Development and Cooperation - EuropeAid Future directions in EU development policy Françoise Moreau DG Development and Cooperation – Europe Aid European Commission

Development and Cooperation - EuropeAid The starting point: evolution of EU development policy since International community agreed the MDGs 2005International commitments on aid effectiveness: Paris Agenda EU development policy became:  more European: Consensus, enhanced coordination, Code of Conduct on Division of Labour  broader: emphasis on PCD 2008Reaffirmation of commitments to MDGs, finance for development and effectiveness: EU recognised as global development leader (EU MDG Agenda for Action, ambitious EU positions for Accra and Doha) Against a backdrop of changing international context throughout the decade:  new actors (private sector, emerging donors, local authorities);  new challenges (climate, multiple crises, vulnerability, security…);  economic downturn & budget constraints (ODA under threat)

Development and Cooperation - EuropeAid : new challenges, new opportunities 2010New European context: Lisbon Treaty – explicit position of development in external action, clarity of poverty objective as one pillar of external action, strengthened provisions on coordination and coherence (PCD) UN MDG Summit, New York: consensus on need to accelerate progress; EU position for the Summit confirmed commitments to ODA and MDGs; €1 Billion MDG Initiative Many European donors adjusting their portfolios (downsizing, exits, sector focus …) 2011Events in North Africa: importance of good governance, employment and growth, security-development nexus brought into sharper focus Spring Accountability Report: EU ODA almost €54 billion in 2010 = 0.43% EU GNI; ODA must double to reach 0.7% in 2015; but EU remains the World’s largest donor EEAS and DEVCO up and running MFF proposals (June), EU position for Busan (Q3), policy communications (Q3/4), proposals for post-2013 financial instruments (Q4)  Council decisions end

Development and Cooperation - EuropeAid Towards an updated EU development policy Green Paper, November 2010 and public consultation: "EU development policy in support of inclusive growth and sustainable development: Increasing the impact of EU development policy" In parallel with: Green Paper, October 2010 and public consultation: "The future of EU budget support to third countries" Public consultation, January 2011: "What funding for EU external action after 2013?" - preparing the next Multiannual Financial Framework

Development and Cooperation - EuropeAid Basic principles and aims Build on existing commitments and existing body of EU development policy: update rather than re-write policy; meet current needs and take advantage of new opportunities; keep what works, implement existing commitments, inject the “missing elements” of growth and governance Propose ways to increase the impact of EU development policy on: i.economic and social policy reforms in developing countries; ii.improved governance and more inclusive and more sustainable economic growth as key ingredients for poverty eradication; iii.leveraging finance for development; iv.and, ultimately, poverty reduction (meeting the MDGs and beyond). Enhance the position of the EU as global development leader and contribute to a broader and more inclusive international development agenda beyond 2015.

Development and Cooperation - EuropeAid Key policy ideas 1.Strengthening the EU's offer to partner countries in the fields of inclusive and sustainable growth and good governance; 2.Enhanced concentration of EU and Member States' development cooperation programmes, improved coordination and reduced fragmentation at country level; 3.Greater differentiation in development partnerships depending on partners' development needs, economic and financial capacities, and performance; 4.Development beyond aid – strengthening policy coherence for development and linking internal and external policies in pursuit of mutual and global interests; 5.Broadening partnerships by engaging with emerging donors, civil society, the private sector and local authorities.

Development and Cooperation - EuropeAid Updating development policy to increase impact Questions? Feedback? Ideas? Concerns?