Development cooperation is a tool of soft power for states that enables them to promote their values, build relationships with partner states, and reduce global poverty. Since development cooperation is impacted by changes in the norms and power dynamics of international politics, it is essential to analyse Estonia’s use of development cooperation up to now and the directions it may take in the future.
Firstly, bilateral development cooperation is becoming more interest- and business-based. Western countries’ development cooperation is more and more shaped by the goal of promoting their own goods and services. For example, Sweden—one of the European Union’s key donor countries—is increasingly focusing on its exports. At the same time, economic growth in the Global South is expected to offer solutions to the Global North’s security and welfare challenges, including migration.
Another significant trend in the area is the growing influence of non-democratic donor countries that use development cooperation not to empower local populations but to consolidate or expand their spheres of influence. This shift is exacerbated by substantial cuts in development aid budgets in several Western countries, including the United States—the largest contributor to aid—which leaves more room for China and other states offering an alternative to Western governance models.
Estonia has primarily focused its development cooperation on sharing its transition experience with countries such as Ukraine, Georgia, and Moldova, who have shown interest in the lessons Estonia’s example can offer and whose development directly affects Estonia’s security. These reform efforts include the promotion of democracy, the rule of law, and a favourable business environment, along with a strong emphasis on education-related development cooperation. More recently, Estonia has expanded its efforts to share its expertise in digital governance and digital education, particularly with African countries. A new area of focus is the export of Estonia’s education model, which might help address the high global demand for quality education, though there is still no national consensus on what the priorities in this sector should be and who the key actors are.
The overarching aim of Estonia’s development cooperation has been to support target countries and their populations. At the same time, it has also served as a means to advance Estonia’s own security, reputation, and economic interests. Compared to larger donor countries, Estonia’s development cooperation resources are limited, yet it has distinct strengths that should be better recognised internally and more widely promoted internationally. Estonia conducts strong bilateral development cooperation with relatively little fragmentation, in which it takes advantage of its strengths: digitalisation, flexibility, personal engagement, low coordination costs, and reform expertise.
Thus far, Estonia’s development cooperation has focused on so-called smart cooperation—supporting reforms, IT, and education, particularly in middle-income countries. This approach should continue rather than shifting towards infrastructure development in the world’s poorest nations. The reconstruction of Ukraine is an exception, where Estonia is both taking a leading role that sets an example for others and supporting a key security partner.
Download and read (in Estonian): Eesti roll muutuvas rahvusvahelise arengukoostöö arhitektuuris (PDF)