Category Archives: General Development Framework

The European Union’s action in the development cooperation field is based on the principles of effectiveness of aid, coordination between Member States and international players, and consistency of European policies with development objectives.

The “European Consensus on Development” defines the general framework for the action of the Union and Member States. In addition, the Union is particularly committed to honouring the United Nations Millennium Development Goals (MDG), for which the Union has put in place various instruments that will also help reinforce the impact of its action.

Keeping Europe's promises on Financing for Development

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Keeping Europe’s promises on Financing for Development

Outline of the Community (European Union) legislation about Keeping Europe’s promises on Financing for Development

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Development > General development framework

Keeping Europe’s promises on Financing for Development

Document or Iniciative

Annual report from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions of 4 April 2007, Keeping Europe’s promises on Financing for Development [COM(2007) 164 final – Not published in the Official Journal].

Summary

This is the fifth annual report from the European Commission on EU progress towards implementing the commitments agreed in 2002 and renewed in 2005 regarding financing for development. These aim to contribute to achieving the millennium development goals (MDG).

The EU is the biggest aid donor in the world and its participation in official development assistance (ODA) is constantly growing. The EU ODA results exceeded expectations in 2006, amounting to EUR 48 billion, which represents an ODA/GNI (gross national income) ratio of 0.42 % and exceeds the target of 0.39 % set for 2006. Despite these very positive results overall, the Commission calls on the Member States which did not meet their individual ODA targets to step up their efforts and asks all the EU countries to mobilise more programmable funds. Some Member States achieved high levels of OPA, notably through debt cancellation for poor countries, but the Commission stresses that such operations are undertaken only once and must be replaced by more stable and predictable development assistance.

As regards the beneficiaries of the assistance, the Member States of the EU-15 already allocate at least 0.15 % of their GNI to the least-developed countries (LDC) or intend to reach this level of assistance by 2010. Almost half the EU aid is intended for Africa. In addition, the EU has decided to allocate over half the aid promised on top of the ODA volumes each year to the continent of Africa.

Despite this overall progress, constant efforts have to be made in order:

  • to guarantee the long-term predictability of aid flows by establishing national timetables by the end of 2007 so as to ensure gradually rising aid levels year-on-year;
  • to ensure the participation of all Member Stats in the effort needed to achieve the 2010 objective;
  • to ensure that the increase in the volumes of ODA are permanent and the results of budgetary efforts real on the part of the Member States;
  • to strengthen the ODA reporting capacities and methodology of Member States to guarantee the comparability of volumes of aid;
  • to facilitate the effective and efficient use of aid volumes. To this end, EU donors should examine their structures and their operative and aid modalities. This process needs to include in particular national plans to strengthen capacity to scale up ODA and the speedy application of the forthcoming Code of Conduct on Division of Labour amongst EU donors.

Some Member States have implemented innovative sources of financing (such as the airline ticket tax for an International Drug Purchasing Facility – UNITAID, and the International Finance Facility for Immunisation – IFFIm) in favour of developing countries. These are stable and predictable sources of finance and lock in long-term budgetary commitments. Nevertheless, they cannot be a substitute for ODA.

As far as the heavily indebted poor countries (HIPC) are concerned, the Commission encourages Member States, in the appropriate international forums, to promote responsible lending and borrowing. This should encompass improved debt management of the developing countries and the promotion of dialogue with the new lenders. In fact, the multilateral debt relief initiative cancels the debt to the International Development Association (IDA), the African Development Fund and the International Monetary Fund (IMF), but does not cover the outstanding loans from other regional development banks.

As far as the aid effectiveness is concerned, most of the objectives set out in the action plan ” Deliver more, better, faster ” are under way:

  • the joint multi-annual strategic planning has already been implemented in all the African, Caribbean and Pacific (ACP) countries, where the 10th European Development Fund (EDF) has enabled joint programming with other donors in the field;
  • following the success of the first edition in November 2006, European Development Days will be held every year.

The following actions have been taken:

  • the adoption of a Code of Conduct on the divison of labour among EU debtors
  • a revised EU Donor Atlas, including the first regional (West Africa) and country (Mozambique) editions;
  • EU Roadmap on the harmonisation of aid;
  • the removal of all the obstacles to co-financing.

In 2006 initiatives designed to increase the resilience of developing countries to external economic shocks (price vulnerability) and natural events (disasters, climate change and pandemics) have been drawn up and implemented. However, Member States paid little attention to them and progress is limited. To improve this situation, the Commission suggests certain measures to Member States, such as:

  • a common EU approach to disaster prevention and preparedness;
  • strengthening support for developing new instruments and methods to reduce adverse effects of external shocks on developing countries;
  • active participation in the International Task Force on Commodity Risk Management.

As regards untying aid, the EU has made more progress than other international donors. However, the Commission encourages Member States to untie all their aid. In 2006 the Community untying regulations were translated into the new financial cooperation instruments under the EC budget.

The Commission stresses the need to improve EU coordination within the international financial institutions (IFI) through increased dialogue and information sharing, whilst recognising the progress made in this field. It also proposes to reinforce the European voice within the IFI, while at the same time enhancing the voice of developing countries.

The EU confirms support for global public goods (GPG) and has made notable progress towards enhancing the supply of priority GPG, for example in health and environmental matters. Nevertheless, its actions will not be linked to the recommendations of the International Task Force, although it continues to take on the “responsible leadership” role.

Background

In 2005 the Commission gave fresh impetus to the EU development policy with the adoption of a Development Policy Framework 2006-2010. It takes stock of whether the commitments entered into are being met by adopting a package of measures comprising this Communication and two others (please see ‘Related Acts’).

Key figures in the act
  • EU ODA in 2006: EUR 48 billion.
  • EU ODA/GNI ratio in 2006: 0.42 % (target: 0.39 %).
  • The most generous donor Member States: Sweden (which allocates 1 % of its GNI to aid), Luxembourg (0.89 %), the Netherlands (0.81 %) and Denmark (0.80 %).
  • The EU-15 Member States allocating the least: Greece (0.16 %), Italy (0.20 %) and Portugal (0.21 %).
  • The new Member States (EU-10) have doubled their ODA since their accession.

Related Acts

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions From Monterrey to the European Consensus on Development: honouring our commitments [COMM(2007) 158 final – Not published in the Official Journal].

This political Communication introduces the two Specific Communications “Keeping Europe’s promises on Financing for Development” and “Towards an EU Aid for Trade strategy – the Commission’s contribution”.

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions entitled ” Towards an EU Aid for Trade strategy – The Commission’s contribution ” [COM(2007) 163 final – Not published in the Official Journal].

Code of Conduct on Complementarity and the Division of Labour in Development Policy

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Code of Conduct on Complementarity and the Division of Labour in Development Policy

Outline of the Community (European Union) legislation about Code of Conduct on Complementarity and the Division of Labour in Development Policy

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Development > General development framework

Code of Conduct on Complementarity and the Division of Labour in Development Policy

Document or Iniciative

Communication from the Commission to the Council and the European Parliament of 28 February 2007 entitled “EU Code of Conduct on Division of Labour in Development Policy” [COM(2007) 72 final – Not published in the Official Journal].

Summary

The present Communication proposes a Code of Conduct to enhance complementarity and the division of labour amongst EU donors (Union and Member States) in developing countries. The Code of Conduct was adopted on 15 May 2007 by the General Affairs and External Relations Council and the representatives of the governments of the Member States meeting within the Council. On that occasion, the Council amended certain points of the Commission proposal, in particular adding an eleventh principle to the ten principles proposed.

Donors frequently concentrate on the same countries and the same sectors. This leads to a significant administrative burden and high transaction costs in the beneficiary countries, diffuses policy dialogue, reduces transparency and increases the risk of corruption. Some countries, on the other hand, are almost ignored by donors.

The Code of Conduct defines the operational principles of complementarity in the field of development cooperation. In the absence of an internationally recognised definition of complementarity, the Commission defines it as the optimal division of labour between various actors in order to achieve optimum use of human and financial resources. This implies that each actor focuses its assistance on areas where it can add most value, given what others are doing.

The Code is based on good practices from the field and was drafted in collaboration with Member States’ experts. It builds on the principles contained in the Paris Declaration on the effectiveness of development aid (ownership, alignment, harmonisation, management by results and mutual responsibility ) and on the complementary objectives and values stressed in the European Consensus.

The Code proposes broad guidelines which establish the principles of complementarity in development aid. In particular, the Code consists of eleven guiding principles:

  • concentrate the activities on a limited number of national sectors (focal sectors). EU donors should confine their assistance in a partner country to two sectors in which they offer the best comparative advantage, as recognised by the government of the partner country and the other donors. Apart from these two sectors, donors can provide budget support and finance programmes relating to civil society, research and education;
  • redeploy into other activities in-country (non-focal sectors). As regards the non-focal sectors, donors should either remain committed through a delegated cooperation/partnership agreement * redeploy the resources becoming available in general budget support or exit from the sector in a responsible manner;
  • encourage the establishment, in each priority sector, of a lead donorship arrangement responsible for coordination between all the donors in the sector, with a view to reducing the transaction costs;
  • encourage the establishment of delegated cooperation/partnership arrangements through which a donor has the power to act on behalf of other donors concerning the administration of funds and dialogue with the partner government on the policy to be implemented in the sector concerned;
  • ensure appropriate support in the strategic sectors. At least one donor should be actively involved in each sector considered relevant for poverty reduction. In addition, there should be a maximum of three to five active donors for each sector;
  • replicate this division of labour at regional level through the application of the principles of the in-country division of labour in cooperation with the partner regional bodies;
  • designate a limited number of priority countries for each donor through dialogue within the EU;
  • grant adequate funding to the countries which are overlooked as far as aid is concerned and which are often fragile countries whose stabilisation would have positive repercussions for the region as a whole;
  • analyse and expand areas of strength: the EU donors should deepen the evaluations of their comparative advantages with a view to greater specialisation;
  • pursue progress on other aspects of complementarity, such as its vertical * and cross-modality/instruments dimensions;
  • deepen the reforms of the aid systems: the changes suggested by the Code require reforms of a structural nature and in terms of human resources.

The Commission believes that this Code of Conduct will enable the Union to play a driving role on matters of complementarity and the division of labour as part of the international harmonisation and alignment process (Paris Declaration).

Successful implementation will largely depend on the role of the Commission delegations and Member States’ field offices. In addition, its implementation is to be the subject of annual monitoring based on sampling of relevant country cases, a revised EU Donor Atlas and the Development Report.

The Code of Conduct is an ongoing document; it is to be reviewed regularly on the basis of the lessons learned from its implementation and the monitoring of the results.

Background

The objective of promoting the division of labour in EU development policy is not new. In 1995 and 1999, the Council had already adopted Resolutions on complementarity between the Community development cooperation policy and the policies of Member States. Then the Statement on Development Policy of November 2000 was an attempt to achieve operational complementarity between the Commission and the Member States on the basis of areas of added value for Community assistance. However, this approach gave rise to political and operational difficulties. In 2004 the EU decided to draw up an operational strategy towards complementarity the result of which is the present Communication. In addition, this commitment to enhanced complementarity has become a central element of the European Consensus and the Aid Effectiveness Action Plan.

Key terms used in the act
  • In-country complementarity: ensure balanced funding between all the sectors, transcending their political interest.
  • Cross-country complementarity: ensure that the EU has an overall, more regular presence in all the developing countries, by correcting the current imbalance arising from the fact that too many donors concentrate their efforts on certain efficient countries, often disregarding fragile countries.
  • Delegated cooperation: a practical arrangement where one donor (a “lead” donor) acts with authority on behalf of one or more other donors (the “delegating” donors or “silent partners”). The practical implementation modalities are defined between leading and delegating donors.
  • Vertical complementarity: ensuring synergies between similar activities in several areas undertaken at national, regional or international level.

Mid-term report on policy coherence for development

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Mid-term report on policy coherence for development

Outline of the Community (European Union) legislation about Mid-term report on policy coherence for development

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Mid-term report on policy coherence for development

Document or Iniciative

Commission working paper of 20 September 2007 – EU report on policy coherence for development [COM(2007) 545 final – Not published in the Official Journal].

Summary

The European Union (EU) is seeking to increase the effectiveness of its development aid by endeavouring to ensure policy coherence for development (PCD), i.e. synergies between development goals and other European policies. This concept was first presented in a Communication from the Commission in 2005 and constitutes one of the objectives of the consensus on development. Within this framework, the EU’s commitment is based on 12 themes (trade, the environment, climate change, security, agriculture, fisheries, the social dimension, employment and decent work, migration, research, the information society, transport and energy).

The report concludes that substantial progress has been made towards more policy coherence. Firstly, the European institutions have become more aware of the external impact of EU policies other than development policy. And secondly, organisational mechanisms have improved both at EU and at Member State level. Despite this progress, much remains to be done to promote PCD, the main obstacles being policy priority conflicts and conflicts of interest between Member States and between developing countries. Sometimes this is accompanied by insufficient capacity and lack of awareness amongst non-development departments.

The report evaluates the state of play with PCD by reviewing several Community policies, namely:

  • Trade: the EU promotes the integration of developing countries in international trade, through the negotiation of economic partnership agreements, the generalised system of preferences generalised system of preferences and measures to assist trade in particular. Moreover, the Commission is improving its preference rules. At multilateral level, the EU was one of the main promoters of the Doha development agenda of the World Trade Organisation (WTO).
  • The environment: developing countries, most of which are threatened by environmental degradation, benefit indirectly from EU policy in this field. Moreover, the EU is prepared to assist them in complying with changes to its environmental standards and supports their effective participation in multilateral agreements concerning the environment.
  • Climate change: developing countries will be affected most by climate change and therefore will benefit directly or indirectly from EU policy in this field. A global climate change alliance with developing countries, proposed by the Commission, will constitute significant progress towards integrating this issue in the political debate with developing countries and in cooperation programmes.
  • Security: the EU is strengthening the links between development and security by integrating conflict prevention in cooperation programmes, promoting transparent and fair natural resource management and supporting disarmament, demobilisation and reintegration programmes in particular. However, progress remains to be made, for instance as regards the reinforcement of organisational mechanisms at the Commission and the Council in order to develop a link between security and development policies.
  • Agriculture: the European Community has come a long way in making the Common Agricultural Policy more development-friendly. Since 2003, trade-distorting measures such as domestic and export subsidies have been significantly reduced and the EU has proposed to adopt the same approach in negotiations with the WTO. In addition, it supports agricultural and rural development in developing countries, in Africa in particular.
  • Fisheries: following the reform of the EU fisheries policy, partnership agreements in this sector have become more coherent with development goals. Among the important issues in this sector, the report underlines the development of fisheries activities in developing countries through efficient use of financial contributions received under the agreements.
  • The social dimension of globalisation, employment and decent work: the promotion of these values is part of Europe’s social agenda and of the consensus on development. At the international level, the EU supports actions concerning the social dimension of globalisation and decent work. This is accompanied, at regional and national level, by increasing integration of employment and social issues in the dialogue, cooperation programmes and trade relations with developing countries.
  • Migration: on the basis of the progress in establishing a political framework and initiating a political dialogue with developing countries at the regional and country level, the EU must currently concentrate on elaborating concrete measures.
  • Research: developing countries benefit from research projects funded by the EU in areas of global interest. Moreover, the EU contributes directly to the building of their capacities through specific international development projects. Nevertheless, progress is needed to promote participation of these countries in theResearch Framework Programme, which is hampered by insufficient human and institutional resources in this field.
  • The information society: in order to promote information and communication technologies in developing countries, the EU must support political dialogue and capacity building, following an approach based on private investment in this infrastructure and government action aimed at creating a favourable regulatory environment. This should be accompanied by more generalised access to research and education networks.
  • Transport: EU action in developing countries consists in setting international standards and in cooperation in international projects, and in policy aimed at developing environmental, social and security standards applicable to modes of transport entering EU territory and to its own fleets. Moreover, the EU is aiming at promoting sustainable transport in these countries directly.
  • Energy: the EU has adopted several measures in favour of developing countries, such as the EU Energy Initiative for Poverty Eradication and Sustainable Development (EUEI), the EU-Africa infrastructure partnership and the EU-Africa energy partnership. In addition, these countries will benefit from the efforts of the new EU energy policy in terms of energy supply diversification and the development of renewable energy sources.

Associated Acts

Council conclusions on policy coherence for development (PCD). General Affairs and External Relations Council – 20 November 2007 [Not published in the Official Journal].

Council conclusions on coherence between EU migration and development policies. General Affairs and External Relations Council – 20 November 2007 [Not published in the Official Journal].

Council conclusions on security and development. General Affairs and External Relations Council – 19 November 2007 [Not published in the Official Journal].

Role of the European Union in the multilateral system of the UN

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Role of the European Union in the multilateral system of the UN

Outline of the Community (European Union) legislation about Role of the European Union in the multilateral system of the UN

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Development > General development framework

Role of the European Union in the multilateral system of the UN

The EU develops relationships and builds partnerships with third countries and international, regional or global organisations which share its principles and values. It promotes multilateral solutions to global problems, in particular within the framework of the United Nations (UN) (Article 21 of the Treaty on EU).

The EU therefore contributes towards strengthening the effectiveness of the multilateral system and reforming the system of governance of the UN *, for a stronger international society founded on the proper functioning of international institutions and due process of law.

In addition, the European security strategy highlights the fundamental role of the Charter of the United Nations as a framework for international relations and the vital role of the UN Security Council in maintaining peace and global security.

EU participation in the UN system

The EU has had the status of observer member within the UN since 1974. Since the entry into force of the Treaty of Lisbon, the EU has had legal personality and sole capacity to represent the Member States at the UN (Resolution 665/276 of the UN General Assembly). These representation duties are performed by the President of the European Council, the High Representative, the Commission and the EU delegations.

The EU also has an essential role in the development, adoption and implementation of its partner countries’ multilateral commitments.

Finally, the partnership between the EU and the UN is based on political and operational cooperation for the completion of joint programmes and projects. In this respect, the combined financial contribution of the EU and its Member States is one of the main sources of the UN’s budget.

The principal areas of cooperation are as follows:

  • maintaining peace and security in the world, through a full partnership ranging from conflict prevention to reconstruction and peacebuilding. The EU’s contribution takes the form of human and financial resources. In addition, the EU’s foreign and security policy (CFSP) allows an increase in civil and military cooperation. This partnership extends to reform of the security sector, mediation and conflict management capacity, the combating of illicit trafficking in small arms and ammunition, and the promotion of the role of women in peace processes;
  • the promotion of human rights, gender equality and democracy, by defending standards and mechanisms for the protection of human rights, within the UN and through bilateral cooperation. Action in this area concerns, in particular, the rights of women and children, electoral assistance and the strengthening of parliaments, legal systems and civil society;
  • human, economic and social development, particularly by coordinating action in the field of development assistance and humanitarian aid. The fight against poverty and the achievement of the Millennium Development Goals (MDGs) represent priorities for cooperation, including through the UN’s agencies, funds and thematic programmes;
  • environmental protection and tackling climate change, particularly for the adoption of agreements and international conventions, and for the reform of international environmental governance;
  • humanitarian assistance and food aid, in particular through the UN’s special mandate and aid from the EU, which is the largest sponsor of operations undertaken worldwide. The partners are also committed to risk management, assessing the needs of third countries and reform of the humanitarian system;
  • the fight against international and regional threats to security, such as terrorism, the proliferation of small arms and light weapons, organised crime, drug trafficking and money laundering.
Key terms
  • Multilateral governance: a method of organisation of international relations, involving more than two States.
  • System of governance of the UN: a concept defined by the Commission as applying to the main bodies of the UN (the General Assembly, the Economic and Social Council and their subsidiary bodies, the Security Council, the Secretariat), and the programmes, funds and specialised institutions of the United Nations, including the Bretton Woods institutions (the World Bank and the International Monetary Fund).

Non-state Actors and Local Authorities

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Non-state Actors and Local Authorities

Outline of the Community (European Union) legislation about Non-state Actors and Local Authorities

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Development > General development framework

Non-state Actors and Local Authorities

Document or Iniciative

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions – The Thematic Programme “Non-state Actors and Local Authorities in Development” [COM(2006) 19 – Not published in the Official Journal].

Summary

This programme succeeds both the NGO co-financing programmes and the decentralised cooperation programmes. By supporting the right of initiative of non-state actors and local authorities, it supplements the support provided by geographical and other sectoral thematic programmes, in particular the programme on democracy and human rights.

Ownership and participation are core principles of the European Union (EU) development policy as stated in the European consensus. This approach is also reflected in partnership and cooperation agreements, e.g. between the ACP countries and the EU and with Asia, South America and “neighbouring” countries.

The added value of associating various non-state actors lies in their independence from the State, their proximity to and understanding of defined constituencies, their capacity to articulate their specific interests and their ability to bridge a critical gap between strategic goals and their practical realisation.

This programme primarily targets interventions in the field. It is chiefly implemented in countries and regions where geographical programmes do not provide for any financial support for non-state actors or local authorities owing to weak political commitment, in subregions out of reach of the country programme or in situations of difficult partnerships, fragile States, post-conflict, political instability, etc.

All non-profit state actors from the EU and from partner countries can be eligible for funding under this programme. In addition, local authorities may receive financial support for activities in specific contexts where their added value can be established and where these activities cannot be carried out under geographical programmes. This actor-oriented approach will be refined in the multiannual thematic strategy paper.

Three types of action may be funded:

  • actions which strengthen participatory development, support capacity development processes for the actors concerned at country or regional level, and promote mutual understanding processes;
  • awareness raising and education for development in the EU and acceding countries;
  • coordination and communication between civil society and local authority networks, within their organisations and between different types of stakeholders active in the European public debate on development.

Interventions in all developing countries, as defined in the list of Official Development Assistance (ODA) recipients, can be eligible for funding under this thematic programme. These countries are covered by the European neighbourhood and partnership policy (ENPI) and the Development Cooperation Instrument (DCI). The multiannual thematic strategy paper will set the eligibility criteria.

As regards programming, a four-year (2007-2010) and, subsequently, a three-year (2011-2013) thematic strategy paper will be decided by the Commission. These will define in more detail the criteria for selecting priority countries and regions, together with priorities for action. On the basis of this multiannual programming, the Commission will produce annual action programmes that establish priority actions, specific objectives and indicative amounts.

Objectives and priorities

The primary objective of this programme is the eradication of poverty in the context of sustainable development, including pursuit of the Millennium Development Goals (MDG). Other major objectives include good governance and human rights, which are cross-cutting issues to be mainstreamed in interventions in partner countries.

Our priorities include supporting stakeholder participation in unfavourable contexts (e.g. difficult partnerships, instability, conflict), promoting cross-border and regional initiatives, fostering quality partnerships between different stakeholders from the EU and partner countries, strengthening the capacity of employer and worker organisations, and fostering coherence as regards development in the area of education by giving children and young people access to education for development.

European Development and External Assistance Policies: 2008 Report

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European Development and External Assistance Policies: 2008 Report

Outline of the Community (European Union) legislation about European Development and External Assistance Policies: 2008 Report

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Development > General development framework

European Development and External Assistance Policies: 2008 Report

Document or Iniciative

Report from the Commission to the Council and the European Parliament of 30 June 2009 – Annual Report 2009 on the European community’s development and external assistance policies and their implementation in 2008 [COM(2009) 296 final – Not published in the Official Journal].

Summary

2008 was marked by soaring food and energy prices and the global financial crisis. Despite these unfavourable conditions, the European Union (EU) demonstrated its ability to meet its commitments and to respond to the new needs of developing countries.

The EU is a key partner on the global stage, particularly with regard to issues such as climate, energy, trade and achieving the Millennium Development Goals (MDGs). This Report highlights the importance of making European development policies coherent (BG) (CS) (DA) (ET) (EL) (FR) (GA) (LV) (LT) (HU) (MT) (NL) (PL) (PT) (RO) (SK) (SL) (FI) (SV), whilst taking into account the growing interdependence between the EU and its partners.

In 2008, the Commission assessed the progress made towards achieving the MDGs at mid-way and set new milestones for 2010. The Commission also increased efforts to integrate issues such as gender equality, the environment and the rights of children and indigenous people into the development process. Furthermore, the Commission considers good tax and democratic governance to be essential for successful reforms.

More and better aid

In order to offset the impact of soaring prices, the EU created a Food Facility (FR) with a budget of EUR 1 billion for the period 2008-2010. In 2008 the Commission also increased the budget for humanitarian aid by EUR 140 million and called up EUR 200 million from the European Development Fund (EDF).

The EU renewed its commitment to increasing overall development assistance in coming years. The volume of assistance has increased by 90 % since 2001, reaching EUR 9.33 billion in 2008.

Aid efficiency must also be improved. In this context, it involves:

  • prioritising the channelling of aid through country systems to reinforce local ownership of projects and reduce transaction costs;
  • increasing the predictability of aid, through setting up MDG contracts to provide longer-term aid. The first countries to benefit from these contracts were Burkino Faso, Ghana, Mali, Mozambique, Rwanda, Uganda and Zambia;
  • adopting a strategy of long-term aid, targeted towards those partner countries achieving results and good budget management.

The Report highlights an increase in budget support to 39 % (EUR 3.68 billion from EU and EDF budgets), in the form of funds transferred to the national treasury of the beneficiary country. This is gradually replacing direct project-linked funding, provided that public finance management in the beneficiary country has received a positive assessment. The Commission is working to improve eligibility criteria and risk assessment.

In 2008, the Commission began reforms to increase its capacity for action in terms of technical cooperation and to strengthen its development project implementation units. This reform was supported by the launch of “Capacity4Dev”, an on-line interactive platform.

Partnership steps

More effective aid must be based on donor coordination and the sharing of experience. This approach prevailed in the distribution of aid in Afghanistan, in the Occupied Palestinian Territory using the funding instrument PEGASE and in Iraq using the funding instrument IRFFI.

The Commission has continued its cooperation with the United Nations, the World Bank and all of the donors in planning recovery operations after a crisis, disaster or conflict has occurred.

The Commission is preparing a new strategy in favour of local authorities participating in development cooperation actions.

Assessment of actions taken

In terms of development cooperation, the EU carries out results-oriented actions. In order to increase the effectiveness and impact of its aid, the Commission assessed geographical and thematic programming and aid delivery modalities. It concluded that greater visibility of actions, synergy between activities and coherence between country and regional aid is required.

Millennium Development Goals : twelve-point action plan

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Millennium Development Goals : twelve-point action plan

Outline of the Community (European Union) legislation about Millennium Development Goals : twelve-point action plan

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Millennium Development Goals (MDGs): twelve-point action plan

Document or Iniciative

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, and the Committee of the Regions of 21 April 2010 – A twelve-point EU action plan in support of the Millennium Development Goals [COM(2010)0159 final – Not published in the Official Journal].

Summary

The European Union (EU) has undertaken to help accelerate progress towards the Millennium Development Goals (MDGs) by 2015.

The developing countries have not made equal progress; some areas and regions are significantly behind. For example, improvements have been made in reducing extreme poverty, and in the areas of universal primary education and access to water. But 1.4 billion people still live in extreme poverty (51% of them in Sub-Saharan Africa) and one sixth of the world’s population is undernourished. There has been little progress in reducing maternal and child mortality, or with regard to access to sanitation.

Achieving the commitments of official development assistance

The EU has committed itself to increasing its official development assistance (ODA) to 0.7% of gross national income (GNI) by 2015. This commitment should be respected, despite the difficulties associated with the economic and financial crisis. The Commission therefore proposes to:

  • establish annual action plans to optimise the implementation of ODA;
  • strengthen the EU accountability mechanism, based on an assessment of ODA;
  • enact national legislation for setting ODA targets.

In addition, the Commission calls on other international donors to increase their contribution in line with EU ODA.

Improving the effectiveness of aid

The EU should strengthen the effectiveness of development aid and the coordination of the various actors involved. From this perspective, the Commission proposes in particular to:

  • progressively use a joint programming framework and a single programming cycle for the EU and its Member States by 2013;
  • introduce an Operational Framework for aid effectiveness, division of labour, transparency of funding, mutual accountability of the EU and developing countries;
  • encourage other donors to follow the principles of aid effectiveness.

Action plan to accelerate progress towards the MDGs

To accelerate progress towards the MDGs, the Commission proposes to:

  • target as a priority the countries and populations which are furthest behind, including countries in situations of fragility and least developed countries (LDCs);
  • target the MDGs which are furthest behind and improve the impact of European sectoral policies, particularly in the key sectors of health, education, food security and gender equality;
  • foster ownership of MDGs by partner countries, particularly by integrating these goals into their own development strategies and by improving the quality of statistical data;
  • adopt a Work Programme on Policy Coherence for Development concerning all European policies which are likely to affect partner countries. This applies particularly in the key areas of trade and finance, climate change, food security, migration and security;
  • promote the mobilisation of domestic resources, in particular through better national and international tax governance and the strengthening of partner countries’ tax systems;
  • promote regional integration and trade, which stimulate growth and jobs;
  • identify and promote innovative sources of funding, including via public-private partnerships, with a view to ensuring stable incomes for sustainable development, including in the poorest and most vulnerable countries;
  • support climate change adaptation and mitigation strategies in partner countries, particularly by promoting cooperation, research and access to green technologies;
  • create long-term security conditions, given that most of the countries behind in achieving the MDGs are in a fragile situation as a result of armed conflicts;
  • give a new impulse to the process of reform of the international governance architecture, in order to improve the effectiveness and legitimacy of the process through better inclusion of the poorest countries, whose interests are often marginalised.

These objectives are to be implemented by the Council and EU countries. The Commission will monitor the action plan and its funding.

European development and external assistance policy: 2009 Report

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European development and external assistance policy: 2009 Report

Outline of the Community (European Union) legislation about European development and external assistance policy: 2009 Report

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Development > General development framework

European development and external assistance policy: 2009 Report

Document or Iniciative

Report from the Commission to the Council and the European Parliament – Annual Report 2010 on the European Union’s development and external assistance policies and their implementation in 2009 [COM(2010) 335 final – Not published in the Official Journal].

Summary

In 2009, European Union (EU) cooperation activities with third countries took place in a difficult context. Developing countries had to face the economic and financial crisis and rising food prices.

The EU reacted quickly, creating a financial facility to improve production of and access to food. It also created an instrument to combat vulnerability – FLEX – to support public expenditure in the most vulnerable countries. Furthermore, the EU has established an instrument to finance the adaptation of these countries to climate change.

International relations

Existing relationships with several global regions were strengthened in 2009, particularly in the course of:

  • strategic summits on development, held with India, China and Russia;
  • the adoption of a new strategic framework for Latin America and an Investment Facility;
  • the launch of negotiations to revise the Cotonou Agreement with ACP countries, and the mid-term review of the European Development Fund (EDF);
  • the strengthening of dialogue with South Africa on peace and security;
  • the holding of the EU-Pakistan summit;
  • the conclusion of the first partnership agreement with Iraq;
  • the implementation of the European Neighbourhood Policy (ENP) and its investment facility.

Millennium Development Goals (MDGs)

Some progress has been made since the adoption of the MDGs in 2000, but some countries are significantly behind, particularly due to the international context in 2008 and 2009. The EU intends to adopt a global approach to accelerate progress with a view to meeting the MDGs before 2015. It will present a joint position at the UN summit in September 2010 for the international assessment of the MDGs.

Coherence of policies with development goals

The Commission and EU countries should apply the principles of the European Consensus on Development and improve the coordination of their actions. The impact of European policies on development must be taken into account. The Council has identified a number of priority areas: trade and finance, climate change, food security, migration, and peace and security.

Partner countries must also improve the effectiveness of their policies, good governance and the protection of human rights.

Increased and more effective aid

The Commission and Member States should increase the quantity but also the quality of their aid. Together they supply more than half of global Official Development Assistance (ODA).

In order to increase the effectiveness of aid, the EU implements measures planned at the Accra summit in 2008:

  • division of labour and coordination of donors;
  • the use of national development systems;
  • quality of technical cooperation.

The EU must also work more closely with international organisations, local authorities and civil society. The next summit on the effectiveness of aid is to take place in Seoul in 2011.

Budget support for developing countries

The Commission promotes the deployment of aid through budget support strategies, i.e. the transfer of aid to the national treasury of its partners. Budget support guarantees that their national priorities are met. It also reduces the costs of financial transfers.

In 2009, EUR 2.4 billion were allocated to:

  • general budget support (GPS) – 35% of operations – for national development policies;
  • sector-specific budget support (SPS) – 65% of operations.

Public finance management (PFM) systems in developing countries should be efficient enough to receive this type of aid. However, the Commission proposes that certain fragile States might benefit from it under certain conditions.

Evaluation of results

The Commission has adopted stricter standards to control the quality of its actions and ensure that results are monitored. Assessments made in 2009 showed that the effectiveness and sustainability of cooperation actions are still to be improved. It is also essential to foster ownership of projects by partner countries.

General development framework

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General development framework

Outline of the Community (European Union) legislation about General development framework

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Development > General development framework

General development framework

The European Union’s action in the development cooperation field is based on the principles of effectiveness of aid, coordination between Member States and international players, and consistency of European policies with development objectives.

The “European Consensus on Development” defines the general framework for the action of the Union and Member States. In addition, the Union is particularly committed to honouring the United Nations Millennium Development Goals (MDG), for which the Union has put in place various instruments that will also help reinforce the impact of its action.

PRINCIPLES OF DEVELOPMENT AID

  • The European Consensus on Development
  • Millennium Development Goals (MDGs): twelve-point action plan
  • The EU contribution towards the Millennium Development Goals (MDGs)
  • European development and external assistance policy: 2009 Report
  • European Development and External Assistance Policies: 2008 Report

Effectiveness of aid

  • Action Plan for more, better and faster aid
  • Common framework for joint multiannual programming
  • Untying aid to developing countries

Policy coherence for development

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  • Policy coherence for development
  • Mid-term report on policy coherence for development

Monitoring the financing for development

  • Accelerating progress towards achieving the Millennium Development Goals (MDG)
  • Keeping Europe’s promises on Financing for Development
  • Translating the Monterrey Consensus into practice

Cooperation and complementarity between the EU and the Member States

  • Local authorities and development assistance
  • Code of Conduct on Complementarity and the Division of Labour in Development Policy

International cooperation

  • Role of the European Union in the multilateral system of the UN
  • The European Union and the United Nations: The choice of multilateralism
  • Partnership with the United Nations: development assistance and humanitarian aid

INSTRUMENTS

  • European Development Fund (EDF)
  • Financing instrument for development cooperation – DCI (2007-2013)

Thematic Programmes (2007-2013)

  • Combating hunger: strategy for food security
  • Investing in people
  • Non-state Actors and Local Authorities
  • Environment and sustainable management of natural resources, including energy
  • Cooperation with Non-EU Member Countries in the areas of migration and asylum

Other instruments

  • A financing instrument for the promotion of democracy and human rights in the world (2007 – 2013)
  • Instrument for Stability (2007 – 2013)
  • Facility for rapid response to soaring food prices

The European Union and the United Nations: The choice of multilateralism

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The European Union and the United Nations: The choice of multilateralism

Outline of the Community (European Union) legislation about The European Union and the United Nations: The choice of multilateralism

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Development > General development framework

The European Union and the United Nations: The choice of multilateralism

Document or Iniciative

Communication from the Commission to the Council and the European Parliament of 10 September 2003 – The European Union and the United Nations: the choice of multilateralism [COM(2003) 526 final – Not published in the Official Journal].

Summary

This Communication examines the means available to the European Union (EU) to contribute towards the continuous improvement of global governance, through the United Nations’ (UN) * governance system.

The EU therefore renews its support for the UN’s multilateral governance system * as an instrument for adopting concrete solutions at a global level, to the benefit of sustainable development, poverty reduction, peace and security, in particular.

Effectiveness of multilateral governance

The EU must increase its contribution with a view to adopting and applying multilateral policies and instruments. The EU’s influence could be a determining factor in the implementation of global commitments by its Member States and third country partners.

In addition, the EU must take a more active role in the institutional reform process of the UN in order to increase the effectiveness of the system, to adapt it to the development of multilateral reports, and to promote the international policy of development assistance.

Similarly, an improvement in coordination and cooperation at international level should facilitate the monitoring of commitments and strengthen actions for peace, security and human rights.

Lastly, European external policy supports the capacity-building of developing countries to meet their international commitments. In particular, the EU integrates the objectives of sustainable development, trade assistance, the promotion of decent working standards, and combating terrorism, drug trafficking and organised crime into its external policy programmes.

Effectiveness of collaboration

The Commission presents a set of guidelines for greater partnership between the EU and the UN, in order to:

  • increase policy dialogue, through increasing high-level meetings and cooperation with UN agencies;
  • strengthen EU representation within the UN;
  • increase financial cooperation and the EU’s financial contribution to UN operations;
  • conclude strategic partnerships with UN agencies, funds and programmes in the areas of development assistance and humanitarian aid;
  • conduct a strategic dialogue on coordinating humanitarian aid activities.

Political and technical cooperation must also be increased in the area of peace and security, whether for conflict prevention, crisis management or post-crisis reconstruction. This partnership must be systematically extended to the competent regional organisations (such as the Organisation for Security and Cooperation in Europe (OSCE) and the Council of Europe).

Promoting the values and interests of the EU

The EU contributes substantially to the development of policies adopted within the UN. However, it is still necessary to improve the coordination of its Member States’ positions, to ensure that the objectives of the Common Foreign and Security Policy (CFSP) are consistent with the positions of the UN Security Council, and also to increase the role of EU delegations to the UN.

In order to increase the influence of the EU within the UN governance system, the Commission recommends:

  • coordinating the Member States’ positions and participating in the decision-making process as soon as possible, particularly regarding international social policy, health, human rights, development cooperation and humanitarian aid;
  • improving coordination and the EU’s dialogue with countries or groups of countries affected by specific issues;
  • ensuring that European policies are compatible with international policies, and ensuring that effective European representation is in place with regard to the work of the UN on subjects which affect the EU.
Key terms
  • United Nations governance system: a concept defined by the Commission as applying to the main bodies of the UN (the General Assembly, the Economic and Social Council and their subsidiary bodies, the Security Council and the Secretariat), and the programmes, funds and specialised institutions of the United Nations, including the Bretton Woods institutions (the World Bank and the International Monetary Fund).
  • Multilateral governance: a method of organisation of international relations, involving more than two States.