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European Union and Development Policy

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Based on Cotonou Agreement ... New for all partner countries. Coverage One main instrument/country Several specific instruments ... – PowerPoint PPT presentation

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Title: European Union and Development Policy


1
European UnionandDevelopment Policy
  • Policies, organization and trends
  • Tuukka Castrén, adviser, MFA, Finland
  • March 27th, 2007

2
  • Some statistics

3
Scale of EU (251) ODA
  • 40 billion in 2005
  • 0.35 ODA/GNI ratio EU average
  • 55 of global ODA
  • EC in own right is the 3rd largest donor after US
    and Japan
  • Scaling-up, increase in EU aid 30 bill./year

4
Scaling-up
  • EU15 0.7 of GNI by 2015.
  • EU10 to reach 0.33
  • EU planned increase by 2010 around 30 billion
    per year
  • Commission 2007-2013 3 billion in extra
    funding per year

5
Regions
6
How increase is focussed?
  • 7.5 billion, up 20 from 2004
  • Africa, Caribbean, Pacific 3 511 m 33
  • Middle East/Mediterranean 1 075 m 7
  • Asia 834 m 37
  • Tacis 515 m 2
  • Latin America 329 m 5
  • South Africa 155 m 15
  • Thematic Programmes others 1 090 m 5

Increase of commitments with 54 since
2001 Including 18m accounting correction
7
How is EU aid used?
  • Social sectors 44
  • Infrastructure 12
  • Debt forgiveness 17
  • Emergency aid 8
  • Administration 6
  • Focus on poverty eradication MDGs

8
Different channels
6.2 billion
52 increase since 2001 Budget payments for ACP
350 million
9
European Development Fund - EDF
  • Not part of the Community budget
  • Based on Cotonou Agreement
  • Applies to Sub-Saharan African, Caribbean and
    Pacific countries (ACP) only
  • Implementation managed by the Commission
  • 10th agreed in 2006 and administrative procedures
    not finalised
  • Total value 23 bill. for 2008-2013
  • Hungary contributed in the 10th EDF, not 9th -gt
    eligibility

10
European Development Fund - EDF
  • Operates separately from the EU budget
  • Inter-governmental agreement, resources consist
    of direct contributions from the Member States
  • currently 9th EDF is being implemented

11
10th EDF financial allocations
  • Financial protocol -gt Internal agreement -gt Final
    allocations
  • Financial allocation 2 steps
  • Initial amount
  • Incitative tranche Programming dialogue
  • Formal notification initial amount confirmed or
    increased
  • Result-based approach
  • Indicators
  • Annual reviews (possibility of increase)
  • Mid-term and end of term reviews
  • Programming still on-going

12
EU Budget - DCI
  • Geographic programmes
  • Privileged cooperation instrument
  • Development priorities of partner country/region
  • Asia,Latin America, South Africa
  • Thematic Programmes
  • Specific area of interest with global coverage
  • Distinctive added value subsidiarity
  • Geographic programme not best instrument to
    achieve policy objectives
  • Multi-regional actions, pilot projects, difficult
    partnerships
  • Also ACP

13
EuropeAid speed
Average 3.3 implementation years EDF down to 4
years
14
  • Institutions and structures

15
Institutions of the EU
  • European Commission
  • Council of the European Union
  • European Council (NOT Council of Europe)
  • Presidency of the European Union
  • European Parliament

16
Commission
  • Politically independent institution the general
    interest of the European Union
  • Appointed for five-year term by the Council and
    vote of appointment by the Parliament
  • 25 Commissioners
  • Directorates-General (DGx)

17
Functions of the Commission
  • Power of initiation of legislation
  • Managing and implementing Community policies and
    programmes
  • Executing the Community budget
  • Ensuring that Community law is applied

18
Workings of the Commission
  • Directorate General (DG) for Development
  • DG for External Relations (RELEX)
  • DG EuropeAid
  • DG Trade
  • European Community Humanitarian Office (ECHO)
  • DG Enlargement

19
DG Development Louis Michel
  • Initiates and formulates the EUs development
    co-operation policy for all developing countries
  • In charge of thematic policies (human and social
    development gender)
  • Coordinates the Communitys relations with
    African, Caribbean and Pacific countries (ACP)
  • Responsible for administrating the European
    Development Fund

20
DG RELEX Benita Ferrero-Waldner
  • DG for External Relations and the European
    Neighborhood Policy
  • Manages Community bilateral relations with all
    non-ACP countries
  • Coordinates Commissions external relations
    activities (including CFSP)
  • Coordinates Commissions neighborhood policy
  • Responsible for administrating the appr. 120
    Commission delegations in third countries

21
EuropeAid Benita Ferrero-Waldner
  • Established in 2001
  • Implements Community external assistance
    (Community funds and EDF)
  • Responsible for all phases of the project cycle

22
Others
  • DG Trade Peter Mandelson
  • European Community Humanitarian Office (ECHO)
    Louis Michel

23
Council of the European Union
  • Intergovernmental, ministerial level
  • 27 Member States
  • Organised in
  • Configurations (GAERC)
  • Presidency
  • Coreper (Permanent Representatives Committee)
  • Secretary General

24
Functions of the Council of the European Union
  • Main decision-making body
  • Legislator (with the Parliament)
  • Coordination of broad economic policies of Member
    States
  • Defining and implementing Common Foreign and
    Security Policy
  • Coordination of actions in police and judicial
    cooperation in criminal matters

25
Workings of the Council
  • Regular meetings of COREPER (of officials in
    charge of development who are based in Brussels)
  • Regular meetings of GAERC
  • Informal meeting of Development Ministers

26
European Council
  • Heads of States
  • Meets a few time a year to take major political
    decisions

27
Presidency of the European Union
  • Rotating every six month
  • Functions
  • Organising and chairing meetings of the Council
    and its working groups
  • Representing the Council
  • Take forward outstanding negotiations from the
    previous Presidency

28
The EC as a donor
  • Potential value added of EC
  • Political neutrality
  • Scale global reach
  • Framework for coordination
  • Common mechanism
  • Some challenges
  • Lack of specialist expertise lack of staff
  • Cumbersome procedures
  • Poor image though has much improved
  • Unfamiliar culture
  • Difficulties to focus

29
Conclusions
  • EU joint action on DC
  • Policy basis strengthening step by step
  • Good debate on aid effectiveness
  • Committed to increasing ODA
  • First steps on joint programming
  • But at same time
  • Poor coordination complementarity
  • EC share of EU ODA likely to go down
  • EU still weak in international affairs
  • Stronger agreement on common policy in other
    external action areas

30
  • The European Consensuson Development

31
Background
  • Joint Council-Commission Statement
    (November 2000)Why revise it?
  • The world has changed (security,migration, social
    dimension of globalisation, ..)
  • Europe has been enlarged
  • The global development agenda has been
    strengthened (MDGs, Monterrey, etc.)

32
Key ideas of revision
  • Maintain the philosophy of the 2000 Statement
  • Better articulate development policy with other
    elements of the EU external action
  • Ensure its application to all developing
    countries
  • Better associate Member States to the elaboration
    of a common vision of development
  • Fully associate the European Parliament
    Tripartite Statement

33
The European Consensus on Development
  • Common vision of development for Commission and
    member States
  • First time in 50 years
  • Legitimating the EU role in the world

34
The European Consensus on Development
  • Joint Declaration by Council, Commission,
    Parliament
  • Two parts
  • Part I The EU Vision of Development (Commission
    and Member States)
  • Part II The EC Development policy (Commission)

35
  • Part I
  • The EU Vision of Development

36
Objectives
  • Primary objective
  • Poverty reduction and, eventually, poverty
    eradication in the context of sustainable
    development
  • Millennium Development Goals
  • Complementary objectives
  • good governance, human rights

37

Approach to poverty reduction
  • Poverty has many dimesions
  • economic, human, political, socio-cultural
    capabilities
  • Balanced approach
  • human development
  • protection of natural resources
  • investments in pro-poor wealth creation

38
Common values
  • Respect for human rights
  • Fundamental freedoms
  • Peace
  • Democracy
  • Good governance
  • Gender equality
  • The rule of law
  • Solidarity
  • Justice
  • Commitment to multilateralism

39
Key principles
  • Ownership, Partnership
  • Political dialogue
  • Participation of civil society
  • Gender equality
  • Commitment to fragile states

40
Means and modalities
  • Aid effectiveness and predictability
  • harmonisation and alignment (Paris Declaration
    additional EU commitments)
  • general and sector budget support
  • new mechanisms (more predictable, less volatile)

41
  • Part II
  • The European Community Development Policy

42
Commissions comparative advantages
  • The particular role of the Commission
  • global presence and expertise as a delivery agent
  • promotion of policy coherence
  • promoting best practices and stimulating the
    debate on development
  • facilitation of coordination and harmonisation
  • support to democracy, human rights, good
    governance and respect for international law
  • promotion of participation of civil society and
    North-South solidarity

43
Guiding principles
  • Differentiated approach
  • mix of objectives and modalities depending on
    contexts and needs (LDCs, LICs, MICs, fragile
    states)
  • Concentration at country/ regional level

44
Areas for Community action
  • Trade and regional integration
  • Environment and sustainable management of natural
    resources
  • Infrastructure, communications and transport
  • Water and energy
  • Rural development, territorial planning,
    agriculture and food security
  • Governance, democracy, human rights, and support
    for economic and institutional reforms
  • Conflict prevention and fragile states
  • Human development
  • Social cohesion and employment

45
Mainstreaming
  • Democracy, good governance, human rights, the
    rights of children and indigenous peoples
  • Gender equality
  • Environmental sustainability
  • HIV/ AIDS

46
Other actions
  • Support to global funds and initiatives
  • linked to MDGs and Global Public Goods
  • Policy coherence for development
  • rolling work programme to be agreed between
    Commission and Member States

47
Aid modalities
  • A wide range of modalities based on needs and
    performance
  • budget Support
  • micro-finance approach
  • project aid
  • EIB investments

48
  • External cooperation instruments

49
The new instruments
  • Pre-accession (IPA)
  • Neighbourhood (ENPI)
  • European Development Fund
  • Development (DCI)
  • Human rights (EIDHR)
  • Stability (IfS)
  • Nuclear Safety (NSI)
  • Industrialised countries (ICI)

50
Pre-accession instrument (IPA)
  • Scope Transition assistance
  • Institution building
  • Cross-border cooperation
  • Regional, rural human resources
  • development
  • Region 6 Western Balkans countries and
  • Turkey
  • Funding Average 1.6 billion per year
  • Start January 2007
  • Replaces Phare, Ispa, Sapard, Cards and
  • Turkey pre-accession Regulations

51
Neighbourhood instrument (ENPI)
  • Scope Country specific programmes
  • Cross border cooperation with EU Member
    States
  • Region 17 countries Mediterranean, Eastern
    Europe, Russia, Caucasus, Middle East
  • Funding Average 1.6 billion per year
  • Start Expected January 2007
  • Replaces Mainly Tacis and Meda Regulations

52
10th European Development Fund (EDF)
  • Scope Based on Cotonou agreement
  • Country specific programmes
  • Horizontal programmes
  • Region 78 African, Caribbean, Pacific countries
    and OCTs
  • Funding Average 3.7 billion per year
  • Start Expected January 2008
  • Replaces 9th EDF

53
Development instrument (DCI)
  • Scope I Country specific programmes
  • Region Latin America, (Central) Asia, East of
    Jordan, South Africa
  • Funding Average 1.4 billion per year
  • Start Expected January 2007
  • Replaces Mainly ALA, Tacis and South Africa
    Regulations

54
Development instrument (DCI)
  • Scope II Support to sugar production
    restructuring
  • Region African, Caribbean, Pacific countries
  • Funding Average 180 million per year
  • Start Expected January 2007
  • Replaces Sugar Regulation

55
Development instrument (DCI)
  • Scope III Thematic programmes
  • Human social development
  • environment, non-state actors
  • food security
  • migration and asylum
  • Region All third countries
  • except industrialised / preaccession
  • Funding Average 800 million per year
  • Start Expected January 2007
  • Replaces More than 10 thematic Regulations

56
Democracy and human rights (EIDHR)
  • Scope Democracy (election observations)
  • Rule of law
  • Human rights
  • Fundamental freedoms
  • Region All third countries
  • except industrialised countries
  • Funding Average 160 million per year
  • Start Expected March 2007
  • Replaces Previous EIDHR Regulation

57
Stability instrument (IfS)
  • Scope I Crisis response and preparedness
  • II Global and trans-regional border
  • challenges
  • Region All third countries
  • except industrialised countries
  • Funding Average 290 million per year
  • Start Expected January 2007
  • Replaces Mainly Rapid Reaction Mechanism

58
Nuclear safety instrument (NSI)
  • Scope Nuclear safety
  • Radiation protection
  • Nuclear material safeguards
  • Region All third countries
  • except industrialised countries
  • Funding Average 75 million per year
  • Start Expected March 2007
  • Replaces Part of Tacis Regulation

59
Industrialised countries (ICI)
  • Scope Cooperation programmes
  • Exchange programmes
  • Region Industrialised countries (North
    America, Australia, New Zealand)
  • Funding Average 25 million per year
  • Start Expected January 2007
  • Replaces Previous ICI Regulation

60
All instruments
  • Simplification From 35 instruments to 10
  • New for all partner countries
  • Coverage One main instrument/country Several
    specific instruments
  • Example Egypt
  • Main instrument ENPI
  • Others DCI / EIDHR / NSI / IfS

8 new instruments and humanitarian and
macro-financial assistance
61
Instruments managed by AIDCO
  • Strategies (CSP/IP) DGs RELEX and DEV
  • Democratic Informal dialogue on CSP/IP
  • Scrutiny with EP (except EDF)
  • New for all instruments
  • Annual (AAP) AIDCO
  • programmes All countries
  • New for ALA/EDF/SA countries

62
Instruments managed by AIDCO
  • Comitology (CSP / IP / AAP) Member states
    committees
  • New to be set up (except EDF)
  • EP droit de (CSP / IP / AAP) formal check
  • regard Not for NSI / EDF
  • New for all other instruments
  • Rules Financial Regulation /
  • Practical Guide
  • New adaptation from 01.01.07

63
Instrument specific
  • ENPI New CBC in the EU
  • EDF / DCI New annual programmes
  • DCI Financing types projects / budget
    support / SWAPs / etc
  • New twinning / co-financing /
  • debt relief / operating costs
  • NSI New coverage all third countries
  • (except ICI countries)
  • IfS New approach drugs / energy
  • / trafficking / etc

64
  • Changes and challenges

65
Aid Effectiveness
66
Aid Effectiveness
  • EU committed to Paris Declaration on Aid
    Effectiveness
  • Forefront in implementation
  • EU encourages
  • using budget support and sector programmes
    instead of small projects
  • capacity building through coordinated programmes

67
Aid Effectiveness
  • Untying of aid
  • New aid instruments
  • New financing modalities

68
Some challenges
  • All partners need to commit
  • Knowledge on the PRSP
  • Roles of governments, parliaments, civil society
  • Difficult partnerships, conflict prevention and
    governance
  • Alignment means more budget support
  • Are we ready
  • How to ensure linkages
  • PRSPs going beyond health and education
  • Infrastructure for trade and growth
  • Market access not everything
  • Using trade regimes means rightdomestic
    conditions
  • Domestic reform and strengthen supply-side

69
Conclusion
  • EU has chosen to be in the forefront
  • The EU is mobilising more and better aid
  • The EU as the most open market in the world The
    EU is working on greater policy coherence
  • The EU is focusing on Africa
  • Challenges ahead
  • Maintaining the commitment of EU member states
  • Demonstrating the commitment of partner countries
  • ensuring mutual accountability for development
    results

70
http//ec.europa.eu/europeaid/frontoffice
  • Info Point
  • External Cooperation
  • Rue de la Loi 41
  • 02 299 98 14
  • Mo-Fri 10.00-16.00

71
Questions and answers
  • discussion
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