Development Sweden #25. This is how Sida will handle party funds
A newsletter on Swedish development cooperation and policy
Welcome to Development Sweden #25. In this issue we deliver news on how the Swedish parties foundations can apply for democracy support, increased daily allowance for Ukrainian refugees, a panel discussion on environment and health and more. If you would like to read the full newsletter you are most welcome to upgrade to a paid subscription. Thank you for joining Development Sweden and supporting our work so that we can continue to deliver insight in Swedish development cooperation and policy.
David Isaksson
Editor in Chief, Global Bar Magazine
Monika Gutestam Hustus
Editor, Development Sweden
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The following are our headlines:
This is how Sida will handle party funds
Ukraine: Finally Raise Refugee Daily Allowance?
Significant commitment to health and the environment
Cambodia: No Dialogue at All, Say Organizations
Giving to Aid Still High
This is how Sida will handle party funds
Now, the rules are clear for how the parties' foundations can apply for Democracy Support through Swedish party-affiliated organisations (PAO support). The only requirement for the parties to receive their ”automatic funds” is to present an activity report. In theory, parties can use up to two million kronor for informational work in Sweden.
As previously reported, the government has decided on a new strategy for democracy support through Swedish party-affiliated organisations. This strategy means the parties will automatically receive a portion of the funds if they present several formal documents. The big winners of this proposal are the Sweden Democrats, the Moderates, and, to some extent, the Left Party.
According to our previous calculations, the Sweden Democrats' foundation Hepatica will receive at least 12 million kronor solely through the portion based on the distribution of seats. In addition to this, all parties receive two million in essential support. The foundation has not received any money, as a previously submitted application was rejected. Now, Hepatica has recruited a new secretary-general, Stefan Dozzi, who in 2017 and 2021 was the secretary-general of the Sweden-Israel Friendship Association and who switched from the Christian Democrats to the Sweden Democrats in the summer of 2021. The party is investing heavily for the future, DN reported in December.
The new strategy consists of three parts:
Part one is support distributed in a way that reflects the mandate distribution in the parliament to the party-affiliated organisations that submit a business plan and budget to Sida, whose content is in line with the purpose of the strategy.
Part two is a basic grant that is the same for each party-affiliated organisation receiving support. This basic grant shall amount to two million kronor per year per party-affiliated organisation receiving support by part one or three.
Part three supports already agreed-upon measures by the previous strategy for exceptional democracy support through Swedish party-affiliated organisations 2023–2027. The already concluded one-year agreements are extended until December 31, 2027, according to the conditions applied when they were signed.
Sida has now produced a brief guide on how to handle the foundations' applications. These now have until March 31 to apply for January 2024–December 2027.
"The purpose of our guidance is to be short and clear. We have closely followed the text of the strategy based on what we are expected to follow up on - and not," says Torbjörn Pettersson, head of the department for international organisations and thematic support at Sida.
In connection with a draft proposal for consultation, Sida expressed significant doubts about whether the agency could carry out what is usually included in administrative activities, given that a large part of the funds are distributed "automatically" based on the number of mandates.
"Normally, there is competition between alternatives when we make assessments, and then we decide who best implements the program. In this case, we are guided by the amounts specified, and we make the assessment based on what the government has stated in the strategy and what is stated in the guidance, nothing else," Torbjörn Pettersson continues.
The guidance then means that a party-affiliated foundation receives its funds if it meets the formal requirements, which in this case include submitting a business plan containing:
How are the planned activities intended to contribute to the purpose and three goals of the strategy (see strategy p. 3 and 6)?
Choice of methods for goal and result management and evaluation.
With whom PAO intends to collaborate and PAO's analysis of how these meet the requirements of the strategy (see strategy p. 5).
Where the activities will be carried out, PAO chooses which countries they want to operate in, as long as these are listed on the OECD-DAC's latest published list of countries eligible for development assistance. Activities in non-ODA countries should be specified and justified (see strategy p. 3).
The three goals referred to in the guidance are (page 3):
Contribute to democratic, inclusive, and well-functioning political parties, democracy movements, and change actors.
The activities should also promote democracy defenders in an organised form with an agenda that can develop into political parties and collaborations within platforms and networks for political dialogue.
Contribute to increased representation, participation, and influence in political organisations for those who are underrepresented, including women and youth.
They are also expressed as follows in the strategy (page 6):
The mandate-distributed PAO support should strengthen democratic political parties in the partner country and other movements, change actors, or democracy defenders in an organised form with an agenda that can develop into political parties and collaborations within platforms and networks for political dialogue. The emphasis should be on strengthening capacity, organisational, and institutional development through support such as training and exchange programs and parties' ability to participate in international party activities, not least within the EU.
If a foundation does not meet the requirements, Sida cannot transfer the funds elsewhere (for example, to Ukraine) but remain in the account.
One issue that has been heavily debated is that parties should be able to carry out activities in countries that are not aid recipients according to DAC guidelines. The strategy states:
In exceptional cases, actions can be taken with cooperation partners/actors in countries in the EU's neighbourhood that do not aid recipient countries, according to the OECD DAC, when the purpose is to contribute to peaceful and democratic development in the EU's eastern neighbourhood. Work with actors exiling from their home countries can also be supported.
In its guidance, Sida writes:
Any costs related to non-ODA countries should be budgeted under a separate budget line.
"There are no specific amounts specified in the strategy, so it means that these are words that we have to interpret; we'll just have to see," Torbjörn Pettersson continues.
Another controversial issue is that foundations can use aid money to inform in Sweden. Only funds from the so-called basic grant of two million kronor can be used here.
"In theory, could the parties use two million kronor each to inform in Sweden?
We'll have to consider that when they come in later with pure results reporting. Then, we will assess whether what they have implemented is in line with the application that has been submitted. The review here is done just as with other agreements.
If you were to reject an application, what would happen then? Can the foundation appeal your decision?
This is still a strategy where we make an assessment; it is not an application process where you automatically have the right to a certain amount. However, the mandate-based support will be locked to the respective foundation according to the mandate distribution, and Sida cannot use funds in any other way. Therefore, we must wait for any questions and deal with the issue based on what arises.
But in theory, could a party-affiliated foundation become liable to repay?
It could happen, for example, if there is corruption in the forwarding. As always, the agreement between us and a partner governs the use of funds. This also applies to the foundations.