1.German development cooperation


1.2Special focus

1.3Geographic concentration

1.4Finance for development cooperation


2.Funding for NGOs


2.2Federal Ministry for Economic Cooperation and Development (BMZ)

2.3German development organisations


1.German development cooperation


The overall focus of Germany's financial and technical development assistance is on direct aid to the poor. Since the early 1990s, Germany's aim of poverty alleviation in developing countries through assistance has not greatly changed. The focus of international development cooperation has, however, moved more towards East and Central Europe. Development cooperation in Germany, however, has inevitably entered into another phase with the changes in Europe, not least the economic and political impact of reunification of East and West Germany itself.

Germany's development aid is provided via financial cooperation and technical cooperation forms and is administered by the Federal Ministry for Economic Cooperation and Development (BMZ). Within the BMZ, the execution of financial cooperation is organised via the Kredit Anstalt fr Wiederaufbau/Bank for Reconstruction (KfW). KfW is responsible for Germany's financial aid programmes on a bilateral, multilateral and private level. It also provides loans to small and medium-sized enterprises.

The German Agency for Technical Cooperation (GTZ) is the German executing agency for technical cooperation. It disperses funds as allocated by the BMZ to specific projects upon request of partner governments. Depending on the type of programmes, GTZ has more or less direct links with developing country NGOs.

The Ministry of Foreign Affairs provides humanitarian, i.e. all aid with an immediate character like emergency relief (e.g. due to natural disasters) or refugee assistance. Although most of this type of aid is channelled through German NGOs, international organisations and multilateral institutions, there are provisions for directly emergency relief support to NGOs.

The Ministry's International Environment Division acts as a policy unit and advises the German Government in international organisations.

The German Academic Exchange Service (DAAD) is involved in supporting fellowship programmes relavant to development issues. Fellowship programme experts - and especially the new generation of experts in developing countries - are trained on postgraduate courses at institutions of higher education in developing countries. In 1995, the DAAD sponsored nearly 1,600 fellowship-holders under these programmes. As part of project-related basic and advanced training especially for the GTZ, the DAAD sponsored a further 261 fellowship-holders out of BMZ budget funds.



1.2Special focus


Since UNCED, Germany has aimed at increasingly integrating environmental issues in its development cooperation policies. In both multilateral and private cooperation, Germany's assistance is increasingly geared at sustainable development initiatives. Of all bilateral aid, an average of 25% of the budget is spent on bilateral environmental projects.


Urban development

During the 1970s and 1980s, there was no specific focus on urban development in German development cooperation. Since then, Germany's approach to urban issues in bilateral cooperation aims at integrating them within other policy areas like water supply and management, energy and transportation issues. Although urban development is not a specific policy focus, there are guiding principles for the planning and implementation of urban development cooperration projects. These are laid out in a sector paper entitled Environment-oriented Municipal and Urban Development (September 1995).

Municipal and urban development cooperation projects aim to sustainable improve the living and working conditions of the urban poor. They are also directed a limiting the effects of urbanisation on the environment and conserving natural resources on which urban areas and their hinterlands depend. While German urban development projects take on different forms from country to country, there are a number of key areas of action.

Important areas for urban development action are:

- Municipal self-government and urban mangement

- Urban infrastructure and services

- Municipal financing

- Urban environmental management

- Planning and controlling spatial development

- Development of residential areas and upgrading of informal settlements

- Women in development

Partners in German urban development cooperation projects are municipal and urban development institutions, national and local authorities and relevant ministries, community development banks, municipal and regional associations and district administratins. The target groups of the projects include municipalities, public utilities and NGOs (such as resident's associations, cooperatives, trade unions and employer's associations).

Regarding technical cooperation, a visible approach to urban planning (e.g.large constructions) was replaced in the mid 1970s by a more multisectoral urban development approach. This focuses on capacity-building of urban administrations and NGOs for the implementation of poverty alleviation programmes. The GTZ has become more involved in environment and urban issues since the late 1980s. It has published several documents on urban development and environment and, in both bilateral, multilateral and private cooperation, urban problems receive relevant attention. GTZ has issued a handbook on urban environmental management and runs a special programme geared to participation in urban environmental management. Urban development and environmental protection projects form part of other structural measures like housing construction and modernisation and infrastructural programmes


1.3Geographic concentration

In recent years the main recipients of German bilateral assistance have been:

Africa: Egypt, Ethiopia, Kenya, Morocco, Sudan, Tanzania, Zambia and Zimbabwe

Middle East: Israel

Asia: Bangladesh, China, India, Indonesia, Pakistan and the Philippines

Latin America: Bolivia, Brazil and Peru

Also bilateral support to the Pacific region and Europe, mostly to ex-Yugoslavia.


1.4Finance for development cooperation

The German ODA budget has been subject to decline since the early 1990s. Whereas it stood at 0.42% and 0.4% in respectively 1990 and 1991, it fell to 0.33% in 1994 and 0.31% in 1995 ($7,481 million). This decline is related to overall budget cuts the German Government introduced to absorb the costs of the unification of East and West Germany. Unification, however, has not meant specific cuts in the aid budget. The BMZ experienced a general budget reduction like the other ministries. This reduction has been absorded by the various departments within BMZ.

Support to NGOs was $433 million (DM 715 million) in 1993. This accounted for 6% of total ODA. By comparison, funds raised from the German public amounted to $867 million (DM 1.4 billion) in 1993.


2.Funding for NGOs


There are no funds for development cooperation provided by German Embassies abroad. Only in exceptional cases can the Ambassador use a small fund for emergency cases (DM 15,000-60,000).


2.2Federal Ministry for Economic Cooperation and Development (BMZ)

The BMZ does not directly support NGOs in developing countries. They can receive support as subcontrators for GTZ in project execution or in projects of the KfW. Southern NGOs can obtain co-financing from the BMZ when working in cooperation with a German NGO. As the German NGO is held fully responsible for project application, the participation of Soutehrn NGOs is not considered as such.

German NGOs are either subsidised directly by the Government via BMZ or are under contract with the German executing agency for technical assistance, GTZ. Direct subsidies are provided via the BMZ which runs a programme called Development Projects in Developing Countries. The Programme provides financial support to German NGOs that work in cooperation with NGOs in developing countries. As the BMZ provides no direct support to NGOs in developing countries, all its aid is channelled via German NGOs. A German NGO can submit a grant application on behalf of partner organisations in developing countries and can also provide training and consultancy and advisory services. The partnerships and direct links at the grass roots level are an essential feature of German development cooperation. Some of the support projects of German NGOs include housing improvement and self-help housing construction. Besides financial assistance organised via the BMZ, technical assistance to NGOs is also provided to NGOs, be it to a much smaller extent. The German Appropriate Technology Exchange (GATE) of the GTZ has a small project fund.

GATE's Small-Scale Project Fund (KPF) supports about 30 micro-projects annually in Africa, Asia and Latin America (10 per region) to a maximum of DM 30,000. Priority is on independent implementation of small-scale Appropriate Technology measures. Besides providing financial support, GATE intends to especially give non-financial support through disseminating and exchanging information and expertise. Therein there is a special focus on Technology Dissemination and Environmental Protection. GATE also offers a free information service about appropriate technology issues for all interested parties dealing with AT issues.


2.3German development organisations

Public support for environmental issues in Germany and abroad is strong in Germany.

The German NGO community can be more or less grouped together in four categories: political foundations, church-related organisations, non-confessional and local organisations. The political foundations are affiliated to major German political parties. They are involved in political lobbying and awareness-raising and provide assistance to NGO development projects.

They often cooperate with organisations in developing countries on political issues which include trade union, employer's associations and youth groups. AMong the political foundations are Friedrich Ebert Foundation (FES), the Konrad Adenauer Foundation (KAS), the Friedrich Naumann Foundation (FNS), the Hanns Seidel Foundation (HSS), the Rainbow Group of Foundations (SVR), the Internationaler Solidarit„tsfonds (ISF) and the Rainbow Groups of Foundations. Church related agencies were the first to receive public funding in the early 1960s. Since then, collaboration with the Government has increased and procedures adapted to allow for the funding of up to 60% of projects and programmes.

Of the large number of other development organisations, many have grant programmes for supporting development and environment NGOs in developing countries. They obtain their finances from different sources, including the BMZ. Other sources of revenue include the public, donations and contributions, legacies, sale of products and consultancy services, etc. Examples are Brot fur die Welt, Stiftung Umverteilen, Andheri Aid, Action Friedensdorf, German Caritas, the German Co-operatives and Raiffeisen Association, the German Red Cross, the German Freedom from Hunger Campaign, Eirene, Youth for the Third World, the German Lions Relief Agency, Terre des Hommes and Weltgebetstag fur Frauen.


Bischoflishes Hilfswerk Misereor e.V. (MISEREOR) is an agency of the Catholic church in Germany and works in Africa, Asia, the Caribbean, Latin America, Middle East and the Pacific on development and environment issues.

It focuses especially on all fields of socio-economic development. The activities it supports are self-help activities directed at poverty alleviation. MISEREOR is also involved in advocacy and lobby work in Germany and regularly issues publications.

MISEREOR provides support to projects in all countries in Africa, Asia and Latin America. Environmental considerations are taken account of MISEREOR's overall project funding activities. Since it first started to work in development cooperation in 1958, MISEREOR has concentrated most of its work in rural areas. Over the last twenty years, however, urban issues have been developed as a special interest area, since the HABITAT I conference. This interest mostly relates to urban development, such as social housing, with, where present an urban environment focus. The types of projects supported so far include low cost housing, infrastructure, urban basic health schemes and income generating projects. Within this project support there is special attention for women and urbanisation, mostly in slum areas. In 1995, MISEREOR's budget was DM 360 million.


The Protestant Association for Cooperation in Development (EZE) is a church based development organisation. It is a registered association consisting of regional and free churches, the missions and women's activities. On behalf of the Protestant Church in Germany (EKD), EZE has been supporting the development efforts of churches and church related organisations in developing countries since 1962. EZE aims to take account of changing socio-economic conditions and new experiences in its development work. Its geographical concentration is Africa, Asia and Latin America. Support is provided to programmes which are directed at the poorest groups in society and which stimulate people to actively participate. Central to the work is the promotion and strengthening of self-reliance. Partners of EZE are churches, church-related organisations, CBOs, intermediary organisations, NGOs, women's groups and other specialised organisations in developing countries.

EZE provides support to organisations in:

Africa: Angola, Botswana, Burkina Faso, Egypt, Ethiopia, Ivory Coast, Ghana, Cameroon, Kenya, Liberia, Malawi, Mali, Mozambique, Namibia, Nigeria, Rwanda, Senegal, Sierra Leone, South Africa, Swaziland, Sudan, Tanzania, Togo, Uganda, Zaire, Zambia and Zimbabwe

Middle East: Israel and the Occupied Territories, Lebanon

Asia: Bangladesh, Cambodia, China, India, Indonesia, Korea, Malaysia, Pakistan, the Philippines and Thailand

Pacific: Fiji Islands, Kiribati, Papua New Guinea and Solomon Islands

Latin America: Argentina, Bolivia, Brazil, Chili, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Peru and Uruguay

EZE's work is directed at traditional development issues like agriculture, health, education, crafts and trade. It has developed, however, special attention for gender issues, the environment and integrated community development. An extra interest for environmental issues is reflected in support for projects on sustainable agriculture, land rights and social development. Urban development and environment issues are included in many projects that are supported by EZE. Urban development includes technical infrastructure. As habitat issues have not really been taken up by the churches, support for them is limited. Nevertheless, EZE has managed to give support to around twenty housing projects over the last few years. EZE indirectly supports HABITAT through supporting the Habitat International Coalition (HIC), together with MISEREOR (Germany), Bilance and NOVIB (Netherlands).

EZE also works closely with other organisations internationally, like Christian Aid (United Kingdom) and ICCO (Netherlands). It receives funds from the BMZ, the European Union and the Churches' Development Services (KED) of the EKD. EZE's budget approximated $130 million in 1995.


The Heinrich Böll Stiftung is one of the political foundations. It is affiliated to the Greem Party and was established in 1987 by 500 people from Germany and abroad in memory of the German writer Heinrich Böll who died in 1985. He was particularly well-known for its political controversial writings and was awarded the Nobel prize for Literature in 1972. The founders were people working in politics, grass roots movements, foundations, the arts and culture.

The Heinrich Böll Stiftung works together with a limited number of partners in developing countries. It develops long term partnerships with them. As a cultural political organisations it deals foremost with the political aspects of development problems Support is provided to projects that fall within the key issues.

From 1997, the organisation is officially a new one, born out of a merger between the Heinrich Böll Stiftung, Bundstift and Frauenanstiftung. These three organisations has been cooperating for some time already. Ecological concern is one of five key issues the Heinrich Böll Stiftung focuses on.

The others are human rights, cultural identity and self-determination and the liberation of women, an issue that cuts across all the others. Urban development one many interest areas of the Stiftung as financing is very dependent not so much upon the thematic focus but on the project's political component. The Heinrich Böll Stiftung has several offices in Germany (Koln, Berlin and Leipzig) as well as in Cambodia, the Czech Republic, Russia, Pakistan and Turkey. The budget of the new organisation averages DM15 million.


The Konrad Adenauer Foundation (KAF) is a political-oriented funding organisations with its roots in the Christian Democratic movement in Germany. Its international work is foremost directed at encouraging democracy and development, promoting mutual understanding internationally, self-help activities, addressing the causes of poverty and environmental destruction.

KAF makes no real distinction between urban and rural areas in this work.

Environmental issues are represented throughout activities and the KAF has an environmental protection as one of a few special attention areas. On this, it is operating out of the "Think globally - act locally" idea through aiming to provide input into the framework conditions of environment policy through consultation and implementing concrete sustainable development projects in developing countries.

KAF has activities in:

Africa: Benin, Egypt, Ghana, Kenya, Morocco, Namibia, Senegal, South Africa, Tanzania, Turkey, Tunisia, Uganda and Zimbabwe

Middle East: Israel, Jordan and the Autonomous Palestinian Regions

Asia: Cambodia, Central Asia, China, India, Indonesia, Korea, Malaysia, Mongolia, Pakistan, Philippines, Sri Lanka, Thailand and Vietnam

Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Mexico, Nicaragua, Paraguay and Venezuela

Europe: Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Russia, Slovak Republic and the Ukraine




BMZFederal Ministry for Economic Cooperation and Development

EKDProtestant Church in Germany

EZEThe Protestant Association for Cooperation in Development

GATEGerman Appropriate Technology Exchange

GTZGerman Agency for Technical Cooperation

Gesellschaft fr Technische Zusammenarbeit

KAF/KASKonrad Adenauer Foundation

Konrad Adenauer Stiftung

KfWKredit Anstalt fr Wiederaufbau

Bank for Reconstruction

MISEREORBishoflishes Hilfswerk Misereor e.V.