EUEnlargement and the Third World

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• EU-Enlargement and the Third World
• ZEFa PhD-Course
• Uwe HOLTZ, February 2/3, 2004

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Course Objectives

• to acquaint you with the major issues in EU
  enlargement
• to introduce you to the major subfields in the
  study of EU-Third World relations
• to help develop your own thinking and analytical
  ability

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Topics to be covered

• Introduction to European integration
• Enlargement history and accession criteria
• EU a global player
• EUs Third World relations and its development
  cooperation
• The so-called acquis communautaire and its
  implications for new Member States
• Development cooperation of the acceding countries
  incl. their specific experiences - challenges to
  be met
• The possible impact of accession on
• the development policy of the candidate
  countries,
• the EU,
• the Third World.

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References

• Poul Nielson (Commissioner for Development and
  Humanitarian Aid) Progress in Reforming EC
  Development Policy and Cooperation, Copenhagen,
  November 2002,
• Michael Dauderstädt (ed.) EU Eastern Enlargement
  and Development Cooperation (Friedrich-Ebert-Found
  ation), Bonn, November 2002,
• European Commission (ed.) The EUs current
  agenda for Development Policy and Enlargement,
  Brussels 2003.
• James Mackie Challenges for 2003. The Changing
  Framework of EU External Relations and its
  Implications for the ACP. (ECDPM In Brief 1).
  Maastricht, February 2003
• InWEnt/Internationale Weiterbildung und
  Entwicklung-Capacity Building International
  (ed.) The Enlarged European Union - Partner of
  the Developing World. Summary Report, Bonn 2003.
• Léna Krichewsky Development Policy in the
  Accession Countries, TRIALOG Study 2nd ed.,
  Vienna 2003
• Michael Dauderstädt (ed.) Enlargement and the
  EUs External Relations, Bonn, June 2003,
• Simon Maxwell/Paul Engel European Development
  Cooperation to 2010 (ODI Working Paper 219/ECDPM
  Discussion Paper 48), London, May 2003.
• European Commission (ed.) The Consequences of
  Enlargement for Development Policy (Report
  prepared by a team led by Stefano
  Migliorisi/Development Strategies - IDC),
  Brussels 2003.
• James Mackie/Heather Baser/Jonas
  Frederiksen/Oliver Hasse Ensuring that
  Development Cooperation Matters in the New Europe
  (ECDPM), Maastricht, October 2003.
• Website EU Cooperation and Enlargement
  http//europa.eu.int/comm/development/body/organis
  ation/eu_enlargement_en.htm

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1. Introduction

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EU and CoE two creations of the same vision
(W. Schwimmer)

• The Europe of the 15 (since May 1, 2004 25)
  European Union
• The Greater Europe The Council of Europe with
  its 45 countries, including 21 countries from
  Central and Eastern Europe and the Caucasus The
  Council was set up to- defend human rights,
  parliamentary democracy and the rule of law, -
  develop continent-wide agreements to standardise
  member countries' social and legal practices, -
  promote awareness of a European identity based on
  shared values and cutting across different
  cultures.
• Since 1989, its main job has become- acting as
  a political anchor and human rights watchdog for
  Europe's post-communist democracies, - assisting
  the countries of central and eastern Europe in
  carrying out and consolidating political, legal
  and constitutional reform in parallel with
  economic reform, - providing know-how in areas
  such as human rights, local democracy, education,
  culture and the environment,
• - acting as the watchdog of the OECD and the
  EBRD.
• The Organization for Security and Co-operation in
  Europe (OSCE) is the largest regional security
  organization in the world with 55 participating
  States from Europe, Central Asia and North
  America. It is active in early warning, conflict
  prevention, crisis management and post-conflict
  rehabilitation.

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Steps towards (European) integration common
policies

• Council of Europe gt greater unity in Europe
• Free Trade Area (EFTA)
• Customs Union (EEC EC-Turkey)
• Common Market (EC)
• Monetary Union (Euro-Zone)
• Political Union (EU)
• In the early years, much of the co-operation
  between EC
• countries was about trade and the economy, but
  now the EU also
• deals with many other subjects of direct
  importance for our
• everyday life, such as citizens' rights ensuring
  freedom, security
• and justice job creation regional development
  environmental
• protection, making globalisation work for
  everyone.

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• 15 EU Member States with a total of 380
• million citizens

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EU ConstitutionArticle 13 Areas of shared
competence

• 1. The Union shall have exclusive competence to
  establish the competition rules necessary for the
  functioning of the internal market, and in the
  following areas
• monetary policy, for the Member States which have
  adopted the euro,
• common commercial policy,
• customs union,
• the conservation of marine biological resources
  under the common fisheries policy.
• 2. Shared competence applies in the following
  principal areas
• internal market,
• agriculture and fisheries, excluding the
  conservation of marine biological resources,
• transport and trans-European networks,

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• social policy, for aspects defined in Part III,
• economic, social and territorial cohesion,
• environment,
• consumer protection,
• common safety concerns in public health matters.
• 3. In the areas of research, technological
  development and space, the Union shall have
  competence to carry out actions, in particular to
  define and implement programmes
• 4. In the areas of development cooperation and
  humanitarian aid,
• the Union shall have competence to take action
  and conduct a
• common policy however, the exercise of that
  competence may
• not result in Member States being prevented from
  exercising
• theirs.

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EU a family of democratic European countries

• Art. 6 EU Treaty
• The Union is founded on the principles of
  liberty, democracy, respect for human rights and
  fundamental freedoms, and the rule of law,
  principles which are common to the Member States.
• The Union shall respect fundamental rights, as
  guaranteed by the European Convention for the
  Protection of Human Rights and Fundamental
  Freedoms and as they result from the
  constitutional traditions common to the Member
  States, as general principles of Community law.
• However, there is a democratic deficit mainly
  with
• regard to parliamentary powers.

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• The EUs aims are
• to promote peace, its values and prosperity,
• to end the division of the European continent.
• It is not a State intended to replace existing
  states, but it is more than any other
  international organisation, by having set up
  common institutions to which they delegate some
  of their sovereignty.  
• The EU desires
• to deepen the solidarity between their peoples
  while respecting their history, their culture and
  their traditions (unity in diversity),
• to reinforce the European identity and its
  independence in order to promote peace, security
  and progress in Europe and in the world.

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EU institutions

• European Parliament (elected by the citizens of
  the Member States Strasbourg/Brussels) 
• Council of the European Union (representing the
  governments of the Member States) 
• European Commission (driving force and executive
  body - Brussels) 
• Court of Justice (ensuring compliance with the
  law - Luxembourg) 
• Court of Auditors (controlling sound and lawful
  management of the EU budget - Lux/Brux).

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EU Budget

• The Council has the final say on the level and
  structure of all compulsory expenditure
  (resulting from the Treaty or from acts adopted
  in accordance with it). This comprises spending
  on the Common Agricultural Policy (CAP), and
  other much smaller budget items. Because of the
  size of the CAP, compulsory expenditure takes up
  just under half the total budget.
• All other budget expenditure is classed as
  non-compulsory, over which the European
  Parliament has the final decision.

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The budget for 2003 is just under 100 billion.
Spending is split as follows
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2. Enlargement history - accession criteria

• 1952 Treaty establishing the European Coal and
  Steel Community enters into force (6 founding
  States BeNeLux, France, Germany, Italy)
• 1958 Treaties establishing the European Economic
  Community (EEC) and EURATOM enter into force
• 1973 Denmark, Ireland and the United Kingdom
  join the EC
• 1981 Greece joins the EC
• 1986 Portugal and Spain join to the EC
• 1986 The European Single Act (as from 1 January
  1993, open up a huge internal market where goods,
  capital, services and people could circulate
  freely)
• 1990 German unification (former GDR part of the
  EC) the Cold War comes to an end

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• 1993 The Maastricht Treaty on European Union
  enters into force on 1 November
• 1995 Finland, Sweden and Austria join to the EU
• 1999 The revised Amsterdam Treaty on European
  Union enters into force
• 2000 European Council in Nice
• adoption of a revised Treaty on European Union
  (the Nice Treaty - into force on 1 February 2003)
  
• decision to enlarge the EU in May 2004 from 15 to
  25 Members
• 2002 Introduction of the EURO
• 2003 Treaty establishing a Constitution for
  Europe

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EU before its most ambitious enlargement in terms
of scope and diversity

• 13 countries have applied to become new members
• 10 of these countries - Cyprus, the Czech
  Republic, Estonia, Hungary, Latvia, Lithuania,
  Malta, Poland, the Slovak Republic, and Slovenia
  are set to join on 1st May 2004.
• Bulgaria and Romania hope to do so by 2007,
  bringing the EU's total population to nearly 500
  million.
• Turkey is not currently negotiating its
  membership.
• The EU wants to overcome the division of the
  European continent and to export stability,
  prosperity and security.

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CANDIDATE COUNTRIESMAIN STATISTICAL INDICATORS
(2001)
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Accession Criteria

• In order to join the Union, the acceding
  countries need to fulfill the economic and
  political conditions known as the Copenhagen
  criteria, according to which a prospective
  member must
• 1. be a stable democracy, respecting human
  rights, the rule of law, and the protection of
  minorities
• 2. have a functioning market economy
• 3. adopt the common rules, standards and
  policies that make up the body of EU law.
• The EU assists these countries in taking on EU
  laws, and provides a range of financial
  assistance to improve their infrastructure and
  economy.
• Democratic conditionality is a strategy of
  reinforcement by reward.

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Political systems in the acceding countries

• Written constitutions with human rights sections
  laying emphasis on the inviolability of human
  dignity, social rights, environmental protection,
  and supreme constitutional courts
• Parliamentary democracies with strong competences
  sometimes bicameral (presidential-parliamentary
  system in Poland)
• Pluralist party systems and in most countries
  coalition governments
• The presidents elected by the people like in
  Poland or Slovenia or elected by the parliament
  like in the Czech Republic - assume above all
  representative functions (they may initiate laws
  in Poland, Hungary, and the Baltic States)

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• After political liberalization and negotiation of
  the foundations of the new democracies these
  countries left behind them the phase of
  democratic institutionalization and are now in
  the consolidation phase (Juan Linz/Alfred Stepan,
  1996, 5 arenas Civil society, Political
  society, Rule of law, State apparatus",
  Economic society)
• Problems
• - No sufficient legal security
• - No timely and correct implementation of laws
• - Widespread corruption (bad governance)

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• The Eurobarometer surveys of public opinion show
  that
• in the 13 applicant countries there is overall
  support for the EU 65 say they would vote "yes"
  in a referendum on membership
• in the 15 member states there has been a marked
  increase in support for enlargement 51 of EU
  citizens support it, while 30 are against
• people in general still feel under-informed about
  the EU and the enlargement process.
• The EU needs a streamlined and efficient
  decision-making system as it enlarges. The
  arrangements must be fair to all member states,
  old and new, large and small. The drafted new
  constitution failed to be adopted so far.

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3. EU global player

• The Unions external activities are mainly made
  up by 4 areas
• external political relations
• security
• economic and trade
• development cooperation
• In each of the areas related to these policies,
  the EU is already
• a major player. The next wave of EU enlargement
  will enhance
• its global role.
• EU Member States are the largest financial
  contributor to
• the UN system. They pay around 40 of the UNs
  regular
• budget and of the UN peacekeeping operations and
  around
• 50 of all UN Member States contributions to UN
  funds and
• programmes.

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• In May 2004 the EU will be 25 countries in Europe
  of 193 in the world (more than one out of eight).
• With a population of half a billion people the EU
  represents 8 of the worlds population (6,2
  bio.).
• The European Community and its member states
  produce approximately a quarter of the world's
  GDP (2001 7.889.860 millions of USD from
  31.079.820)
• The worlds largest trading block (38 of the
  worlds exports and imports 2.449.025 from
  6.414.058 mio) Following enlargement, the region
  will account for 40 of goods and services
  exported to the world market, be the source of
  nearly 50 of world outward foreign direct
  investment and host to about 30 of inward
  foreign direct investment.
• The EU is the largest provider of development aid
  and represents 25 of global humanitarian aid.
• The EU countries represent 22 of the worlds
  total military expenditure (900 bio. USD in 2003
  USA 40 )

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EU really a global player?

• Yes in the areas of development, trade,
  commerce and currency
• No in world politics
• EU an economic giant, a political emerging
  power
• capability-expectations-gap (Hill)
• Hill, Christopher, 'The Capability-Expectations
  Gap, or Conceptualising Europe's Foreign Policy',
  Journal of Common Market Studies, vol. 31, no. 3,
  September 1993.
• - This thesis neglects EUs capacity to combine
  military and civilian as well as diplomatic,
  economic, and trade instruments.
• - But the EU is a union of waverers and
  irresolute members agreeing on the lowest common
  denominator (Ralf Dahrendorf)
• - 2 schools of thought the intergouvernmentalis
  ts and supranationals
• Gerhard Schröder There is not too much America
  there is too little Europe.

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The EU an economic as well as a political
giant?

• It is questionable if the enlargement means that
  the enlarged EU will be more powerful. Its own
  decision-making will certainly become more
  cumbersome. The EU has a complex system of
  multilevel governance where the member states
  have different opportunities to influence
  decisions.
• Voting rights vary from body to body (Council,
  Parliament, Commission, Court, European central
  Bank) and policy field to policy field (e.g.
  decisions on enlargement have to be unanimous,
  others are by qualified majority voting, some
  competencies lay exclusively with the Commission,
  other decisions imply a variety of co-decision
  and consultation procedures between various
  bodies).
• If a bigger number of states increases the power
  of the EU as an international actor, in
  particular in international organisations,
  depends largely on the compatibility of their
  interests.

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4. EUs third world relations

• The EU is the worlds leading development
  partner.
• Together, the EU and its Member States provide
  more than half of all international official
  development assistance (ODA) over 30 billion in
  2002 (from 58 bio), of which around 22 (6,6 bio)
  is managed at the Community level.
• How will the EU of 25 relate to some 140
  developing countries in the world, and what will
  be the impact of EUs enlargement on the Third
  World?
• What will be the implications for the acceding
  countries, an how will these countries influence
  the EUs development policy?

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Net ODA 2002-2001 OECD/DAC
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• In 2002, EU Member States pledged to increase
  their ODA budgets still further, to reach an
  average EU ODA/GNI ratio of 0.39 by 2006 (0.33
  in 2001) which should translate into around 9
  billion additional annual ODA, as a first
  significant step towards reaching the 0.7 UN
  target.
• Things are advancing as 10 amongst 15 of the
  Member States have already launched the
  implementation of their commitments to jointly
  reach a level of 0.39 ODA of EU GDP. (the new
  Member countries are emerging donors.)
• The enlarged EU will combine an even richer
  spectrum of history, culture and political
  experiences in diverse socio-economic scenarios,
  which will give an added value to EU development
  co-operation with developing countries, also
  facing very diverse socio-economic and political
  situations.
• The enlarged EU will have the potential to be an
  even more important player in global development
  incl. the impact on international organisations
  like IBRD and IMF.

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EUs Development Cooperation a Story of its
Enlargement

• European integration itself started with
  development co-operation the six founding
  members decided to turn their ties with former
  colonies, mainly in Africa, into a Community
  matter.
• Since then, the European Communities were
  gradually pulled into ever increasing
  responsibilities When the UK joined, programmes
  expanded to include former British colonies in
  Africa and in Asia. And enlargement to Southern
  Europe later saw an expansion of our co-operation
  to North Africa and Latin America, and also Asia
  was added.
• The collapse of communism and the fall of the
  Berlin wall led to the launching of the PHARE
  programme, and the creation of TACIS followed the
  disintegration of the Soviet Union.
• EUs development cooperation has accumulated to
  an annual level of commitments around 10
  billion and some 10 of global official
  development aid.

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• The Communitys development co-operation policy
  has evolved over a long period of time. It has
  done so in the past, because of previous
  enlargements but also because of changing views
  about development effectiveness and in response
  to international events From a slightly
  fragmented focus on countries with which EU
  Member States had strong colonial or other
  traditional links, to a set of regional
  co-operation and partnership frameworks providing
  almost global coverage.
• The distortions of the Cold War era have been
  replaced by a new global framework the MDGs
  (Millennium Development Goals) on poverty
  reduction, access to primary education, health
  and other basic services, as well as sustainable
  human development, contained in the Rio Agenda
  21, the UN Millennium Declaration and the
  Johannesburg Plan of Implementation.

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• ODA cannot bring about the development success
  alone. It needs to be articulated to the other
  policies.
• It cannot be a safety net, but a tool for a
  better development, together with cancellation of
  debt, regulated trade, establishment of the rule
  of law, preservation of public goods.
• Development cooperation cannot solve the problems
  of terrorism or traffic of human beings, but it
  must be integrated in their solution.

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Motives

• The underlying motives are common
• a sense of human solidarity and a moral
  imperative,
• a sense of enlightened self interest, based dimly
  on the notion that peace, stability and
  socio-economic development abroad are the best
  long term guarantees for security and growth on
  the domestic front.

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Heidemarie Wieczorek-Zeul, German
FederalMinister for Economic Cooperation and
Development

• There are three basic points of reference
  underlying our development cooperation
• 1. the goal of playing a constructive part in
  eradicating global poverty
• 2. the desire to contribute to equitable
  structures for global development
• 3. the need to contribute to the early
  resolution of conflicts and support precautionary
  measures to secure peace.

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• EU aid is administered by the Commission, and is
  funded either through the Community budget or
  through the European Development Fund (EDF), a
  special fund outside the budget for the African,
  Caribbean and Pacific States (ACPs). 
• In addition to its position as the world's
  largest multilateral grant provider, the EC is
  the world's largest single market and the main
  trading partner of most developing countries. 
• It is the largest donor to multilateral debt
  relief, the largest donor to AIDS programmes and
  the largest donor to Africa. 
• The Union's development cooperation activities
  complement the Member States' policies and those
  of other aid providers on a world scale. 
• Community development policy is based on the
  principle of sustainable, equitable and
  participatory human and social development.

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EU aid at a glance

• In 2002, the EU budget and the European
  Development Fund (EDF) contributed 6.6 billion
  to development co-operation.
• Breakdown of financial disbursements per region
• ACP and OCTs 2.4
  billion
• Eastern Europe and Central Asia 430 million
• NIS
  444 million
• The Mediterranean, NM East 783 million
• Western Balkans
  821 million
• Asia
  575 million
• Latin America
  333 million
• South Africa
  124 million

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Thematical breakdown of financial disbursements
per key instrument
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5. Acquis Communautaire in development
cooperation

• Acquis communautaire This is a French term
  meaning, essentially, what the (European)
  Community achieved or the EU as it is - in
  other words, the rights and obligations that EU
  countries share.
• The acquis includes all the EU's treaties and
  laws, declarations and resolutions, international
  agreements on EU affairs and the judgments given
  by the Court of Justice. It also includes action
  that EU governments take together in the area of
  justice and home affairs and on the Common
  Foreign and Security Policy.
• Accepting the acquis therefore means taking the
  EU as you find it. Candidate countries have to
  accept the acquis before they can join the EU,
  and make EU law part of their own national
  legislation.

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EU-Treaty the objectives

• Article 2
• The Union shall set itself the following
  objectives
• to promote economic and social progress and a
  high level of employment and to achieve balanced
  and sustainable development,
• to assert its identity on the international
  scene, in particular through the implementation
  of a common foreign and security policy ,
• to strengthen the protection of the rights and
  interests of the nationals of its Member States
  through the introduction of a citizenship of the
  Union,
• to maintain and develop the Union as an area of
  freedom, security and justice, in asylum,
  immigration and the prevention and combating of
  crime,
• to maintain in full the acquis communautaire

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• Article 3
• The Union shall be served by a single
  institutional framework which shall ensure the
  consistency and the continuity of the activities
  carried out in order to attain its objectives
  while respecting and building upon the acquis
  communautaire.
• The Union shall in particular ensure the
  consistency of its external activities as a whole
  in the context of its external relations,
  security, economic and development policies. The
  Council and the Commission shall be responsible
  for ensuring such consistency and shall cooperate
  to this end. They shall ensure the implementation
  of these policies, each in accordance with its
  respective powers.

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• The new Member States should respect the
  obligations derived from the Community acquis on
  development and from the Accession Treaty.
• The acquis in development cooperation are
• - the objectives for Development Policy and
  priorities that have been agreed at the EU level
  incl. the Community and the Union Treaties,
• - the international commitments that the EU has
  made its own.

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• From the date of their accession, the new Member
  States will join the current EU in supporting all
  of the objectives and instruments of the ECs
  development policy.
• The accession countries will accept the ECs
  development policy as it stands, but major
  differences could lead to pressure to shift the
  policy in new directions over the longer term.

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Primary Legislation

• Although the beginnings of the Communitys
  development policy date from the signature of the
  Treaty of Rome (1957), it is only since the
  Treaty of Maastricht came into force in 1993 that
  Community development cooperation has enjoyed a
  specific legal basis.
• The specific provisions regarding Development
  Cooperation are the following
• Title XX . Development Cooperation (Articles
  177-181 of the EC Treaty)
• Title XXI - Economic, Financial and Technical
  Cooperation with Third Countries (Article 181a,
  added by the Treaty of Nice)
• Overseas Countries and Territories (Annex II EC
  Treaty, art.182-188 EC Treaty, and Declaration 36
  annexed to the Final Act of the Treaty of
  Amsterdam).

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These provisions have several major implications
for new EU Member States

• By acceding the Union, new Member States accept
  the overall objectives of EU aid sustainable
  economic and social development, smooth and
  gradual integration of developing countries into
  the world economy, poverty reduction, and
  development and consolidation of democracy and
  the rule of law.
• The EC Treaty states unequivocally that the
  Community and the Member States shall comply with
  commitments and take account of the objectives
  they have approved in the context of the United
  Nations and other competent international
  authorities.
• The EC Treaty gives the Council the authority to
  adopt the measures necessary to pursue the
  objectives of EU aid.

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Secondary Legislation

• Regulations are always binding in their entirety
  and directly applicable in all Member States
  without the need for any national implementing
  legislation. Development-related regulations have
  two major implications for the new Member States
  
• they require Member States to accept the types of
  ODA, eligible recipients, the purpose of EU aid
  and the policy cycle to be followed in each
  region or for each theme
• they rule the coordination process for each
  region or cross cutting theme giving to the
  Commission a coordinating role and may require
  specific actions by all Member States.
• In the area of food aid, in particular, Member
  States need to request the approval of the
  Commission for the method of mobilisation, when a
  national action for the supply of cereals as food
  aid is decided.
• Acquis Cotonou The new Member States of the
  European Union will join the Cotonou Agreement
  through an automatic clause (Article 6, para 4)
  in the Accession Treaty.

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Cotonou PARTNERSHIP AGREEMENT BETWEEN THE ACP
STATES AND THE EC AND ITS MEMBER STATESentered
into force April 1, 2003

• Article 1 Objectives of the partnership
• The Community and its Member States, of the one
  part, and the ACP States, of the other part,
  hereinafter referred to as the "Parties" hereby
  conclude this Agreement in order to promote and
  expedite the economic, cultural and social
  development of the ACP States, with a view to
  contributing to peace and security and to
  promoting a stable and democratic political
  environment.

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• The partnership shall be centred on the
  objective of reducing and eventually eradicating
  poverty consistent with the objectives of
  sustainable development and the gradual
  integration of the ACP countries into the world
  economy.
• These objectives and the Parties
  international commitments shall inform all
  development strategies and shall be tackled
  through an integrated approach taking account at
  the same time of the political, economic, social,
  cultural and environmental aspects of
  development.
• The partnership a coherent support framework for
  the development strategies adopted by each ACP
  State.

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• Article 9 Essential Elements and Fundamental
  Element
• Co-operation shall be directed towards
  sustainable development centred on the human
  person, who is the main protagonist and
  beneficiary of development this entails respect
  for and promotion of all human rights.
• Respect for all human rights and
  fundamental freedoms, including respect for
  fundamental social rights, democracy based on the
  rule of law and transparent and accountable
  governance are an integral part of sustainable
  development.
• The Parties reaffirm that democratisation,
  development and the protection of fundamental
  freedoms and human rights are interrelated and
  mutually reinforcing.

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• In the context of a political and institutional
  environment that upholds human rights, democratic
  principles and the rule of law, good governance
  is the transparent and accountable management of
  human, natural, economic and financial resources
  for the purposes of equitable and sustainable
  development.
• Good governance, which underpins the ACP-EU
  partnership, shall underpin the domestic and
  international policies of the parties and
  constitute a fundamental element of this
  Agreement. The parties agree that only serious
  cases of corruption, including acts of bribery
  leading to such corruption, as defined in article
  97 constitute a violation of that element.
• The partnership shall actively support the
  promotion of human rights, processes of
  democratisation, consolidation of the rule of
  law, and good governance.
• These areas will be an important subject for the
  political dialogue.

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Soft Law

• EC Soft Law on development includes the Statement
  by the Council and the Commission on the European
  Communitys Development Policy and decisions on
  contributions to International Programmes (e.g.,
  GEF, Food Aid, Global Fund to Fight HIV/Aids) as
  well as policy statements, both general and
  region, theme or sector specific, adopted by the
  Union.
• Another important element of Soft Law relates to
  the untying of aid. In 2002 the Commission
  presented to the Council and to the European
  Parliament a Communication on .Untying Enhancing
  the Effectiveness of Aid.. It refers to a DAC
  Recommendation of May 2001 agreeing the untying
  of most aid to least developed countries and to
  the commitment in Monterrey on the same topic.

55
Trade and EU as well as International
Agreements

• The Commission has exclusive competence in the
  field of trade and has reached agreements with
  138 developing countries, covering either
  framework agreements or specific sectors (e.g.
  fisheries). These agreements are binding for all
  Member States.
• The UN international agreements signed by the
  Community and its Member States in the field of
  development are
• the UN Convention to Combat Desertification
  (UNCCD),
• the Convention on Biological Diversity/Cartagena
  Protocol on Biosafety,
• the UN framework Convention on Climate Change,
  and
• the Food Aid Convention.
• Most new EU Member States have already ratified
  these Agreements except for the United Nations
  Convention to Combat Desertification that has not
  been ratified by Estonia and Lithuania.

56
The European Community's Development Policy -
Statement by the Council and the Commission

• In its joint Declaration of November 2000 the
  Council and the Commission adopted clear
  guidelines for development cooperation and
  identified six priority areas where the
  Communitys assistance can bring about added
  value
• trade and development,
• regional integration,
• macroeconomic support and access to social
  services,
• transport,
• food security and sustainable rural development,
• institutional capacity building and good
  governance.

57

• Crosscutting issues are to be considered in
  every programme
• promotion of democracy and human rights,
• equality of men and between women,
• childrens rights,
• environmental dimension,
• conflict prevention and crisis management.
• Along with other donors, the EU is also changing
  the way that its development assistance is
  programmed and implemented. This includes
  focusing much more on local ownership of
  strategies in developing countries and on a
  partnership approach.The EU is also shifting
  away from a traditional project-based approach to
  sector-based and budget support in order to
  increase efficiency and further support
  ownership.

58

• While there is a need to increase the level of
  aid, there is also a need to increase the
  efficiency with which that aid is used. In order
  to monitor the synergies of European policies,
  the Commission made in 2002 a systematic attempt
  to emphasise the importance of Co-ordination,
  Complementarity and Coherence. These principles
  (3 Cs) now lie at the core of the Communitys
  development policy.
• Coherence or consistency between what is done at
  the different levels, EU, EC and Member States,
  is a major issue. There must be an appropriate
  understanding of what is done at the EC level and
  what is done by Member States bilaterally. In
  this context, coherence but also co-ordination
  and complementarity at the country and
  international level should be ensured. Whilst
  Member States may focus on their own priority
  countries, they are all, at the EU level,
  focusing on achieving the Millennium Development
  Goals.

59

• The Everything but Arms initiative grants
  duty-free and quota-free access for all LDC
  exports to the European Union. EBA has removed
  all the quantitative and tariff barriers to the
  EU market for least developed countries with the
  exception of bananas, rice and sugar where
  transitional periods have been agreed before full
  liberalisation is granted.
• The Commission believes that untying of aid is an
  important factor in a coherent pro-poor
  development policy. There is a good base since EC
  aid is already largely untied. More than 1.5
  billion of aid are partly untied and some
  instruments like CARDS (Balkans) are fully untied
  ( 645 Millions).
• The Commission advocates a complete untying of
  food aid and food aid transport, which is
  currently excluded from existing agreements and
  proposes to introduce these elements in the
  future re-negotiations of the Food Aid Convention.

60
Resolutions - European Parliament

• European Parliament resolution on Zimbabwe
  15/01/2004
• The European Parliament
• 3.  Calls for the vigorous enforcement of all EU
  sanctions against the ZANU-PF regime and for a
  more robust commitment by the EU, ACP partners
  and the wider international community to the
  enforcement of the sanctions, including the call
  by MDC President Morgan Tsvangirai for the
  stringent application of the visa ban
• 4.  Congratulates the Commonwealth for its
  principled stance in maintaining Zimbabwe's
  suspension calls for those African countries
  which have stood their ground against tyranny and
  chaos in Zimbabwe to be acknowledged and
  supported
• 5.  Regrets the failure of the EU Council, in
  whatever form, to make any effective impact on
  the policies of Zimbabwe's neighbours, whether in
  its dealings with SADC or with individual
  countries
• 6.  Strongly criticises the failure of some
  southern African governments to exert any
  pressure on the ZANU-PF regime, which has been so
  abusive of its people and effectively disrupted
  relations between Africa and the wider
  international community calls upon South Africa,
  in particular, to act effectively so as to bring
  about change in Zimbabwe

61
6. Development cooperation of the acceding
countries new challenges

• The communist countries of the former Eastern
  Bloc, the so-called Second World, competed with
  the Western First World for influence in the
  Third World.
• The rapid advances in industrialisation of the
  Eastern Bloc countries in the 1950s and 1960s
  acted as a model for many developing countries
  and resulted in the copying of centralised
  economic planning policies in many Third World
  states.

62

• The aid from the Eastern Bloc was concentrated on
  countries pursuing a socialist development model
  and a foreign policy which was at least neutral
  or sympathetic to the Eastern Bloc (exception
  Turkey, which was one of the leading recipients
  of loans).
• The level of aid stood at 0.06 of GDP in the
  eastern European countries in 1980 (0.14 in the
  case of the Soviet Union), lower than the OECD
  level (0,35 at that time). In 1979, communist
  aid to developing countries including Cuba, North
  Korea and Vietnam amounted to 1852 million USD
  (420 million USD from Eastern Europe).

63
In 2002, the EU Commission launched a programme
of work with accession countries and current
Member States. It is focused on 3 aspects

• possible implications for the Communitys policy
  and programme processes (such as decision-making
  processes, priorities, channels of implementation
  and financial issues)
• how to help the acceding countries in their
  preparations for taking on the Communitys
  development policy and their role as (re-)
  emerging donors
• and implications for the Communitys development
  partners. Several studies and fact-finding
  exercises, as well as a first set of capacity
  building and awareness-raising activities were
  launched in 2002 to help define and inform future
  activities in this area, including a road-map.

64
Development cooperation challenges to be met by
the acceding countries

• There are huge institutional, capacity and policy
  gaps in the acceding countries.
• The ongoing reform process of development
  cooperation within the EU itself raises the
  question of the contribution the new member
  states are in a position to make and what could
  be realistically expected from them. The domestic
  debate could be given added impetus by
  contributions from NGOs, parliaments and from
  scientific and academic circles.
• In some of the acceding states, a tradition of
  involvement with third world countries existed
  under the previous regime. The political
  circumstances where quite different - but there
  are undeletable ties between many citizens of the
  eastern European countries and people in Africa ,
  Asia or Latin America.

65
Three concrete challenges money, policy,
administration

• 1. Money Increasing development assistance will
  be quite a challenge for many of the new Member
  States.
• It would be unreasonable to expect the new
  members to go to 0.39 by 2006.
• The best advice for the new members is to
  support budgetisation of the EDF. They would get
  credit for their contribution, influence the
  policy and access bidding on contracts.

66

• 2. Policy Over the past years, the acceding
  countries have been associated to many EU
  statements on all matters before the United
  Nations General Assembly and several hundreds of
  demarches in capitals across the world. Now is
  the time to bring their experience to play.
• It would be natural for them to argue in favour
  of support for stability in the Balkans, the
  Caucasus and in the Central Asian Republics.
• Making Africa pay for the Balkans? It is also
  about political will to consider the interests of
  developing countries when discussing other
  Community policies, e.g. the reform of the Common
  Agricultural Policy (45 of the EUs budget) the
  Fisheries policy and trade policy.

67

• 3. Administrative set-up acceding members will
  need to strike their own balance between
  bilateral and multilateral aid, the extent to
  which they want to rely on Community instruments
  and to what extent they - as donors - want to
  pursue own policies.

68
The Acceding Countries specific experience

• They experienced a complex transition, by their
  own commitment to political and economic
  liberalisation.
• They also have special credibility from their
  recent and current experience as recipients of
  assistance.
• They have special authority to contribute to the
  EU on philosophy and methodology ( e.g. from
  experience on conditionalities v carrots, grants
  v loans, budget v project support, government
  ownership v public debate, governance capacity v
  direct social impact, political reform v economic
  reform, national focus v regional networking).
• They experienced new types of assistance
  innovated under PHARE e.g. decentralised
  management (not mere "deconcentration") tightly
  defined objectives (the acquis) specially
  created technical support frameworks (e.g.
  SIGMA/OECD on public administration reform),
  specially created networks of cooperation with EU
  civil society (TEMPUS...)

69
Acceding Countries in Comparison with EU
Developing Countries (2002) (Source WDR 2004)
70
After enlargement the EUs changes will remain
modest

• Because of their relative poverty, the new
  members will hardly affect the trade and
  investment relations of the EU with third
  countries.
• The new members will little add to the EU aid
  effort. It might focus the EUs attention on East
  and South-east Europe, and some post-communist
  recipients like Vietnam or Laos.
• The new member states will be entitled to receive
  substantial transfers from the EU amounting to
  about 4 of their GNI.
• In foreign and security policy, the enlargement
  might strengthen the forces within the EU who
  favour a closer partnership with the USA in
  global affairs and a stronger military role for
  the EU abroad.

71

• Generally, the EU will be become more preoccupied
  with the management of its own affairs as its
  internal diversity increases at the same time as
  it levels its internal playing field (internal
  market, common currency, Convention).
• Most of the adjustments refer to trade policy,
  albeit less with respect to developing countries
  and more with regard to other countries in
  central and eastern Europe with which the
  candidate countries have free-trade agreements.

72

• Thanks to the WTO membership, the other effects
  are limited. In some cases, the tariffs of the
  candidate countries are actually lower than the
  EUs external tariff. Here, accession will make
  imports from non-EU countries more expensive. In
  other cases, however, the tariffs are higher.
• Specific technical, administrative and fiscal
  barriers will disappear, and this may make access
  easier for trading partners in third countries,
  since they will be able to use the EU procedures
  familiar to them.
• The candidate countries will have to apply the
  Generalised System of Preferences (GSP). In so
  doing, they will in some cases have to grant
  trade preferences to emerging economies whose
  per-capita income is higher than their own.

73

• When the candidate countries take over the
  Cotonou Agreement (the successor to the Lomé
  Convention), they will also have to grant the ACP
  countries the relevant preferences and implement
  the liberalisation under the Everything but
  Arms programme.
• The same goes for the Mediterranean agreements
  and the Barcelona Process and for a host of other
  bilateral and multilateral agreements between the
  EU and individual developing countries or
  regional trading blocs (e.g. Mercosur).
• An effective involvement of the new members in
  the bodies envisaged for many of these agreements
  is likely to prove problematic in terms of the
  scarce resources of qualified experts,
  particularly in the smaller countries.

74

• In future rounds of negotiation (Doha etc.), some
  of the new EU members (e.g. Estonia) could
  advocate a less protectionist policy, whilst
  others could tend to call for greater protection
  depending on the pressure to adapt and on the
  underlying position on economic policy.
• The candidates could, with some plausibility,
  insist that trade facilitations should be granted
  only to genuinely poor (i.e. poorer than the
  candidate countries) partners in the Third World.
  
• Where the EU applies quotas to imports (e.g.
  bananas), there will have to be an expansion or
  redistribution.

75

• In the important field of agriculture, the
  interests of the candidate countries in
  protection from imports of tropical and
  subtropical fruits (olives, wine, citrus fruits)
  are less than was the case when the EU enlarged
  southwards.
• Things could be more difficult with grain, meat
  or dairy products, although significant supplies
  of these products only come from a few countries
  in southern Africa and America (Argentina, South
  Africa, etc.).

76

• The enlargement is likely to increase the flow of
  European FDI into the new member states as
  potential risks become (or will be perceived as)
  smaller. However, there are certain factors that
  could make the new member states less attractive
  to FDI from the EU, and third countries, too
• Adopting the acquis communautaire implies
  stricter labour and environmental regulation
  which will probably increase costs. EU
  competition policy prevents subsidies to all,
  including foreign, investors as well as tax
  relief that discriminates in favour of specific,
  e.g. foreign, investors without the approval of
  the EU Commission.
• This could mean that other investment locations
  with similar competitive advantages (i.e. low
  wages, reasonable productivity due to sound
  education and infrastructure, acceptable
  political and administrative environment) will
  gain. The immediate winners might be other
  countries neighbouring to the enlarged EU such as
  the second-line candidates Bulgaria and Romania,
  or Balkan and Western CIS countries (e.g.
  Ukraine).

77

• Official development policies The twelve
  accession countries can be classified in 3 broad
  categories
• A first group is formed by Bulgaria and Romania.
  These countries have not really begun to
  establish a development and humanitarian
  assistance policy, nor is the topic really
  discussed at governmental or NGO level.
• A second group is composed of Cyprus, Hungary,
  Latvia, Lithuania, Malta and Slovenia. All of
  them are beginning to establish the basic
  structures for an official development policy.
  Even if the structures for a development policy
  are not yet in place, civil society is active and
  pushing the government to act.
• The third group of countries is composed of those
  which have already set up basic administrative
  and legal structures for a development policy,
  even if these structures are still being improved
  and increased, and which have begun to deliver
  assistance in the framework of this policy. This
  is the case for the Czech Republic, Estonia,
  Poland and Slovakia.

78

• The continuing relatively low status of
  development policy in the candidate countries
  finds expression not only in the tiny proportion
  of spending in terms of GDP, but also in the
  organisational and institutional set-up.
• State development policy is not, as in Germany,
  guided and administered by a separate government
  ministry, but as also in most major donor
  countries by departments in the foreign
  ministries. However, other government ministries
  are often involved in project management.
• The non-governmental development cooperation of
  the NGOs is also at a very early stage of
  development, since this entire sector did not
  start to emerge until after 1989. NGOs are
  already very active in Poland and Hungary in
  particular.

79
Source Stefano Migliorisi, 2003

80
ODA/GNI ratios and Monterrey Targets in New
Member States (2001)
81

82
Geographic focus of New Member States ODA
83
ODA Objectives Contained in Development Policy
Statements
84
Development Policy Frameworks
85
The impact of accession on the development policy
of the candidate countries and on the EU

• The candidate countries will not only have to
  contribute their own share of the EU budget, but
  will also have to pay into the European
  Development Fund (EDF - although they will
  probably not start doing so until the tenth EDF,
  the current ninth fund runs until 2007).
• There are no fixed rules on the contributions by
  the member states to the EDF, but the current
  total of 13.5 billion corresponds to about 0.15
  of the GDP of the EU. In a certain way, the
  acceding countries will transform from recipient
  to donor countries.
• Accession to the EU will mobilise individuals and
  organisations in the candidate countries and will
  promote the formation of institutions which for
  their part will then influence national policy in
  the direction of a further development of
  co-operation with the Third World. This includes
  the implementing organisations and experts as
  well as the action groups and NGOs concerned with
  development policy. Their pan-European networking
  will reinforce their capacities and influence.

86
Architecture of EU development co-operation

• Despite disagreements about Iraq and other
  tensions, for example regarding Zimbabwe, the EU
  remains engaged with the rest of the world,
  collectively as well as individually.
• Issues of debate
• Possible subordination of development to the
  exigencies of foreign policy - development
  priorities will be sacrificed to concerns about
  security or immigration? (cf. the integration of
  the Development Council, at the Seville Summit in
  2002, into the broader General Affairs and
  External Relations Council
• Will European foreign policy and development
  cooperation privilege the near abroad?

87

• The need with the coming of EU enlargement, to
  review the structure of the Commission,
  particularly the division of responsibilities
  between the external affairs and development
  portfolios.
• The EDF should be budgetised, that is
  incorporated within the EU budget.
• EU Presence in International Organisations.
  Enlargement will increase the number of votes
  available to EU Member States.

88
European Foreign Minister (EFM)

• The Draft Constitution provides for the European
  Council to appoint a European Foreign Minister
  who will conduct the Unions CFSP. The person
  would also be a Vice President of the Commission
  where s/he would be responsible for Community
  external relations. It grows out of a desire for
  coherence and hence greater effectiveness in the
  Unions external action.
• The double-hatting of the position means that the
  EFM is both a servant of the Council and a Member
  and Vice-President of the Commission.

89
James Mackie/Heather Baser/Jonas
Frederiksen/Oliver Hasse Ensuring that
Development Cooperation Matters in the New Europe
(ECDPM), Maastricht, October 2003.
90
(No Transcript)
91

• The impact will be minimal on regional
  International Financial Institutions operating
  outside Europe, while it will be stronger in the
  Bretton Woods Institutions.
• Impact on EU Decision-Making. As Council
  structures are very demanding, it is expected
  that given the limited staff resources of new
  Member States in development they will
  concentrate their resources on regions where
  their commercial, security and historical
  interests are stronger. The influence and voting
  of the new Member States (25 of the votes) will
  reinforce existing trends towards a focus on the
  near abroad.

92
Number of votes IBRD IDA IMF EBRD
93
Impacts of the EUs Enlargement on the Third World

• ACP states concern is about the security and
  military logics taking over on the development
  agenda - some concern is expressed on the
  shifting of priorities that might emerge from it
  (a shift from the South to the East). (the
  long term provisions of the Cotonou agreement may
  ease this fear)
• A balance is to be sought between Europes world
  view and its particular (and legitimate)
  preoccupations with the near abroad in Eastern
  Europe, the former Soviet Union, and the
  Mediterranean.
• Some developing countries are concerned that
  enlargement may slow down the pace of reform of
  the Common Agricultural Policy, since many
  accession countries have large agricultural
  sectors.

94

• The EU should make a strong contribution to
  international development to focus on a limited
  number of challenges
• Proactive steps to ensure that the new Member
  States strengthen rather than drain the EU's
  development cooperation effort
• Working to increase, or at least maintain,
  financing levels for development cooperation in
  the EU Budget during the Financial Perspectives
  debate and in the negotiations on the 10th EDF
• For Africa in particular, support for a strong
  and credible African Union. This is a challenge
  primarily for Africans, but should also be
  supported by Europeans committed to eradicating
  global poverty. A successful AU will also
  encourage positive support from the European
  Union and lay the ground for a more equitable
  partnership between these two supposedly 'natural
  partners'.

95
Europes responsibility

• Europes responsibility has grown by every
  enlargement, and this is the biggest enlargement
  ever. The EU of 25 must help to build rules and
  institutions that benefit the World of 193.
• The EU of 25 should use its influence in the
  world to build dialogue, peace and development
  and to work for a more just world. The EU should
  not be guided by old-fashion geo-politics.
• What the EU should strive for is strong, fair and
  equitable global governance and an international
  community created on the basis of binding
  commitments and the rule of law.

96
DraftTREATY ESTABLISHING A CONSTITUTION FOR
EUROPE

• Art. 3, 4
• In its relations with the wider world, the Union
  shall uphold and promote its values and
  interests. It shall contribute to peace,
  security, the sustainable development of the
  earth, solidarity and mutual respect among
  peoples, free and fair trade, eradication of
  poverty and protection of human rights and in
  particular childrens rights, as well as to
  strict observance and development of
  international law, including respect for the
  principles of the United Nations Charter.

97

• The enlarged EU will combine an even richer
  spectrum of historical, cultural and political
  experiences in diverse socio-economic
  situations.  This will add value to our
  cooperation programmes with developing countries
  and strengthen EUs role in driving sustainable
  development policies in the future. 
• The coming months are a crucial time to make the
  political case for a strong and progressive EU
  role in international development cooperation.

98
The EU has the power to influence the direction
of globalisation

• There are two ways to exercise that power
• The ultra-liberal way, without social and
  environmental concerns, which will marginalise
  many developing countries and globalise poverty
  as a result, the world market economy could
  degenerate into predatory capitalism. Much of the
  protest against the new WTO negotiations is
  directed against a new round of more deregulation
  and neo-liberalism.
• The responsible way, taking into consideration
  diverse regional realities, and the social
  cohesion of different societies, thereby
  contributing to the global improvement of
  economic and social well-being, preserving the
  environment and ensuring gender equity.

99

• Many elements of the second approach could be
  seen in the EU-ACP agreement. Due to the
  Amsterdam Treaty the EU has the intention to
  promote the smooth and gradual integration of
  the developing countries into the world economy.
  
• But I miss a clear plea for an international
  socially just and environmentally sound market
  economy which could be an appropriate instrument
  to provide globalisation with a human face.
  ACP-EU relations must be part of the
  international community's overall strategy to
  minimise the negative effects of globalisation
  and to maximise the positive ones.

100

• The EU members have to participate more actively
  as a political entity in the multil