Finland
Finland’s development co-operation prioritises the rights and status of women and girls; sustainable economies and decent work; quality education; peace and democracy; and climate change and the sustainable use of natural resources. Finland’s total official development assistance (ODA) (USD 1.6 billion, preliminary data) increased in 2022 due to in-donor refugee costs. It represented 0.58% of gross national income (GNI).
Find the methodological notes behind the profile here.
Finland published a Government White Paper for Development Policy at the end of May 2021 which extends over several governmental and parliamentary terms. In its development policy, Finland emphasises themes that are founded on its own values and strengths. These include the rights of women and girls, good quality training and education, sustainable economies and decent work, democratic societies and climate change, and biodiversity and sustainable use of natural resources. In addition, Finland provides humanitarian assistance to help people who are suffering from acute crises. Finland has nine long-term partner countries in sub-Saharan Africa, Asia and the Middle East, the majority of which are least developed countries (LDCs).
Finland provides half of its ODA multilaterally. It has contributed to significant changes in the policies and practices of multilateral organisations, such as working to manage results and championing gender equality across a range of investments related to peace and security, agriculture, and climate change. In 2022, Finland published an evaluation of its development co-operation: Response to the COVID-19 Pandemic.
Findings from OECD DAC reviews
The 2021 OECD-DAC mid-term review praised Finland for working towards a government-wide consensus on its development co-operation objectives and road map to increase the ODA budget. Finland has made great strides in results-based management and reporting, using results maps and common indicators in each of the four priority areas. The mid-term review stressed the need for guidance, staff resources and monitoring to ensure that its private sector instruments benefit priority partner countries, which are mainly LDCs, and encouraged Finland to continue to explore ways to attract and retain development expertise in the Ministry of Foreign Affairs (MFA) and embassies. Learn more about Finland’s 2021 mid-term review.
Finland provided USD 1.6 billion (preliminary data) of ODA in 2022 (USD 1.7 billion in constant terms), representing 0.58% of GNI.1 This was an increase of 18.7% in real terms in volume and an increase in share of GNI from 0.47% in 2021. Excluding in-donor refugee costs, its ODA fell. Since 2019, Finland’s ODA has increased in volume. Finland is not in line with its domestic, international and EU commitments to achieve a 0.7% ODA/GNI ratio by 2030. Within Finland’s ODA portfolio in 2021, 82.5% was provided in the form of grants and 17.5% in the form of non-grants.2
In 2022, Finland ranked eighth among Development Assistance Committee (DAC) member countries when ODA is taken as a share of GNI. Bilateral ODA with a focus on climate continued to increase in 2021. Finland’s bilateral ODA focuses on sub-Saharan Africa and South and Central Asia, with a focus on fragile contexts (33.5% of bilateral ODA in 2021) and the LDCs (30.2% in 2021). Finland had the highest share of bilateral allocable ODA commitments to tax (domestic resource mobilisation). At USD 410 million in 2022, in-donor costs for refugees increased to a significant share (25.4%) of Finland’s net grant equivalent ODA. A growing share of Finland’s development co-operation programme focuses on private sector-driven instruments.
Finland is committed to several international targets, Development Assistance Committee standards and recommendations. Learn more about DAC recommendations.
Finland provided a slightly higher share of its ODA multilaterally in 2021. Gross bilateral ODA was 47% of total ODA. Forty-two per cent of gross bilateral ODA was channelled through multilateral organisations (earmarked contributions). Finland allocated 53% of total ODA as core contributions to multilateral organisations.
In 2022, Finland provided USD 61.1 million of gross bilateral ODA to Ukraine to respond to the impacts of Russia’s war of aggression, of which USD 26.2 million was humanitarian assistance (preliminary data). In 2021, it provided USD 10.5 million.
In 2022, Finland provided USD 20.2 million in ODA for the COVID-19 response. Regarding COVID-19 vaccines, donations of excess doses to developing countries accounted for USD 2.7 million of ODA. In 2020 and 2021, Finland’s total bilateral support for COVID-19 response was USD 57.1 million and USD 29 million, respectively.
In 2021, Finland provided USD 1.1 billion of gross ODA to the multilateral system, an increase of 19.1% in real terms from 2020. Of this, USD 795.4 million was core multilateral ODA, while non-core contributions were earmarked for a specific country, region, theme or purpose. Project-type funding earmarked for a specific theme and/or country accounted for 17.8% of Finland’s non-core contributions and 82.2% was programmatic funding (to pooled funds and specific-purpose programmes and funds).
Seventy per cent of Finland’s total contributions to multilateral organisations in 2021 was allocated to EU Institutions, other UN, and regional development banks (in descending order).
The UN system received 35% of Finland’s multilateral contributions, mainly in the form of core contributions. Out of a total volume of USD 364.2 million to the UN system, the top three UN recipients of Finland’s support (core and earmarked contributions) were IFAD (USD 78.7 million), UNFPA (USD 55 million) and WFP (USD 31.9 million).
See the section on Geographic and sectoral focus of ODA for the breakdown of bilateral allocations, including ODA earmarked through the multilateral development system. Learn more about multilateral development finance.
In 2021, Finland’s bilateral spending increased compared to the previous year. It provided USD 704.1 million of gross bilateral ODA (which includes earmarked contributions to multilateral organisations). This represented an increase of 0.7% in real terms from 2020.
In 2021, country programmable aid was 35.4% of Finland’s gross bilateral ODA, compared to a DAC country average of 45.2%. In-donor refugee costs were USD 68.8 million in 2021, an increase of 8.7% in real terms over 2020, and represented 9.8% of Finland’s gross bilateral ODA.
In 2021, Finland channelled bilateral ODA mainly through multilateral organisations, the public sector and NGOs as earmarked funding. Technical co-operation made up 4.7% of gross ODA in 2021.
Civil society organisations
In 2021, civil society organisations (CSOs) received USD 150.4 million of gross bilateral ODA. Four per cent of gross bilateral ODA was allocated to CSOs as core contributions and 17.7% was channelled through CSOs to implement projects initiated by the donor (earmarked funding). From 2020 to 2021, the combined core and earmarked contributions for CSOs decreased slightly as a share of bilateral ODA, from 22.2% to 21.4%. Learn more about ODA allocations to and through CSOs, civil society engagement in development co-operation, and the DAC Recommendation on Enabling Civil Society in Development Co-operation and Humanitarian Aid.
In 2021, Finland’s bilateral ODA was primarily focused on Africa. USD 251.8 million was allocated to Africa and USD 99 million to Asia (excluding the Middle East), accounting respectively for 35.8% and 14.1% of gross bilateral ODA. USD 43.9 million (6.2%) was allocated to the Middle East. Africa was also the main regional recipient of Finland’s earmarked contributions to multilateral organisations.
In 2021, 29.9% of gross bilateral ODA went to Finland’s top 10 recipients. All of its top 10 recipients are long-term partner countries. The share of gross bilateral ODA that was not allocated by country was 57.1%, with 17.1% of this unallocated bilateral ODA spent on refugees in the donor country.
In 2021, the least developed countries (LDCs) received 30.2% of Finland’s gross bilateral ODA (USD 212.6 million). This is greater than the DAC average of 22.9%. Finland allocated the highest share of gross bilateral ODA (30.2%) to least developed countries in 2021, noting that 57.1% was unallocated by income group. Finland allocated 18.3% of gross bilateral ODA to land-locked developing countries in 2021, equal to USD 129 million. Finland allocated 0.3% of gross bilateral ODA to small island developing states (SIDS) in 2021, equal to USD 2.1 million.
Fragile contexts
Support to fragile contexts reached USD 235.6 million in 2021, representing 33.5% of Finland’s gross bilateral ODA. Twenty-four per cent of this ODA was provided in the form of humanitarian assistance, the same as in 2020, while 23.9% was allocated to peace, close to 23.1% in 2020. Seven per cent went to conflict prevention, a subset of contributions to peace, representing an increase from 5.9% in 2020.
Learn more about support to fragile contexts on the States of Fragility platform.
Sectors
In 2021, more than half of Finland’s bilateral ODA was allocated to social infrastructure and services. Investments in this area accounted for 56.4% of bilateral ODA commitments (USD 598 million), with a strong focus on support to government and civil society (USD 269.4 million), education (USD 168.5 million), and health (USD 103.7 million). ODA for economic infrastructure and services totalled 12.2% of bilateral ODA commitments (USD 129.7 million), focusing on banking and financial services (USD 100.9 million), energy (USD 17.7 million) and business (USD 6.4 million). Bilateral humanitarian assistance amounted to USD 76.8 million (7.2% of bilateral ODA). In 2021, earmarked contributions to multilateral organisations focused on education, health and government and civil society.
Gender equality
In 2020-21, Finland committed 62.6% of its screened bilateral allocable aid to gender equality and women’s empowerment, as either a principal or significant objective (up from 58.8% in 2018-19, compared with the 2020-21 DAC average of 44.4%). This is equal to USD 437.6 million of bilateral ODA in support of gender equality. The share of screened bilateral allocable aid committed to gender equality and women’s empowerment as a principal objective was 11.8% in 2020-21, compared with the DAC average of 4.5%. Finland includes gender equality objectives in 37.8% of its ODA for humanitarian aid, compared with the 2020-21 DAC average of 17.5%. Finland screens the majority of activities against the DAC gender equality policy marker (89.6% in 2020-21). Finland committed USD 36.8 million of ODA to end violence against women and girls in 2020-21. Learn more about ODA focused on gender equality, the DAC Network on Gender Equality and the DAC Recommendation on Ending Sexual Exploitation in Development Co-operation.
Environment
In 2020-21, Finland committed 28.6% of its total bilateral allocable aid (USD 223 million) in support of the environment and the Rio Conventions (DAC average of 34.3%), up from 23.8% in 2018-19. Unpacking the environmental data further:
Nine per cent of screened bilateral allocable aid focused on environmental issues as a principal objective, compared with the DAC average of 11.3%.
Twenty-seven per cent of total bilateral allocable aid (USD 211.3 million) focused on climate change overall (the DAC average was 29%), up from 20.9% in 2018-19. Finland had a slightly greater focus on mitigation (21.1%) than on adaptation (19.5%) in 2020-21.
Five per cent of total bilateral allocable aid (USD 35.7 million) focused on biodiversity (compared with the DAC average of 6.5%), up from 3.6% in 2018-19.
Learn more about climate-related development finance and the DAC Declaration on Aligning Development Co-operation with the Goals of the Paris Agreement on Climate Change.
Committed USD 23.5 million of bilateral ODA to the mobilisation of domestic resources in developing countries, amounting to 2.5% of its bilateral allocable aid. Regarding the payment of local tax and custom duties for ODA-funded goods and services, Finland sometimes requests exemptions on its ODA-funded goods and services in partner countries and territories and makes information available on the OECD Digital Transparency Hub on the Tax Treatment of ODA.
Committed USD 167.4 million (18% of its bilateral allocable aid) to promote aid for trade and improve developing countries’ trade performance and integration into the world economy in 2021.
Committed USD 229.8 million (24.7% of its bilateral allocable aid) to development co-operation projects and programmes that promote the inclusion and empowerment of persons with disabilities.
Finland uses leveraging mechanisms to mobilise private finance for sustainable development. In 2021, its DFI, FinnFund, as well as the MFA mobilised USD 148.6 million from the private sector through direct investment in companies and special purpose vehicles, syndicated loans, shares in collective investment vehicles, and simple co-financing.
In 2020-21, 15.4% of mobilised private finance by Finland targeted middle-income countries and 32.3% LDCs and other low-income countries (LICs), noting that 52.3% was unallocated by income. During the same period, the top beneficiary region of this financing was Africa (60.9% of the total).
Mobilised private finance by Finland in 2020-21 mainly benefited activities in the banking & financial services (84%), sector. Furthermore, over this period, 3.4% of Finland’s total mobilised private finance was for climate action.
Learn more about the amounts mobilised from the private sector for development.
In 2021, Finland’s DFI Finnfund and, to a lesser extent, also the MFA extended USD 178.1 million in the form of private sector instruments. Of this, loans represented 69.3%, whereas equities accounted for 28.4%.
In 2021, USD 14.1 million (7.9%) of Finland’s private sector instruments were allocated to the LDCs and other LICs, with 23.9% extended to middle-income countries and LMICs in particular (20.3%). Moreover, USD 121.5 million were unallocated by income, mostly including equity investments and loans with a regional focus.
Top three recipients included Viet Nam, Pakistan and Cambodia, together accounting for 17.7% of Finland’s private sector instruments to developing countries in 2021.
In terms of sectoral distribution, 70.2% of Finland’s private sector instruments were extended in support of projects in the banking and financial services, followed by agriculture, forestry, and fishing (10.3%). Health, education and other social sectors received USD 9.2 million through private sector instruments. A share of 37.2% of this financing focused on climate change mitigation and/or adaptation.
The MFA is under the direction of three ministers dedicated to foreign affairs, foreign trade and development, and Nordic co-operation. The Department for Development Policy within the MFA is responsible for Finland’s international development and humanitarian policy, development finance, and overall planning and monitoring of development co-operation. The Development Policy Committee (KPT), Finland’s government-appointed advisory body, monitors and reviews Finland’s development co-operation and policy. The Political Department and the Department for External Economic Relations provide policy guidance to the regional departments responsible for their respective geographic areas. Finnfund is Finland’s development finance institution.
An important mechanism for consulting stakeholders is the KPT, which includes parliamentarians, experts, civil servants, civil society actors and researchers. The recent institutionalisation of the KPT has allowed it to have a longer-term work programme and focus. It plays a key role in producing evidence for policy and encouraging dialogue, serving as a sounding board for the MFA. CSOs active in development co-operation co-ordinate through the umbrella body Fingo.
The Global Partnership for Effective Development Co-operation monitoring exercise tracks the implementation of the effectiveness commitments. Following a reform of the exercise during 2020-22, the 4th global monitoring round (2023-26) has resumed. More detailed results for Finland based on the 2016 and 2018 Monitoring Rounds can be found here. Monitoring profiles for other providers are available here.
2021 OECD-DAC mid-term review of Finland: https://www.oecd.org/dac/peer-reviews/DAC-mid-term-Finland-2021.pdf
2017 OECD-DAC peer review of Finland: www.oecd.org/dac/oecd-development-co-operation-peer-reviews-finland-2017-9789264287235-en.htm
Finnish Ministry of Foreign Affairs: https://um.fi/development-policy-and-development-cooperation
Finnfund: https://www.finnfund.fi/en
Development Policy Committee: https://www.kehityspoliittinentoimikunta.fi/en
Finnish Development NGOs: https://fingo.fi/en/finnish-development-ngos-fingo
Finland’s practices on the Development Co-operation TIPs: Tools Insights Practices learning platform: https://www.oecd.org/development-cooperation-learning?tag-key+partner=finland#search
Member of the OECD Development Assistance Committee (DAC) since 1975.
The methodological notes provide further details on the definitions and statistical methodologies applied, including the grant-equivalent methodology, core and earmarked contributions to multilateral organisations, country programmable aid, channels of delivery, bilateral ODA unspecified/unallocated, bilateral allocable aid, the gender equality policy marker, and the environment markers.
Notes
← 1. DAC members adopted the grant-equivalent methodology starting from their reporting of 2019 data as a more accurate way to count the donor effort in development loans. See the methodological notes for further details.
← 2. Non-grants include sovereign loans, multilateral loans, equity investment and loans to the private sector.