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EuropeAid

EuropeAid: tasks, performance and challenges ahead

Koos RichelleDirector GeneralEuropeAid Cooperation OfficeNicosia, 4th May 2009

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EuropeAid

1The EU development aid context

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EuropeAidThe external aid context

Policies, instruments

• 2000 UN 8 Millennium Development Goals, fixing poverty reduction objectives for 2015

• 2005 OECD Paris Declaration, 60 recipients and

50 donors on aid effectiveness

• 2005 European Consensus, the EU development policy, tying Member States and Commission

• 2007 EU Code on Division of Labour

• 2008 Accra High Level Forum on aid effectiveness

• 2008 Doha Conference on financing for development.

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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%

European Commission on its own:• Second largest donor of humanitarian aid• Third largest donor of development aid (11%,

after USA and Germany)• Present in aprox. 140 countries

Based on OECD/DAC preliminary figures 2009

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EuropeAidThe EC and the external aid budget 2008

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

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

fund: €4.8 bn (37%)

EuropeAid Budget: €4.6 bn

(37%)

Non-EuropeAid Budget: €3.3 bn

(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)

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EuropeAidOfficial Development Assistance

Percentage of Gross National Income: actual 2008, forecast 2010, objective 2015

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20082015

Source: OECD DAC where available. EC data base on MS information to the EC or the DAC for 2008. EU DAC Average: 0.42% in 2008 compared with 0.38% in 2007

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EuropeAid

2EuropeAid: Tasks

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EuropeAidEuropeAid Tasks

• Responsible for implementing external aid programmes across the world

• Aims to deliver development aid in an efficient and effective way

• Responsible for translating policies into practical aid actions and for developing new ways of aid delivery

• Responsible for the steps of aid delivery: identification, feasibility, financial decisions and controls, tendering, contracting, monitoring and evaluation

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EuropeAid

3EuropeAid PerformanceMore aid

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EuropeAidEuropeAid paid out in 2008: €7 billion

EDF

Budget

Record year for project implementation

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2

4

6

8

'02 '03 '04 '05 '06 '07' '08

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EuropeAid

Geographic distribution of funds2008

EuropeAid spending per region, ODA and OA, ACP including South Africa and Bananas

In M€

1137

318

673

310

3443

European Neighbourhoodsouth: 1137M

European Neighbourhoodeast: 318M

Asia + Central Asia: 673M

Latin America: 310M

Africa, Caribbean, Pacific:3443M

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EuropeAidDistribution of funds by horizontal programme2008

2008, payments per thematic programme, in M€

690

112

3475 Thematic programmes*:

690M

Democracy & humanrights: 112M

Stability instrument (postcrisis): 34M

Nuclear safety: 75M

* Thematic programmes include: non-state actors & local authorities, investing in people, gender, environment, migration and food security

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EuropeAid

4EuropeAid performanceBetter aid

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EuropeAid

Better aid New AIDCO programmes as of 2007

Average annual commitments 2007-2013

• Neighbourhood, 17 countries 1.6 bn• 10th EDF, 78 countries / OCTs 3.7 bn• Development, 48 countries 1.4 bn• Development, sugar, 18 ACP countries 180 mn• Development, thematic 800 mn• Human rights & Democracy 160 mn• Stability (post crisis) 290 mn• Nuclear safety 75 mn

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EuropeAid

Example 1 10th European Development Fund (EDF)

Scope Based on Cotonou agreement:Country specific programmes Horizontal programmes

Region78 African, Caribbean, Pacificcountries and OCTs

Funding Average €3.7 billion per year

Start July 2008

Examples Infrastructure projects, rural development, institution building, HIV/AIDS, education

web http://ec.europa.eu/europeaid/where/acp/

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EuropeAidExample 2 Neighbourhood instrument (ENPI)

Scope Country specific programmes Cross border cooperation with EU Member States

Region17 countries: Mediterranean,Eastern Europe, Russia,Caucasus, Middle East

Funding Average €1.6 billion per year

Examples Palestine, Eastern Partnership

web http://ec.europa.eu/europeaid/where/neighbourhood/

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EuropeAid

Example 3 Thematic Programmes

Funding Average € 960 million p.a.

RegionAll third countriesexcept industrialised / pre-accession

Themes Democracy & human rights € 160 million

Investing in people 150Environment 120NSAs / local authorities 230Food security 240Migration / asylum 60

Examples help for rape victims in Botswana,election observation in Mauritania, eco-systems in Chad

web ec.europa.eu/europeaid/what/human-social-development

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EuropeAidBetter aid: general budget support

Budget support delivered in around 55 countries

• 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

Output focus: more or less corruption?

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EuropeAidBetter aid: quality assessment & evaluation

Quality feedback at Design stage• Screening of project ideas through Quality Support Groups – 99% of amounts screened in ’08

Quality feedback at Implementation stage

• Results oriented monitoring – ROM

• 2008: 149 countries visited: 1249 reports

71% good performance, 6% major problems

Quality feedback after projects end

• In-depth evaluations ex-post • 2008 findings include: good relevance and EC added

value in regional programmes, but problems with sustainability and heavy procedures

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EuropeAid

Better aid: aid effectiveness

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EuropeAid

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EuropeAidWhat is aid effectiveness?

Aid effectiveness entails improving the coordination, management, delivery and complementarity of development co-operation activities to ensure the highest development impact.

Devised by donors and partner countries to support the achievement of the Millennium Development Goals

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

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EuropeAid

5Challenges 2009 and beyond

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EuropeAid

Outlook 2009 – aid effectiveness

Follow-up to the Accra Agenda for Action

• Use Country Systems: channel 50% of aid to public sector through country system

• In-country Division of Labour: implement now

• Untying Aid: elaborate plans to further untie aid

• Conditionality: agree conditions based on national development strategies

• Predictability: 3-5 yr forward info on expenditure

• Transparency: regular public disclosure

EuropeAid ACTION PLAN to deliver

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EuropeAid

Outlook 2009: developments & challenges

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

• Institutional change: New Commission, New EP. Lisbon Treaty (?)

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

• Responding to the international context: financial crisis, food crisis. Challenges, but opportunities to revamp ideas?

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EuropeAid

THANK YOU