Development Cooperation

Introduction

Since 2000 the Directorate General of Development Cooperation of the Federal Public Service (Ministry) of Foreign Affairs, Foreign Trade and Development Cooperation has posted two Attachés for Development Cooperation in Washington, DC. Their main tasks are:

• to follow up all matters related to the World Bank Group and the International Monetary Fund and to monitor, more specifically, the voluntary contributions of Belgium to both institutions
• to follow up all matters related to U.S. Foreign Assistance for the developing world and with a particular focus on the activities of USAID
• to report regularly on the lively and interesting debates on development cooperation within the various think tanks based in Washington DC.

Funding for the World Bank and the IMF is provided by the Directorate General of Development Cooperation of the Ministry of Foreign Affairs, Foreign Trade and Development Cooperation.

Funding relations with the World Bank

DGDC works mainly with two institution of the World Bank Group: the International Development Association (IDA) and to a lesser extent the International Bank for Reconstruction and Development (IBRD).

Besides providing a core contribution to IDA, additional contributions are allocated to the World Bank on a voluntary basis by DGDC. The decisions on these voluntary contributions are guided by the Strategic Framework for the Bretton Woods Institutions (2008-2011) which was approved in March 2008. The strategic axes of this framework are:

• to improve the elaboration and implementation of poverty reduction strategies
• to strengthen macro-economic management including fiscal, monetary and debt management
• to promote good governance and fight against corruption.

Progress on the implementation of the programs under the Strategic Framework was discussed in Brussels in December 2009 during the annual consultations.

Currently, the main programs are:

• the Belgian Poverty Reduction Partnership (2008-2011)
• the Belgian Governance and Anti-Corruption Program with the World Bank Institute (2008-2011)
• the Education for All/Fast Track Initiative
• and the Debt Management Facility for Low Income Countries (2008-2011).

The possible continuation of these programs will be discussed during the upcoming annual consultations currently scheduled for September/October 2011. More importantly, during these consultations a new (or revised) Strategic Framework will be presented and discussed by both parties to guide future contributions beyond 2011.

Funding relations with the IMF

The collaboration with the IMF is based on the same Strategic Framework as mentioned above. At the Fund a Belgian Subaccount has been created to capacitate the Belgian partner countries in the areas of fiscal affairs, monetary policy and macroeconomic statistics.

During the annual meetings in Washington DC of October 2010 a new contribution of 1 million Euros was approved for this Subaccount. Moreover it was agreed that Belgium would also contribute to the Topical Trust Fund for Tax Administration and Policy. Belgium strongly supports the aim of this Trust Fund to enhance revenue collection in the least developed countries to make them ultimately less donor dependent.

Updated January 7, 2011

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