GENEVA (ILO News) – The Government of Denmark will contribute DKK 40 million (approximately US$ 7.1 million) in flexible and predictable resources to the Regular Budget Supplementary Account (RBSA) of the International Labour Organization/Office, the ILO said.

The decision was approved by the Minister of Development in Copenhagen after recommendation by the Danish Board for International Development Cooperation, and the agreement between Denmark and the ILO was signed on 3 June.

Traditionally one of the most progressive donors, Denmark has again set an example by aligning with the principles of Aid Effectiveness embodied in the Paris Declaration and Accra Agenda for Action. The Danish Government’s contribution for 2010-11 will take the partnership with the ILO to a new level by providing fully flexible and unearmarked resources.

“Denmark is one of our close partners and through the Permanent Mission in Geneva we are constantly involved in the dialogue on improving the way of cooperation and delivery of development assistance to our constituents”, said Alette van Leur, Director of the ILO Department of Partnerships and Development Cooperation. “The new contribution offers great support to the ILO’s efforts of translating the Aid Efficiency principles into operational practice.”

“Many high-level decisions have now been taken with regard to reshaping how UN operational activities for development are financed. We believe that the time is right for action and encourage other donors to provide unearmarked resources to the ILO too,” said H.E. Marie-Louise Overvad, the Ambassador of Denmark in Geneva. “The timely achievement of MDGs is our ultimate common goal and we aim to reach it through the most efficient means of cooperation. The decision of the Danish government also demonstrates our support to good donor principles.”

The new contribution comes only a few months after the ILO and Denmark signed a five-year cooperation agreement within the framework of the Africa Commission. With the total value of DKK 204 million (over US$40 million), this programme aims at generating more decent jobs for young women and men in Africa through two concrete initiatives;: Promoting Post-Primary Education and Unleashing African Entrepreneurship.

Denmark has been a long-standing partner of the ILO, and contributed over US$ 63 million for the 2006-09 period. Denmark is the fifth largest donor to the ILO in terms of extra-budgetary contributions. It was also one of the first donor countries to enter into a Partnership Programme with the ILO in 1996.