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
EuropeAid: the European Commission and the implementation of the MDGs 25 September 2009 Roberto Ridolfi, Head of Unit, EuropeAid Cooperation Office http://ec.europa.eu/europeaid/
1
Content
EuropeAid
• EU and the MDGs: global context • MDGs: the answer of EuropeAid • A better Aid: Develop a global Partnership for Development –MDG 8 • Conclusions
2
EuropeAid
EU and the MDGs: global context
3
EU and EC aid implementation
EuropeAid
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% 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
4
EU policy framework on MDGs Monterrey commitments 2002 :
EuropeAid
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,
•
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) 5
Official Development Assistance Percentage of Gross National Income: actual 2008, forecast 2010, objective 2015
EuropeAid
6
Special role of the EU in achieving MDGs
EuropeAid
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 • 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
7
Challenges for the EU
EuropeAid
• 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 • 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 8
EuropeAid
MDGs: the answer of EuropeAid
9
The EC and the external aid budget 2008
External aid: €12.8 bn (9%)
Non-EuropeAid Budget: €3.3 bn (26%)
Commission budget inside EU: €124 bn (91%)
EuropeAid
EuropeAid EDF fund: €4.8 bn (37%)
EuropeAid Budget: €4.6 bn (37%)
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)
10
EuropeAid
EuropeAid
• 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 • 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
11
EC 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 • 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
EuropeAid
12
EU financing mechanisms
EuropeAid
13
MDG 1 : Poverty and Hunger
EuropeAid
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
• Data from Millenium Development Goals Report 2009, UN 14
What EuropeAid does for MDG 1 –food security?
EuropeAid
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 € 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 15
Example of innovation: The €1 Billion Food Facility
EuropeAid
• 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: 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 16
Food Facility example also for MDG 8 –real Global Partnership
EuropeAid
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
• 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
17
General lessons to implement global food security agenda
EuropeAid
• International coordination example to follow to strengthen the already existing global mechanisms: • Programming decisions were based on country needs assessments • 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
18
2nd example of innovation for MDG1 EuropeAid
7 MDG Contracts in 2008 (1,521 M€): Burkina Faso, Ghana, Mali, Mozambique, Rwanda, Uganda, Zambia o o
o o
Aid more predictable, targeted at good performers Longer term time horizon: 6 years vs. 3 years for traditional budget support Larger predictable share: >70% against 50%-70% 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 19
MDGs 2, 3, 4, 5, 6: what EuropeAid does? • • • • •
Goal Goal Goal Goal Goal
2: 3: 4: 5: 6:
EuropeAid
Achieve universal primary education; Promote gender equality and empower women; Reduce child mortality; Improve maternal health; Combat HIV/AIDS, malaria and other diseases;
• 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 •
20
Investing in People:Indicative Allocation 2007-2013
EuropeAid
The programme covers all Developing countries, giving priority to those in most need of EC assistance to achieve the MDGs.
Social Cohesion, Employment & Decent Work € 82 m (8%)
Culture € 50 m (5%)
Total = € 1.06 billion
Children & Youth € 90 m (9%) Gender € 57 m (6%)
Health € 587,6 m (59%)
Education & Skills € 130 m (13%)
21
Investing in People: Calls for Proposals (2009) EuropeAid
6,5
Health workers
8 16
Reproductive health
6,05
TVET: Techn voc & educ train
9
4,3 3,5
Gender - ENPI Social inclusion
10
Non-communicable diseases
3,6 3
3,5
0 2009
5,3
5,4
Culture (2008+2009)
2008
10
11
Children participation Gender - DCI (2008+2009)
18
7,3 5
10
Expected 2010
15
20 Mio EUR
25
30
35
40 22
MDG 7 Ensure environnemental sustainability
EuropeAid
State of play: • Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources
Emissions of carbon dioxide (CO2), 1990 and 2006 (Billions of metric tons), data from Millenium Development Goals Report 2009, UN
23
What EuropeAid does for MDG7?
EuropeAid
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 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
24
Other examples of Innovation for MDG7 EuropeAid
• 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 (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
25
MDGs cross-cutting 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
•
Union for the Mediterranean Builds on the Barcelona process, increase regional integration & cohesion
•
Crisis situations Georgia, Palestinian Authority
26
EuropeAid
A better Aid: Develop a global Partnership for Development –MDG 8
27
Aid fragmentation in Bangladesh
Each EU donor + EC
UNICEF 1% UNDP 1% Norw ay 2% Sw eden 2% Germany 2%
IFAD 1% Sw itzerland 1%
EuropeAid
The Global Fund 1% 11 smallest donors < 1%
United States 3% Denmark 3%
IDA 33%
Canada 4% Netherlands 4%
Japan 5%
EC 5%
28
UK 13%
AsDF 19%
Aid fragmentation in Bangladesh
All EU MS donors + EC
UNICEF 1% IFAD 1%
UNDP 1% Norw ay 2% United States 3%
Sw itzerland 1% The Global Fund 1%
EuropeAid
coordinated
6 smallest donors <1%
Canada 4% Japan 5%
IDA 32%
AsDF 18%
29
EU 31%
What is aid effectiveness? Objectives
EuropeAid
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
â&#x20AC;˘ MDG 8 â&#x20AC;&#x201C; Develop a global Partnership for Development In order for aid to become more effective, both donors and partner countries need to act 30
What is aid effectiveness? Principles (partner countries and donors)
EuropeAid
Partner countries must be in the driving seat and commit to leading the process (the Commission has actively promoted this idea)
Donors have a particular role as facilitators and in supporting capacity building initiatives â&#x20AC;˘ 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) 31
The Paris Declaration
EuropeAid
Five principles: • Ownership: partner countries take the lead • Alignment: donors support partner strategies • 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 32
Paris commitments not on track (PD Survey 2007, Global)
EuropeAid
On track /Achievable / Off track 2005
2010 Targets
1
Operational Development Strategies
2
Reliable Public Financial Management Systems
3
Aid flows are recorded in countries' budgets
42%
4
Technical assistance is aligned & coordinated
48%
5a
Donors use country PFM Systems
40%
5b
Donors use country procurement systems
39%
6
Donors avoid parallel PIUs
1832
1601
611
7
Aid is more predictable
41%
46%
71%
8
Aid is untied
75%
9
Donors use coordinated mechanisms for aid delivery
43%
10a
Donors coordinate their missions
18%
20%
40%
10b
Donors coordinate their country studies
42%
42% (but no progress)
66%
11
Sound frameworks to monitor results
7%
9%
38%
12
Mechanisms for mutal accountability
22%
24%
17%
75% 36%
48%
50% 85% 50% 50%
45%
[80%] 50-60% [80%]
43%
88% 46%
24%
60%
[100%] 66%
100%
33
EC performance not on track* (*EC has institutionalised information system to track performance against 4 EU Targets)
Baseline
Progress
Target
2005
2007
2010
- Public Finance Management
40%
40%
60%
- Procurement
41%
37%
61%
- Commitments reported on budget
56%
61%
85%
- Disbursements as scheduled
49%
62%
75%
- Coordinated Technical Cooperation
28%
50%
100%
- Parallel Project Implementation Units
204
105
68
- New parallel PIUs (EAMR Jan. 2008)
26
38
0
- Program Based Approaches
50%
46%
66%
- Coordinated missions
33%
36%
66%
- Shared analysis
44%
88%
66%
EuropeAid
Use of country systems
Predictability (in-year)
Capacity building
Harmonisation
34
Joint Africa EU Strategy and Action Plan Partnership on the Millennium Development Goals â&#x20AC;˘
EuropeAid
Roadmaps to identify key deliverables, lead actors and financial resources for each of the eight thematic Partnerships of the Joint Africa EU Strategy
35
More effective Budget support
EuropeAid
20% of aid: recipient countries responsible • Direct transfer of funds to treasury • General support, or for a specific sector • 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 36
Quality Implementation
EuropeAid
Joint monitoring Two types: o
o
joint monitoring carried out with other donors - ongoing dialogue within the family of international donors (in the context of Aid Practitioners Network) joint monitoring implemented together with a partner government - AIDCO is developing a new methodology based on our positive experience in Ethiopia 37
EuropeAid
Conclusions
38
Conclusions on MDG EuropeAid
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!!! 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 39
Developments & challenges for EuropeAid
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 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? 40 Commission Spring & Fall Packages
Challenges for the longer term
EuropeAid
• Aid effectiveness: post Accra/Paris, 2010? • MDGs: post 2015? • Results: how we can systematically present and communicate results? • 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? 41
THANKS GRAZIE
EuropeAid
For info: Open Calls for Proposals Food Security Research for Development: https://webgate.ec.europa.eu/europeaid/onlineservices/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/onlineservices/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/onlineservices/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
42