Why Germany has a development ministry

Last year, Germany spent almost €34 billion on development aid. The Federal Republic is the fourth biggest spender when it comes to the percentage of state revenue spent on official development aid. Only Norway, Luxembourg and Sweden give a larger portion of their revenue to poorer countries. Among the G7 — the most important Western industrial nations — Germany tops the list.
However, public funds in Germany are scarce, due to the sluggish economy. The three governing coalition parties — the center-left Social Democratic Party (SPD), the Greens, and the Free Democratic Party (FDP) — have been arguing for months over a new budget. According to a draft, they now plan to cut development aid by €940 million ($1045 million) next year.
Is Svenja Schulze, Federal Minister for Economic Cooperation and Development, worried about German development policy? “No, I’m not worried it will get run over,” said the SPD politician on the sidelines of a trip to Pakistan.
In the capital Islamabad, she promised to provide local suppliers with advice on compliance with social and environmental standards — a requirement of German supply chain law. As an export nation, Germany depends on strong partnerships and long-term relationships, says Schulze, “And we achieve this through development cooperation.”
The Minister describes the German development cooperation guidelines as fighting poverty and strengthening democracy and human rights. “So that children can attend school instead of working so that the economy progresses, the environment is protected, climate protection is advanced. All of these things aren’t just important for the respective countries — but also for us, in Germany.”
However, critical voices of Germany’s involvement abroad have recently repeatedly arisen. For example, denouncing the ministry’s involvement in constructing bike paths in Peru. Opposition politicians claimed Germany was contributing €315 million to the project. The Ministry corrected that by saying the amount was €44 million, and it was thus promoting climate protection and sustainability.
Not only have individual projects of German development cooperation been called into question, recently. Some politicians are calling for the Federal Ministry for Economic Cooperation and Development, the BMZ, to be abolished. The liberal FDP, part of Chancellor Olaf Scholz’s coalition government, is demanding that the BMZ be integrated into the Foreign Office.
“It’s in our election manifesto — it’s no secret — it’s always been a demand,” says Knut Gerschau, FDP Chairman of the Bundestag’s Development Committee. He is part of the delegation accompanying Minister Schulze on her trip to Pakistani textile factories. In an interview with DW, Gerschau stressed that no other European country has its own development ministry.
Furthermore, other large industrial nations, such as Japan and the US, do not have their own development ministry. “There, such tasks are rolled into other ministries. But it is rather a long-term goal, for sure.” Gerschau hopes that shutting down the ministry itself would increase government efficiency, by eliminating duplicate jobs.
However, Minister Schulze says that a separate ministry is necessary: “We saw that in the UK. When they abolished their own ministry, they were no longer present on the international stage.” It is important to represent one’s own interests and values ​​on the international level. “That requires people with competence, and it also requires representation. All of that cannot simply be harbored in an economics ministry, a foreign ministry, or a finance ministry.”
Development cooperation and humanitarian aid are especially important during tense times, emphasizes Jürgen Kretz, a Greens member of the Bundestag. He is also accompanying Schulze on her trip to Pakistan. “In a tense global situation — where players like China and Russia are facing us in the international power game – it is important to continue discussions with partner countries — to remain in cooperation — and not leave the field open to others,” Kretz told DW. A strong, independent development ministry is in Germany’s best interest, “because it enables us to support a stable, well-functioning, secure world order.”
Germany was the first European country to bring development policy to the cabinet table. The Federal Ministry for Development was established in 1961. At the time, a driving factor for the Federal Government was that it had received billions in aid from the US through the Marshall Plan, after WWII. That support is considered to have been the basis for Germany’s economic recovery.
This article was originally written in German.
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