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What is GTZ<br />

The Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ) is<br />

a non-pr<strong>of</strong>it enterprise owned by <strong>the</strong> Federal Republic <strong>of</strong> Germany,<br />

represented by <strong>the</strong> Federal Minister for Economic Cooperation<br />

(BMZ) and <strong>the</strong> Federal Minister <strong>of</strong> Finance (BMF).<br />

The GTZ has existed in its present form since January 1,1975, when<br />

it took over <strong>the</strong> activities <strong>of</strong> two previous development agencies -- <strong>the</strong><br />

Bundesstelle fur Entwicklungshilfe (BfE) and <strong>the</strong> Deutsche Forderungsgesellschaft<br />

fur Entwicklungslander (GAWI), to streamline<br />

operations.<br />

The basis <strong>of</strong> <strong>the</strong> GTZ's work in <strong>of</strong>ficial technical operation is a General<br />

Agreement concluded on December 12,1974. This agreement clearly<br />

delineates <strong>the</strong> tasks between <strong>the</strong> Federal Ministry for Economic<br />

Cooperation (BMZ) which is responsible for development policy and<br />

<strong>the</strong> GTZ as implementing agency.<br />

• The BMZ, <strong>the</strong> negotiating partner <strong>of</strong> <strong>the</strong> governments <strong>of</strong> <strong>the</strong><br />

developing countries, defines <strong>the</strong> general development policy<br />

aims and <strong>the</strong> objectives <strong>of</strong> individual activities and supervises<br />

<strong>the</strong>ir implementation; it decides what projects are to be sup<br />

ported and sets <strong>the</strong> financial framework in its commissions to<br />

<strong>the</strong> GTZ.<br />

• The GTZ carries out BMZ commissions under its own responsibility,<br />

ei<strong>the</strong>r itself or by recalling in o<strong>the</strong>r state or private enterprises;<br />

it supports <strong>the</strong> BMZ in <strong>the</strong> fur<strong>the</strong>r development <strong>of</strong><br />

principles and instruments <strong>of</strong> development policy.<br />

What does GTZ<br />

GTZ puts development policy into practice. Most <strong>of</strong> its work is<br />

commissioned by <strong>the</strong> Government <strong>of</strong> <strong>the</strong> Federal Republic <strong>of</strong> Germany<br />

whose July 1980 "Policy Paper on German Cooperation with<br />

Developing Countries" defines technical cooperation as follows:<br />

"The purpose <strong>of</strong> technical cooperation is to enhance <strong>the</strong> performance<br />

<strong>of</strong> manpower and institutions in <strong>the</strong> developing countries. It<br />

involves <strong>the</strong> assignment <strong>of</strong> technical personnel and <strong>the</strong> supply <strong>of</strong><br />

technical equipment. As a rule, technical cooperation are services<br />

granted on a non-repayable basis. In <strong>the</strong> more advanced developing<br />

countries, thiscooperation is ei<strong>the</strong>r partly or wholly against payment."<br />

In addition to implementing Federal German development<br />

policy, <strong>the</strong> GTZ also takes direct commissions against payment<br />

from developing countries or from international organizations and<br />

it operates projects with its own funds on a limited scale.<br />

264 CENTER PUBLICATIONS

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