German and European Development Cooperation ZEFa PhD Course Uwe HOLTZ, November 29, 2006

1. German and European Development Cooperation ZEFa PhD Course Uwe HOLTZ, November 29, 2006

2. Development - a key political task of the 21st century. • Development cooperation in the narrow and in the broader sense • Development cooperation from outside may influence in a positive way the endeavours of developing and transition countries to improve the living conditions of their populations. • Germany and the European Union - major players in the development process.

4. Development • No single definition universally accepted > Values, political convictions, scientific findings, practical experiences

5. The Challenge to the South. The Report of the South Commission, Oxford 1990 Development is • a process which enables human beings to realize their potential, build self‑confidence, and lead lives of dignity and fulfilment. • It is a process which frees people from the fear of want and exploitation. • It is a movement away from political, economic, or social oppression. • Through development, political independence acquires its true significance. • And it is a process of growth, a movement essentially springing from within the society that is developing.

6. Willy Brandt, 1980 „While hunger rules peace cannot prevail. He who wants to ban war must also ban mass poverty.“

7. Holtz: Development means the satisfaction of basic human needs and the realisation of human rights. It must be sustainable. Brundtland Commission, “Our Common Future”, 1988: The term “sustainable development” is defined as “…development that meets the needs of the present without compromising the ability of future generations to meet their needs.” UNCED Rio 1992 > Agenda 21; WSSD Jo’burg 2002

8. Development • The concept of "development" cuts across many dimensions and levels. • Development should be understood as a process influenced by many actors. • Societies are always changing. Some improve, while others fail. Development theories aim at explaining both processes. • Development cooperation/aid means the donor‘s assistance to developing countries.

9. Official Development Assistance / Cooperation • DC in the form of project, programme or budget aid (+ debt relief) • ODA = grants or loans to countries and territories according to the DAC List of Aid Recipients (developing countries) and to multilateral institutions: (a) undertaken by the official sector; (b) with promotion of economic development and welfare as the main objective (# military); (c) at concessional financial terms (if a loan, having a grant element of at least 25 per cent).

10. ODA / GNI Ratio = ODA as % of GNI • 0.7% aid goal:The international goal for rich countries to devote 0.7% of their gross national income (previously: GDP) to official development assistance. 2005: 0,33 % • Gross National Income comprises the total value of goods and services produced within a country (i.e. its Gross Domestic Product), together with its income received from other countries, less similar payments made to other countries. GNI - a little bit higher than the GDP • ODA/GNI ratio (2003): 1,2 % (SSA 6,1 %)

13. The Millennium Declaration (2000) is “a landmark document for a new century” (UN Secretary General Kofi A. Annan). • The eight Millennium Development Goals / MDGs (2001) could serve as a benchmark by which development efforts and successes can be measured. • Both documents, reinforced in 2005, form the frame of referencefor the own efforts of developing countries as well as for German and European development policy. • The World Bank, the IMF and other UN institutions, “donors”, civil society organisations and the private sector are encouraged to contribute to the realisation of the MDGs

14. Appeal to all PhD Students ZEF’s mission is 1. to give scientific support to the implementation of Agenda 21, 2. to contribute to a sustainable development which ensures a life in human dignity for everyone.

15. References - Germany • Internet: http://www.bmz.de/en/index.html (BMZ / German Development Ministry) • The Federal Government (ed.): Partners for the Future – German Development Policy in the 21st Century, Berlin 2003. • BMZ (ed.): The German Government's 12th Development Policy Report, Bonn 2005 • Franz Nuscheler: Lern- und Arbeitsbuch Entwicklungs-politik (Development Policy Textbook and Manual), 5th completely rev. ed., Bonn 2004. • Jürgen H. Wolff: Development assistance. A helpful business? – An attempt to stake stock, Münster 2005. • OECD/DAC: Peer Review of Germany’s development co-operation policy, Paris 2006.

16. The development policy of the Federal Republic of Germany • An independent area of German foreign policy (“Development policy is a distinct component of our overall German foreign policy” – Coalition Agreement Nov 2005) • Formulated and executed by the Federal Ministry for Economic Cooperation and Development (with the corresponding Bundestag Committee as parliamentary counterpart) • Carried out by implementing organisations

17. The Agreement of the Great Coalition: • The aims of future government activities in the field of development cooperation will be: • contributing to reduce poverty worldwide, • safeguarding peace and preventing conflicts, • protecting the environment and preserving the natural resource base, • promoting democracy, the rule of law and good governance, gender equality and human rights, • shaping globalisation in a just way. • To this end, we will create conditions at interna-tional and national level which allow globally sustainable development.

19. Africa will continue to be a priority area of German development policy; other regions, too, will be able to count on Germany as a reliable partner. • The Coalition Agreement makes it clear that the new government will stand by the commitment made in the spring, to increase funding for development cooperation to 0.7% of gross national income by 2015. (0.33% by 2006, 0.51% by 2010). • Development policy concerns will continue to be taken account of in the field of agricultural, economic, foreign and security policy. • The reforms of European development policy and of the multilateral institutions will continue.

20. Specific challenges – interests • International terrorism • Civil wars • Failing, weak states • Environmental damages, climate change, soil erosion • Inequalities created by globalisation and social dumping

21. German development cooperation • Orientations: > internationally agreed goals > the Millennium Declaration and the 8 MDGs (Programme of Action 2015) > the Monterrey Consensus > the Johannesburg Plan of Implementation

22. of action Three levels international level partner country level Germany, Europe and other industrialized countries

23. Multilateral cooperation 40-50% of German ODA> EU, World Bank/IDA, UN, Regional Banks • Multilateral cooperation is needed to help solve the increasingly urgent global development problems: in particular poverty (PRSPs), HIV/AIDS, climate change, the threat to biodiversity, desertification, unstable financial markets. • It plays an active part in shaping global structures (global governance).

24. Germany's commitment within multinational institutions goes beyond the development-policy dimension, in the narrow sense. • Peace, security, worldwide stability and growth, placing international relations on a sound legal basis and the realisation of universal values are objectives and interests of the German government. • Since unification (1990) Germany has taken a high-profile role within multilateral institutions and plays an active part in shaping global structures.

25. Bilateral official development cooperation 50-60 % of German ODA > to more than 100 developing countries (from LLDCs to ‘anchor countries’) and to dev. countries related activities • The cooperation measures agreed upon in the government-to-government agreements form one pillar of German development cooperation with partner countries. • The second pillar consists of the activities proposed by non-governmental organisations and carried out in the partner countries • The German Länder/States and municipalities are supporting the German DC efforts by own contributions.

26. On the basis of economic, social, ecological and (geo-) political objectives and interests the BMZ selects -- 65 partner countries for comprehensive cooperation (Afghanistan, China, India, Indonesia, Cambodia, Vietnam; Cameroon, Egypt, Ghana, Kenya, Mali, Morocco, Namibia, Rwanda, South Africa, Tanzania; Algeria, Morocco, Jordan, Yemen; Bolivia, Brazil, Cuba, Costa Rica, El Salvador, Nicaragua, Peru; Turkey) -- 9 potential partner countries (Sierra Leone, Zimbabwe, Iran, Haiti) -- 18 transform/transition countries (Georgia, Kazakhstan, Uzbekistan, Tajikistan, Ukraine, Albania, Serbia, Macedonia) • The internal framework conditions are taken into account, as are the country's own efforts in the field of development • There is no consistent conditionalisation (political conditionality)

27. The BMZ-formulated rationale and objectives for German development policy constitute the basis for the aid channelling organisations • Kreditanstalt für Wiederaufbau (KfW – Frankfurt/Main) - the KfW development bank is the German institution responsible for FC. • DEG (Köln/Cologne), a subsidiary of KfW banking group - its aim is to promote growth in developing and transition countries through private sector development. • GTZ - Deutsche Gesellschaft für technische Zusammenarbeit (Eschborn, Frankfurt) is the TC channelling organisation.

28. The German Development Service (DED - Bonn) operates as a personnel cooperation service within the scope of the German government’s TC activities. It seconds human resources, but does not implement any projects of its own; i.e. it assigns experts on demand from partner countries to institutions and organisations in these countries. On top of this, DED also promotes local organisations through grants. > Civil Peace Service • InWEnt GmbH – German Capacity Building International (Bonn) is a public-benefit organisation for international human resources development, upgrading and dialogue. InWEnt implements upgrading measures to prepare experts for development cooperation. Furthermore, it also organises upgrading programmes for partner experts.

29. Non-governmental cooperationNGOs get some 500 mio. € p.a.– own funds ( private donations) amount to 1 bio. € • VENRO, the Association of German development non-governmental organisations (Bonn), is the umbrella organisation of 100 independent and church related NGOs working in the fields of development cooperation, emergency assistance, development education, and advocacy. • Some VENRO-members (BMZ / EU grants + donations): - German Agro Action (DWHH - Bonn) - The protestant Church Development Service (EED - Bonn) - Misereor, part of the Catholic Central Agency for Development Aid (KZE - Aachen) PS: The Centre for International Cooperation (CIC) in the Bonn region has taken on shape. More than 150 organisations have set up their headquarters in Bonn.

30. Political foundations: The political foundations promote institutions and social groups in developing and transition countries: • Konrad Adenauer Foundation (KAS), • Friedrich Ebert Foundation (FES), • Friedrich Naumann Foundation (FNS), • Hans Seidel Foundation (HSS), • Heinrich Böll Foundation (HBS) • Rosa Luxemburg Foundation (RLS)

32. Evaluations • Self-evaluations and independent evaluations are systematic assessments of ongoing or completed aid activities, their design, implementation and results, including impacts. • The results are of high importance: - They enable the BMZ, parliament and the public to look at the past: what has been achieved for the people of Africa, Asia, Latin America and Eastern Europe? - They help the BMZ, development partners and the implementing organisations to look ahead: how can German development cooperation be improved and continue to respond well to challenges in future?

33. DAC Criteria for Evaluating Development Assistance • Relevance: Doing the right thing.The extent to which the aid activity is suited to the priorities and policies of the target group, recipient and donor. • Effectiveness: Achieving the objectives. A measure of the extent to which an aid activity attains its objectives. • Impact: Achieving the expected results and the ovearching objectives. The positive and negative changes produced by a development intervention, directly or indirectly, intended or unintended. • Efficiency: Realising cost-effectiveness. Efficiency measures the outputs in relation to the inputs. • Sustainability: Ensuring durability.Sustainability is concerned with measuring whether the benefits of an activity are likely to continue after donor funding has been withdrawn.

34. German development cooperation achieved good, mixed results • Most of the projects and programmes are successful (KfW Evaluation Report 2006 – 177 projects in 57 countries / financing volume of EUR 6.3 bio: 71 % of the projects) • About one fifth did not reach the expected results (KfW: 17 % slightly insufficient despite having positive impacts; 12 % insufficient) • In some cases a total failure (KfW: 1 project)

35. Evaluation TC – GTZPricewaterhouseCoopers/PwC 2003 – a major international accounting and consulting firm Main findings of the report for July 2002 until July 2003: • 67 of the 100 evaluated projects will reach the targets. • 11 “risk”-projects will have great difficulties to reach the targets due to insufficient partner efforts and to worsened framework conditions. • Complaints: The indicators for the project objectives are too vague; in one third of all projects a clear judgement is not possible. • The GTZ learned the lessons stemming from the evaluations, but the necessary process of correction often took too much time.

36. Peer Reviews of DAC Members – Germany 2005 • Since the 2001 DAC Peer Review, the process of change in Germany’s approach to development co-operation has gained momentum enabling it to adapt to the evolving international context regarding development policy and practice, while at the same time taking into consideration DAC recommendations. • Like most other donors, Germany has committed to increase its Official Development Assistance (ODA) in support of the Millennium Development Goals (MDGs) and to improve the quality of aid in line with the 2005 Paris Declaration on Aid Effectiveness.

37. Recommendations • Greater efforts towards a consistent approach of the poverty reduction agenda • Streamlining the institutional setting and the multi-organisational German dev. cooperation system (by abolishing the increasingly artificial distinction between financial and technical co-operation) • Ensure a better public understanding of development issues (the fulfilment of international commitments will require broad-based support within the government and civil society, building on political foundations, church-based organisations and NGOs)

38. Adoption of an ODA growth implementation plan • Enhancing the coherence for development by a clearer and more operational BMZ policy statement • Need for an integrated approach of humanitarian policy providing guidance on civil-military relations, disaster risk reduction, environmental and social aspects

39. One year of development policy under the Great Coalition according to BMZ Minister Heidemarie Wieczorek-Zeul A) Poverty reduction: Giving new hope to many people - Microfinance - Promoting women in the private sector - Public-private partnerships - Contributions to fairer world trade - HIV/AIDS: production of generic drugs

40. B) Successful reconstruction under difficult circumstances - Prospects and hope for the people of Afghanistan C) Quick emergency assistance for people in crisis situations - Middle East: Quick assistance for Lebanese civilians - Comprehensive assistance for earthquake survivors in Kashmir region D) Efforts for peace and democracy - Congo: Democratization process in the public eye - Caucasus Initiative: Achieving peace through regional cooperation

41. E) Protecting the environment and stopping climate change - Acceleration of German efforts for renewable energy - Successful establishment of sustainable energy path at World Bank and development banks F) More financing for development

42. EU • http://europa.eu.int/comm/development/index_en.htm (European Community’s Development) • European Commission: Annual report 2006 on the European Community’s development po­licy and the implementation of external assistance in 2005, Luxemburg 2006. • http://www.euforic.org (platform for information, communication, and debate on Europe's development cooperation) • U. Holtz: Partnership for the 21st Century - A Preliminary Assessment of the EU-ACP Agreement, in: D+C (Development and Cooperation) 2/2000, p. 8-12. • OECD/DAC: Peer Review of the European Community, Paris 2002. • ECDPM/ICEI/ODI: Assessment of the EC Development Policy – DPS study report, Brussels, February 2005. • Sven Grimm: EU Development Cooperation: Rebuilding a tanker at sea (FES Berlin, Briefing Papers), Berlin, June 2006 Compulsory for all

43. EU Development Cooperation • The European Community - a unique donor > dual role in development: 1. bilateral donor 2. co-ordinating framework for European Union (EU) – nowadays 25 – Member States • The European Commission - the executive body, accountable to the European Parliament and the Member States meeting in Council

44. EU - a major global actor both economically and politically - Largest trading block in the world taking up 38 % of world exports, - Producing 36 % of the world’s GDP - Financing 50 % of the World’s Foreign Direct Investment - The world’s leading aid donor (55.7 billion USD of worldwide ODA 106.5 bn in 2005 (= 52,35 %). - influential in global governance institutions such as the WTO where it holds 27 % of the votes on the board and is the main financier of key policies and programmes and the UN where it is also the main financial contributor - the main trading partner to many developing countries with 47 % of its total imports and around 66% of its agricultural imports coming from the developing world (more than 48 bn euros) in 2003

45. DEVELOPMENT COOPERATION - EC Treaty Article 177 1. Community policy in the sphere of development cooperation, which shall be complementary to the policies pursued by the Member States, shall foster: - the sustainable economic and social development of the developing countries, and more particularly the most disadvantaged among them, - the smooth and gradual integration of the developing countries into the world economy, - the campaign against poverty in the developing countries.

46. 2. Community policy in this area shall contribute to the general objective of developing and consolidating democracy and the rule of law, and to that of respecting human rights and fundamental freedoms. 3. The Community and the Member States shall comply with the commitments and take account of the objectives they have approved in the context of the United Nations and other competent international organisations.

47. Article 180 1. The Community and the Member States shall coordinate their policies on development cooperation and shall consult each other on their aid programmes, including in international organisations and during international conferences. They may undertake joint action. Member States shall contribute if necessary to the implementation of Community aid programmes. 2. The Commission may take any useful initiative to promote the coordination referred to in paragraph 1.

48. EU-Treaty Article 3 The Union shall in particular ensure the consistency (coherence) of its external activities as a whole in the context of its external relations, security, economic and development policies.

49. Implementation • the European Commission, Directorate-General for Development; • EuropeAid co-operation Office (the handling of the entire project cycle, i.e. from project identification to the evaluation, is now fully in the hands of EuropeAid) • the other external services of the European Commission: ECHO (Humanitarian Aid), DG Relex, DG Trade… • the EC Delegations around the world; • the 25 EU Member States; • NGOs and the other actors of the European civil society.

50. Echo's mandateEuropean Community Humanitarian Aid Office • Since 1992, ECHO has funded humanitarian aid in more than 85 countries. Its grants cover emergency aid, food aid and aid to refugees and displaced persons worth a total of more than € 500 million per year. • The aid is channelled through EC NGOs (60 %), UN (28%), Intern. Organisations (9%) and EC Org/Gov Org/others (3%).