As of 1 January 2016, following the adoption by Althingi of a proposal amending Act no. 121/2008 on Development Cooperation, all activities of the Icelandic International Development Agency, ICEIDA, have been transferred to the Ministry for Foreign Affairs. The purpose of the amendment is to simplify the organisation of development cooperation in order to maximise results and ensure the best possible use of the funds allocated to this policy area by the Icelandic authorities.
By consolidating the whole policy area, the aim is improved overview, harmonisation and efficiency. The new arrangement is also meant to strengthen the link between development cooperation and other foreign affairs. Other changes involve policy development, with a five-year policy and a two-year operation plan replacing a previous four-year plan for international development cooperation.
A new Development Cooperation Committee will also be established and will bring together the activities of the current Development Cooperation Committee and those of the Council on International Development Cooperation. The new Committee consist of members of Althingi, with the aim of strengthening the involvement of Althingi in this policy area.