Financing for development

The Federal Council wants to allocate to the Swiss private sector 500 million earmarked for reconstruction in Ukraine. This certainly does not serve the interests of Ukraine's economy and enterprises.

While billions in Afghan currency reserves are being managed in Geneva, civilians in Afghanistan are suffering from the indescribably precarious economic situation in the country. Shah Mehrabi, Co-chair of the Board of the Afghan Fund, is now calling for targeted disbursements.

The Federal Council adopted the long-awaited Dispatch on the 2025–2028 International Cooperation Strategy in mid-May. In it, the Council stands by its policy of funding aid to Ukraine at the expense of the Global South, thereby ignoring the outcomes of the public consultation.

A careful reading of the International Cooperation Dispatch 2025–2028 sent by the Government to the Parliament left us somewhat aghast. But the big shock came at the beginning of June, when the IC also came under scrutiny in the Council of States as part of the discussion on the army dispatch.

In October 2023, the OECD Development Assistance Committee (DAC) took a decision that has largely escaped public notice. It is about including "private sector instruments" in development financing, and could hold far-reaching implications for the poorest countries in the South.

Global inequality is growing steadily – unlike development financing by OECD members. Rich countries like Switzerland rely mainly on dubious accounting practices to whitewash their contribution.

The foundation set up in Geneva in September to manage USD 3.5 billion from the Afghan Central Bank is playing it safe – by doing nothing. Switzerland seems to endorse the American position.

There is a new SECO initiative designed to mobilise private capital for developing countries. It raises several questions about governance and development impacts.

In implementing the International Cooperation Strategy 2021-2024, the SDC plans to scale up its cooperation with the private sector and strike up new partnerships. How is this impacting developing countries?