Following a steep decline in its development co-operation programme in the early 1990s Finland is engaged in redesigning and building up its aid programme. The Cabinet Decision-in-principle of September 1996 is now the main point of reference for Finnish development co-operation. It includes a firm target of 0.4 per cent by the year 2000 for the ratio of Finland's official development assistance to the gross national product (the ODA/GNP ratio), the integration of development co-operation into a coherent foreign policy framework and the reorganisation of the aid administration within the Ministry for Foreign Affairs.
At the DAC review of Finland's aid policies and programmes on 16 October 1998 the Committee commended both the partnership orientation of Finland's policies, as set out in the Decision-in-principle, and the growing volume of Finnish aid, a welcome reversal of the situation at the time of the last DAC Peer Review of Finland in 1995, when aid volume was in a deep decline. This Review addresses several other key issues: Finland's long-term partnerships with primary orientation countries; the flexibility concept, included in the Decision-in-principle; the need for clear sectoral and cross-cutting policy guidance; field management and delegation to the field; and the revised screening process for project and policy proposals that is part of the quality control system of Finnish aid.
The DAC Peer Review Programme for 1998 includes: Canada, Spain, the European Community, Finland, Germany, and Luxembourg and for 1999 Denmark, Japan, Ireland, Norway, Austria and Australia.

SUMMARY AND CONCLUSIONS
CHAPTER 1 FINLAND’S DEVELOPMENT POLICY FRAMEWORK
-1. The Decision-in-principle
-2. Key policy themes
--Poverty
--Sustainable development
--Human rights, equality, democracy and good governance
--Partner countries, partnership and ownership
--Flexibility
--Gender
--Disabled
--Conflict, peace and development
-3. Instruments
--Channels
--Humanitarian aid
--NGOs
--Research
--Finnish Fund for Industrial Co-operation Ltd. (FINNFUND)
--Trade related aid (associated financing)
-4. Finland and the EU
-5. Public opinion and development education
CHAPTER 2 AID MANAGEMENT AND IMPLEMENTATION OF POLICIES
-1. New organisation
-2. Country and sector strategies
-3. Programme design, approval, and monitoring
-4. Evaluation and effectiveness
-5. Advisory Board for Relations with Developing Countries (KESU)
-6. Co-ordination, coherence, and multilateral management
CHAPTER 3 ESSENTIAL FEATURES OF DEVELOPMENT CO-OPERATION
-1. ODA volume
-2. ODA resources and their allocation
-3. Geographic distribution
-4. Distribution of total financial flows
-5. ODA commitments
-6. Official aid
-7. Debt and debt relief
-8. Finland and the HIPC initiative
ANNEX I DECISION-IN-PRINCIPLE ON FINLAND’S DEVELOPMENT CO-OPERATION, THE CABINET, 12 SEPTEMBER 1996
ANNEX II EVALUATION PUBLICATIONS OF THE DEPARTMENT FOR INTERNATIONAL DEVELOPMENT CO-OPERATION, MINISTRY FOR FOREIGN AFFAIRS, FINLAND
ANNEX III FIGURE AND TABLES
PRESS RELEASE OF DAC PEER REVIEW OF FINLAND
DESCRIPTION OF KEY TERMS