66 million) was earmarked for Official Development Assistance (ODA), representing 0.107% of Hungary’s gross national income (GNI). This compared to total ODA of HUF 19 billion (about € 75.5 million) and 0.09% of GNI in 2004. In accordance with the conclusions of the Council of the EU in May 2005, Hungary is committed – as one of the new Member States – to increase its ODA to 0.17% of GNI by 2010 and to 0.33% by 2015.

In 2001, the Government of Hungary approved the new development co-operation policy, taking into account Hungary’s economic and social background and previous experience, committing the country to the Millennium Development Goals (MDGs). In particular, the main priorities set out in the document are:

• to preserve and support international peace and security, and to create and sustain regional political and economic stability;
• to reduce poverty, and contribute to sustainable economic and social development;
• to protect human rights and equal opportunities, to strengthen democracy and civil society structures, and to support local community autonomies;
• to support efforts aimed at creating economic and social development (basic necessities, health care and primary education);
• to promote good governance; and
• to protect and improve environmental resources.

Hungary focuses on its neighboring region, including western Balkan and south-east European countries. Its main interest being the stability of this region, it wants to share its experience of political-economic transition to fully utilise its comparative advantages and to ensure maximum added value to EU development co-operation efforts. However, as a recent aid recipient, Hungary also has valuable experience in receiving aid and the best way to use it, which it wants to share with its partner countries. Hence, the geographical span of Hungary’s international development policy has been extended by promoting development co-operation outside Europe with Asian and African countries. Hence, strategic partner countries are Serbia, Montenegro, Bosnia and Herzegovina, and Vietnam. They receive 60% of Hungary’s ODA. Other partner countries are Afghanistan, Cambodia, Ethiopia, Iraq, Laos, Macedonia, Moldova, Mongolia, the Occupied Palestinian Territories, Kyrgyzstan, Ukraine and Yemen, which receive a total of 33% of ODA. A further 4% is allocated to humanitarian aid and 3% to unforeseen events.

In 2002–2003, government decrees established and defined various committees responsible for planning, implementing and co-ordinating Hungarian international development co-operation activities. The Department for International Development Co-operation of the Ministry of Foreign Affairs was established in October 2002, and its main tasks include:

• activities associated with the implementation of development co-operation (planning, work assignments, supervision and assessment);
• co-ordination of development co-operation between line ministries;
• management of development resources assigned to its competence;
• executing inter-departmental and regional consultations, and drafting medium-term strategic framework plans and annual implementation plans;
• making proposals on geographical and sectoral priorities;
• evaluation of the effectiveness of assistance policy;
• formulating a communications strategy designed to gain the support of the Hungarian public; and
• preparing annual reports for the government.

Co-ordination is necessary with line ministries. This task – along with outlining the main directions of development co-operation activity – is carried out by the Inter-Departmental Development Policy Committee, which is chaired by the Ministry of Foreign Affairs. It steers Hungarian development policy and determines its geographical and sectoral priorities. This Committee is assisted by a Civil Advisory Board, which consists of representatives of the Ministry of Foreign Affairs, political parties, trade unions, employers’ associations, academic community, NGOs and individual experts. Since 2004, Hungarian International Development Agency (HUN-IDA), a non-profit institution, has been the implementing agency of Hungarian development co-operation programmes, while Hungarian missions abroad, NGOs, the private sector and various organs of public administration participate in carrying out development projects in the partner countries.

In 1999, only a modest amount was spent on bilateral development co-operation and humanitarian assistance (HUF 190 million or US$ 800,000). In the same year, there was a high amount of assistance designed to help ethnic Hungarians living in neighboring countries (HUF 1.660 billion or US$ 7 million). However, this was not counted as ODA and fell entirely within the competence of the Government Office for Hungarian Minorities Abroad and the public foundations working alongside it. Since then the bilateral share of ODA rose to about 65% of total Hungarian ODA by 2003. Hungary’s bilateral development co-operation activities focus on the following areas:

• sharing of Hungary’s experience on political-economic transition (establishment of democratic structures, creating conditions for the transition to a free market economy and good governance, providing assistance to small- and medium-sized enterprises);
• knowledge transfer, knowledge-based assistance (methodological procedures, know-how, software, transfer of organisational and planning methods, etc.);
• education and vocational training;
• health services (planning, equipping and running hospitals and polyclinics, birth control, combating epidemics, etc.);
• agriculture, food industry (hygiene, forestation, farm development, biotechnology, training, planning);
• environmental protection;
• water management and water resources development; and
• infrastructure development.

In 2005, 44% of Hungary’s bilateral ODA went to European countries, 31% to Asian countries and 24% to African, while 1% remained unallocated.

In the 1990s, activities classed as ODA were predominantly conducted through multilateral channels – financial contributions to multilateral organisations taking part in international development co-operation. In 1999, this amounted to US$ 4.6 million and increased to US$ 9.83 million in 2003, of which US$ 7.33 million is reportable as ODA and US$ 2.5 million as official assistance.

In 2003, the highest contribution (HUF 836 million) was made to the International Development Association (IDA), the world’s largest single provider of concessional credits for low-income countries helping them to make progress towards the MDGs. Then came the UN Development Programme (HUF 230 million), the World Health Organization (HUF 77 million), the FAO (HUF 44 million) and other UN agencies and funds. 

Supporting the MDGs, Hungary is firmly dedicated to goals 5 and 6: to improve maternal health and combat HIV/AIDS, malaria and other diseases. Hungary’s activities concerning maternal health focus on reducing maternal mortality and the number of abortions (with prevention being key). Also, Hungary regards it as vital to focus on young people, in particular with regard to the man’s role, his engagement in his partner’s reproductive health and his child’s development. According to Hungary’s report on the MDGs, education and awareness-raising activities are as important as providing medicines and building hospitals. Thus, Hungarian NGOs have been funded to become active in this field, and they focus on less costly solutions, such as training and education. For example Hungarian Interchurch Aid has organised the training of 20 social workers in the Sub-Carpathian region of Ukraine.
Goal six, combating HIV/AIDS, is explicitly included in Hungary’s development co-operation strategy. One of its bilateral priority sectors is health services. It includes planning, equipping and running hospitals and polyclinics, birth control, and combating epidemics.
In 2004, Hungary pledged US$ 13,843 to the UNFPA budget, while no contributions were made to UNAIDS or UNIFEM for the same period. However, between 2004 and 2006, Hungary channelled US$ 35,000 to the Global Fund to Fight Aids, Tuberculosis and Malaria.

Until the late 1990s, NGO aid missions targeting crisis areas were based almost exclusively on the donations of international NGOs. Since 2003 centralised financial support has been provided for humanitarian and development projects for Hungarian NGOs, and the Ministry of Foreign Affairs announced its first call for proposals in late 2003. In November 2003, the ministry concluded a cost-sharing agreement with the UN development programme on supporting the implementation of Hungarian international development projects in strategic partner countries, mainly Serbia and Montenegro and Bosnia and Herzegovina. Since 2004, Hungary has implemented development projects accepted by the steering committee where it has a decisive vote. It intends to involve the widest possible circle of Hungarian NGOs, experts and companies. The Hungarian Association of NGOs for Development and Humanitarian Aid (HAND) was created the same year. Its mission is to contribute to the formulation of an effective, transparent and sustainable development co-operation policy by capitalising on the long professional experience of its member organisations. In this, HAND partners with a number of Hungarian government bodies.

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Marta Papai, Department for International Development Cooperation, The Ministry of Foreign Affairs of the Republic of Hungary.

The Hungarian Association of NGOs for Development and Humanitarian Aid (HAND)

The Ministry of Foreign Affairs of the Republic of Hungary

The Ministry of Foreign Affairs of the Republic of Hungary:  A Brief Summary of Hungary’s International Development Co-operation Activities (July 2006)

The Ministry of Foreign Affairs of the Republic of Hungary: Hungary’s Report on the Millennium Development Goals. Taking stock. (October 2004)

The Ministry of Foreign Affairs of the Republic of Hungary: Hungarian Policy For International Development Cooperation (IDC)