Iceland’s development co-operation employs a programme-based approach at local government level, supporting national decentralisation efforts and locally led development. Long-term partnerships with district authorities in partner countries have improved their performance and enhanced service provision, addressing poverty and inequalities within the population. Continuously strengthening local capacity for results monitoring and financial management is critical.
Partnering for local ownership: Programme‑based approaches at the district level
Abstract
Iceland, as a small partner, aims to optimise the use of its limited financial and human resources while following the principles of effective development co-operation, to achieve positive long-term outcomes in line with national and local priorities. Initially, projects were its main modality, as programme-based approaches would have meant engaging in large national funding pools where Iceland’s added value might have been less significant. Decentralisation of competencies and resources in partner countries to subnational governments created opportunities to enhance Iceland’s support, strengthening locally led development, ownership and capacity while improving efficiency.
Iceland applies a programme-based approach (PBA) at the district level. Key features include:
Alignment with national government efforts: partnerships respond to demand from the national government and its priorities, as set out in policies, plans and budgets. Iceland concludes trilateral agreements with local authorities as well as line ministries, which provide thematic guidance.
Local ownership: district authorities remain the key implementing agents and the programme closely follows district development plans and operational strategies; activities are “on plan and on budget”. District development plans are based on consultations with communities in the districts.
Integration of support across sectors: the programmes' objectives are comprehensive and integrated, covering education, health, water, sanitation and community development. The aim is to improve social infrastructures, community resilience and livelihoods, with a strong focus on gender equality, human rights and climate. Efforts are made to ensure that support reaches poor and vulnerable groups, often in neglected areas.
Use of district/public financial management and results systems: funds are disbursed directly to district governments based on their work plans and budgets, and their systems for procurement and financial management. To manage risks, the programmes include capacity strengthening of district authorities, regular financial and progress reporting as a prerequisite for fund release, and internal and external audits.
Iceland’s evaluations (see below) show that its local programme-based approach has led to tangible results, making it particularly suitable for smaller development co-operation partners. Iceland is therefore adopting this approach in all partner countries.
Iceland’s support has become more efficient. The programme-based approach has facilitated synergies in support across sectors such as health, water and sanitation, education, governance, youth, environment and climate change. Programme co-ordination and management concentrated in one district around one programme has become easier for the small team.
Supported districts perform significantly better. In Uganda’s Namayingo District, the pass rate in the Primary Leaving Examinations (PLE) of the six supported schools achieved 100%, surpassing the district average of 87,5% and the national average of 89,4%. In Buikwe District, the primary school completion rate rose from 40% in 2011 to 76% in 2020, with doubled enrolment and reduced dropout rate for girls. In Malawi’s Mangochi District the pass rate in 12 supported schools increased from 65% to 93% since 2012, with drop-out rates reduced for girls and improved selection rate to secondary schools from 65% in 2012 to 93% in 2023.
Service provision in supported districts has significantly improved. In Uganda’s Buikwe District, access to safe water within 1 km from the household increased form 32% in 2015 to 83% in 2022. In Namayingo District, access to safe water services increased by 13% in three targeted mainland fishing communities since 2021, and improved sanitation facilities increased. In Malawi’s Mangochi District, access to safe water infrastructure led to 65% decrease in mortality and access to sanitation facilities increased to 89% in four sub-district areas. Since 2017, there has been a 31% reduction in maternal mortality, a 47% reduction in neonatal mortality. Since 2012, there has been a 53% decrease in under 5 year child mortality and over 32,000 students have benefited from improved school infrastructure and learning environment, with 73 school blocks built.
The district approach is appreciated by national governments. In both Malawi and Uganda, national governments have requested Iceland to expand its district programme approach, as it demonstrates strong partnership and trust. Similarly, other development partners have expressed strong interest in this approach as a development modality.
Decentralisation for greater local leadership: transfer of political powers and resources to subnational government entities in least developed countries makes them suitable partners for district-level approaches. Iceland is exploring how lessons from this this approach can support decentralisation efforts in other contexts.
The district programme approach puts in practice the fundamental principles of locally led development: sustainability is enhanced when local actors, institutions and communities are at the forefront of decision-making processes, driving initiatives that reflect their aspirations and priorities.
Active dialogue and alignment with national and district stakeholders, as well as other development partners, for harmonisation: active participation in programme technical working groups, steering committee meetings and partner sector platforms is crucial. Iceland has actively shared the results of its experience with the district programme approach with other development partners.
Local results monitoring and evaluation: strengthening local monitoring and evaluation systems and capacity is paramount to ensure that results-based information can be used for decision-making and learning.
Financial management: weak local financial structures remain a challenge and need to be continuously addressed, notably through long-term capacity development, rigorous controls, and by gradually entrusting local systems with larger financial transfers.
Direct co-funding for defined cost elements: partner districts fund certain programme expenses which is meant, among other things, to increase mutual accountability, enhance risk management and local ownership.
Communicating results for local ownership: communication with local communities is important for outreach, awareness raising and for overall strengthening of local ownership. PBAs also offer perceptible contributions to highlight concrete results to the public in partner countries, leading to broad buy-in by communities within districts.
Cardno Partners Consult. (2022), External evaluation of Buikwe-Iceland Development Partnership Education in Fishing Communities 2019-2022 Phase II and Wash Development in Fishing Communities 2018-2019 Phase II. https://www.stjornarradid.is/library/03-Verkefni/Utanrikismal/Throunarsamvinna/uttektar--og-ryniskyrslur/External%20Evaluation%20of%20BDFCDP%20Partnership-final%20report.pdf.
Webb, S., Holzapfel, F., Mkamanga, G., Manyonga, V. and Schafer, J. (2023), External evaluation of Mangochi Basic Services Programme Phase II, 2017-2023, https://www.stjornarradid.is/library/04-Raduneytin/Utanrikisraduneytid/PDF-skjol/GOPA_MBSPII_Evaluation_Report_Final_Version_20231120.pdf.
Uganda, Ministry of Health (2019). Local Government Performance Assessment - FY 2018/2019 National Synthesis Report, Kampala, Knowledge Management Portal, http://library.health.go.ug/leadership-and-governance/local-government/local-government-performance-assessment-fy-20182019.
Cleary, S., Mkamanga, G. (2018), Mangochi Basic Services Programme, Final Evaluation, https://www.stjornarradid.is/lisalib/getfile.aspx?itemid=ee16f858-fe26-11e8-942f-005056bc530c.
Laugerud, T. et al. (2018), District Development Cooperation Programmes in Kalangala District in Uganda, Final Evaluation, https://www.stjornarradid.is/lisalib/getfile.aspx?itemid=65fe2dd7-fe27-11e8-942f-005056bc530c.
OECD (2024), Development Co-operation Report 2024: Tackling poverty and inequalities through the green transition, OECD Publishing, Paris, https://doi.org/10.1787/357b63f7-en.
OECD (2023), OECD Development Co-operation Peer Reviews: Iceland 2023, OECD Development Co-operation Peer Reviews, OECD Publishing, Paris, https://doi.org/10.1787/434efc87-en.
OECD (2018), “A programme-based approach for maternal and child health at the district level in Malawi”, in Case Studies on Leaving No One Behind: A companion volume to the Development Co-operation Report 2018, OECD Publishing, Paris, https://doi.org/10.1787/9789264309333-29-en.
Global Partnership for Effective Development Co-operation, https://www.effectivecooperation.org.
To learn more about Iceland’s development co-operation see:
OECD, "Iceland", in Development Co-operation Profiles, OECD Publishing, Paris, https://doi.org/10.1787/fd3d1d29-en.
See more In Practice examples from Iceland here: https://www.oecd.org/development-cooperation-learning?submodel=in+practice&tag-key+partner=iceland#search.
