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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/

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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

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EuropeAid

EU and the MDGs: global context

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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

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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

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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

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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)

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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

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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

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EU financing mechanisms

EuropeAid

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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

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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

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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 •

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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%)

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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

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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)

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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

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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

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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

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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

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EuropeAid

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

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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%

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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%

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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%

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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%

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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%

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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

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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

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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

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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

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29 SCN 37-527