Category Archives: Sectoral development policies

Within the framework of development cooperation the Union places the emphasis on a number of areas where solutions have been tailored to the needs of developing countries on the basis of the relevant comparative advantage, which involve not only economic and social development and governance but also the environment food security, agriculture and infrastructure.

This thematic, cross-sectoral approach, particularly highlighted in the “European Consensus on Development”, also aims to ensure cohesion between European policies and the development priorities which might be affected by those policies.

The EU Role in Global Health

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The EU Role in Global Health

Outline of the Community (European Union) legislation about The EU Role in Global Health

Topics

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

Development > Sectoral development policies

The EU Role in Global Health

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 EU Role in Global Health [COM(2010) 128 final – Not published in the Official Journal].

Summary

The Commission presents principles to improve action undertaken by the European Union (EU) as regards protecting world health.

Health protection in non-Member States of the EU aims mainly at preventing health risks and reducing inequality of access to care. In addition, action in this area must take into account a number of social, economic and environmental factors.

Improving global governance

The Commission recommends better coordination of the different action undertaken by States or groups of States, at:

  • global level, in order to defend a single position within the World Health Organization (WHO) and the United Nations (UN);
  • regional level, to develop exchange and networks between neighbouring States;
  • national level, to support public policies and the control of public funding, as well as interaction with other areas (such as education, youth empowerment, the family, etc.).

Developing universal health coverage

Universal coverage of health services should be established in the poorest countries. In this regard, the EU should increase its public development aid (PDA), but also reinforce its effectiveness and predictability. The Commission also recommends:

  • concentrating aid to serve the most fragile populations and countries;
  • strengthening the effectiveness and equity of health systems, as well as their functioning in terms of workforce, access to medicines, infrastructure, logistics and decentralised management;
  • having recourse to global initiatives and existing international financial institutions, but also to innovative funding.

Increasing policy coherence

Key issues in health policy should be taken into account in other areas, such as:

  • trade, in particular with regard to intellectual property rights, access to essential medicines, opening up generic medicine competition and combating counterfeiting;
  • managing migration, which should not undermine the availability of health professionals in developing countries;
  • defence and security, in order to better address fragile contexts and to provide an early response to international health risks;
  • food safety, food aid and nutrition, through public policies and the monitoring of nutritional status in the population;
  • climate change – the objective of health protection should be taken into account when allocating new funding.

Particular attention should also be paid to the fields of education and youth.

Research and innovation

Access to health services, medical technologies and medicines should benefit all. Research and innovation strategies should therefore be directed towards:

  • strengthening the research process overall – innovation, implementation, access, monitoring and evaluation;
  • collecting comparable data and statistics at global level, by collaborating with national and international organisations working on world health (WHO, OECD, etc.);
  • improving the dissemination of factual information, including risks, and the safety of food, feed, pharmaceuticals and medical devices.

Optimising skills

The EU must put in place mechanisms to optimise:

  • European action in EU countries and external countries, particularly within a platform to exchange information and through the development of common positions between EU countries and the Commission;
  • monitoring of European aid and implementation of the EU Code of Conduct on Division of Labour in the area of health;
  • dialogue between the key global players, in partnership with UN agencies and international financial institutions.

Context

The adoption of the Millennium Development Goals (MDGs) in 2000 has led to progress being made with regard to reducing global poverty. However, progress in developing countries is still uneven and often insufficient.

The international community has therefore enhanced its efforts regarding the three MDGs relating to health (reducing child mortality, improving maternal health, and combating disease – in particular HIV/AIDS and malaria).

Strategic framework for food security in developing countries

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Strategic framework for food security in developing countries

Outline of the Community (European Union) legislation about Strategic framework for food security in developing countries

Topics

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

Development > Sectoral development policies

Strategic framework for food security in developing countries

Document or Iniciative

Communication from the Commission to the Council and the European Parliament of 31 March 2010 – An EU policy framework to assist developing countries in addressing food security challenges [COM(2010) 127 – Not published in the Official Journal].

Summary

The European Union (EU) and its Member States are committed to increasing their action to meet the Millennium Development Goals (MDGs), particularly in order to eradicate extreme poverty and hunger in developing countries.

The Commission presents a new policy framework to tackle hunger and malnutrition in the world. The development strategies must take into account new constraints, particularly those concerning population growth and the effects of climate change on agriculture.

The EU must prioritise action to support the most fragile countries, namely those which are most off-track in reaching the MDGs (in particular in Africa and in South Asia).

A multi-sectoral approach

Strategies promoting food security are based on four main pillars:

  • the availability of food products, which requires a sustainable agri-food chain, intensification of agricultural production, and the development of international trade and regional integration. Support for smallholder farmers is essential insofar as rural areas are more affected by shortages (this means supporting the management of losses, storage, land use, etc.);
  • access to food, through supporting employment, increasing income and social mechanisms for income compensation, including in times of crisis;
  • the nutritional value of food intake, particularly for pregnant and lactating women and children under five. This area of action specifically requires training and education actions, as well as greater agricultural diversification;
  • crisis prevention and management, by uniting the different humanitarian and development actors to implement the Linking Relief, Rehabilitation and Development (LRRD) and Disaster Risk Reduction (DRR) strategies. The strategy must also contribute to regional integration and tackling price volatility (through production increases and stable food stocks).

Increasing action effectiveness

The Commission presents three ways to improve its cooperation actions for development:

  • supporting developing countries’ national and regional initiatives, including in the fields associated with food (land management, water, biofuels, etc.). Farmer organisations, civil society, the private sector and all interested parties should be consulted during the development of these policies;
  • harmonising EU and Member States’ interventions, by appointing a main coordinator, by adopting common instruments and by adapting the different policies involved (such as agriculture, fisheries, environment and research). This approach is based on the European Consensus on Development, the Paris Declaration on Aid Effectiveness, the Accra Agenda for Action and the EU Code of Conduct on the Division of Labour;
  • improving the coherence of the international governance system, particularly by supporting the role of the Committee on World Food Security (CFS) as the global coordinating body, and by supporting greater cooperation between the UN agencies (FAO, WFP and IFAD).

Context

This Communication is complemented by the new strategy on Humanitarian Food Assistance.

Tax governance in developing countries

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Tax governance in developing countries

Outline of the Community (European Union) legislation about Tax governance in developing countries

Topics

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

Development > Sectoral development policies

Tax governance in developing countries

Document or Iniciative

Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee of 21 April 2010 – Tax and Development Cooperating with Developing Countries on Promoting Good Governance in Tax Matters [COM(2010) 163 final – Not published in the Official Journal].

Summary

The improvement of economic and social conditions in developing countries is related to good tax governance and the strengthening of their tax systems. Furthermore, good international financial governance should allow funding destined for development to be mobilised and used more effectively.

Thus, the European Union (EU) encourages both tax cooperation with developing countries and the fight against tax evasion and avoidance.

Tax governance in developing countries

Development aid policies should contribute to the effectiveness of tax systems and an increase in tax revenue in EU partner countries. Taxes are essential for sustainable development, the legitimacy of the State, economic stability, and the financing of public services and infrastructures.

However, developing countries are subject to several types of difficulty, particularly due to:

  • the fragility of their economic structures and their low level of competitiveness;
  • their political instability, bad governance and the weakness of the rule of law;
  • bad tax management and unequal tax burden distribution among taxpayers;
  • the weakness of tax administrations lacking means and skills.

Furthermore, in the context of globalisation, several international factors form barriers to the effectiveness of national tax systems:

  • the implementation of domestic tax rules becomes difficult in a world with a high geographical mobility of taxpayers, high volumes of trade and capital flows and the use of new technologies for fraudulent purposes;
  • the transition from revenue systems largely dependent on customs revenue to broader and more modern ones;
  • a wish to attract sustainable foreign investments;
  • the use of bad tax practices, including in developed countries.

In order to overcome these tax reform difficulties, partner countries should:

  • distribute the tax burden fairly, particularly by balancing direct and indirect taxes;
  • take account of the specific nature of the informal economy (i.e. non-structured economic activities) and support micro and small enterprises;
  • stabilise the legal framework and improve the transparency of tax systems;
  • enhance the skills and capacities of administrations collecting taxes and reporting expenditure.

Transparency and international tax cooperation

The international context should also be improved by promoting and adopting international principles and standards as regards transparency and the exchange of tax information. This action should be taken in order to combat tax evasion and avoidance, money laundering, corruption and the financing of terrorism. It is also important to enhance the participation of developing countries in international fora dealing with tax governance issues.

The Commission also wishes to carry out its action as part of regional cooperation partnerships with the African, Caribbean and Pacific (ACP) countries, Latin American and European Neighbourhood regions.

Using European Union instruments

Each partner country is to define their policies and reforms. Development aid should be adapted to each country according to its economic situation, international position and policies. Several aid instruments can be used to support these reforms:

  • budget support programs and public finance management tools;
  • technical cooperation with tax administrations;
  • regional cooperation with the African, Caribbean and Pacific (ACP) countries, Latin American and European Neighbourhood regions;
  • support for the capacities of oversight bodies, national parliaments and Non-State Actors in developing countries in the field of tax.

These instruments must be established as part of existing programmes (the European Development Fund (EDF), the Development Cooperation Instrument (DCI), or the European Neighbourhood Policy and Partnership Instrument (ENPI)).

In addition, the Commission encourages donor coordination in each partner country, as well as closer international cooperation when international standards on tax cooperation are defined. These standards should take into account the needs and capacities of developing countries.

Context

The Commission’s action is in line with the Monterrey Consensus and the Doha Declaration adopted by the UN.

The second amendment to the Cotonou Agreement takes account of good tax governance principles.

Land policy in developing countries

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Land policy in developing countries

Outline of the Community (European Union) legislation about Land policy in developing countries

Topics

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

Development > Sectoral development policies

Land policy in developing countries

Document or Iniciative

Communication from the Commission to the Council and the European Parliament of 19 October 2004 – EU Guidelines to support land policy design and reform processes in developing countries [COM(2004) 686 final – Not published in the Official Journal].

Summary

The European Union (EU) supports land policy reforms in developing countries. To this end, the Commission provides guidelines to target the action of the Commission and EU Member States in this area.

Land reforms give rise to public policies on the distribution and use of agricultural land. Such reforms have implications in several areas, such as the fight against poverty, environmental management, market regulation, good governance, and democracy. They should be based on national consensus, and supported by rural organisations.

Land policy support

The EU focuses on certain aspects of land reform, in order to:

  • guarantee the security of land rights, through effective institutions and by taking into account both traditional and informal land access schemes;
  • analyse existing rules and practices, as well as land conflicts and modes of transfer;
  • establish innovative land access schemes, beyond the allocation of land rights, and by taking into account village, family or individual rights;
  • support the reform of land administrations, in particular to implement simple and transparent procedures, opportunities for appeal in the event of dispute, and actions to increase public awareness;
  • promote land rental markets, which are more accessible to the poor and less susceptible to the risks associated with farming. Such measures are subject to the existence of appropriate contractual rights.

Development assistance

Official Development Assistance allocated by the European Union and its Member States can be used to support public debate, and the preparation and implementation of reforms. It should also facilitate the implementation of thematic projects (research, environment, social development, etc), and reform evaluation actions.

National reform processes should include civil society and minority groups in a participatory process. Furthermore, reforms should focus primarily on areas where inequality persists.

The EU should also participate in the creation of partnerships, in order to prioritise common approaches, the sharing of experience, as well as facilitating coordination with international donors.

Finally, to be effective, European assistance should comply with certain principles:

  • providing solutions that are specific to the local social and institutional context;
  • establishing partnerships with the competent public authorities and stakeholders from civil society;
  • conducting regular political dialogue and encouraging coordination with the competent authorities;
  • supporting long-term processes;
  • supporting equality between men and women concerning the control over and use of land resources;
  • conducting public information and awareness-raising campaigns;
  • supporting research;
  • protecting the most deprived members of the population, and in particular indigenous peoples.

Sectoral development policies

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Sectoral development policies

Outline of the Community (European Union) legislation about Sectoral development policies

Topics

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

Development > Sectoral development policies

Sectoral development policies

Within the framework of development cooperation the Union places the emphasis on a number of areas where solutions have been tailored to the needs of developing countries on the basis of the relevant comparative advantage, which involve not only economic and social development and governance but also the environment food security, agriculture and infrastructure.

This thematic, cross-sectoral approach, particularly highlighted in the “European Consensus on Development”, also aims to ensure cohesion between European policies and the development priorities which might be affected by those policies.

GOVERNANCE, HUMAN RIGHTS, RULE OF LAW AND DEMOCRACY

Governance

  • Governance in the consensus on development
  • Governance and development
  • Tax governance in developing countries

Human Rights

  • A financing instrument for the promotion of democracy and human rights in the world (2007 – 2013)

Non-Governmental Organisations (NGO) and civil society

  • Local authorities and development assistance
  • Non-state Actors and Local Authorities
  • Cooperation with indigenous peoples

HUMAN AND SOCIAL DEVELOPMENT

Education and training

  • Investing in people
  • Education and training in the context of poverty reduction

Equality between men and women

  • Strategy for gender equality in development policy

Children

  • Children in EU external action

Health

  • The EU Role in Global Health
  • Health: health and poverty reduction
  • Programme for Action to combat lack of personnel in the health sector (2007-2013)
  • Compulsory licensing system for the production and export of generic medicinal products to developing countries
  • Programme for Action to Confront HIV/AIDS, Malaria and Tuberculosis (2007-2011)
  • Update on the EC Programme for Action – Accelerated action on HIV/AIDS, malaria and tuberculosis
  • Health: programme for accelerated action on HIV/AIDS, malaria and tuberculosis (2001-2006)
  • Essential medicines for developing countries (HIV/AIDS, tuberculosis and malaria)
  • Health: global fund to fight HIV/AIDS, tuberculosis and malaria

SUSTAINABLE DEVELOPMENT

  • Global partnership for sustainable development
  • Integrating sustainable development into Community cooperation policy
  • Strategy for sustainable development

ENVIRONMENT AND MANAGEMENT OF NATURAL RESOURCES

General

  • Environment and sustainable management of natural resources, including energy
  • United Nations Convention to combat desertification in countries seriously affected by drought

Climate change

  • Global climate change alliance
  • Climate change in the context of development cooperation

Biodiversity

  • Biodiversity Action Plan for Economic and Development Co-operation
  • The Rio de Janeiro Convention on biological diversity

Water

  • Water: water management in developing countries
  • Guidelines for cooperation towards development in the area of water resources
  • European Water Facility for the ACP countries

Energy

  • The Global Energy Efficiency and Renewable Energy Fund
  • Cooperation with Non-EU Member Countries on nuclear safety
  • Energy cooperation with the developing countries
  • ACP-EU Energy Facility

Forests

  • FLEGT Licensing scheme
  • Fight against illegal logging
  • Combating deforestation

Fisheries

  • Partnership agreements with Non-EU Member Countries
  • Fisheries: fisheries and poverty reduction

AGRICULTURE AND RURAL DEVELOPMENT

  • Agricultural commodities, dependence and poverty
  • Fighting rural poverty
  • Advancing African agriculture
  • Land policy in developing countries
  • Partnership with Africa for the development of the cotton industry
  • The International Coffee Agreement 2007

FOOD SECURITY

  • Strategic framework for food security in developing countries
  • Facility for rapid response to soaring food prices
  • Combating hunger: strategy for food security
  • Food Aid Convention

ECONOMIC AND COMMERCIAL DEVELOPMENT

  • Supporting developing countries in coping with the crisis

Trade

  • Scheme of preferences from 2006 to 2015 – Guidelines
  • A scheme of generalised tariff preferences 2009-2011
  • Generalised System of Preferences 2006 – 2008
  • Aid for Trade in developing countries
  • Towards an EU Aid for Trade strategy
  • Assisting developing countries to benefit from trade
  • Fair Trade and non-governmental trade-related sustainability assurance schemes
  • Fair trade

Businesses

  • International investments: towards a comprehensive European policy
  • EU support for business sector development in third countries
  • The reform of state-owned enterprises in developing countries

INFRASTRUCTURE

  • Euro-African Partnership for infrastructure

Transport

  • Transport: guidelines
  • Promoting sustainable transport

Communication and information

  • Information and communication Technologies

Tourism

  • Development of sustainable tourism

MIGRATION

  • Migration and development: some concrete orientations
  • Cooperation with Non-EU Member Countries in the areas of migration and asylum

OTHER SECTORAL PROVISIONS

  • Mine Action Strategy 2005-2007

Mine Action Strategy 2005-2007

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Mine Action Strategy 2005-2007

Outline of the Community (European Union) legislation about Mine Action Strategy 2005-2007

Topics

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

Development > Sectoral development policies

Mine Action Strategy 2005-2007

The EC Mine Action Strategy has as its strategic objective a drastic reduction in the lingering threat and impact of anti-personnel landmines in the context of increased local security and regional confidence. It sets out three thematic objectives, one horizontal objective and six geographic priorities.

Document or Iniciative

The European Roadmap towards a Zero Victim Target – The EC Mine Action Strategy and Multi-annual Indicative Programming 2005-2007 , Brussels, 18 October 2004 [Not published in the Official Journal].

Summary

This strategy and programming establish guidelines for building on the support that Europe has provided to mine action and provides a strategic framework in which the appropriate Community measures are to be conducted.

Landmines and the role of Europe

Five years after the entry into force of the Mine Ban Treaty (MBT of 1999) (FR) enormous progress has been made: the number of victims has dropped from 26 000 per year to between 15 000 and 20 000; the number of States where landmines are used has fallen from 19 (in 1997) to 5; more than 31 million stockpiled landmines have been destroyed by States party to the Treaty.

“The European Community envisions a world free from the threat of anti-personnel landmines (APL) and unexploded ordnance (UXO) in which all affected countries themselves are able to take full control of their APL and UXO problems and to provide victims with prompt care and ongoing assistance.”

The document indicates several key objectives of the international community. These objectives relate to the mine clearance of areas of highest impact on local populations and increased assistance to the victims of anti-personnel landmines. They also aim to encourage non-signatories to adhere to the principles of the MBT Treaty and to assist States which are struggling to eliminate their stockpiles.

Within the international community, Europe’s role is multifaceted: political, financial (the EU is the world’s leading donor), coordinating and catalysing.

Specific needs and lessons learned

On the basis of the lessons learned from experience, the European Community (EC) will adopt a multi-pronged approach aimed at achieving more efficient and prioritised mine clearance of the high-impact areas. The marking and fencing of high-and medium-impact areas and raising the awareness of the population of the dangers of mines will also be dealt with as a priority. These actions will be accompanied by the destruction of stockpiles and, if necessary, initiatives in favour of universalisation of the MBT.

The document mentions the need to assist victims of anti-personnel landmines not only through local medical capacity building, but also through socio-economic rehabilitation and re-integration of landmine victims.

Several means are identified to improve the effectiveness and efficiency of mine action, notably local capacity building, fielding innovative technologies and equipment, enhancing the coordination of donor assistance and mainstreaming mine action into wider programmes of assistance.

Europe’s strategy

Europe (EC/EU) has set itself the following strategic objective for the period 2005-2007: “to drastically reduce the lingering threat and impact of landmines in the context of increased local security and regional confidence”.

The European Roadmap towards a Zero Victim Target comprises three thematic objectives:

  • to reduce the anti-personnel landmine threat;
  • to alleviate mine victim suffering and aid socio-economic reintegration;
  • to enhance local and regional impacts of effective mine action capacity.

This strategy sets one horizontal objective cutting across all objectives: it is necessary to ensure that all mine action activities are conducted coherently, efficiently and effectively.

When establishing the geographic priorities of the European interventions, the following criteria must be taken into account:

  • commitment to the Mine Ban Treaty. Assistance for mine clearance and stockpile destruction will be provided only to States which are party to the Treaty, with a certain degree of flexibility to react to serious humanitarian crises.
  • high humanitarian and developmental need. The funds available will focus on the urgent needs of the affected populations.
  • strategic importance for the EU. Geographically, a significant proportion of European initiatives will target affected countries in close proximity to the EU and regions of strategic importance.
  • sustainability and coherence with wider assistance. The priorities should be established in coherence with the wider assistance programmes.
  • proven commitment of States which are not parties to the Treaty to mine action and the principles of the MBT.
  • efficiency and effectiveness of local/national mine action planning and programmes.

The success of the actions of this strategy will be measured by indicators, such as the immediate reduction in the threat of mines and the impact of the development programmes for the socio-economic reintegration of the victims.

Multi-annual indicative programming

Multi-annual indicative programming has been designed to ensure optimum use of funds available. It provides that the total Community assistance for mine action during the period 2005-2007 should amount to at least EUR 120 million.

The multi-annual programming sets out:

  • the priority objectives for each region;
  • specific actions to be undertaken for the priority objectives within each country;
  • annual and multi-annual indicative budgets (calculated on the basis of the global budget).

Background

The European Union welcomed the adoption in 1997 of the Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-personnel Mines and on Their Destruction (” Mine Ban Treaty” – “MBT”). In 2001 the EU adopted two Regulations (No 1724/2001 and No 1725/2001) defining a coherent strategy concerning action against anti-personnel landmines in developing countries and third countries other than developing countries. The first indicative multi-annual programming 2002-2004 was adopted with a view to ensuring coherence of the Community efforts in achieving the objectives set by the international community.

This information sheet is published for information. Its aim is neither to interpret nor to replace the reference document, which remains the sole binding legal basis.

EU support for business sector development in third countries

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EU support for business sector development in third countries

Outline of the Community (European Union) legislation about EU support for business sector development in third countries

Topics

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

Development > Sectoral development policies

EU support for business sector development in third countries

Document or Iniciative

Communication from the Commission to the Council and the European Parliament of 19 May 2003: “European Community Cooperation with Third Countries: the Commission’s approach to future support for the development of the business sector” [COM(2003) 267 final – not published in the Official Journal].

Summary

On the basis of past experience in supporting business sector development in third countries, the Commission has identified five areas of intervention or instruments on which it will base its approach:

  • overall policy dialogue and support, in particular as regards macroeconomic and trade policy, and good governance, providing the regulatory framework;
  • investment and inter-enterprise cooperation promotion activities;
  • facilitation of investment financing and development of financial markets;
  • support for small and medium-sized enterprises (SMEs) in the shape of non-financial services;
  • support for micro-enterprises.

“Third countries” here include developing countries, countries in transition and/or reconstruction, the so-called “emerging economies”, Mexico and the OECD countries. The term does not include the candidate countries for accession to the EU.

Businesses concerned include private sector enterprises of whatever size and those public sector enterprises operating under market conditions.

Overall policy dialogue and support

The Community’s action in this area will aim at creating, through dialogue with its local counterparts, a policy framework at national and regional level to support and foster competitiveness, the market economy and good governance.

This will encompass technical assistance in support of reforms, particularly in the areas of legislation, banking, finance, taxation, public expenditure, customs procedures, trade facilitation measures, institution building and administrative efficiency.

Investment and inter-enterprise cooperation promotion activities

Community support for the promotion of investment and technology transfer from industrialised to developing countries will aim, at national and regional levels, to enhance:

  • sustainable and environmentally friendly investment (especially from abroad);
  • inter-enterprise cooperation agreements with a view to increasing the competitiveness of the economies concerned, and in particular enhancing export prospects.

Depending on the level of development of the countries involved, Community support could include strengthening the role of Investment Promotion Agencies (IPAs), providers of investment-related services and other private intermediaries (Chambers of Commerce and Industry, professional associations, consultancies).

Facilitation of investment financing and development of financial markets

On the assumption that more efficient financial markets are essential for healthy private sector development in developing countries, the Commission intends to provide the appropriate framework for supplying well-developed and efficient financial services for SMEs.

The instruments that will be set up, especially the investment financing facilities, will ensure that high-quality and dedicated financial services are available to private companies in both the formal and informal sectors.

This should in particular mobilise private savings flows (both domestic and foreign) to finance investments that are essential for a thriving business sector.

Support for SMEs in the form of non-financial services

On the understanding that effective business development services are essential for the growth of SMEs and micro-enterprises, the Commission will encourage private sector companies to enhance their competitiveness, gain access to modern technology, improve management and seek new markets.

Several measures will be introduced, including:

  • initial and ongoing guidance for companies and professional associations;
  • upgrading of skills to help modernise enterprises and encourage the creation of networks of enterprises or cooperatives;
  • assistance with preparing and implementing business plans; etc.

Support for micro-enterprises

In many countries, micro-enterprises are the ideal means of participating in economic growth, particularly for the most disadvantaged. The greatest obstacle to the development of such enterprises is a shortage of appropriate local services, both financial and non-financial, the lack of a business culture and information about markets, and access to financial resources.

To support micro-enterprise development, the Commission proposes, in addition to the macro-and micro-economic criteria noted above, helping third countries to:

  • strengthen institutions and the capacity of intermediary bodies which represent micro-enterprises and act as providers of public goods;
  • encourage micro-finance institutions to develop new services and financial products which are well adapted to the medium- and long-term needs of small and micro-enterprises;
  • integrate micro-finance within local financial systems;
  • improve the performance of micro-finance bodies.

Implementation and follow-up

The Commission plans to retain complete control of the monitoring and assessment of the instruments put in place, and of policy, programming and design aspects of these five areas of intervention. This may also involve the implementation of specific measures, including technical assistance.

As regards the implementation and management of financial instruments, including micro-finance and non-financial services (Business Development Services), the Commission plans to make full use of intermediaries with whom it will establish appropriate management/financial agreements or conventions.

The Commission will also seek to promote and develop more effective cooperation and coordination between the Community’s external assistance programmes and the activities of the European Investment Bank and other financial intermediaries, particularly in third countries.

Supporting developing countries in coping with the crisis

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Supporting developing countries in coping with the crisis

Outline of the Community (European Union) legislation about Supporting developing countries in coping with the crisis

Topics

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

Development > Sectoral development policies

Supporting developing countries in coping with the crisis

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 8 April 2009 – Supporting developing countries in coping with the crisis [COM(2009) 160 final – Not published in the Official Journal].

Summary

Developing countries are particularly vulnerable to the effects of the international financial crisis. Development policies have improved their economic situation, but their resilience capacity remains limited.

Their monetary and budgetary policies are particularly constrained by inflation peaks, exchange rate volatility, deteriorating external balances, rising food prices and increasing energy costs. The European Union (EU) has chosen to support the countries that are most vulnerable to the effects of the crisis as a priority. These countries may be identified by combining several criteria corresponding to the main channels by which the crisis has been spread to developing countries, in particular:

  • dependence on export revenues and the degree of integration into world trade;
  • dependence on international financial flows and transfers;
  • capacity to react in response to the crisis.

Funding aid

The EU provides the largest portion of Official Development Aid (ODA), almost EUR 50 billion or 59 % of ODA overall. Its contribution is increasing, but Member States should nevertheless commit to add a further EUR 20 billion of aid in order to meet their objectives set for 2010 (0.56 % of Gross Domestic Income).

This increase in ODA is essential for participating in economic recovery and meeting the Millennium Development Goals (MDGs). Aid must be supplemented by the use and mobilisation of other development resources and instruments. This is the case for export credits, investment guarantees, technology transfer and innovative development funding mechanisms (e.g. voluntary solidarity levies, such as the airline tax applied by some Member States).

The Commission recommends that Member States adopt counter-cyclical development policies consisting of:

  • adapting 2009 and 2010 strategies and programmes, and re-directing EIB loans to key sectors in order to eliminate the crisis and boost economic activity (infrastructures, energy, activities related to climate change, green growth and the financial sector);
  • accelerating payment and making advances on aid commitments and budgetary support for all countries, in particular for those in a situation of emergency;
  • giving macro-economic assistance, for ENP countries, accession and pre-accession countries, in cooperation with the IMF.

Aid effectiveness

The fragmentation of agencies and bilateral or multilateral donors, and the lack of stability and predictability of funding have a high cost. It would be possible to make gains in effectiveness each year, which could translate into billions of euros allocated to supporting reforms, projects and action. The EU has adopted a European programme for aid effectiveness and a Code of Conduct on the Division of Labour. In 2008, it committed to the Accra Agenda for Action and plays an essential role in rationalising international development aid architecture.

The Commission proposes to accelerate the implementation of these programmes, as well as the application of the Commission Recommendations aimed at ensuring maximum impact for EU aid.

Recovery measures

In order to combat the social effects of the crisis and to contribute to the MDGs, particular support must be given to social protection systems and labour markets. Thus in 2009 and 2010, almost EUR 500 million will be committed under the European Development Fund (EDF), in order to protect public spending in essential sectors. This funding is to be implemented through:

  • the FLEX system which allows export losses to be compensated for according to the years preceding the crisis;
  • the additional and temporary “vulnerability FLEX” system, established expressly to respond more quickly and in a targeted way to the crisis in the most vulnerable countries.

Growth and employment are also promoted by the funding of infrastructures (EU-Africa Trust Fund), through support for agriculture and the creation of links between places of production and sale, by means of measures to foster private trade and the increase of credit facilities (in particular, the EIB’s investment facility, the Facility for Euro-Mediterranean Investment and Partnership (FEMIP), and the ENP investment facility for Eastern Europe).

The support provided by the EU in the context of the crisis also includes measures adopted to meet the food crisis (particularly the Food Facility with a budget of EUR 1 billion) which persists in many countries.

Recovery strategies take into account objectives for sustainable development and tackling climate change, including in the Least Developed Countries (LDCs).

Sustainable economic development necessitates the strengthening of economic and financial governance, including tax governance. Fighting corruption and the introduction of a healthy macro-economic and regulatory environment should be the key elements in political dialogue between the EU and its partner countries.

The EU should also work towards a better balance of the global governance system (particularly within the United Nations, the International Monetary Fund (IMF) and the World Bank), in order to make these authorities more complementary and to ensure greater representation for developing countries.

Compulsory licensing system for the production and export of generic medicinal products to developing countries

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Compulsory licensing system for the production and export of generic medicinal products to developing countries

Outline of the Community (European Union) legislation about Compulsory licensing system for the production and export of generic medicinal products to developing countries

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Development > Sectoral development policies

Compulsory licensing system for the production and export of generic medicinal products to developing countries

Document or Iniciative

Regulation (EC) No 816/2006 of the European Parliament and of the Council of 17 May 2006 on the compulsory licensing of patents relating to the manufacture of pharmaceutical products for export to countries with public health problems.

Summary

PROCEDURE AND CONDITIONS FOR THE GRANTING OF COMPULSORY LICENCES

The Regulation lays down a procedure allowing undertakings wishing to manufacture generic pharmaceutical products for export to apply to the national authorities for the granting of a “compulsory licence” from a patent holder who has exclusive rights to the products in question and their sale.

The Regulation does not impose any restrictions with regard to the pharmaceutical products and illnesses covered. A “pharmaceutical product” is any product of the pharmaceutical sector, including medicinal products, as defined by the Community Code relating to medicinal products for human use.

Eligible importing members

Compulsory licences are granted where the products concerned are intended for export to eligible importing countries with public health problems.

The Regulation identifies the following categories of eligible importing countries:

  • the least-developed countries (LDCs);
  • World Trade Organisation (WTO) members, other than the LDCs, which have notified the Council for TRIPS (Trade-Related Aspects of Intellectual Property Rights) of their intention to use the system as importers;
  • non-WTO members which are listed as low-income countries by the Development Assistance Committee (DAC) of the Organisation for Economic Cooperation and Development (OECD) and have notified the Commission of their intention to use the system as importers.

Competent authorities

It is the responsibility of the competent authorities of the Member States to order that a compulsory licence be granted. The competent authorities are those with the power to grant compulsory licences in accordance with national patent law, unless otherwise provided for by the Member State. The European Commission must be notified of such alternative provisions.

Applicants for compulsory licences

Anyone may apply for a compulsory licence to the competent authorities of the Member State(s) where the patents are applicable.

If the applicant for a compulsory licence has submitted applications for the same product to several countries, this must be mentioned in each application with an indication of the quantities and importing members concerned.

The applicant must prove that he has received a specific request, either from the importing country or its authorised representative, or from a health organisation (be it non-governmental, a United Nations body or another international organisation) acting with the formal authorisation of one or more importing countries.

Rights-holders

The competent authority must notify the rights-holder without delay of the application for a compulsory licence.

Admission requirements for applications

The competent authorities must verify that the basic admission requirements for making use of the system have been satisfied.

The competent authority must therefore check that each WTO-member importing country mentioned in the application has notified the WTO in respect of each of the products covered by the application. For importing countries that are not WTO members, the competent authority must check that the Commission has been notified. The competent authority must also check that the quantities indicated in the application are no greater than those which were notified to the WTO or the Commission.

In this notification, the importing countries (except LDCs) must in particular show that their pharmaceutical manufacturing capacity as regards one or more specific products is insufficient or non-existent.

The applicant for a compulsory licence must also provide evidence that he has endeavoured to obtain authorisation from the rights-holder and that these endeavours have not been successful within a period of thirty days before submitting the application. This rule does not apply in the event of national emergency, nor in cases of public, non-commercial use.

Conditions for granting a compulsory licence

The competent authority may refuse to grant a licence if one of the conditions is not met. Once granted, licences are non-exclusive and non-transferable and must be notified to the Council for TRIPS through the intermediary of the European Commission.

The compulsory licence is strictly limited to the quantities needed by the importing country or countries indicated in the application and to the manufacturing of the product in question for export and distribution there.

Thus, no product manufactured or imported under a compulsory licence may be sold or marketed in any country other than those indicated in the application. This does not apply to exports to partner countries in a regional trade agreement which have the same health problem.

Products manufactured under the licence must be clearly marked by a label or special marking to distinguish them from those manufactured by the rights-holder, provided that this is physically possible and does not have a significant impact on the price.

If the products covered by the compulsory licence are patented in the importing countries indicated in the application, they may be exported only if these countries have issued a compulsory licence for the import, sale or distribution of the products.

Lastly, the holder of the licence must make a suitable payment to the rights-holder. This will be calculated by the competent authority on the basis of the economic value of the authorised use under the licence and of non-commercial factors in the granting of the licence. In the event of a national emergency or in the case of public, non-commercial use, on the other hand, the payment is fixed at a maximum of 4 % of the total price paid by the importing country.

MEASURES TO PREVENT REIMPORT INTO THE EU

To ensure that the medicinal products do not fail to reach those who need them, the Regulation bans their reimport into the EU and calls on customs authorities to take measures against reimported products.

The customs authorities thus have the possibility of detaining any product suspected of being reimported into the Community. They may not do so for more than ten working days.

Throughout the suspension procedure, account will be taken of national provisions on the protection of individual data, commercial and industrial secrecy, and professional and administrative confidentiality.

If the competent authority finds after investigation that the products were to be imported into the Community, it will ensure that they are seized and disposed of in accordance with national legislation.

These provisions do not apply, however, to goods of no commercial value contained in travellers’ personal luggage and intended for their personal use.

TERMINATION AND REVIEW OF A COMPULSORY LICENCE

A patent holder may make use of national procedures for appealing against a decision and for disputes concerning compliance with licence conditions.

A licence may be terminated if the holder fails to comply with the conditions. Following termination, the holder must arrange within a reasonable period of time for the products in his possession, custody or control to be dispatched at his expense to the countries that need them.

Where quantities of the pharmaceutical products have become insufficient to meet its needs, the importing country must notify the competent authority. The latter may modify the conditions of the licence at the holder’s request.

EVALUATION OF MEDICINAL PRODUCTS

In order to be sure that the exported medicinal products are safe and effective, applicants for a compulsory licence for a medicinal product may make use of the EU procedure for a scientific opinion, or of other similar procedures under national legislation.

In addition, if the product in question is a generic version of a standard medicinal product which is or has been authorised in the EU, the protection periods laid down in Regulation (EC) No 726/2004 and Directive 2001/83/EC do not apply.

Background

Most national legal systems do not currently authorise compulsory licences for export because, until recently, the World Trade Organisation TRIPS Agreement provided for compulsory licences “predominantly for the supply of the domestic market” only.

As a result of the Doha Declaration on trade and health adopted in November 2001, a decision was taken to tackle the difficulties caused by this restriction for developing countries that lack manufacturing capacity.

After lengthy negotiations, the members of the WTO agreed on 30 August 2003 on the principle of a waiver allowing these countries access to those generic medicinal products of which they were in urgent need.

This Regulation underlines the EU’s status as a pioneer in guaranteeing poor countries access to reasonably-priced medicinal products.

References

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Regulation (EC) No 816/2006 [adoption: codecision COD/2004/0258]

29.6.2006

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OJ L 157 of 9.6.2006