1. of EU Development Policy
Increasing the Impact
of EU Development Policy
An Agenda for Change

2. CONTEXT
Lisbon Treaty (2009): poverty elimination in the context of sustainable development as one pillar of external action (Art.21 TEU); primary importance to PCD (Art.208 TFEU)
European Consensus on Development (2005): remains point of reference
Commitment to the MDGs (2000): Common EU Position and 12- point Action Plan (2010)
Commitment to aid effectiveness (2005): implementing the Accra Agenda for Action (2008); Code of Conduct on Division of Labour (2005); EU Operational Framework ( )
Sectoral and cross-cutting policies e.g. gender, environment, governance, fragility …
Policy Coherence for Development (2005) – PCD Work Programme (trade, climate, migration, security, food security)
Comprehensive partnerships, global presence: Cotonou, EU-Africa, Neighbourhood policy, EU-LA, Asia, etc

3. GREEN PAPER
On “EU development policy in support of inclusive growth and sustainable development”: Key results from the public consultation:
Poverty focus of EU development policy
Partner country ownership
Differentiated approach to partner countries
Inclusive growth for poverty reduction incl. governance, health, education
EU comparative advantage in energy, infrastructure, agriculture, aid for trade
Important EU role in good governance, security, human rights…
EU commitments on PCD and aid effectiveness
Private sector engagement with certain norms (e.g. decent work)
Communication of results to secure political and public support
innovative and private-sector financing
EU to work only in growth-enabling sectors or have a balanced portfolio that includes growth and social sectors? Only aid to Least Developed Countries?

4. AGENDA FOR CHANGE
Higher impact of EU support and faster progress towards MDG
Concentration: Priority on
Good Governance (human rights, democracy, …)
Inclusive and Sustainable Growth for human development
using
Climate change, agriculture and energy to drive sustainable development
Innovative financial instruments (blending…)
Differentiation: geographical focus towards countries most in need
Coordinated EU action
Improved coherence among EU policies

5. CONCENTRATION
Higher impact of EU aid by concentrating resources on a limited number of sectors
increasing the EU's critical mass
Max. of 3 sectors per country, among following policy priorities:
Good governance, democracy, human rights
Foundations for inclusive growth (e.g. social protection, health & education)
Drivers for growth and job creation (e.g. business environment, regional integration)
Sectors with strong multiplier impact and contributing to environmental protection + climate change prevention/adaptation (sustainable agriculture and efficient renewable energy)

6. HUMAN RIGHTS, DEMOCRACY, GOOD GOVERNANCE
Principles
Incentives for results-oriented reform
EU general budget support should be linked to the governance situation and political dialogue with the partner country
mix and level of aid will depend on the country’s situation, including its ability to conduct reforms
Should a country loosen its commitment to human rights and democracy, the EU should strengthen its cooperation with non-state actors and local authorities and use forms of aid that provide the poor with the support they need
Areas of action
Democracy, human rights and the rule of law
Gender equality and the empowerment of women
Public-sector management
Tax policy and administration
Corruption
Civil society and local authorities
Natural resources
Development-security nexus

7. 2. INCLUSIVE GROWTH: Health, Education and Social Protection
Intensified policy dialogue and tool such as sector reform contracts (SBS) to:
health systems, reduced inequalities in access to health services, policy coherence, increase protection against global health threats and improved health outcomes for all
Quality education to give young people knowledge and skills and vocational training for employability
Decent work agenda, social protection schemes and floors and policies to facilitate regional labour mobility

8. 3. GROWTH AND JOB CREATION: Business environment, regional integration and world markets
Competitive local private sector
Globally integrated markets, trade facilitation
Improving infrastructure
Leveraging private sector activity and resources for delivering public goods  up-front grant funding, blending grants and loans and risk-sharing mechanisms to catalyse PPP and private investment
Regional development and integration, Aid for Trade, EPA

9. 4. SUSTAINABLE GROWTH: Sustainable agriculture and renewable energy
Agriculture: sustainable, locally-developed practices, safeguarding of ecosystem services, smallholder agriculture, producer groups, supply and marketing chain, responsible private investment, nutritional standards, food security governance, reduced food price volatility at international level, climate change
Energy: price volatility and energy security; climate change, access to low carbon technologies, access to secure, affordable, clean and sustainable energy services, capacity development and technology transfer

10. DIFFERENTIATION
Target resources where they are needed and where they have greatest impact
Allocation of EU development assistance according to partner countries' needs, capacities, commitments and performance, as well as the potential EU impact
Supporting development in the Neighbourhood and Sub-Saharan Africa, as well as in fragile countries
Need for other types of cooperation and new partnerships with more advanced developing countries
Diversified aid modalities and develop other types of cooperation (e.g. loan-grant blending, technical coop, twinnings, etc.)
Development of partnership based on mutual interests with emerging economies and strategic partners
Accountability and transparency

11. COORDINATED EU ACTION
Joint programming of EU and Member States’ aid
Support to partner country’s strategy by developing joint multi-annual programming documents with MS synchronised with partner countries’ strategy cycles
Joint EU response strategies or donor strategies where possible, containing a sectoral division of labour
Joint action: single EU budget support contract, EU trust funds and delegated cooperation
Common EU results reporting framework

12. IMPROVED COHERENCE AMONG EU POLICIES
Policy Coherence for Development – PCD
Future Multiannual Financial Framework should reinforce PCD
New thematic programmes that build synergies between global interests and poverty eradication
e.g. joint approach to security and poverty or relation between development and migration.