SCN

37-527

EUROPEAID: THE EUROPEAN COMMISSION AND THE IMPLEMENTATION OF THE MDGs

by

Roberto Ridolfi

September 25, 2009.

www.ec.europa.eu

Reproduced by The European House-Ambrosetti for the Forum “Developing the Regions of Africa and Europe”, Taormina, October 7 and 8, 2010.

EuropeAid

1

EuropeAid: the European Commission and the implementation of the MDGs

25 September 2009

Roberto Ridolfi,Head of Unit, EuropeAid Cooperation Officehttp://ec.europa.eu/europeaid/

EuropeAidContent

•EU and the MDGs: global context

•MDGs: the answer of EuropeAid

•A better Aid: Develop a global

2

•A better Aid: Develop a global Partnership for Development –MDG 8

•Conclusions

EuropeAid

EU and the MDGs: global context

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EU and the MDGs: global context

EuropeAidEU and EC aid implementation

EU the largest donor in the world

• 27 + 1 donors together responsible for 60% of all development aid (2008: 48,6 billion)

• USA provides 22%

4

European Commission on its own:

• Second largest donor of humanitarian aid

• Third largest donor of development aid (11%, after USA and Germany) €9.3 bn

• Present in approx. 140 countries

Based on OECD/DAC preliminary figures 2009

EuropeAid

EU policy framework on MDGsMonterrey commitments 2002 :

EU15 to reach 0.7% of Gross National Income (GNI) by 2015. EU10 to reach 0.33%

The European Consensus For Development of 2005:

For the first time a single EU policy based on MDGs :

• Common goals (eradication poverty)

Based on the MDGs, good governance, human rights,

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• Based on the MDGs, good governance, human rights,

• Guiding principles: partnership, ownership, alignment, multilateralism

• Involves Member States and Community

EU Agenda for Action 2008:

• ODA intermediate target of 0,56% GNI by 2010

• Priority to Africa (in line with EU-Africa Strategy)

EuropeAid

Official Development AssistancePercentage of Gross National Income:actual 2008, forecast 2010, objective 2015

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EuropeAidSpecial role of the EU in achieving MDGs

EU Strong points

• EU brings particular strengths to MDGs (European Consensus on

Development)

• EU history shows advantages regional cooperation and economic

integration

• Unique development policy and implementation capacity

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• Unique development policy and implementation capacity

• EU as a whole is the world’s largest aid donor

• World major trading partner

• Leadership role in peace-keeping and peace-building

• EU committed to improved complementarity in aid delivery,

through its Code of Conduct on Complementarity and Division of

Labour

EuropeAidChallenges for the EU

• Pushing MDGs higher in agenda among EU member states

• Achieving policy coherence, particularly in trade, migration

and development policies

• Scaling up aid and delivering it more effectively

Assumptions

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Assumptions

• Developing countries able to absorb increase ODA

• Policies and procedures in developing countries and EU able

to predict and effectively use this ODA

• EU Member States be able to honour their ODA

commitments

EuropeAid

MDGs: the answer of EuropeAid

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MDGs: the answer of EuropeAid

EuropeAidThe EC and the external aid budget 2008

External aid: €12.8 bn(9%) EuropeAid EDF

fund: €4.8 bn (37%)

Non-EuropeAid Budget: €3.3 bn

(26%)

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Commission budget inside EU: €124 bn (91%)

(37%)

EuropeAid Budget: €4.6 bn (37%)

(26%)

EuropeAid implements external assistance. This excludes pre-accession aid, humanitarian aid, and Common Foreign and Security Policy (CFSP) aid. EC total budget includes European Development Fund (EDF). NB – 2008 provisional figures (April 09)

EuropeAidEuropeAid

• Mission: EuropeAid works to ensure that the aid makes a

significant contribution to the development objectives of both

the EU and the United Nation’s MDGs.

• Responsible for translating policies into practical aid

actions and for developing new ways of aid delivery

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• Special role of civil society (CfPs)

• Global approach - worldwide action

• Participation in international mechanisms

• Deliver development aid in an efficient and effective way

• The EC Delegations on the field strong asset

EuropeAidEC development programmes as of 2007

Average annual commitments 2007-2013

• Pre-accession, 7 countries 1.6 billion

• Neighbourhood, 17 countries 1.6 billion

• 10th EDF, 78 ACP countries / OCTs 3.7 billion

• Development, 48 countries 1.4 billion

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• Development, 48 countries 1.4 billion

• Development, sugar, 18 ACP 180 million

• Development, thematic 800 million

• Human rights & Democracy 160 million

• Stability (post crisis) 290 million

• Nuclear safety 75 million

• Humanitarian aid 802 million

+ instrument in 2009: Food Facility 1 billion

EuropeAidEU financing mechanisms

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EuropeAidMDG 1 : Poverty and Hunger

State of play:

• The encouraging trend in the eradication of hunger since the early

1990s was reversed in 2008, largely due to higher food prices

• The prevalence of hunger in the developing regions is now on the

rise, from 16 per cent in 2006 to 17 per cent in 2008

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• Data from Millenium Development Goals Report 2009, UN

EuropeAidWhat EuropeAid does for MDG 1 –food security?

The Food Security Thematic Programme (FSTP)

• The FSTP’s main objective is to address the structural causes of

food insecurity putting agriculture at the heart of the international

debate on development

Budget: € 886 m per 2007-10

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€ 233 m per 2009

€ 752 per 2011 -13

Priorities:

• research and technology, information and decision-making,

continental and regional approaches, situations of transitions,

innovation, chronically food insecurity, fostering advocacy,

harmonisation and alignment

EuropeAidExample of innovation: The €1 Billion Food Facility

• The €1 Billion Food Facility enables the EU to respond rapidly to

problems caused by the food crisis and soaring food prices in

developing countries.

Timing: 3 years (2008-2010)

Activities supported:

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o access to agricultural inputs and services

o safety net measures

o small-scale measures such as microcredit, rural infrastructure,

training and support to professional groups in the agricultural

sector

• Targeting 50 countries most affected/least capacity to respond

o World-wide coverage

EuropeAidFood Facility example also for MDG 8 –real Global Partnership

What makes it innovative?

A Real Global Partnership:

• Under this Facility, the EU works together with 11 IOs such

as FAO, World Bank, World Food Programme, in 50 states

worldwide

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worldwide

• Coherence and complementarily with IOs

A Timely Response:

• Rapidly reacting to the food crisis + operating over a 3-year

= it bridges the gap between emergency aid and medium to

long-term development aid

• Programming, identification and appraisal in a strongly

coordinated environment

EuropeAidGeneral lessons to implement global food security agenda

• International coordination example to follow to

strengthen the already existing global mechanisms:

• Programming decisions were based on country needs

assessments

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• Facility benefited from the technical support of United

Nations High Level Task Force (UN HLTF)

• Country level representation (EC Delegations)

• Strong Political Backing

• EC as decision-maker/arbitrator

• Human resource mobilisation

EuropeAid

7 MDG Contracts in 2008 (1,521 M€): Burkina Faso, Ghana, Mali, Mozambique, Rwanda, Uganda, Zambia

o Aid more predictable, targeted at good performers

o Longer term time horizon: 6 years vs. 3 years for traditional budget support

o Larger predictable share: >70% against 50%-70%

2nd example of innovation for MDG1

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o Larger predictable share: >70% against 50%-70%

o Annual performance tranche up to 15% & contract review after 3 years to determine tranche on basis of MDG-related result indicators (at least 15%)

• Mali Migration Centre

• First co-financings/delegated cooperation with EU Member states

EuropeAidMDGs 2, 3, 4, 5, 6: what EuropeAid does?

• Goal 2: Achieve universal primary education;

• Goal 3: Promote gender equality and empower women;

• Goal 4: Reduce child mortality;

• Goal 5: Improve maternal health;

• Goal 6: Combat HIV/AIDS, malaria and other diseases;

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• Investing in People : 2007 – 2013 created to respond to

these MDGs

• 1. Good Health for all

• 2. Education, knowledge and skills

• 3. Gender equality

• 4. Other aspects of human and social development

•

EuropeAidInvesting in People:Indicative Allocation 2007-2013

Social Cohesion,

Employment &

Decent Work

€ 82 m (8%)

Culture

€ 50 m (5%)

Total = € 1.06 billion

The programme covers all Developing countries, giving priority to those in most need of EC assistance to achieve the MDGs.

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Health

€ 587,6 m (59%)

Education & Skills

€ 130 m (13%)

Gender

€ 57 m (6%)

Children & Youth

€ 90 m (9%)

EuropeAid

Investing in People: Calls for Proposals (2009)

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4,3

6,05

16

6,5

10

3,5

9

18

8

Social inclusion

Gender - ENPI

TVET: Techn voc & educ train

Reproductive health

Health workers

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5,4

3,5

7,3

5,3

11

3,6

10

3

10

0 5 10 15 20 25 30 35 40

Culture (2008+2009)

Gender - DCI (2008+2009)

Children participation

Non-communicable diseases

Social inclusion

Mio EUR2008 2009 Expected 2010

EuropeAid

MDG 7 Ensure environnemental sustainability

State of play:

• Integrate the principles of sustainable development into country

policies and programmes and reverse the loss of environmental

resources

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Emissions of carbon dioxide (CO2), 1990 and 2006 (Billions of metric tons), data from Millenium

Development Goals Report 2009, UN

EuropeAidWhat EuropeAid does for MDG7?

The thematic programme for Environment (ENRTP)

• Its first priority is working upstream on MDG7 to promote

environmental sustainability

• helps developing countries and partners to address environmental

issues.

• helps to meet their obligations under multilateral environmental

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agreements

• budget of € 470 million for 2007-2010

Examples of innovations

• The Global Energy Efficiency and Renewable Energy Fund:

mobilise private investments to fight climate change & poverty.

EC investment = €80 million 2007-10

• First Auction Floor in EuropeAid

EuropeAid

Other examples of Innovation for MDG7

• GCCA – Global Climate Change Alliance: 36.6 M€ 2009

• EU FLEGT Facility (Forest Law Enforcement, Governance &

Trade): further 4.5 M€ 2009 , with European Forest

Institute

• UN agencies (17 actions with ): 14.8 M€ 2009

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(Economics of Disaster Risk Reduction, CITES

implementation, Caribbean Biological Corridor, Classification

and Labeling of Chemicals, others)

• Actions addressing the EU Water Initiative and the

EU Energy Initiative 3 M€ 2009

EuropeAid

• Neighbourhood Investment Facility

EC grants with European Finance Institutions to generate large projects on energy, social, transport & environment. EC invest. = €50-70 million per year

• EU-African Infrastructure Trust Fund

interconnecting Africa through large regional programmes. EC

investment = €108.7 million

MDGs cross-cutting

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investment = €108.7 million

• Union for the Mediterranean

Builds on the Barcelona process, increase regional integration &

cohesion

• Crisis situations

Georgia, Palestinian Authority

EuropeAid

A better Aid: Develop a global

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A better Aid: Develop a global Partnership for Development –MDG 8

EuropeAid

Aid fragmentation in Bangladesh

IDADenmark

3%

United States

3%

Germany

2%

Sw eden

2%

Norw ay

2%

UNDP

1%

UNICEF

1%

Sw itzerland

1%

The Global Fund

1%

11 smallest donors <

1%

IFAD

1%

Each EU

donor

+

EC

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IDA

33%

AsDF

19%

UK

13%

EC

5%

Japan

5%

Netherlands

4%

Canada

4%

3%

EuropeAid

Aid fragmentation in Bangladesh

IDA

32%

Japan

5%

Canada

4%

United States

3%

Norw ay

2%

UNDP

1%

UNICEF

1%

6 smallest donors <1%

The Global Fund

1%

Sw itzerland

1%

IFAD

1%

All EU MS

donors

+

EC

coordinated

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32%

EU

31%

AsDF

18%

EuropeAid

What is aid effectiveness?Objectives

The aid effectiveness agenda describes the set of measures being put in place by donors and partner countries to support the achievement of the Millennium Development Goals

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• MDG 8 – Develop a global Partnership for Development

In order for aid to become more effective, both donors and partner countries need to act

EuropeAid

What is aid effectiveness?Principles (partner countries and donors)

Partner countries must be in the driving seatand commit to leading the process (theCommission has actively promoted this idea)

Donors have a particular role as facilitators and

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Donors have a particular role as facilitators andin supporting capacity building initiatives

• They are expected to harmonise their actions, working together to achieve an effective division of labour (EU Code of Conduct on Division of Labour 2007)

EuropeAidThe Paris Declaration

Five principles:

• Ownership: partner countries take the lead

• Alignment: donors support partner strategies

• Harmonisation: donors harmonise

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• Harmonisation: donors harmonise

• Managing for results: improved resource management and decision making

• Mutual accountability: mutual assessment of progress

• Over 100 partner countries and donors signed

EuropeAidEuropeAid

Paris commitments not on track(PD Survey 2007, Global)

2010 Targets

1Operational Development

Strategies17% 75%

2Reliable Public Financial

Management Systems50%

3Aid flows are recorded in

countries' budgets42% 85%

4Technical assistance is

aligned & coordinated48% 50%

5aDonors use country PFM

Systems40% [80%]

Donors use country

2005

48%

50%

36%

60%

45%

24%

On track /Achievable / Off track

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5bDonors use country

procurement systems39% [80%]

6 Donors avoid parallel PIUs 1832 611

7 Aid is more predictable 41% 71%

8 Aid is untied 75% [100%]

9Donors use coordinated

mechanisms for aid delivery43% 66%

10aDonors coordinate their

missions18% 40%

10bDonors coordinate their

country studies42% 66%

11Sound frameworks to

monitor results7% 38%

12Mechanisms for mutal

accountability22% 100%

46%

88%

43%

46%

20%

42% (but no progress)

9%

24%

1601

50-60%

EuropeAid

(*EC has institutionalised information system to track performance against 4 EU Targets)

Baseline Progress Target

2005 2007 2010

Use of country systems

- Public Finance Management 40% 40% 60%

- Procurement 41% 37% 61%

Predictability (in-year)

- Commitments reported on budget 56% 61% 85%

- Disbursements as scheduled 49% 62% 75%

EC performance not on track*

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- Disbursements as scheduled 49% 62% 75%

Capacity building

- Coordinated Technical Cooperation 28% 50% 100%

- Parallel Project Implementation Units 204 105 68

- New parallel PIUs (EAMR Jan. 2008) 26 38 0

Harmonisation

- Program Based Approaches 50% 46% 66%

- Coordinated missions 33% 36% 66%

- Shared analysis 44% 88% 66%

EuropeAid

Joint Africa EU Strategy and Action PlanPartnership on the Millennium Development Goals

• Roadmaps to identify key deliverables, lead actors and

financial resources for each of the eight thematic

Partnerships of the Joint Africa EU Strategy

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EuropeAidMore effectiveBudget support

20% of aid: recipient countries responsible

• Direct transfer of funds to treasury

• General support, or for a specific sector

• Starting points: poverty reduction strategy,

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• Starting points: poverty reduction strategy, independent audit, functioning parliament, minimum level accountability in-country

• Focus on public finance management

• Country review on agreed indicators: e.g.: unemployment rates, school participation

EuropeAidQuality Implementation

Joint monitoring

Two types:

o joint monitoring carried out with other donors - ongoing dialogue within the family of international donors (in the context of Aid

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international donors (in the context of Aid Practitioners Network)

o joint monitoring implemented together with a partner government - AIDCO is developing a new methodology based on our positive experience in Ethiopia

EuropeAid

Conclusions

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Conclusions

EuropeAidConclusions on MDG

The Millennium Development Goals managed:

• to focus world attention to the plight of the poorest

• to achieve a significant reversal in ODA commitment.

• to provide a framework for partner countries and donors

But achievements so far are disappointing!!!

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This has implications for international community:

• Donor community must deliver on promises

• Crucial role of policies in developing countries

• Improve aid quality

• Policy coherence

• Progress on trade agreements

• Better regulation of the financial system

• A special agenda for fragile states

EuropeAidDevelopments & challenges for EuropeAid

• Aid effectiveness: driving the agenda and action plan forward; EU-US cooperation

• Quality: more focus on results-orientation, data quality

• Institutional change: new Commission, new

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• Institutional change: new Commission, new EP, Lisbon Treaty and External Action Service?

• Review: mid-term review of the financial framework, strategy papers, instruments

• Responding to the international context:financial, economic, climate and food crises (and migration). Challenges, but also opportunities? Commission Spring & Fall Packages

EuropeAidChallenges for the longer term

• Aid effectiveness: post Accra/Paris, 2010?

• MDGs: post 2015?

• Results: how we can systematically present and communicate results?

• Development assistance beyond shared EU

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• Development assistance beyond shared EU competence: is there still a need for bilateral aid from EU Member States?

• ‘Finalité de l’aide’: how long will we continue to deliver aid and finance large shares of budgets of partner countries? Should we already stop aid to Middle Income Countries?

EuropeAidTHANKS GRAZIE

For info: Open Calls for Proposals

Food Security Research for Development:

https://webgate.ec.europa.eu/europeaid/online-

services/index.cfm?ADSSChck=1252676955976&do=publi.detPUB&searchtype=AS&Pgm=7573842&aoet=

36538&ccnt=7573876&debpub=&orderby=upd&orderbyad=Desc&nbPubliList=15&page=1&aoref=128500

Environnent:

• https://webgate.ec.europa.eu/europeaid/online-

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services/index.cfm?ADSSChck=1249282404399&do=publi.detPUB&searchtype=AS&Pgm=7573841&aoet=

36538&ccnt=7573876&debpub=&orderby=upd&orderbyad=Desc&nbPubliList=15&page=1&aoref=128320

• Migration:

• https://webgate.ec.europa.eu/europeaid/online-

services/index.cfm?ADSSChck=1251729505585&do=publi.detPUB&searchtype=QS&orderby=upd&orderb

yad=Desc&nbPubliList=15&page=1&aoref=128764

• Other open Calls http://ec.europa.eu/europeaid/work/funding/index_en.htm