Coherence of development policies

In terms of external policies in a development cooperation context, Luxembourg has developed several tools to ensure it adopts a coherent policy in support of sustainable growth within the context of meeting the sustainable development goals. The 3D approach (diplomacy, development and defence) implemented within the framework of Luxembourg’s foreign policy, as well as the governmental strategy of taking a practical and holistic approach to social, security, climate and migration issues, as set out in the coalition agreement, constitute the main reference framework for ensuring coherence between national and foreign policies. The Development – Climate – Energy Indicative Cooperation Programme (2021-2025) between Cabo Verde and Luxembourg marks the first opportunity for the implementation of an approach by Luxembourg Development Cooperation that involves all Luxembourg actors and sources of financing likely to contribute to the sustainable development of Cabo Verde.

All development cooperation actions feature a multi-stakeholder approach in order to increase their effectiveness. This approach fosters diverse partnerships with international, national and local NGOs and also seeks to promote increased collaboration with private sector and research actors, in particular within its partner countries. The state of progress regarding development policy coherence is also closely monitored by the development NGOs’ Cercle de Coopération.

Nationally, the Interministerial Committee for Development Cooperation (ICDC) is responsible for interministerial coordination on development cooperation and coherence of development policies. The Committee meets at least six times a year.

Internationally, as part of its monitoring and review mechanisms, the United Nations 2030 Agenda for Sustainable Development encourages Member States to conduct regular reviews of progress at national and sub-national levels (known as Voluntary National Reviews). These national reviews serve as the basis for regular reviews by the High-Level Political Forum on Sustainable Development (HLPF), convened under the auspices of the United Nations Economic and Social Council (ECOSOC). Luxembourg has already carried out two voluntary national reviews (in 2017 and 2022).

In order to strengthen policy coherence, Luxembourg is also supported by the Organisation for Economic Co-operation and Development (OECD), which makes recommendations for the adjustment of Luxembourg’s mechanisms to make them even more effective and efficient. Between 3 and 7 June 2024, the peer review took place, a regular evaluation to which members of the OECD Development Assistance Committee are subject. Prior to the evaluation, an annex on Coherence of Development Policies was submitted. In their conclusions, the peers noted that the instruments for increasing the coherence of development policies had evolved since the last peer review (2017), referring in particular to the Nohaltegkeetscheck (sustainability check). At the same time, the peers also observed that institutional mechanisms to address cases of policy incoherence (for example, in tax matters or corporate due diligence) are still insufficient due to the lack of clarity regarding responsibilities among the various ministries involved.