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PCD PRACTICE AT EU LEVEL: FOOD SECURITY AND TRADE Alan Matthews Trinity College Dublin Workshop: How to promote Policy Coherence and.

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Presentation on theme: "PCD PRACTICE AT EU LEVEL: FOOD SECURITY AND TRADE Alan Matthews Trinity College Dublin Workshop: How to promote Policy Coherence and."— Presentation transcript:

1 PCD PRACTICE AT EU LEVEL: FOOD SECURITY AND TRADE Alan Matthews Trinity College Dublin Workshop: How to promote Policy Coherence and Policy Coherence for Development approaches in the Post-2015 framework? 12 June 2014 1

2 Context Policy coherence for development (PCD) builds on the simple idea that a country’s domestic non-aid policies can influence significantly the development prospects of low- income countries Hence the purpose of PCD is to limit inconsistencies between a country’s domestic and development policy objectives and to avoid/reduce negative spillovers while promoting positive synergies 2

3 Context PCD arose out of the frustrations of the development co- operation community that the effectiveness of aid could be undermined by the external effects of domestic policies But the link with aid is not intrinsic – essentially, the PCD issue is how to create a favourable external environment in which low-income (all?) countries can pursue sustainable development....keeping in mind that development will not take place in the absence of consistent and coherent policies in low- income countries themselves 3

4 Context “The discussions on the design of a new, post-2015 framework for global development represent a unique opportunity to transform PCD into a universal standard for making all countries’ policies conducive to global poverty eradication” – CONCORD 2013 “Developed countries must keep their promises to developing countries. North-South aid is still vital for many countries: it must be maintained, and increased wherever possible. But more than aid is needed to implement sustainable development worldwide.” – UN High Level Panel 2013 4

5 Context In pursuing Policy Coherence for Sustainable Development (PCSD), the High-Level Panel has called for a new Global Partnership for Development based on universal and quantified targets Its report lists a range of actions which developed countries can take, including promoting sustainable consumption and production patterns But report recognises that MDG8 had only limited success – how to ensure that a new global partnership is more effective? 5

6 Questions What can EU bring to the table in negotiating the post- 2015 framework from its experience of PCD (not least from agricultural and trade policies)? What can be learned? What recommendations would be appropriate to a global framework with responsibilities for all? How can we promote / strengthen policy coherence at different levels? Are there some relevant conclusions from the EU 's experience? 6

7 Outline Four challenges in implementing PCD Illustrated using case studies from EU agriculture and trade policy Implications for post-2015 global development goals discussion 7

8 Four challenges in implementing PCD - 1 Addressing PCD means addressing conflicts of interest between domestic and development constituencies and trying to reconcile them The single most important reason for policy incoherence How to reconcile? Break up ‘closed’ policy communities by bringing new players around the table and seek alliances Lock in longer-term perspective against the attractions of short-term expediency by binding political decision-makers through international agreements Develop less costly alternative policies to meet the demands of domestic political interest groups Provide lengthy transition periods and adjustment assistance 8

9 Four challenges in implementing PCD - 2 Inconsistencies may exist between development goals themselves Encouraging economic growth in low-income countries and lowering carbon emissions Biofuel production: raising food prices versus creating remunerative market outlets and employment opportunities Effective strategies to reduce poverty may also reduce biodiversity 9

10 Four challenges in implementing PCD - 3 Disagreements between experts on what constitutes ‘good’ development policy What is seen as ‘coherent’ with development goals depends on the underlying paradigm of development and views will differ Opening public procurement markets – a threat to national sovereignty or breaking the stranglehold of local elites (telecomms) Food security and trade examples to come later Some of the differences in understanding can be reduced through investment in research and evidence gathering 10

11 Four challenges in implementing PCD - 4 Heterogeneity between and within developing countries means that the impacts of external policies differ, making it more difficult to identify ‘coherent’ domestic policies One single policy change cannot address all development objectives May often be a need for flanking policies to address negative outcomes of a policy change; a particular role for aid Policy changes in one country may have different impacts on different groups in low-income countries – policy coherence for whom? 11

12 PCD in EU agricultural policy and food security -1 Successive CAP reforms have reduced policy incoherence with development objectives Opposition from domestic constituency overcome through a variety of strategies Widen the policy community Environmentalists, ‘foodies’, food industry Lock in longer term perspective WTO disciplines Address domestic concerns using alternative instruments Decoupled payments Conflicts between policy objectives Encouraging greater agricultural production in developing countries may lead to environmental damage, greater carbon emissions… 12

13 PCD in EU agricultural policy and food security -2 Paradigm issues (disagreements over which policies favour development goals) exist but to date play a minor role in this domain Criticism of subsidised production/exports sometimes carried over to trade itself (EU imports: export opportunities for developing countries or land-grabbing by the EU?) Heterogeneity among and within developing countries has led to tensions arising from CAP reform Preference erosion (elimination of sugar quotas) Aid for adjustment assistance (sugar, bananas) 13

14 PCD in EU agricultural policy and food security -3 Food security affected by much more than agricultural policy Renewable energy (biofuels); environmental regulations; SPS and TBT measures; biotech policy ‘Classic’ debate around agricultural protection increasingly displaced by debate around appropriate (sustainable) consumption and production patterns This new agenda will face the same four PCD challenges as the old one Example: The debate over greening in the 2013 CAP reform 14

15 PCD in EU trade policy -1 Successive trade policy initiatives to reduce incoherence Including negotiating multilateral disciplines (Uruguay Round and Doha), introduction of EBA, deep and comprehensive FTAs, reform to focus GSP on low-income economies and replacement of Cotonou preferences by reciprocal EPAs Direct conflicts with domestic constituencies of pro- development trade policies limited compared to agriculture; addressed through Lengthy transition periods (eliminating MultiFibre Arrangement) Trade adjustment assistance Domestic measures can have contradictory impacts on development goals Including aircraft in the EU emissions trading scheme 15

16 PCD in EU trade policy - 2 Paradigm differences around the role that trade plays in development influences perceptions of how successfully EU trade policy has addressed PCD Open markets vs. notion of ‘policy space’ ‘Singapore issues’ in the Doha Round Regulatory convergence in the new-generation trade agreements: is this in the interests of developing countries? Preferences on their own of limited value; role for aid for trade Policy coherence for whom? Controversy over the targeting of GSP preferences on low-income developing countries in latest GSP revision 16

17 Lessons from the EU’s experience for PCD in the post-2015 world A universal approach to PCSD will largely be implemented through collective international agreements The EU’s experience can be helpful to other countries wishing to successfully implement PCSD commitments The problems of gaining understanding of (let alone commitment to) PCSD in line ministries The post-2015 DGs will provide a policy framework and targets to assess the coherence of domestic policies with the international agenda for sustainable development The EU has not yet cracked how to monitor and evaluate progress towards PCD – the limits of indicators 17

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