MDGs: a frame of reference for development cooperation Koos Richelle, Director General of EuropeAid

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MDGs a frame of reference for development
co-operation? Koos Richelle, Director General
of EuropeAidEuropean CommissionBrussels, 13
May 2008
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Summary

• 1 Introduction
• 2 MDGs a global framework
• 3 EU policy priorities MDGs
• 4 Progress reviews in 2008
• 5 Concrete examples
• 6 Issues at stake

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1. Introduction
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EU and EC partners for Development. Situation 2007

• EU largest donor in the world
• 27 1 donors together responsible for 70 of
  all development aid (EU27 46.1 billions)
• EU to increase its contribution by more than 25
  billions by 2010 (MS responsible for 90 of
  increase)
• Commission on its own
• Third largest donor after USA and Germany,
  followed by France, UK, Japan (OECD April 2008)
• Second largest donor of humanitarian aid
• Present in more than 150 countries

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EU as a global partner for development More
money

• EU aid effort in transitional decline (EU27
  46,1b estimated in 2007 versus 47,7b in 2006)
• EU-15 to reach 0.70 ODA/GNI by 2015 (0.33 as
  individual target by 2006 and 0.51 by 2010)
• EU to cannel 50 of collective aid increases to
  Africa
• Belgium amongst the 8 Member states with a
  timetable that leads to achieving agreed ODA
  targets

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MDGsODA - of GNI situation 2006,forecast
2010, objective 2015
2015
Source European Commission, COM (2007) 164 of
April 2007 (final draft)
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External aid budget 2007

External aid 10bn, 8
EuropeAid EDF fund 3.5bn, 34
Non-EuropeAid budget 3.1 bn, 30
Community budget inside EU 120bn, 92
EuropeAid budget 3.7bn, 36
Based on planned expenditures, including EDF.
Non-EuropeAid budget includes pre-accession,
humanitarian and emergency aid and Common Foreign
Security Policy.
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EuropeAid mandate

• Part of the external relations family
• (RELEX, DEV, ELARG, TRADE, ECHO)
• Since 2001 responsible for implementing external
  aid programmes
• Aims to deliver development aid in an efficient
  and effective way

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2. MDGs a global framework
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MDGs - an international partnership

• Focused on people living conditions and access to
  basic services
• Legitimised at the highest level
• Subject to periodic reviews to accelerate
  progress
• Visible and easily understood by the public
• Leading towards better accountability and
  evidence-based policy

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48 UN indicators to measure progress on MDGs

• An innovative core policy agreement
• Measurement of outcomes and impact placed at the
  centre of development practice
• Objective reference for monitoring planning of
  actions
• Cross-country comparison
• Ownership of domestic policies emphasised
• but a considerable challenge to statistics

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Monterrey commitments 2003
Political commitments

• EU to reach 0.7 of Gross National Income (GNI)
  by 2015. EU10 to reach 0.33
• EU planned increase should release by 2010 more
  than 25 billion in extra funding per year
• Commission 2007-2013 3 billion in extra
  funding per year

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The Paris Declaration 2005
Political commitments

• Common agenda on ownership, alignment, results,
  harmonisation, mutual accountability
• Four additional EU targets
• 1) Provide all capacity building assistance
  through co-ordinated programmes with an
  increasing use of multi-donors assistance2)
  Channel 50 of government to government
  assistance through country systems (including
  budget support or sector-wide approaches)3)
  Avoid establishing any new Project Implementation
  Units (PIUs)4) Reduce number of un-coordinated
  mission by 50

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3. EU Policy priorities MDGs
EU in the World
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The European Consensus 2005

• Joint declaration for a common vision on
  development policy
• Common values Ownership, Partnership, Political
  Dialogue, Civil Society, Gender Equality
• MDGs enshrined as a main objective toward the
  eradication of poverty
• Additional Objectives include good governance,
  human rights and political, economic, social and
  environmental aspects

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Priority sectors defined in the European Consensus

• 9 intervention areas
• Environnent and natural resources
• Water and energy
• Rural development and food security
• Human development (education, health)
• Trade and regional integration
• Social cohesion and employment
• Not directly MDG related areas
• Infrastructure, communications and transport
• Governance, democracy, human rights
• Conflict prevention and fragile states

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EU - Africa Strategic Partnership

• First Action Plan (2008-2009)
• 8 partnerships
• Peace and security
• Democratic governance and human rights
• Trade, regional integration and infrastructure
• Energy
• Climate change
• Migration mobility and employment
• Science, information and space society
• the MDGs

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4. Progress reviews in 2008
Sao Tomé
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Key events in 2008

• Accra, 2-4 September High Level Meeting on aid
  effectiveness
• Doha, 29 November2 December, Financing for
  Development

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The EU as a global partner for development
April 2008 package

• A systemic overview of EU collective action in
  support of the MDGs adopted
• A series of concrete recommendations to do more
  and better
• 1) More money (already discussed)
• 2) Making aid more effective
• 3) Improving EU policy coherence
• 4) Aid for trade

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Division of labour
The EU as a global partner for development
Making aid more effective (1)

• Maximum of 3 sectors in each country(GBS
  support to civil society)
• Redeploy funds in country based on local
  negotiation
• In each sector, establish a lead donor for all
  coordination
• In priority sectors relevant to poverty
  reduction, ensure adequate EU donor support
• Limited number of priority countries
• Address orphan gaps (often fragile states)
• EU Donor Atlas Mapping Official Development
  Assistance

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Co-financing
The EU as a global partner for development
Making aid more effective (2)

• Both ways from EC to MS and vice versa
• More political than technical
• Agreement by partner country
• Not for small projects and should lead to
  combined efficiency gains
• Follows EC normal AAP procedure, and rules
• Visibility and reciprocity

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Joint programming
The EU as a global partner for development
Making aid more effective (3)

• Joint analysis and multiannual planning moving
  forward since April 2006
• Limited use of EU Common Framework for Country
  Strategy Papers (CFCSP) Somalia, Sierra Leone
  South Africa
• Discussion of Joint Programming a good start of
  preparation for a division of labour (examples of
  Ghana Mali)

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MDG contract better predictability
The EU as a global partner for development
Making aid more effective (4)

• Targeted at strong performing countries
• Six year duration, annual monitoring and medium -
  term performance assessment
• Long-term predictability in return for greater
  commitments to results by partners

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The EU as a global partner for development
Improving EU policy coherence

• Outstanding issues to be followed up in 12 policy
  areas to ensure better coherence
• New elements for exploring the development
  potential
• from the biofuel market for fighting poverty
• from challenges related to migration and brain
  drain
• from research (collaboration on topics directly
  related to MDGs)

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The EU as a global partner for development Aid
for trade

• EU pledge to commit 2 billion annually to trade
  related assistance by 2010
• 1b from MS 1b from COM)
• MS invited to increase efforts by almost 56
• Joint work in progress towards the development of
  regional ACP packages
• Strong interest for regional funds noted

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5. Concrete examples of EC contribution to MDGs
Eritrea
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MDG 7 Water Sanitation

• Target Halve, by 2015, the proportion of people
  without sustainable access to safe drinking water
  and basic sanitation
• Indicators
• 1 Proportion of population with sustainable
  access to an improved water source, urban and
  rural
• 2 Proportion of population with access to
  improved sanitation, urban and rural
• Achievements at risk

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MDG 7 Water Sanitation
At the current rate of progress, Sub-Saharan
Africa will miss the Millennium Development Goals
of having by 2015 the proportion of people
without access to safe water sanitation by an
entire generation for Water and by more than two
generations for Sanitation.
Situation in 2004
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EC allocation to the Water sector
Geographic allocation
ECs commitments in Water from 2004 to 2007 by
region / M
Total 1.4 Billion
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EC allocation to the Water sector
Past - present - future
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MDG1 Food Security

• Target Halve, between 1990 and 2015, the
  proportion of people who suffer from hunger
• Indicators
• 1 Prevalence of underweight children under-five
  years of age
• From 1990 to 2005, across all developing
  countries, this indicator has gone down from 33
  to 27. The target is 16.5 and will most
  probably not be reached by 2015.
• 2 Proportion of population below minimum level of
  dietary energy consumption
• From 1990-92 to 2001-2003, across all developing
  countries, this indicator has gone down from 20
  to 17. The target is 10 and is unlikely to be
  reached by 2015.

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EC allocation to Food security
MDG1 Food Security

• Food Security Thematic Programme (FSTP) with an
  allocation of 925 M for 2007-2010
• Long-term development assistance provided through
  geographical instruments, clustered together with
  rural and agricultural development
• 650m from the 9th EDF
• 643m from the 10th EDF
• The total figure allocated to Food Aid managed by
  DG ECHO is now 220 million per year

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MDG2 achieve universal primary education

• Target Ensure that, by 2015, children
  everywhere will be able to complete a full course
  of primary schooling
• EC support to education in the new program cycle
  (2008-2013)
• 1.8b (all national, regional thematic funds)
• Worldwide, 32 countries have education as focal
  sector

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MDG2 achieve universal primary education

• Our approach
• Support to national education reforms, in
  coordination with other partners when conditions
  allow, through (sector) budget support
• Ex Botswana, Namibia, Burkina Faso, Tunisia,
  Morocco, Nicaragua, Ecuador, India, Cambodia
• Support to specific sector activities aimed at
  improving education service delivery - in
  particular in context of fragility - ex Angola,
  Sudan, Liberia, Haiti, Bangladesh
• Most GBS have targets set on education enrolment
  and completion - ex Honduras, Kenya, Madagascar,
  Senegal

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MDG3 Promote Gender Equality and Empower women

• Girls' school enrolments are rising quickly
• Out of 106 countries, 83 achieved the MDG target
  of parity in primary and secondary education by
  2005.
• 19 countries are off track to meet this target
  even by 2015
• Women's labour force participation is stagnating,
  meaning that better access to education does not
  mean more jobs opportunities for women
• A review of aid activities conducted in 2005 -
  2006 revealed that around 35 of the total amount
  of aid was spent for actions that have a
  significant impact on gender equality

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MDG 5 Improve maternal health

• Progress is lagging behind
• Improvements will to a large extent depend on
• the availability of emergency obstetric care
• effective access to contraceptives the EC
  supports programmes at global level (e.g. through
  UNFPA) and at country level (e.g. Yemen)
• on strengthening the role of women
• Specific maternal health projects under thematic
  budget lines (e.g. in Mozambique, Ethiopia,
  Tanzania)

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MDG 6 Combat HIV/AIDS, malaria and other diseases

• the EC has been a major contributor to the Global
  Fund against HIV/AIDS, malaria and TBC
• 100 million annually
• Mainstreaming HIV/AIDS is now done more regularly
• e.g. HIV-component in road projects
• In several GBS operations HIV/AIDS targets have
  been set
• e.g. on detection or on prevention of
  mother-to-child transmission

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General sector budget support a main driver
for better impact - cumulated from 2002
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General sector budget support (programmed for
2008-2013)
Darker shades more budget support (up to 125
million)
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6. Issues at stake
Bolivia
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A global state of play

• South-East Asia progress, although uneven
• Middle East and N. Africa on track
• Latin America, Caribbean on track except for
  poverty goal and environment
• Sub Saharan Africa lags behind largest
  proportion of poor (41)
• A common feature increasing inequalities

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MDGS great strengths and difficulties

• But in the end who is clearly accountable for
  achieving the goals?
• MDGs to be achieved globally, by region or
  nationally?
• Lack of progress due to a range of issues each
  depending on the contributions of different
  stakeholders
• Progress reports are distorted by the presence of
  countries with large population

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some uncertainties

• No magic formula linking programmes objectives
  and MDGs
• No possibility to assess a donor contribution to
  a particular MDG indicator
• Frustration in terms of reporting of impact
• because donor contributions are measured in
  terms of inputs inventory of actions

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and shifting from theory to action

• Some concrete steps
• Effective division of labour
• Make proposals country by country
• Use country systems
• Increase general sector budget support
• Develop methods for better accountability
• Standard results indicators used in all
  projects/programs

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Thank You for your attention