Sweeping Nordic development aid cuts weaken NGOs

Nordic governments dig deep into the coffers of their development aid budgets to finance influx of refugees

In Denmark, the European refugee crisis and a new Danish government in June with new priorities have led to large cuts in Danish development aid. Of the total development aid budget for 2016 of approximately 2.1 billion USD, 625 million USD have been earmarked to handle expenses related to the refugees arriving in Denmark in 2015 and 2016.

The cuts have caused an outcry within the Danish development community as spending on domestic refugee issues has traditionally been financed from other parts of the state budget. The reduction in development aid has had major consequences for the Danish non-governmental aid sector, where scores of organisations are having to let go of staff and close their country programmes. The changing priorities have affected most medium-sized and large Danish NGOs in a direct attempt to finance the costs that the country is facing as a result of the new influx of refugees from primarily Syria and Afghanistan.

IMS is one amongst several Nordic NGOs dealing with the consequences of the spending cuts. Following the loss of almost 1 million USD (7 million DKK) annually from the Danish government to IMS’ core budget, IMS regrettably has had to let go of 15 staff members, an announcement which was publicised on 1 December. Approximately half of the staff in IMS who have received notice are based in IMS’ headquarters in Copenhagen and the other half in country offices.

“These spending cuts are a blow to the fundamental work of local journalists in dire need of support around the world,” says Jesper Højberg, Executive Director of IMS in response to the news of the budgeted cuts.

“Nordic support through IMS provides the means for independent voices to continue their work towards peace and democratic reform and we have seen the results of this important work in the Middle East and parts of Asia where media have played a central role in instigating revolutions. These independent reform actors are those who will make a difference moving forward, but they cannot do so without our support.”

IMS, as well as other NGOs in the Nordic countries continue to face unpredictable scenarios as also the Swedish government has followed suit and is announcing plans to reduce their development aid budget in an attempt to finance the costs of the refugee influx.

In Sweden, the government came to an agreement on 5 November that up to 30 per cent of the development aid budget allocated for 2016, if necessary, can be used to cover expenses related to the refugee influx. This would amount to a reduction of around 1.5 billion USD out of a total Swedish development aid budget of approximately 5 billion USD.

The Norwegian government has been more reluctant to reduce their development aid budget, but negotiations in parliament are still ongoing. A proposed increase of the development aid budget by 700 million USD of which some will be spent on refugees expected to come to Norway in 2016 is being tabled, but the final recommendation is due to be presented to the Norwegian Finance Committee on 14 December.

Spending cuts on media development shortsighted

The spending cuts take place at a time when only one in seven people around the world has access to free and independent media and where democratic development in a number of countries is regressing.

“The decision of Nordic governments to reduce crucial support to building free, trustworthy and independent local media at a time where control of information spheres and the media is one of the main weapons of armed jihadi groups like ISIS, and the Taliban is shortsighted,” he says.

“Responsible and reliable media are crucial for the hundreds of thousands of displaced both inside and outside the region. It gives them a chance to stay informed about the effects of the devastating conflicts in their home countries with a view to returning back home once crises calm.”

“We are doing everything we can to ensure that we can continue to provide support to our media partners around the world in the increasingly difficult circumstances they face. The reform actors and the independent voices who drive agendas for peace are vulnerable and are hit hard by cuts like these.”

The Nordic countries have traditionally showed strong support and understanding for the vital role of media in creating space for democratic development and have built a strong reputation worldwide through their contribution to building free and independent media through the likes of IMS. This work should be continued around the world to back those willing to create peaceful and sustainable foundations in countries of conflict and political instability.