A fast changing international context

Development and Cooperation - EuropeAid

Increasing the impact of EU Development Policy

- An Agenda for Change – Nicoletta Merlo

EuropeAid - Development and Cooperation European Commission


A fast changing international context

Graduation: increased standards of living, 25 countries recently moved from category (LICs to LMICs or from LMICs to UMICs)

New actors : private sector, private foundations, emerging donors, local authorities;

Population growth : world population to reach 9.3bn by 2050; Africa fastest-growing continent

3 global crises: food prices, oil/energy prices volatility, economic and financial crisis

Economic downturn & budget constraints ‘Arab spring’: importance of good governance and democracy,

employment and growth, security-development nexus brought into sharper focus

Regional vulnerabilities & crises: Horn of Africa (drought/famine)

Strong growth but weak effect on poverty reduction – ref African Economic Outlook Report: 2001-09: 5-6% real GDP /slowdown 2009 3.1%– rebound - projection 5.8% in 2012


Reflecting on the future of EU development policy

• Green Paper on “EU development policy in support of inclusive growth and sustainable development – Increasing the impact of EU development policy”-

In parallel with:

• Green Paper on “The future of EU budget support to third countries”

• Public consultation on “What funding for EU external action after 2013?” - preparing the next Multiannual Financial Framework 2014-2020


Policy prioritiesThe MDGs as a global development

framework for measuring resultsGood governance, democracy, human rightsFoundations for inclusive growth (e.g. social

protection, health & education)Drivers for growth and job creation (e.g.

business environment, regional integration)Sectors with strong multiplier impact and

contributing to environmental protection + climate change prevention/adaptation : sustainable agriculture and efficient renewable energy


Main principles• Concentration : focus on maximum 3 sectors

• Differentiation : – Target resources where they are needed and where they

have greatest impact Allocation of EU development assistance according to partner

countries' needs, capacities, commitments and performance, as well as the potential EU impact

Supporting development in the Neighbourhood and Sub-Saharan Africa, as well as in fragile countries

– Need for other types of cooperation and new partnerships with more advanced developing countries

Diversify aid modalities and develop other types of cooperation (e.g. loan-grant blending, technical coop, twinnings, etc.)

Development partnership based on mutual interests with emerging economies and strategic partners

• Joint programming


Civil society and local authorities in the Agenda for Change• Importance of civil society organisations (CSOs) and local

authorities (LAs) reaffirmed. The EU should «work more closely » with these actors (part 1)

• Focus on human rights, democracy and good governance – Political and policy dialogue with all stakeholders – In cases where a country loosen its commitment to human rights and

democracy, strengthened cooperation with Non State Actors/LAs• Dialogue with civil society and local authorities : built on results of the

structured dialogue (for instance, importance of supporting an organised local civil society, finding ways to mobilising LA’s expertise…).

• Role of CSOs and LA in inclusive growth, agriculture and energy : there is a role to play for CSOs and LAs in promoting innovative models/practises (forging new type of partnerships promoting decent work, corporate social responsibility…), watchdog role concerning sustainability of processes…

• Policy Coherence for Development: advocacy role of CSOs and LAs needed to reinforce PCD at European level.

• Budget Support : monitoring role (See with A2 presentation)


What next?

Guiding principles to be progressively reflected in:

remainder of the current programming cycles & future programming documents

proposals regarding the architecture, legislation and programming of future financial instruments for external action

Council Conclusions foreseen in first half 2012


Thank you.

Questions? Comments?

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A fast changing international context