The EU development aid context

1. ITUC Conference on “Development is Social Justice –Trade Unions for Decent Work”13-14 October 2009Koos RichelleDirector GeneralEuropeAid Cooperation OfficeRunö, Stockholm, 13 October 2009

2. 1 The EU development aid context

3. EC response: the policy framework • 2000 UN 8Millennium Development Goals, fixing poverty reduction objectives for 2015 • 2005 OECD Paris Declaration, 60 recipients and 50 donors on aid effectiveness • 2005European Consensus, the EU development policy, tying Member States and Commission • 2007 EU Code on Division of Labour • 2008Accra High Level Forum on aid effectiveness • 2008Doha Conference on financing for development.

4. EU & 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

5. The EC and the external aid budget 2008 External aid: €12.8 bn(9%) EuropeAid EDF fund: €4.8 bn (37%) Non-EuropeAid Budget: €3.3 bn(26%) Commission budget inside EU: €124 bn (91%) 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)

6. Official Development Assistance Percentage of Gross National Income: actual2008, forecast2010,objective2015 2015 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

7. 2 Towards delivering more & better aid

8. Paid out in 2008: €7 billionRecord year for project implementation Budget EDF

9. Geographic distribution of funds - 2008 EuropeAid spending per region, ODA and OA, ACP including South Africa and Bananas

10. Distribution of funds by horizontal programme - 2008 * Thematic programmes include: non-state actors & local authorities, investing in people, gender, environment, migration and food security

11. 3 More means than only aid…

12. Trade and remittances • EU’s import in 2008 from Developing Countries amounts to € 890 billion and from Least Developed Countries to € 25 billion; • Recorded remittances of migrant labour force amounted to $380 billion in 2008 worldwide; Unrecorded remittances adds up additional 50% to recorded remittances (WB source); Home countries would benefit both from ‘Brain Gain’ and conversion of remittances into productive businesses;

13. EU trade policies for development • EU’s Aid for Trade Strategy (2007) with a pro-poor focus of the assistance (€3,109 million/2007) • ‘Classical’ Trade Related Assistance (€1,005 million / 2007) • Improve developing countries' integration into the world trading system with a comprehensive view to poverty reduction; • Generalised System of Preferences (GSP) trade agreements, reduced tariffs (GSP+ is conditioned on adoption of core labour standards); 13

14. Democratic & Good Governance • Governance in the European Consensus on Development, EC Communication, 2006 Governance is a priority in donors’ development policies and aid; Capacity building to support democratisation processes, accountability, transparency, etc. in partner countries; Enhancing ownership and dialogue with economic and social actors;

15. EU’s added value - protecting the vulnerable Increased need for greater attention in development cooperation towards the systems of Solidarity Social protection & safety nets Social dialogue The EU has an added value and vast experience to give inspirations to our partners in these fields. 15

16. EC aid to promote decent work • € 1.9 billion support to DW related programmes over 1999-2010 via bilateral and thematic aid programmes; (Investing in People) • Support provided to the development and implementation of home-grown sector-wide reforms in partner countries; • EC supported reforms cover social protection systems, safety nets, skills development /vocational training systems, employment services, etc.; 16

17. 4 Role of Civil Society & Social Partners

18. Role of the CSOs Accra Action Plan 2008 ► agenda extended to the civil society organisations (CSOs) • CSOs are invited to examine how they can contribute to the Aid Effectiveness, reflecting on their specific added-value in development cooperation; • Working towards an “enabling environment” for CSOs;

19. CSOs initiatives in the «post-Accra» • Open Forum on CSO Development Effectiveness International CSO-driven process to define a global development effectiveness framework applicable to civil society organisations. • Better Aid: International CSO-driven process to contribute to the effective implementation of the Paris Declaration and AAA: monitoring of donors, watchdog, etc. • Activities: Organisation of national & regional CSO consultations; Global Assembly in 2010 and 2011 to finalise consensus building in view of the 4th High Level Forum (Seoul 2011). 19

20. Social partners in development co-operation • Distinguished role of social partners in the Acquis Communitaire of the EU as part of democratic governance; • Social partners have strong influence on formulation of policy reforms; (see also Corporate Social Responsibility) • Representation, credibility and legitimacy of the social partners are essential for effective and efficient social dialogue and thus for the acceptability of policy reforms & their implementation; 20

21. Social partners in development co-operation EC development assistance in partner countries covers inter alia the following aspects: Improved effectiveness of regulations, state administration, public finance systems and public services to promote decent work related measures; • Promote social dialogue in direct and indirect manner (e.g. VET systems) and also within the frame of improved governance and rule of law; • Provision of capacity building to social partners; Need for reinforcement of support and for increased demand from partner governments to support DW aspects 21

22. 5 Challenges & Priorities for the EC

23. Challenges & Priorities Challenges in the DW context: • Empowerment of social partners to be able to fulfil their roles in sector policy design; • Open up space for social and private sector actors/partners to participate in sector reform dialogues; • EC supported Sector Programmes in partner countries to be considered as an entry points for developing social dialogue; 23

24. Aid effectiveness Deliver on 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 Challenges & Priorities

25. Challenges & Priorities • Better orientation towards results • Positioning of development cooperation towards the new External Action Service (EAS) • EU Budget revision 2014 – 2020 • Define position towards Middle Income Countries 25

26. Challenges & Priorities • Policy Coherence: need for coherence at EC level • Contribution to Climate Change agenda • Observe status of 0.7% contributions by MS • Overview the implementation of EU policies on 2015 MDGs • Relevance of ODA concept

27. THANK YOU!