EU Development Policy September 2008

What is Development ? Our ambition: A Global Actor Our ambition: A Global Actor StabilityStability ProsperityProsperity SolidaritySolidarity 3 keys ideas: 3 keys ideas: Response to globalizationResponse to globalization At EU levelAt EU level At the heart of EU external actionAt the heart of EU external action

“Three pillars” Common Foreign and Security Policy Both the Commission and the MS have right of iniative Both the Commission and the MS have right of iniative Council takes decisions Council takes decisions European Parliament provides opinions European Parliament provides opinions Full participation by the Commission Full participation by the Commission The European Community Commission has right of initiative Commission has right of initiative Council takes decisions Council takes decisions The Parliament participates in decision making The Parliament participates in decision making Justice and Home Affairs Both the Commission and the MS have right of iniative Both the Commission and the MS have right of iniative Council takes decisions Council takes decisions European Parliament provides opinions European Parliament provides opinions Full participation by the Commission Full participation by the Commission

Development Policy in the Union ”Mixed Competence” ”Mixed Competence” Member States’ bilateral cooperation is within MS independent competence,Member States’ bilateral cooperation is within MS independent competence, The Community development cooperation is Community competenceThe Community development cooperation is Community competence But: the Commission has right of initiative to promote coordination and cooperation, ”EU development policy”But: the Commission has right of initiative to promote coordination and cooperation, ”EU development policy”

The Role of different institutions Commission provides initiatives Commission provides initiatives Commission administers and implements The Community development financing and cooperation Commission administers and implements The Community development financing and cooperation Council takes decisions on Community development cooperation on the basis of Commission initiatives. Decides on the budget together with the Parliament. Council takes decisions on Community development cooperation on the basis of Commission initiatives. Decides on the budget together with the Parliament. Parliament has the right to decide on the budget with the Council (NB: not the EDF). Parliament has its own international cooperation (EU-ACP joint Parliamentary \ Parliament has the right to decide on the budget with the Council (NB: not the EDF). Parliament has its own international cooperation (EU-ACP joint Parliamentary \ (EIB administers concessional investment finances to developing countries.) (EIB administers concessional investment finances to developing countries.)

Legal basis Decision making Always based on the Treaty, the Union has to have competence on the matter; Development cooperation, TEU art and the Cotonou agreement Always based on the Treaty, the Union has to have competence on the matter; Development cooperation, TEU art and the Cotonou agreement Legal basis Defines the extent of the union mandate, the modus operandi and the decision making process. Grey area: Community vs. CFSP, ODA-eligibility Defines the extent of the union mandate, the modus operandi and the decision making process. Grey area: Community vs. CFSP, ODA-eligibility

The biggest donor The EU is the largest ODA donor: 57 % of global ODA in 2006: The EU is the largest ODA donor: 57 % of global ODA in 2006: The EU collectively devoted 0,42 % of its gross national income to development aid in 2006 (€ 48 billion) The EU collectively devoted 0,42 % of its gross national income to development aid in 2006 (€ 48 billion) The EU has committed to collectively achieve 0,56 % ODA/GNI by The individual limit for “old MS” 0,51 and for new ones, “new” 0,17 by 2010 and 0,7 and 0,33 by 2015 respectively The EU has committed to collectively achieve 0,56 % ODA/GNI by The individual limit for “old MS” 0,51 and for new ones, “new” 0,17 by 2010 and 0,7 and 0,33 by 2015 respectively

Finances 10% of the Community budget to external finances 10% of the Community budget to external finances Development cooperation was 82 % of the Community external budget 82% payments average 6,2 billion € 2005 Development cooperation was 82 % of the Community external budget 82% payments average 6,2 billion € 2005 ODA:sta 44% to Africa, 18% Asia, 7% America, 12% Europe, 1% Oceania (2005) ODA:sta 44% to Africa, 18% Asia, 7% America, 12% Europe, 1% Oceania (2005)

What is Development ? The external action “Tool Box” The external action “Tool Box” HumanitarianHumanitarian Political dialoguePolitical dialogue Reconstruction & developmentReconstruction & development TradeTrade CFSPCFSP Policy coherence! Policy coherence! Examples: DRC, Sudan, Haiti, Bolivia, Bangladesh Examples: DRC, Sudan, Haiti, Bolivia, Bangladesh

European Consensus on Development Part I: ”The European Union vision on development” sets out common objectives and principles for development cooperation Part I: ”The European Union vision on development” sets out common objectives and principles for development cooperation Part II: ”The European Community Development Policy” defines how the Community will implement its vision set out in the first part Part II: ”The European Community Development Policy” defines how the Community will implement its vision set out in the first part Main objective is poverty reduction Main objective is poverty reduction

Development Finance: financial framework for Two main sources of financing: Two main sources of financing: 1. Budget 2. European Development Fund (EDF) New financial framework for external financing: New financial framework for external financing: Development Cooperation Instrument (DCI), Cooperation with Industrialised and other high-income Countries and territories (ICI), European Instrument for Democracy and Human Rights (EIDHR), Instrument for Pre-Accession (IPA), European Neighbourhood and Partnership Instrument (ENPI), Instrument for Stability, Instrument for nuclear safety cooperation (INSC), Humanitarian aid Development Cooperation Instrument (DCI), Cooperation with Industrialised and other high-income Countries and territories (ICI), European Instrument for Democracy and Human Rights (EIDHR), Instrument for Pre-Accession (IPA), European Neighbourhood and Partnership Instrument (ENPI), Instrument for Stability, Instrument for nuclear safety cooperation (INSC), Humanitarian aid Policy must lead instruments + ensuring overall policy coherence Policy must lead instruments + ensuring overall policy coherence Simplifying structures and procedures Simplifying structures and procedures

Development Cooperation Instrument € million; 5 geographic and 5 thematic programmes + program for ACP Sugar Protocol countries € million; 5 geographic and 5 thematic programmes + program for ACP Sugar Protocol countries Primary and overarching objectives are eradication of poverty and pursuit of the MDGs, promotion of democracy, good governance and respect for human rights and the rule of law. Primary and overarching objectives are eradication of poverty and pursuit of the MDGs, promotion of democracy, good governance and respect for human rights and the rule of law. 100 % geographic programmes and 90 % thematic programmes Official Development Assistance (ODA) 100 % geographic programmes and 90 % thematic programmes Official Development Assistance (ODA) The DCI committee The DCI committee

ACP-EU cooperation 10th European Development Fund (EDF) for the years : 10th European Development Fund (EDF) for the years : € 22,682 billion: € million for ACP countries, € 286 million for OCTs and € 430 million for supporting functions € 22,682 billion: € million for ACP countries, € 286 million for OCTs and € 430 million for supporting functions EU’s Strategy for Africa → EU-Africa Joint Strategy EU’s Strategy for Africa → EU-Africa Joint Strategy Good Governance - Governance Profiles Good Governance - Governance Profiles Economic Partnership Agreements, EPAs Economic Partnership Agreements, EPAs Migration and development Migration and development Implementation regulation & establishment of the new EDF Committee: new CSPs Implementation regulation & establishment of the new EDF Committee: new CSPs

EU cooperation: added Value? Commission specific role: also a political actor and institution with a global presence Commission specific role: also a political actor and institution with a global presence Contacts and history of cooperation through a wide range of instruments (Cotonou, Mediterranean...) Contacts and history of cooperation through a wide range of instruments (Cotonou, Mediterranean...) Initiator: Potential for harmonisation and pushing forward the development agenda Initiator: Potential for harmonisation and pushing forward the development agenda Access to other Community instruments, providing policy coherence (trade, fisheries..) Access to other Community instruments, providing policy coherence (trade, fisheries..) Coordination with other EU-policies, CFSP, JHA etc. Coordination with other EU-policies, CFSP, JHA etc.

Future Challenges Programming: credibility check Programming: credibility check Migrations Migrations BRICS & others BRICS & others EPA’s EPA’s