OECD Development Co-operation Peer Reviews: Denmark 2021

Annex A. Progress since the 2016 DAC peer review recommendations

Towards a comprehensive Danish development effort

 

Recommendations 2016	Progress
1.1. To take forward its vision for Agenda 2030, Denmark should increase cross-government understanding of the implications of its commitment to ensuring its policies are consistent with sustainable development objectives.	Partially implemented Progress with cross-government action plan and co‑ordination on implementing the Sustainable Development Goals (SDGs)
1.2. In line with its 2014 action plan, Denmark is encouraged to report publicly on its achievements and challenges in ensuring that its domestic and foreign policies are development friendly.	Partially implemented Progress on monitoring overall progress towards SDGs and reporting to the Parliament
1.3. In the frame of its private sector instruments, Denmark should continue efforts to set up few, large and demand-driven private sector facilities with clearly defined development objectives.	Implemented Investment Fund for Developing Countries (IFU) untied; SDG Fund established
1.4. Denmark should examine how to better capture the additionality of, and return on, private sector instruments in developing countries.	Partially implemented IFU additionality explored in a 2019 evaluation and discussions underway to capture additionality

Vision and policies for development co-operation

 

Recommendations 2016	Progress
As Denmark revises its development co-operation strategy, it should: 2.1. Clarify how the Sustainable Development Goals will guide its development co-operation, while safeguarding the pro-poor focus of its ODA-funded activities.	Partially implemented Legislation was updated in 2017, The World 2030 is clearly aligned to SDGs and a new strategy is due in 2021; pro‑poor focus is not explicitly protected
2.2. Within the new priorities, define operational objectives and criteria to prioritise activities and guide the selection of priority partners and funding instruments.	Partially implemented Three sets of “signposts” frame decisions
2.3. Reiterate the rationale for Denmark’s support to multilateral organisations and align its funding allocations with its objectives.	Partially implemented Organisational strategies communicate the rationale for each individual entity; there is no overall strategy

Aid volume and allocation

 

Recommendations 2016	Progress
3.1. Denmark is encouraged to fully consider the impact of reallocating its ODA to manage refugee costs. This affects the predictability of Denmark’s development co-operation programme dealing with poverty reduction in developing countries.	Implemented Balancing adjustment mechanism introduced in 2017 increases predictability and caps in-donor refugee costs
3.2. When deciding on multilateral allocations, Denmark, along with other donors, should take into account the impact of core versus earmarked funding on the ability of these organisations to carry out their mandate.	Implemented Continued advocacy for core funding; there is a shift from project-level to thematic, regional or programme-level earmarking

Organisation and management

 

Recommendations 2016	Progress
4.1. Following the release of the new strategy, Denmark would benefit from assessing whether its new organisation is fit for purpose.	Partially implemented Structures updated based on reflection; staff numbers still constrained

Development co-operation delivery and partnerships

 

Recommendations 2016	Progress
5.1. Denmark should speed up its programming processes to increase timely implementation, especially for fragile states.	Partially implemented Processes are not faster but grants are more flexible and for longer duration; country programming processes have been rationalised, with more emphasis on the implementation phase
5.2. Denmark should pursue its efforts to strengthen risk assessments to inform programming. In particular, it should select its partners based on an in-depth assessment of institutional risk.	Implemented Risk management systems and whistleblowing updated and strengthened
5.3. Denmark should identify effective ways of promoting private sector engagement that do not increase the share of tied aid.	Implemented IFU investments are now untied

Results and accountability

 

Recommendations 2016	Progress
6.1. Denmark should pursue its efforts to link measurement of programme level outcomes with national development indicators to better inform its policy decisions.	Partially implemented Many programme-level outcomes linked to national plans and national or global indicators at a high level, but unclear if these are informing policy decisions
6.2. Denmark should consolidate its knowledge management system to capitalise on knowledge produced in the field and by its partners, including civil society organisations, and strengthen information sharing.	Partially implemented The Doing Development Differently approach encourages learning; the Council for Development Policy mandate and several non-governmental organisation thematic clusters allow for strategic reflections
6.3. To rebuild public support, Denmark should do more to communicate the interdependence between Danish interests, development goals and global public goods in a comprehensive framework, while maintaining the voice of development co-operation.	Implemented The World 2030 strategy and communication based on SDGs link Denmark’s domestic and international interests; communication is increasingly tailored to different segments of society

Humanitarian assistance

 

Recommendations 2016	Progress
7.1. Denmark should ensure its policy work on humanitarian-development coherence is supported by relevant funding streams for both humanitarian and development activities.	Partially implemented Denmark is using its funding to incentivise nexus approaches by humanitarian partners at the global level, and nexus approaches by development partners and at the country level. There remains a gap in some contexts between these two funding streams
7.2. Denmark should reinforce its measurement of outcomes and impact to inform and strengthen its policy work.	Partially implemented