Norwegian Development Aid was established in 1962. This was an institution set up to plan, co-ordinate and administer Norwegian aid to developing countries. In 1968 it was reorganized as the Norwegian Agency for International Development (NORAD). The Ministry of Development Co-operation was established in 1983.

This area is now administered by a minister for development issues under the Ministry of Foreign Affairs. Norway's contribution to development aid is 1-2% of the gross national product (GNP).