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Dublin, 21st September 2009 Koos Richelle Director General EuropeAid Cooperation Office

Dublin, 21st September 2009 Koos Richelle Director General EuropeAid Cooperation Office. Outline of Presentation Funding and global context Facts & Figures in 2008 External aid & Innovation Quality Aid Effectiveness Organisation Outlook end 2009 and beyond. 1. Funding and global context.

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Dublin, 21st September 2009 Koos Richelle Director General EuropeAid Cooperation Office

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  1. Dublin, 21st September 2009Koos RichelleDirector GeneralEuropeAid Cooperation Office

  2. Outline of Presentation • Funding and global context • Facts & Figures in 2008 • External aid & Innovation • Quality • Aid Effectiveness • Organisation • Outlook end 2009 and beyond

  3. 1 Funding and global context

  4. EU 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 figures 2009

  5. 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

  6. Ireland– funding levels through history Source: OECD/DAC website www.oecd.org/dac/stats

  7. Ireland – ’09 OECD/DAC peer review ☺ Poverty reductionis overarching goal ☺ Aid is well concentrated onlimited numberof very poorAfrican countries ☺ Enhanced policy coherence for development ☺ ODAfundinghasincreased by 90%since 2003, reachingUSD 1.3 billion in 2008 Ireland’s financial contribution keys to EC: Budget: 1.42 10th EDF: 0.91 (up from 0.62 under 9th EDF) Source: OECD/DAC Peer review Ireland, 2009

  8. 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)

  9. EC development programmes 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

  10. NSAs are fullactors in the field of development: Participation of civil society in the definition,implementation and monitoring of development policies Strengthening of civil societyis an objective in itself Search for a better complementaritybetween state and non-state actors at national, regional and local level EuropeAid funding opportunities: http://ec.europa.eu/europeaid/work/funding/index_en.htm The EC and Non State Actors (NSAs)

  11. 2 Facts and Figures in 2008

  12. Financial commitments in 2008 Budget & EDF commitments 2008 Planned: €7.3 bn - we did €9.3 bn Budget EDF

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

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

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

  16. 3 External aid and innovation

  17. Innovation (a) • The Global Energy Efficiency and Renewable Energy Fund: mobilise private investments to fight climate change & poverty. EC investment = €80 M 2007-10 • Neighbourhood Investment Facility: EC grants with European Finance Institutions to generate large projects on energy, social, transport & environment. EC invest. = €50-70 M per year • EU-African Infrastructure Trust Fund:interconnecting Africa through large regional programmes. EC investment = €108.7 M • EU-ACP Peace Facility: African-led peace support operations and capacity building activities in the field of peace and security. EC investment = €300 M for 2008-2010

  18. Innovation (b) • 7 MDG Contracts in 2008(1,521 M€): Burkina Faso, Ghana, Mali, Mozambique, Rwanda, Uganda, Zambia • Aid more predictable, targeted atgood performers • Longer term timehorizon: 6 years vs. 3 years for traditional budget support • Larger predictable share: >70% against 50%-70% • Annual performance trancheup to 15% &contract reviewafter 3 years to determine tranche on basis of MDG-related result indicators (at least 15%) • Mali Migration Centre • First co-financings/delegated cooperationwith EU Member states

  19. 4 Quality

  20. Quality AIDCO has a system in place to ensure and improve the quality of our operations covering the whole project cycle from the design phase, through the… implementation phase, to … ex-post evaluation of impact and sustainability

  21. QualityImplementation (a) ROM* performance feedback 2008 No. of countries visited149 No. of monitoring reports1249 Billion euro covered5.5 Stable performanceon-going projects: 2007 2008 Very good performance 4%3% Good performance 67%71% Performing with problems 21% 20% Major problems 8%6% Improvement in African countries * ROM = results oriented monitoring

  22. QualityImplementation (b) Joint monitoring Two types: • 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

  23. 5 Aid Effectiveness

  24. EU countries + EC taken together

  25. The Road Ahead:EuropeAid Action Plan Action plan - Priorities based on Paris & Accra Core business for All - Not only a task for experts Use of country systems: TC/PIU backbone strategy; budget support and decentralised management Division of labour: fast tracking initiative, delegated cooperation if needed Untying of aid: assessment; revision of reporting Predictabilityand transparency: assessment; International Aid Transparency Initiative Conditionality: assessment

  26. Delegated cooperation Status September 2009 52 agreements in pipeline: • 38 delegation agreements aprox. €214 million • 14 transfer agreements aprox. €126 million • Ireland has not yet requested to be eligible for delegated cooperation

  27. Ireland – ’09 OECD/DAC peer review ☺ Ireland is “champion” in making aid more effective ☺ Full untying of aid ☺ No use of parallel project implementation units ☺ Good performance in use of national systems, sector wide approaches, use of pool funding ☺ Works closely on division of labour and coordination Source: OECD/DAC Peer review Ireland, 2009

  28. 6 Organisation

  29. EuropeAid comparative study of aid implementation processes Objectives & Methodology • To compare aid implementation processes: average time frames; decision-making at HQ and in field offices; procedures • Challenge to compare 5 different donors (EC, AfD, SIDA, DFID, DGIS) • Matrixto compare processes • Interviews (HQs & 3 partner countries) • Consultation& validationby MS

  30. Main findings comparative study: Timelines Total Approval* = 20 wks *Approval = translations, Comitology & EP scrutiny at both programming & design stages

  31. 7 Outlook end 2009 and beyond

  32. Outlook 2009: developments & challenges • 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 (?) • 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? Commission Spring Package

  33. Challenges for the longer term • Aid effectiveness: post Accra/Paris, 2010? • MDGs: post 2015? • Results: how we can systematically present and communicate results? Is the ‘Resultaten Rapportage’ the anwer? • 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?

  34. THANK YOU!

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