Agenda
The primary and overarching objective of EU development policy is the eradication of poverty in the context of sustainable development, including the achievement of the Millennium Development Goals.
European Commission
Institutional Structure
The EU Commission
EuropeAid is the Directorate-General responsible for formulating EU development policy and defining sectoral policies in the field of external aid, in order to reduce poverty in the world, to ensure sustainable development and to promote democracy, peace and security. EuropeAid is responsible, either on its own or together with the European External Action Service, for the multiannual programming of the external aid instruments, which it implements.
EuropeAid is responsible for implementing the European Union’s external aid instruments, which are financed by the European Budget and the European Development Fund.
Regional
The European Commission uses the sector approach as a way of working with partner governments, donors and other stakeholders. It ensures partner governments’ ownership of development policy, strategy and spending. What is more, the sector approach offers increased coherence between national policies, sectoral policies, resource allocation and spending practices.
Budget
The overall amount proposed for the next seven years in 2011 prices is €1,025 billion in commitments (1.05% of the EU GNI) and €972.2 billion (1% of EU GNI) in payments.
EU leaders have reached their decision on the size and shape of the EU budget from 2014 to 2020. They have cut the EU’s long-term budget in real terms, by €34 billion, from the current €994 billion to €960 billion says European Commissioner for Development, Andris Piebalgs in Burma.
History
Created in 1957 by the Treaty of Rome, and first launched in 1959, the European Development Fund (EDF) is the main instrument for providing Community development aid in the African, Caribbean and Pacific (ACP) countries and the overseas countries and territories (OCTs). The EDF is an extra-budgetary fund, and therefore is funded by the Member States according to a specific contribution key, is subject to its own financial rules and is managed by a specific committee.
Since 2000, aid is based on a system of rolling programming, which gives the beneficiary countries greater responsibility for determining objectives, strategies and operations and for programme management and selection. Grants are allocated on the basis of an assessment of requirements and performances, following criteria negotiated between the beneficiary countries and the Community.
The European Commission's Directorate-General for Development and Cooperation, EuropeAid, was established on 3 January 2011. It is the result of the merger of parts of the former Directorate-General for Development and Relations with African, Caribbean and Pacific States with the former EuropeAid Co-operation Office. EuropeAid is now responsible not only for defining EU development policy but also for ensuring the effective programming and implementation of aid.
Challenges
The independent think-tank Notre Europe points out three challenges in the field of the EU’s development policy. First, as development policy is a shared competence, European ODA has its origin in the 27 [28] Member States plus the European institutions. This converts European development policy into a very fragmented area and difficult to be coordinated.
Second, the EU has to face a changing development environment, due to the rise of emerging economies and the rise of new global challenges such as climate change and food security. Third, the current financial and economic crisis is causing a wave of fiscal stringency throughout the Union that is seriously affecting budgets, and development spending is seeing serious cuts.
A prestigious research organisation has criticized the European Union's foreign aid policy. In a report the European Council on Foreign Relations (ECFR) says that the EU breaks its promises and is still using outdated models for its new aid programs. It also blames turf wars among member countries for further inefficiencies.
Current status
Budget Cuts
In February 2013 the EU leaders agreed on a total budget of €960 billion for the EU in 2014-2020. The two main pillars for the EU’s development aid are the European Development Fund (EDF) and the Development Cooperation Instrument (DCI). Both have been slashed significantly as part of the budget negotiations. The amount reserved for overseas aid in the EDF amounts to €26.986 billion, compared with €29.998 billion in the Commission proposal – a difference of 10.1%.
Key Policies
The European Consensus on Development reflects the European Union willingness to make a decisive contribution to the eradication of poverty in the world and to help build a more peaceful and equitable world. It was agreed that the EU will be primarily active in nine areas.
• Trade and regional integration
• Environment and the sustainable management of natural resources
• Infrastructure, communications and transport
• Energy
• Rural development (territorial planning, agriculture and food security)
• Governance, democracy and human rights
• Peace and security
• Human development
• Social cohesion and employment
Key Figures
Top Ten European Union Donor Ranking (Official Development Assistance as % of GNI in 2011)
1. Sweden (1,02)
2. Luxembourg (0,99)
3. Denmark (0,86)
4. Netherlands (0,78)
5. United Kingdom (0,56)
6. Belgium (0,53)
7. Finland (0,52)
8. Ireland (0,52)
9. France (0,46)
10. Germany (0,40)
Top 5 Recipient of EU Official Development Assistance (in billion dollars)
1. Africa (47,9)
2. Asia (36,7)
3. Latin America and the Caribbean (10,8)
4. Europe (5,7)
5. Pacific (2,0)
Transition to Globalisation
EU Development Ministers and Commissioners meeting in Dublin in February agreed to resume long-term development support to Mali. Up to €250 million in EU funding will be made available in 2013 to support Mali to restore democracy and peace and to ensure that vulnerable communities can access nutritious food, clean water and sanitation.
Globalisation -> Social -> Humanitarian -> Poverty -> Hunger
Transition to Political Tools
Aid for Trade is a broad concept that includes financing for various areas related to improving countries' capacity to trade. This can include support for building new transport, energy or telecommunications infrastructure, investments in agriculture, fisheries and services, as well as assistance in managing any balance of payments shortfalls due to changes in the world trading environment.
Political Tools -> Regional -> Europe -> EU -> Ext. Policies -> Trade
Transition to Political Actors
ECDPM is a “think and do tank”. Our main goal today is to broker effective development partnerships between the EU and the Global South, particularly Africa. Our mission has two components: (i) to strengthen the policy management capacity of institutions and other players in the countries of Africa, the Caribbean and the Pacific and (ii) to improve relations between the European Union and African, Caribbean and Pacific countries.
Political Actors -> Civil society -> Think Tanks -> Social -> Development
