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The government introduces restrictions on Sida's payments in 2022

The government has decided to put a restriction on Sida's payments to development cooperation in 2022 by SEK 6.9 billion in order to be able to use these funds for costs for refugee reception in Sweden. In the coming weeks, Sida will review how the decision will affect the development cooperation.

Serious consequences for people in poverty

– The budget restriction will have serious consequences for people living in poverty in various parts of the world. It may, for example, have consequences on children’s possibilities to go to school. The fact that children's opportunities for basic education are affected is particularly unfortunate as children's and especially girls' education has already been affected by shutdowns during the global pandemic and they risk slipping helplessly behind, says Carin Jämtin, Sida's Director-General.

Sida will now investigate how the government's decision will be implemented with the ambition of limiting the negative long-term consequences as far as possible. The government decision states that humanitarian assistance will not be affected. This means that Sida needs to review all other operations and develop a plan for how the reductions are to be implemented within different countries and thematic areas.

Affects recovery after the pandemic

The restriction on Sida's payments will have an impact on people living in poverty and oppression. It affects all areas of our work, including Sida's collaborations on climate adaptation, gender equality, sustainable development and support to recovery from the global pandemic that has hit the poorest countries very hard. These are countries that are also facing a sharp rise in food and energy prices due to the war in Ukraine. Many countries in Africa import a large proportion of certain foods from Ukraine and Russia in particular. The price of wheat has for example doubled since the war began.

– Even before the war broke out, the year 2022 was predicted to be an economically tough year in many parts of the world. The recovery after the pandemic had not had time to start properly in many low-income countries and the consequences of the war mean that another crisis is added on top of several other crises due to the pandemic, climate change and conflicts, says Carin Jämtin.

Published: April 19, 2022