POLAND AT A GLANCE: Gross bilateral ODA 2013 2014 (unless otherwise shown) 1
POLICY FRAMEWORK Poland s development cooperation is guided by the Act on Development Co-operation, approved in September 2011 1 and amended in November 2013 to broaden the definition of development cooperation. The act reformed the cooperation policy and the responsibilities within the government. The development cooperation policy is under the responsibility of the Ministry of Foreign Affairs. Since July 2012, the Development Cooperation Department (DCD), operating as Polish Aid, is responsible for planning, coordinating, monitoring and evaluating activities that fall within the scope of development cooperation and humanitarian aid. The DCD s responsibilities include, in particular, drafting priorities of Polish development cooperation, organizing calls for development project proposals and representing Poland in EU bodies as regards EU development cooperation policy. The act also established an advisory and consultative body, the Development Cooperation Programme Board. Its tasks include tabling geographical and thematic priorities for development cooperation, assessing draft annual and multiannual development cooperation programmes, evaluating Government administration bodies' annual reports on fulfilling development cooperation tasks and issuing opinions on development cooperation documents drafted by the Government. The Multi-annual Development Cooperation Programme (2012-2015) defined the Polish development cooperation priorities and actions until 2015. The Programme is implemented through annual plans approved by the Ministry of Foreign Affairs. The new Multiannual Development Cooperation Programme 2016 2020 will focus the actions of Polish development cooperation on fewer partner countries in order to increase its results. Other Ministries participate in activities related to development cooperation and humanitarian aid, e. g. the Ministry of Finance for aid provided through international and multilateral agencies and the Ministry of Defence for aid to conflict areas. Finally, Poland joined the Development Aid Committee in DAC and is now implementing the main recommendations of the technical review, i.a. the strengthening of Poland s evaluation and monitoring systems. Poland s development cooperation policy is framed within the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action (AAA). Principles set up within the Global Partnership for Effective Development Co-operation process and included in the Busan outcome document are taken into account during the implementation of Polish development cooperation. It applies particularly to the following areas: ownership of development priorities by developing countries, reducing of fragmentation, transparency, inclusive development partnerships (cooperation with CSOs). 1 http://www.polishaid.gov.pl/files/aktualnosci2011/polish_development%20cooperation%20act_2011.pdf 2
Poland recognises the importance of Policy Coherence for Development. This principle was incorporated into the new Multiannual Development Cooperation Programme 2016 2020. This document creates political commitment for ministries, which are obliged to respect PCD and assess the impact of sectoral policies (regulations) on developing countries. The fight against illicit financial flows was established as the Polish priority area in PCD. Official web site of the Ministry: http://www.polishaid.gov.pl Policy documents on Development Cooperation: http://www.polishaid.gov.pl/files/aktualnosci2011/polish_development%20cooperation%2 0Act_2011.pdf http://www.polishaid.gov.pl/files/dokumenty_publikacje/pw_en-po_reas.pdf 1. DOMESTIC PUBLIC FINANCE FOR DEVELOPMENT 1.1. DOMESTIC RESOURCE MOBILISATION - New initiatives to support tax reforms: In order to strengthen country systems and support capacity building in the area of reducing illicit financial flows the Ministry of Finance provides technical assistance related to tax administration. It also hosts annual events for members of the Intra-European Organisation of Tax Administrations (IOTA). - Share of Domestic Resource Mobilisation in PFM: Strong public financial management (PFM) systems are essential for effective and sustainable economic management and public service delivery. Good PFM systems are also indispensable for ensuring that aid is being used to achieve development goals. Poland implements projects regarding this area with the aim to strengthen developing countries' capacity to better manage their public finances, e.g.: Narodowy Bank Polski (National Bank of Poland, NBP) Technical Cooperation Programme (TC Programme) is addressed to officials representing central banks and institutions with competencies similar to NBP s from countries outside the European Union. The main goal of the TC Programme is to exchange NBP s knowledge, views and experience on various aspects of central banking with these institutions and to support the development of their institutional capacities. The TC programme covers, inter alia, such topics as: monetary policy and its instruments, foreign exchange reserves management, payment systems, financial stability, balance of payments statistics, economic education, security systems in a central bank, internal audit, legal aspects of central banking, public contracts in central banks, business continuity management in the central bank, the fight against money laundering and financing of terrorism. Apart from its own TC Programme, NBP develops cooperation with international institutions by participating in assistance programs carried out and/or financed by the International Monetary Fund (missions), the European Commission (twinning projects) and other central banks. 3
Moreover in March 2015 Poland together with Denmark, Sweden and The Netherlands submitted a joint letter to EU High Representative Mogherini and Commissioner Mimica concerning abolishing tax exemptions in Government-to-Government aid. This initiative is aimed at strengthening domestic resource mobilisation in the countries where aid is provided. Moreover, the thematic priorities of good governance and rule of law of the new Multiannual Program of Development Cooperation (2016 2020) will make it possible to continue projects on DRM. - Poland has ratified, is a member of and/or supported: (i) The United Nations Convention against Corruption (Merida); (ii) the OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions, and (iii) the OECD Recommendation on Bribery and Officially Supported Export Credits. Furthermore, (i) it committed to early adoption of the Common Reporting Standard developed by the OECD within the Global Forum on Transparency and Exchange of Information; (ii) supported the OECD Action Plan on Base Erosion and Profit Shifting; and (iii) supported the Council of Europe/OECD Convention on Mutual Administrative Assistance in Tax Matters. 1.2. MAINTAINING SUSTAINABLE DEBT LEVELS - Support mechanisms: none reported. - Actions taken in 2014: none reported. - No specific interventions were made or are planned to prevent aggressive litigation against HIPCs. 2. PRIVATE FINANCE FOR DEVELOPMENT - CSR: - Polish government assumes the role of an intermediary between business and society in the discussion on responsibility for social and environmental issues. The government is working to achieve effective coordination of activities undertaken in this area to provide partners with a platform for the dialogue. The CSR Advisory Board of the Minister of Economy established in July 2014 creates a space for exchange of information, knowledge and good practices between public administration, business and civil society in the aim of promotion of sustainable development and CSR. Ensuring effective communication and intensifying dialogue between the government, social partners and business representatives is seen as crucial. - Working Group on Sustainable Consumption and Production (SCP) within the CSR Advisory Board was appointed with the aim of developing recommendations or guidelines on the implementation of the principles of sustainable consumption and production. So far, the Working Group has discussed the following issues: measuring the environmental performance of products and organizations including dissemination of information on measures taken at EU level to develop a uniform method for assessing the impact of technological and environmental organizations; dissemination of 4
information on international aspects of cooperation in the context of SCP, including in the framework of the UN 10YFP on SCP; the need of developing recommendations on the implementation of the principles of SCP in particular industries and subsequent stages of the supply chain. - The CSR Advisory Board is also a platform for dissemination of information on the public consultation documents such as ILO-OECD Draft Guidance For Responsible Agricultural Supply Chains or information on activities of the European Commission and OECD regarding responsible supply chain in the textile and garment sector. - Working Group on CSR trends monitoring within the CSR Advisory Board was established to prepare recommendations to the Ministry of Finance that is responsible for the transposition of the Directive 2014/95/EU that entered into force on 6 December 2014. The Directive amends the existing accounting rules on the transparency of some large companies in relation to the disclosure of non-financial information. A handbook for the companies regarding the Directive will be prepared on the basis of the Working Group recommendations. - Remittances: none reported for 2014. 5
- Trade and development: Poland, AfT Commitments (in thousand EUR) 2010 2011 2012 2013 Trade-Related Assistance (TRA) Trade Policy and Regulations n/a 28 5 0 (category 1) Trade Development n/a 312 130 0 (category 2) Other Trade Related Needs n/a 0 0 0 (category 6) Total Trade-Related Assistance n/a 340 135 0 Wider Aid for Trade Agenda (AfT) Trade Policy and Regulations n/a 28 5 0 (category 1) Trade Related Infrastructure n/a 1 901 384 803 (category 3) Building Productive Capacity n/a 850 101 1 806 (category 4) Trade Related Adjustment n/a 0 0 0 (category 5) Other Trade Related Needs n/a 0 579 0 (category 6) Total Aid for Trade n/a 2 779 1069 2 609 Sources: OECD CRS Database, EU annual questionnaire on FfD for 2014 3. INTERNATIONAL PUBLIC FINANCE FOR DEVELOPMENT 3.1. OFFICIAL DEVELOPMENT ASSISTANCE ODA individual commitments /gap to agreed targets (total ODA, Africa, LDCs) - In 2014, ODA decreased to EUR 340 million, representing 0.09 % of Poland s GNI. - To reach its individual ODA target of 0.33% of GNI by 2015, the country would need to increase its aid by EUR 816 million, over its projected increase of EUR 169 million. 6
Source: OECD DAC Online EU annual questionnaire on FfD for 2014 - "Realistic, verifiable actions for meeting individual ODA commitments until 2015" taken in 2014: none reported. - Measures taken or planned to contribute to the EU27 target to channel at least 50% of EU collective ODA increase to Africa: Poland participates in co-financing of the 11th edition of EDF that is the main instrument of financing cooperation between the European Union and the African, Caribbean and Pacific countries. Majority of assistance is dedicated to Africa. As far as our bilateral assistance is concerned Poland continues to provide ODA to the African countries by NGOs and Polish embassies (responsible for implementing projects financed from the so called Small Grant System in these countries. In 2014 Poland provided ODA to the East African countries (Burundi, Ethiopia, Kenya, Ruanda, Somalia, Southern Sudan, Tanzania, Uganda) to support their sustainable development and to North African countries (Tunisia, Libya) to assist in the transformation processes. Poland declared that it will not be able to reach the target of 0.15%-0.20% ODA/GNI to LDCs by 2010 (and onwards). Poland co-finances 11th EDF, provides contribution to the EU ODA budget and continues to assist bilaterally LDCs. All these efforts taken together should contribute to achieving the collective EU target on LDCs. Moreover, Poland increased its contribution to the 11th edition of EDF. 3.2. FUNDING FOR TACKLING CLIMATE CHANGE - Due to the fact that Poland is non-annex 2 Party it does not have an obligation to provide climate finance. To the extent possible Poland have channelled some climate finance in the past and has general intention to continue this trend. However due to the 7
lack of aforementioned obligation Poland does not have this aspect of international financing clearly defined in its budgetary planning. 3.3. FUNDING FOR ADDRESSING BIODIVERSITY CHALLENGES - None reported for 2014. 3.4. TECHNOLOGY DEVELOPMENT AND TRANSFER - Projects in 2014: Poland provided funding to international organisations (UNIDO, UNESCO, WIPO, OECD, ICAD, ITU) in matters somehow related to technology and supported educational, knowledge transfer and training activities to some administrations. Support to student exchange from Eastern European countries. Furthermore, Poland funded specific actions to support sustainable development through STI, including technology development and transfer, in developing countries: these include initiatives aimed at Armenia and Georgia. 4. COMBINING PUBLIC AND PRIVATE FINANCE FOR DEVELOPMENT - Ministry of Foreign Affairs of Poland and PAIiIZ (Polish Information and Foreign Investment Agency) organised a seminar on European Business Cooperation on Third Markets in December 2014. One of the panels concerned development policy in the context of private sector engagement in Africa. The aim of the seminar was to promote private sector engagement in development cooperation and a multi-stakeholders approach to the SDGs. 5. USING DEVELOPMENT FINANCE MORE EFFECTIVELY - Aid effectiveness strategy: In 2012 Poland prepared the Implementation Schedule for the Common Standard. It was published on the OECD website. The principle of aid effectiveness was introduced in the Multiannual Development Cooperation Programme for 2016 2020. - Country ownership: Poland does not provide budget support. Poland used local PFM for less than 10% of its spending and kept tied aid at below 10%. Building governance and strengthening public administration and local government is one of the priorities of Poland s development assistance. 24 projects have been initiated to support the systemic transformation and regional development, strengthening public administration and local government, and to support finance management, with total volume of 6.2 million PLN. Poland is elaborating a new multiannual development cooperation programme for 2016-2020. In this process the Busan principle regarding country ownership will be respected. Poland will take into account national development strategies of partner countries. Poland will strive to align its priority development sectors with priority development goals in partner countries - Transparency: With regard to the implementation of the Common Standard, Poland is working on a new system providing information on the Polish ODA with the support of 8
DG DEVCO. The newly created repository of implemented development projects is available on the official Polish Aid website. - Mutual accountability arrangements account for over 80% of Poland s priority countries. - Focus on results: Poland participates in country-level results frameworks processes and platforms in 50-80% of its priority countries and actually uses these platforms in less than 10% of them. At regional level, Poland transferred the required knowledge to carry out calculations of selected macroeconomic categories by territorial breakdown. - Joint programming and aid fragmentation: Poland will continue participation in the EU joint programming. Poland participates in joint programming in Ethiopia and is planning to participate in selected countries of Eastern Partnership depending on the development of the process. Poland s development cooperation is conducted on the basis of a multiannual development cooperation programme. The next programme, which covers the years 2016-2020, will take into account synchronisation with the partner country programming cycle and division of labour in countries where Poland will participate in joint programming. - Sector concentration and division of labour: Poland s development aid is now focusing on 20 priority countries and maximum 3 sectors in each country. Poland is going to reduce by half the number of priority countries as well as the number of sectors in the new Multiannual Development Cooperation Programme in 2016-2020. Regarding obstacles to improving in-country division of labour, the Polish experience shows that the main obstacle to better donor`s coordination remain the lack of coordination capacities on the side of the recipient governments. Moreover, the inability of donors to align sectors and synchronise project and programming cycles is also a huge obstacle. - Countries in fragile and conflict situation: In principle there are no special guidelines. In the case of South Sudan the decision was taken not to fund projects due to security concerns. The situation in other fragile countries is carefully studied to consider the security conditions. - Public-private engagement: The Development Cooperation Act Of 16th September 2011 provides for the participation of the social partners including the private sector. A Development Cooperation Programme Board serves as a consultative and advisory body and includes representative of employers organizations. The National Coordinator for International Development Cooperation conducts regular meetings with representatives from the private sector. 6. GLOBAL AGENDA AND GOVERNANCE - By joining DAC OECD Poland supports and will actively participate in the efforts to enhance the coherence and inclusiveness of the international monetary, financial and trading systems in support of development. Text and reported numbers: updated to 25/09/2015. Charts and tables reproduced from the 2015 Accountability Report published in July 2015. 9