Swedish development aid policy: A discussion with reference to Ethiopia

Formal Ethio-Swedish development co-operation began in 1945 with the signing of a technical assistance treaty in vocational and technical education. Since then Swedish aid has been extended to health, nutrition and agriculture, with agricultural aid constituting the largest share since 1967. Swedish agricultural aid could be classified broadly into the comprehensive and the minimum package programmes. This paper discusses the changes in Swedish rural development assistance from the project to the country programming approach as reflected in the comprehensive and minimum package programme. This paper shows that the country programming approach to international development assistance is an important contribution to the strategies of delivering foreign assistance. Since the approach utilizes existing government programmes as the starting point for development assistance, and attempts to integrate aid into the national resource base, it can build confidence and mutual working relationships among donors and aid recipients. Moreover, the approach as utilized by Sweden has a three-year time-frame, allowing the transfer of funds within Swedish sponsored programmes. The overall strategy objective supports and broadens existing programmes directed to improving the welfare of the rural poor.