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EuropeAid Funding & Innovation, Key Insights for 2009 and Beyond

This presentation by Koos Richelle, Director General of EuropeAid Cooperation Office, outlines key aspects of funding, global context, facts, and figures for 2008, external aid and innovation, aid effectiveness, organization, and outlook for the end of 2009 and beyond. It highlights the EU and EC's role as major donors, providing detailed statistics on development assistance, official development assistance percentage of Gross National Income, funding levels in Ireland, the EC's aid budget for 2008, and EuropeAid funding opportunities. The presentation also covers financial commitments in 2008, geographic distribution of funds, external aid and innovation initiatives, and the quality assurance system in place at EuropeAid. It provides valuable insights into the strategies and priorities of EuropeAid for sustainable development and effective aid delivery.

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EuropeAid Funding & Innovation, Key Insights for 2009 and Beyond

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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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