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1. 1
EU-Enlargement and the Third World
ZEFa PhD-Course
Uwe HOLTZ, February 2/3, 2004
2. 2 Course Objectives to acquaint you with the major issues in EU enlargement
to introduce you to the major subfields in the study of EU-Third World relations
to help develop your own thinking and analytical ability
3. 3 Topics to be covered Introduction to European integration
Enlargement history and accession criteria
EU – a global player
EU’s Third World relations and its development cooperation
The so-called “acquis communautaire” and its implications for new Member States
Development cooperation of the acceding countries incl. their specific experiences - challenges to be met
The possible impact of accession on
the development policy of the candidate countries,
the EU,
the Third World.
4. 4 References Poul Nielson (Commissioner for Development and Humanitarian Aid): Progress in Reforming EC Development Policy and Cooperation, Copenhagen, November 2002,
Michael Dauderstädt (ed.): EU Eastern Enlargement and Development Cooperation (Friedrich-Ebert-Foundation), Bonn, November 2002,
European Commission (ed.): The EU’s current agenda for Development Policy and Enlargement, Brussels 2003.
James Mackie: Challenges for 2003. The Changing Framework of EU External Relations and its Implications for the ACP. (ECDPM In Brief 1). Maastricht, February 2003
InWEnt/Internationale Weiterbildung und Entwicklung-Capacity Building International (ed.): The Enlarged European Union - Partner of the Developing World. Summary Report, Bonn 2003.
Léna Krichewsky: Development Policy in the Accession Countries, TRIALOG Study – 2nd ed., Vienna 2003
Michael Dauderstädt (ed.): Enlargement and the EU’s External Relations, Bonn, June 2003,
Simon Maxwell/Paul Engel: European Development Cooperation to 2010 (ODI Working Paper 219/ECDPM Discussion Paper 48), London, May 2003.
European Commission (ed.): The Consequences of Enlargement for Development Policy (Report prepared by a team led by Stefano Migliorisi/Development Strategies - IDC), Brussels 2003.
James Mackie/Heather Baser/Jonas Frederiksen/Oliver Hasse: Ensuring that Development Cooperation Matters in the New Europe (ECDPM), Maastricht, October 2003.
Website EU Cooperation and Enlargement: http://europa.eu.int/comm/development/body/organisation/eu_enlargement_en.htm
5. 5 1. Introduction
6. 6 EU and CoE: “two creations of the same vision” (W. Schwimmer) The Europe of the 15 (since May 1, 2004: 25) = European Union
The Greater Europe = The Council of Europe with its 45 countries, including 21 countries from Central and Eastern Europe and the Caucasus The Council was set up to: - defend human rights, parliamentary democracy and the rule of law, - develop continent-wide agreements to standardise member countries' social and legal practices, - promote awareness of a European identity based on shared values and cutting across different cultures.
Since 1989, its main job has become: - acting as a political anchor and human rights watchdog for Europe's post-communist democracies, - assisting the countries of central and eastern Europe in carrying out and consolidating political, legal and constitutional reform in parallel with economic reform, - providing know-how in areas such as human rights, local democracy, education, culture and the environment,
- acting as the watchdog of the OECD and the EBRD.
The Organization for Security and Co-operation in Europe (OSCE) is the largest regional security organization in the world with 55 participating States from Europe, Central Asia and North America. It is active in early warning, conflict prevention, crisis management and post-conflict rehabilitation.
7. 7 Steps towards (European) integration = common policies Council of Europe > greater unity in Europe
Free Trade Area (EFTA)
Customs Union (EEC; EC-Turkey)
Common Market (EC)
Monetary Union (Euro-Zone)
Political Union (EU)
In the early years, much of the co-operation between EC
countries was about trade and the economy, but now the EU also
deals with many other subjects of direct importance for our
everyday life, such as citizens' rights; ensuring freedom, security
and justice; job creation; regional development; environmental
protection, making globalisation work for everyone.
8. 8 15 EU Member States with a total of 380
million citizens
9. 9 EU Constitution Article 13: Areas of shared competence 1. The Union shall have exclusive competence to establish the competition rules necessary for the functioning of the internal market, and in the following areas:
monetary policy, for the Member States which have adopted the euro,
common commercial policy,
customs union,
the conservation of marine biological resources under the common fisheries policy.
2. Shared competence applies in the following principal areas:
internal market,
agriculture and fisheries, excluding the conservation of marine biological resources,
transport and trans-European networks,
10. 10 social policy, for aspects defined in Part III,
economic, social and territorial cohesion,
environment,
consumer protection,
common safety concerns in public health matters.
3. In the areas of research, technological development and space, the Union shall have competence to carry out actions, in particular to define and implement programmes …
4. In the areas of development cooperation and humanitarian aid,
the Union shall have competence to take action and conduct a
common policy; however, the exercise of that competence may
not result in Member States being prevented from exercising
theirs.
11. 11 EU: a family of democratic European countries Art. 6 EU Treaty:
The Union is founded on the principles of liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law, principles which are common to the Member States.
The Union shall respect fundamental rights, as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms and as they result from the constitutional traditions common to the Member States, as general principles of Community law.
However, there is a democratic deficit – mainly with
regard to parliamentary powers.
12. 12 The EU’s aims are
to promote peace, its values and prosperity,
to end the division of the European continent.
It is not a State intended to replace existing states, but it is more than any other international organisation, by having set up common institutions to which they delegate some of their sovereignty.
The EU desires
to deepen the solidarity between their peoples while respecting their history, their culture and their traditions (“unity in diversity”),
to reinforce the European identity and its independence in order to promote peace, security and progress in Europe and in the world.
13. 13 EU institutions European Parliament (elected by the citizens of the Member States – Strasbourg/Brussels);
Council of the European Union (representing the governments of the Member States);
European Commission (driving force and executive body - Brussels);
Court of Justice (ensuring compliance with the law - Luxembourg);
Court of Auditors (controlling sound and lawful management of the EU budget - Lux/Brux).
14. 14 EU Budget The Council has the final say on the level and structure of all compulsory expenditure (resulting from the Treaty or from acts adopted in accordance with it). This comprises spending on the Common Agricultural Policy (CAP), and other much smaller budget items. Because of the size of the CAP, compulsory expenditure takes up just under half the total budget.
All other budget expenditure is classed as non-compulsory, over which the European Parliament has the final decision.
15. 15 The budget for 2003 is just under €100 billion. Spending is split as follows:
16. 16 2. Enlargement history - accession criteria 1952: Treaty establishing the European Coal and Steel Community enters into force (6 founding States: BeNeLux, France, Germany, Italy)
1958: Treaties establishing the European Economic Community (EEC) and EURATOM enter into force
1973: Denmark, Ireland and the United Kingdom join the EC
1981 Greece joins the EC
1986: Portugal and Spain join to the EC
1986: The European Single Act (as from 1 January 1993, open up a huge internal market where goods, capital, services and people could circulate freely)
1990 German unification (former GDR part of the EC) – the “Cold War” comes to an end
17. 17 1993: The Maastricht Treaty on European Union enters into force on 1 November
1995: Finland, Sweden and Austria join to the EU
1999: The revised Amsterdam Treaty on European Union enters into force
2000: European Council in Nice
adoption of a revised Treaty on European Union (the Nice Treaty - into force on 1 February 2003)
decision to enlarge the EU in May 2004 from 15 to 25 Members
2002: Introduction of the “EURO”
2003: Treaty establishing a Constitution for Europe
18. 18 EU before its most ambitious enlargement in terms of scope and diversity 13 countries have applied to become new members:
10 of these countries - Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic, and Slovenia are set to join on 1st May 2004.
Bulgaria and Romania hope to do so by 2007, bringing the EU's total population to nearly 500 million.
Turkey is not currently negotiating its membership.
The EU wants to overcome the division of the European continent and to export stability, prosperity and security.
19. 19 CANDIDATE COUNTRIES MAIN STATISTICAL INDICATORS (2001)
20. 20
21. 21 Accession Criteria In order to join the Union, the acceding countries need to fulfill the economic and political conditions known as the “Copenhagen criteria”, according to which a prospective member must:
1. be a stable democracy, respecting human rights, the rule of law, and the protection of minorities;
2. have a functioning market economy;
3. adopt the common rules, standards and policies that make up the body of EU law.
The EU assists these countries in taking on EU laws, and provides a range of financial assistance to improve their infrastructure and economy.
Democratic conditionality is a strategy of ‘reinforcement by reward’.
22. 22 Political systems in the acceding countries Written constitutions with human rights sections laying emphasis on the inviolability of human dignity, social rights, environmental protection, and supreme constitutional courts
Parliamentary democracies with strong competences – sometimes bicameral (presidential-parliamentary system in Poland)
Pluralist party systems and in most countries coalition governments
The presidents – elected by the people like in Poland or Slovenia or elected by the parliament like in the Czech Republic - assume above all representative functions (they may initiate laws in Poland, Hungary, and the Baltic States)
23. 23 After political liberalization and negotiation of the foundations of the new democracies these countries left behind them the phase of democratic institutionalization and are now in the consolidation phase (Juan Linz/Alfred Stepan, 1996, 5 arenas : “Civil society”, “Political society”, “Rule of law”, “State apparatus", ”Economic society“)
Problems:
- No sufficient legal security
- No timely and correct implementation of laws
- Widespread corruption (“bad governance”)
24. 24
The Eurobarometer surveys of public opinion show that:
in the 13 applicant countries there is overall support for the EU: 65% say they would vote "yes" in a referendum on membership;
in the 15 member states there has been a marked increase in support for enlargement : 51% of EU citizens support it, while 30% are against;
people in general still feel under-informed about the EU and the enlargement process.
The EU needs a streamlined and efficient decision-making system as it enlarges. The arrangements must be fair to all member states, old and new, large and small. The drafted new constitution failed to be adopted so far.
25. 25 3. EU – global player
26. 26
In May 2004 the EU will be 25 countries in Europe of 193 in the world (more than one out of eight).
With a population of half a billion people the EU represents 8% of the world’s population (6,2 bio.).
The European Community and its member states produce approximately a quarter of the world's GDP (2001: 7.889.860 millions of USD from 31.079.820)
The world’s largest trading block (38% of the world’s exports and imports: 2.449.025 from 6.414.058 mio): Following enlargement, the region will account for 40 % of goods and services exported to the world market, be the source of nearly 50% of world outward foreign direct investment and host to about 30% of inward foreign direct investment.
The EU is the largest provider of development aid and represents 25 % of global humanitarian aid.
The EU countries represent 22 % of the world’s total military expenditure (900 bio. USD in 2003 – USA: 40 %)
27. 27 EU – really a global player? Yes – in the areas of development, trade, commerce and currency
No – in world politics
EU – an economic giant, a political emerging power
“capability-expectations-gap” (Hill)
Hill, Christopher, 'The Capability-Expectations Gap, or Conceptualising Europe's Foreign Policy', Journal of Common Market Studies, vol. 31, no. 3, September 1993.
- This thesis neglects EU’s capacity to combine military and civilian as well as diplomatic, economic, and trade instruments.
- But the EU is a union of waverers and irresolute members agreeing on the lowest common denominator (Ralf Dahrendorf)
- 2 schools of thought: the ‘intergouvernmentalists” and “supranationals”
Gerhard Schröder: There is not too much America; there is too little Europe.
28. 28 The EU – an economic as well as a political giant? It is questionable if the enlargement means that the enlarged EU will be more powerful. Its own decision-making will certainly become more cumbersome. The EU has a complex system of multilevel governance where the member states have different opportunities to influence decisions.
Voting rights vary from body to body (Council, Parliament, Commission, Court, European central Bank) and policy field to policy field (e.g. decisions on enlargement have to be unanimous, others are by qualified majority voting, some competencies lay exclusively with the Commission, other decisions imply a variety of co-decision and consultation procedures between various bodies).
If a bigger number of states increases the power of the EU as an international actor, in particular in international organisations, depends largely on the compatibility of their interests.
29. 29 4. EU‘s third world relations The EU is the world’s leading development partner.
Together, the EU and its Member States provide more than half of all international official development assistance (ODA): over $30 billion in 2002 (from 58 bio), of which around 22% (6,6 bio) is managed at the Community level.
How will the EU of 25 relate to some 140 developing countries in the world, and what will be the impact of EU’s enlargement on the Third World?
What will be the implications for the acceding countries, an how will these countries influence the EU’s development policy?
30. 30 Net ODA 2002-2001 OECD/DAC
31. 31
32. 32
33. 33 In 2002, EU Member States pledged to increase their ODA budgets still further, to reach an average EU ODA/GNI ratio of 0.39% by 2006 (0.33 in 2001) – which should translate into around €9 billion additional annual ODA, as a first significant step towards reaching the 0.7% UN target.
Things are advancing as 10 amongst 15 of the Member States have already launched the implementation of their commitments to jointly reach a level of 0.39 % ODA of EU GDP. (the new Member countries are “emerging donors”.)
The enlarged EU will combine an even richer spectrum of history, culture and political experiences in diverse socio-economic scenarios, which will give an added value to EU development co-operation with developing countries, also facing very diverse socio-economic and political situations.
The enlarged EU will have the potential to be an even more important player in global development incl. the impact on international organisations like IBRD and IMF.
34. 34 EU’s Development Cooperation: a Story of its Enlargement European integration itself started with development co-operation: the six founding members decided to turn their ties with former colonies, mainly in Africa, into a Community matter.
Since then, the European Communities were gradually pulled into ever increasing responsibilities: When the UK joined, programmes expanded to include former British colonies in Africa and in Asia. And enlargement to Southern Europe later saw an expansion of our co-operation to North Africa and Latin America, and also Asia was added.
The collapse of communism and the fall of the Berlin wall led to the launching of the PHARE programme, and the creation of TACIS followed the disintegration of the Soviet Union.
EU’s development cooperation has accumulated to an annual level of commitments around € 10 billion and some 10% of global official development aid. Includes all EU external aid; EDF and all B7 and B8 budgetlines (Accession aid (ISPA, Sapard), Phare, Tacis, ALA, EDA, fisheries agreement etc... Includes all EU external aid; EDF and all B7 and B8 budgetlines (Accession aid (ISPA, Sapard), Phare, Tacis, ALA, EDA, fisheries agreement etc...
35. 35 The Community’s development co-operation policy has evolved over a long period of time. It has done so in the past, because of previous enlargements but also because of changing views about development effectiveness and in response to international events: From a slightly fragmented focus on countries with which EU Member States had strong colonial or other traditional links, to a set of regional co-operation and partnership frameworks providing almost global coverage.
The distortions of the Cold War era have been replaced by a new global framework: the MDGs (Millennium Development Goals) on poverty reduction, access to primary education, health and other basic services, as well as sustainable human development, contained in the Rio Agenda 21, the UN Millennium Declaration and the Johannesburg Plan of Implementation.
36. 36 ODA cannot bring about the development success alone. It needs to be articulated to the other policies.
It cannot be a safety net, but a tool for a better development, together with cancellation of debt, regulated trade, establishment of the rule of law, preservation of public goods.
Development cooperation cannot solve the problems of terrorism or traffic of human beings, but it must be integrated in their solution.
37. 37 Motives The underlying motives are common:
a sense of human solidarity and a moral imperative,
a sense of enlightened self interest, based dimly on the notion that peace, stability and socio-economic development abroad are the best long term guarantees for security and growth on the domestic front.
38. 38 Heidemarie Wieczorek-Zeul, German Federal Minister for Economic Cooperation and Development There are three basic points of reference underlying our development cooperation:
1. the goal of playing a constructive part in eradicating global poverty;
2. the desire to contribute to equitable structures for global development;
3. the need to contribute to the early resolution of conflicts and support precautionary measures to secure peace.
39. 39 EU aid is administered by the Commission, and is funded either through the Community budget or through the European Development Fund (EDF), a special fund outside the budget for the African, Caribbean and Pacific States (ACPs).
In addition to its position as the world's largest multilateral grant provider, the EC is the world's largest single market and the main trading partner of most developing countries.
It is the largest donor to multilateral debt relief, the largest donor to AIDS programmes and the largest donor to Africa.
The Union's development cooperation activities complement the Member States' policies and those of other aid providers on a world scale.
Community development policy is based on the principle of sustainable, equitable and participatory human and social development.
40. 40 EU aid at a glance In 2002, the EU budget and the European Development Fund (EDF) contributed € 6.6 billion to development co-operation.
Breakdown of financial disbursements per region:
ACP and OCTs: € 2.4 billion
Eastern Europe and Central Asia: € 430 million
NIS: € 444 million
The Mediterranean, N+M East: € 783 million
Western Balkans: € 821 million
Asia: € 575 million
Latin America: € 333 million
South Africa: € 124 million
41. 41 Thematical breakdown of financial disbursements per key instrument:
42. 42 5. “Acquis Communautaire” in development cooperation Acquis communautaire: This is a French term meaning, essentially, “what the (European) Community achieved” or “the EU as it is” - in other words, the rights and obligations that EU countries share.
The “acquis” includes all the EU's treaties and laws, declarations and resolutions, international agreements on EU affairs and the judgments given by the Court of Justice. It also includes action that EU governments take together in the area of “justice and home affairs” and on the Common Foreign and Security Policy.
“Accepting the acquis” therefore means taking the EU as you find it. Candidate countries have to accept the “acquis” before they can join the EU, and make EU law part of their own national legislation.
43. 43 EU-Treaty: the objectives Article 2
The Union shall set itself the following objectives:
— to promote economic and social progress and a high level of employment and to achieve balanced and sustainable development, …
— to assert its identity on the international scene, in particular through the implementation of a common foreign and security policy …,
— to strengthen the protection of the rights and interests of the nationals of its Member States through the introduction of a citizenship of the Union,
— to maintain and develop the Union as an area of freedom, security and justice, …in asylum, immigration and the prevention and combating of crime,
— to maintain in full the acquis communautaire…
44. 44 Article 3
The Union shall be served by a single institutional framework which shall ensure the consistency and the continuity of the activities carried out in order to attain its objectives while respecting and building upon the acquis communautaire.
The Union shall in particular ensure the consistency of its external activities as a whole in the context of its external relations, security, economic and development policies. The Council and the Commission shall be responsible for ensuring such consistency and shall cooperate to this end. They shall ensure the implementation of these policies, each in accordance with its respective powers.
45. 45 The new Member States should respect the obligations derived from the Community acquis on development and from the Accession Treaty.
The “acquis” in development cooperation are
- the objectives for Development Policy and priorities that have been agreed at the EU level incl. the Community and the Union Treaties,
- the international commitments that the EU has made its own.
46. 46
From the date of their accession, the new Member States will join the current EU in supporting all of the objectives and instruments of the EC’s development policy.
The accession countries will accept the EC’s development policy as it stands, but major differences could lead to pressure to shift the policy in new directions over the longer term.
47. 47 Primary Legislation Although the beginnings of the Community’s development policy date from the signature of the Treaty of Rome (1957), it is only since the Treaty of Maastricht came into force in 1993 that Community development cooperation has enjoyed a specific legal basis.
The specific provisions regarding Development Cooperation are the following:
Title XX . Development Cooperation (Articles 177-181 of the EC Treaty)
Title XXI - Economic, Financial and Technical Cooperation with Third Countries (Article 181a, added by the Treaty of Nice)
Overseas Countries and Territories (Annex II EC Treaty, art.182-188 EC Treaty, and Declaration 36 annexed to the Final Act of the Treaty of Amsterdam).
48. 48 These provisions have several major implications for new EU Member States: By acceding the Union, new Member States accept the overall objectives of EU aid: sustainable economic and social development, smooth and gradual integration of developing countries into the world economy, poverty reduction, and development and consolidation of democracy and the rule of law.
The EC Treaty states unequivocally that the Community and the Member States shall comply with commitments and take account of the objectives they have approved in the context of the United Nations and other competent international authorities.
The EC Treaty gives the Council the authority to adopt the measures necessary to pursue the objectives of EU aid.
49. 49 Secondary Legislation Regulations are always binding in their entirety and directly applicable in all Member States without the need for any national implementing legislation. Development-related regulations have two major implications for the new Member States:
they require Member States to accept the types of ODA, eligible recipients, the purpose of EU aid and the policy cycle to be followed in each region or for each theme;
they rule the coordination process for each region or cross cutting theme giving to the Commission a coordinating role and may require specific actions by all Member States.
In the area of food aid, in particular, Member States need to request the approval of the Commission for the method of mobilisation, when a national action for the supply of cereals as food aid is decided.
Acquis Cotonou: The new Member States of the European Union will join the Cotonou Agreement through an automatic clause (Article 6, para 4) in the Accession Treaty.
50. 50 Cotonou PARTNERSHIP AGREEMENT BETWEEN THE ACP STATES AND THE EC AND ITS MEMBER STATES entered into force April 1, 2003 Article 1 Objectives of the partnership
The Community and its Member States, of the one part, and the ACP States, of the other part, hereinafter referred to as the "Parties" hereby conclude this Agreement in order to promote and expedite the economic, cultural and social development of the ACP States, with a view to contributing to peace and security and to promoting a stable and democratic political environment.
51. 51 The partnership shall be centred on the objective of reducing and eventually eradicating poverty consistent with the objectives of sustainable development and the gradual integration of the ACP countries into the world economy.
These objectives and the Parties’ international commitments shall inform all development strategies and shall be tackled through an integrated approach taking account at the same time of the political, economic, social, cultural and environmental aspects of development.
The partnership a coherent support framework for the development strategies adopted by each ACP State.
52. 52 Article 9 Essential Elements and Fundamental Element
Co-operation shall be directed towards sustainable development centred on the human person, who is the main protagonist and beneficiary of development; this entails respect for and promotion of all human rights.
Respect for all human rights and fundamental freedoms, including respect for fundamental social rights, democracy based on the rule of law and transparent and accountable governance are an integral part of sustainable development.
The Parties reaffirm that democratisation, development and the protection of fundamental freedoms and human rights are interrelated and mutually reinforcing.
53. 53 In the context of a political and institutional environment that upholds human rights, democratic principles and the rule of law, good governance is the transparent and accountable management of human, natural, economic and financial resources for the purposes of equitable and sustainable development.
Good governance, which underpins the ACP-EU partnership, shall underpin the domestic and international policies of the parties and constitute a fundamental element of this Agreement. The parties agree that only serious cases of corruption, including acts of bribery leading to such corruption, as defined in article 97 constitute a violation of that element.
The partnership shall actively support the promotion of human rights, processes of democratisation, consolidation of the rule of law, and good governance.
These areas will be an important subject for the political dialogue.
54. 54 Soft Law
EC Soft Law on development includes the Statement by the Council and the Commission on the European Community’s Development Policy and decisions on contributions to International Programmes (e.g., GEF, Food Aid, Global Fund to Fight HIV/Aids) as well as policy statements, both general and region, theme or sector specific, adopted by the Union.
Another important element of Soft Law relates to the untying of aid. In 2002 the Commission presented to the Council and to the European Parliament a Communication on .Untying: Enhancing the Effectiveness of Aid.. It refers to a DAC Recommendation of May 2001 agreeing the untying of most aid to least developed countries and to the commitment in Monterrey on the same topic.
55. 55 Trade and EU as well as International Agreements
The Commission has exclusive competence in the field of trade and has reached agreements with 138 developing countries, covering either framework agreements or specific sectors (e.g. fisheries). These agreements are binding for all Member States.
The UN international agreements signed by the Community and its Member States in the field of development are
the UN Convention to Combat Desertification (UNCCD),
the Convention on Biological Diversity/Cartagena Protocol on Biosafety,
the UN framework Convention on Climate Change, and
the Food Aid Convention.
Most new EU Member States have already ratified these Agreements except for the United Nations Convention to Combat Desertification that has not been ratified by Estonia and Lithuania.
56. 56 The European Community's Development Policy - Statement by the Council and the Commission
In its joint Declaration of November 2000 the Council and the Commission adopted clear guidelines for development cooperation and identified six priority areas where the Community’s assistance can bring about added value:
trade and development,
regional integration,
macroeconomic support and access to social services,
transport,
food security and sustainable rural development,
institutional capacity building and good governance.
57. 57 Crosscutting issues are to be considered in every programme:
promotion of democracy and human rights,
equality of men and between women,
children’s rights,
environmental dimension,
conflict prevention and crisis management.
Along with other donors, the EU is also changing the way that its development assistance is programmed and implemented. This includes focusing much more on local ownership of strategies in developing countries and on a partnership approach. The EU is also shifting away from a traditional project-based approach to sector-based and budget support in order to increase efficiency and further support ownership.
58. 58 While there is a need to increase the level of aid, there is also a need to increase the efficiency with which that aid is used. In order to monitor the synergies of European policies, the Commission made in 2002 a systematic attempt to emphasise the importance of Co-ordination, Complementarity and Coherence. These principles (3 Cs) now lie at the core of the Community’s development policy.
Coherence or consistency between what is done at the different levels, EU, EC and Member States, is a major issue. There must be an appropriate understanding of what is done at the EC level and what is done by Member States bilaterally. In this context, coherence but also co-ordination and complementarity at the country and international level should be ensured. Whilst Member States may focus on their own priority countries, they are all, at the EU level, focusing on achieving the Millennium Development Goals.
59. 59 The “Everything but Arms” initiative grants duty-free and quota-free access for all LDC exports to the European Union. EBA has removed all the quantitative and tariff barriers to the EU market for least developed countries with the exception of bananas, rice and sugar where transitional periods have been agreed before full liberalisation is granted.
The Commission believes that untying of aid is an important factor in a coherent pro-poor development policy. There is a good base since EC aid is already largely untied. More than € 1.5 billion of aid are partly untied and some instruments like CARDS (Balkans) are fully untied (€ 645 Millions).
The Commission advocates a complete untying of food aid and food aid transport, which is currently excluded from existing agreements and proposes to introduce these elements in the future re-negotiations of the Food Aid Convention.
60. 60 Resolutions - European Parliament European Parliament resolution on Zimbabwe 15/01/2004
The European Parliament …
3. Calls for the vigorous enforcement of all EU sanctions against the ZANU-PF regime and for a more robust commitment by the EU, ACP partners and the wider international community to the enforcement of the sanctions, including the call by MDC President Morgan Tsvangirai for the stringent application of the visa ban;
4. Congratulates the Commonwealth for its principled stance in maintaining Zimbabwe's suspension; calls for those African countries which have stood their ground against tyranny and chaos in Zimbabwe to be acknowledged and supported;
5. Regrets the failure of the EU Council, in whatever form, to make any effective impact on the policies of Zimbabwe's neighbours, whether in its dealings with SADC or with individual countries;
6. Strongly criticises the failure of some southern African governments to exert any pressure on the ZANU-PF regime, which has been so abusive of its people and effectively disrupted relations between Africa and the wider international community; calls upon South Africa, in particular, to act effectively so as to bring about change in Zimbabwe; …
61. 61 6. Development cooperation of the acceding countries – new challenges
The communist countries of the former Eastern Bloc, the so-called “Second World”, competed with the Western “First World” for influence in the Third World.
The rapid advances in industrialisation of the Eastern Bloc countries in the 1950s and 1960s acted as a model for many developing countries and resulted in the copying of centralised economic planning policies in many Third World states.
62. 62
The aid from the Eastern Bloc was concentrated on countries pursuing a socialist development model and a foreign policy which was at least neutral or sympathetic to the Eastern Bloc (exception: Turkey, which was one of the leading recipients of loans).
The level of aid stood at 0.06 % of GDP in the eastern European countries in 1980 (0.14 % in the case of the Soviet Union), lower than the OECD level (0,35 % at that time). In 1979, communist aid to developing countries including Cuba, North Korea and Vietnam amounted to 1852 million USD (420 million USD from Eastern Europe).
63. 63 In 2002, the EU Commission launched a programme of work with accession countries and current Member States. It is focused on 3 aspects: possible implications for the Community’s policy and programme processes (such as decision-making processes, priorities, channels of implementation and financial issues);
how to help the acceding countries in their preparations for taking on the Community’s development policy and their role as (re-) emerging donors;
and implications for the Community’s development partners. Several studies and fact-finding exercises, as well as a first set of capacity building and awareness-raising activities were launched in 2002 to help define and inform future activities in this area, including a road-map.
64. 64 Development cooperation challenges to be met by the acceding countries There are huge institutional, capacity and policy gaps in the acceding countries.
The ongoing reform process of development cooperation within the EU itself raises the question of the contribution the new member states are in a position to make and what could be realistically expected from them. The domestic debate could be given added impetus by contributions from NGOs, parliaments and from scientific and academic circles.
In some of the acceding states, a tradition of involvement with third world countries existed under the previous regime. The political circumstances where quite different - but there are undeletable ties between many citizens of the eastern European countries and people in Africa , Asia or Latin America.
65. 65 Three concrete challenges – money, policy, administration
1. Money: Increasing development assistance will be quite a challenge for many of the new Member States.
It would be unreasonable to expect the new members to go to 0.39% by 2006.
The best advice for the new members is to support budgetisation of the EDF. They would get credit for their contribution, influence the policy and access bidding on contracts.
66. 66 2. Policy: Over the past years, the acceding countries have been associated to many EU statements on all matters before the United Nations General Assembly and several hundreds of demarches in capitals across the world. Now is the time to bring their experience to play.
It would be natural for them to argue in favour of support for stability in the Balkans, the Caucasus and in the Central Asian Republics.
“Making Africa pay for the Balkans?” It is also about political will to consider the interests of developing countries when discussing other Community policies, e.g. the reform of the Common Agricultural Policy (45% of the EU’s budget); the Fisheries policy and trade policy.
67. 67 3. Administrative set-up: acceding members will need to strike their own balance between bilateral and multilateral aid, the extent to which they want to rely on Community instruments and to what extent they - as donors - want to pursue own policies.
68. 68 The Acceding Countries‘ specific experience They experienced a complex transition, by their own commitment to political and economic liberalisation.
They also have special credibility from their recent and current experience as recipients of assistance.
They have special authority to contribute to the EU on philosophy and methodology ( e.g. from experience on conditionalities v carrots, grants v loans, budget v project support, government ownership v public debate, governance capacity v direct social impact, political reform v economic reform, national focus v regional networking).
They experienced new types of assistance innovated under PHARE e.g. decentralised management (not mere "deconcentration"); tightly defined objectives (the “acquis”); specially created technical support frameworks (e.g. SIGMA/OECD on public administration reform), specially created networks of cooperation with EU civil society (TEMPUS...)
69. 69 Acceding Countries in Comparison with EU + Developing Countries (2002) (Source: WDR 2004)
70. 70 After enlargement the EU‘s changes will remain modest Because of their relative poverty, the new members will hardly affect the trade and investment relations of the EU with third countries.
The new members will little add to the EU aid effort. It might focus the EU’s attention on East and South-east Europe, and some post-communist recipients like Vietnam or Laos.
The new member states will be entitled to receive substantial transfers from the EU amounting to about 4% of their GNI.
In foreign and security policy, the enlargement might strengthen the forces within the EU who favour a closer partnership with the USA in global affairs and a stronger military role for the EU abroad.
71. 71 Generally, the EU will be become more preoccupied with the management of its own affairs as its internal diversity increases at the same time as it levels its internal playing field (internal market, common currency, Convention).
Most of the adjustments refer to trade policy, albeit less with respect to developing countries and more with regard to other countries in central and eastern Europe with which the candidate countries have free-trade agreements.
72. 72 Thanks to the WTO membership, the other effects are limited. In some cases, the tariffs of the candidate countries are actually lower than the EU’s external tariff. Here, accession will make imports from non-EU countries more expensive. In other cases, however, the tariffs are higher.
Specific technical, administrative and fiscal barriers will disappear, and this may make access easier for trading partners in third countries, since they will be able to use the EU procedures familiar to them.
The candidate countries will have to apply the Generalised System of Preferences (GSP). In so doing, they will in some cases have to grant trade preferences to emerging economies whose per-capita income is higher than their own.
73. 73 When the candidate countries take over the Cotonou Agreement (the successor to the Lomé Convention), they will also have to grant the ACP countries the relevant preferences and implement the liberalisation under the “Everything but Arms” programme.
The same goes for the Mediterranean agreements and the Barcelona Process and for a host of other bilateral and multilateral agreements between the EU and individual developing countries or regional trading blocs (e.g. Mercosur).
An effective involvement of the new members in the bodies envisaged for many of these agreements is likely to prove problematic in terms of the scarce resources of qualified experts, particularly in the smaller countries.
74. 74 In future rounds of negotiation (Doha etc.), some of the new EU members (e.g. Estonia) could advocate a less protectionist policy, whilst others could tend to call for greater protection – depending on the pressure to adapt and on the underlying position on economic policy.
The candidates could, with some plausibility, insist that trade facilitations should be granted only to genuinely poor (i.e. poorer than the candidate countries) partners in the Third World.
Where the EU applies quotas to imports (e.g. bananas), there will have to be an expansion or redistribution.
75. 75 In the important field of agriculture, the interests of the candidate countries in protection from imports of tropical and subtropical fruits (olives, wine, citrus fruits) are less than was the case when the EU enlarged southwards.
Things could be more difficult with grain, meat or dairy products, although significant supplies of these products only come from a few countries in southern Africa and America (Argentina, South Africa, etc.).
76. 76 The enlargement is likely to increase the flow of European FDI into the new member states as potential risks become (or will be perceived as) smaller. However, there are certain factors that could make the new member states less attractive to FDI from the EU, and third countries, too:
Adopting the acquis communautaire implies stricter labour and environmental regulation which will probably increase costs. EU competition policy prevents subsidies to all, including foreign, investors as well as tax relief that discriminates in favour of specific, e.g. foreign, investors without the approval of the EU Commission.
This could mean that other investment locations with similar competitive advantages (i.e. low wages, reasonable productivity due to sound education and infrastructure, acceptable political and administrative environment) will gain. The immediate winners might be other countries neighbouring to the enlarged EU such as the second-line candidates Bulgaria and Romania, or Balkan and Western CIS countries (e.g. Ukraine).
77. 77 Official development policies: The twelve accession countries can be classified in 3 broad categories:
A first group is formed by Bulgaria and Romania. These countries have not really begun to establish a development and humanitarian assistance policy, nor is the topic really discussed at governmental or NGO level.
A second group is composed of Cyprus, Hungary, Latvia, Lithuania, Malta and Slovenia. All of them are beginning to establish the basic structures for an official development policy. Even if the structures for a development policy are not yet in place, civil society is active and pushing the government to act.
The third group of countries is composed of those which have already set up basic administrative and legal structures for a development policy, even if these structures are still being improved and increased, and which have begun to deliver assistance in the framework of this policy. This is the case for the Czech Republic, Estonia, Poland and Slovakia.
78. 78 The continuing relatively low status of development policy in the candidate countries finds expression not only in the tiny proportion of spending in terms of GDP, but also in the organisational and institutional set-up.
State development policy is not, as in Germany, guided and administered by a separate government ministry, but – as also in most major donor countries – by departments in the foreign ministries. However, other government ministries are often involved in project management.
The non-governmental development cooperation of the NGOs is also at a very early stage of development, since this entire sector did not start to emerge until after 1989. NGOs are already very active in Poland and Hungary in particular.
79. 79 Source: Stefano Migliorisi, 2003
80. 80 ODA/GNI ratios and Monterrey Targets in New Member States (2001)
81. 81
82. 82 Geographic focus of New Member States ODA
83. 83 ODA Objectives Contained in Development Policy Statements
84. 84 Development Policy Frameworks
85. 85 The impact of accession on the development policy of the candidate countries and on the EU The candidate countries will not only have to contribute their own share of the EU budget, but will also have to pay into the European Development Fund (EDF - although they will probably not start doing so until the tenth EDF, the current ninth fund runs until 2007).
There are no fixed rules on the contributions by the member states to the EDF, but the current total of € 13.5 billion corresponds to about 0.15 % of the GDP of the EU. In a certain way, the acceding countries will transform from recipient to donor countries.
Accession to the EU will mobilise individuals and organisations in the candidate countries and will promote the formation of institutions which for their part will then influence national policy in the direction of a further development of co-operation with the Third World. This includes the implementing organisations and experts as well as the action groups and NGOs concerned with development policy. Their pan-European networking will reinforce their capacities and influence.
86. 86 Architecture of EU development co-operation Despite disagreements about Iraq and other tensions, for example regarding Zimbabwe, the EU remains engaged with the rest of the world, collectively as well as individually.
Issues of debate:
Possible subordination of development to the exigencies of foreign policy - development priorities will be sacrificed to concerns about security or immigration? (cf. the integration of the Development Council, at the Seville Summit in 2002, into the broader General Affairs and External Relations Council
Will European foreign policy and development cooperation privilege the ‘near abroad’?
87. 87 The need with the coming of EU enlargement, to review the structure of the Commission, particularly the division of responsibilities between the external affairs and development portfolios.
The EDF should be ‘budgetised’, that is incorporated within the EU budget.
EU Presence in International Organisations. Enlargement will increase the number of votes available to EU Member States.
88. 88 European Foreign Minister (EFM) The Draft Constitution provides for the European Council to appoint a European Foreign Minister who will conduct the Union’s CFSP. The person would also be a Vice President of the Commission where s/he would be responsible for Community external relations. It grows out of a desire for coherence and hence greater effectiveness in the Union’s external action.
The double-hatting of the position means that the EFM is both a servant of the Council and a Member and Vice-President of the Commission.
89. 89 James Mackie/Heather Baser/Jonas Frederiksen/Oliver Hasse: Ensuring that Development Cooperation Matters in the New Europe (ECDPM), Maastricht, October 2003.
90. 90
91. 91 The impact will be minimal on regional International Financial Institutions operating outside Europe, while it will be stronger in the Bretton Woods Institutions.
Impact on EU Decision-Making. As Council structures are very demanding, it is expected that given the limited staff resources of new Member States in development they will concentrate their resources on regions where their commercial, security and historical interests are stronger. The influence and voting of the new Member States (25% of the votes) will reinforce existing trends towards a focus on the near abroad.
92. 92 Number of votes IBRD IDA IMF EBRD
93. 93 Impacts of the EU’s Enlargement on the Third World ACP states’ concern is about the security and military logics taking over on the development agenda - some concern is expressed on the shifting of priorities that might emerge from it (a shift from “the South” to “the East”). (the long term provisions of the Cotonou agreement may ease this fear)
A balance is to be sought between Europe’s world view and its particular (and legitimate) preoccupations with the ‘near abroad’ in Eastern Europe, the former Soviet Union, and the Mediterranean.
Some developing countries are concerned that enlargement may slow down the pace of reform of the Common Agricultural Policy, since many accession countries have large agricultural sectors.
94. 94 The EU should make a strong contribution to international development to focus on a limited number of challenges:
Proactive steps to ensure that the new Member States strengthen rather than drain the EU's development cooperation effort;
Working to increase, or at least maintain, financing levels for development cooperation in the EU Budget during the Financial Perspectives debate and in the negotiations on the 10th EDF;
For Africa in particular, support for a strong and credible African Union. This is a challenge primarily for Africans, but should also be supported by Europeans committed to eradicating global poverty. A successful AU will also encourage positive support from the European Union and lay the ground for a more equitable partnership between these two supposedly 'natural partners'.
95. 95 Europe’s responsibility Europe’s responsibility has grown by every enlargement, and this is the biggest enlargement ever. The EU of 25 must help to build rules and institutions that benefit the World of 193.
The EU of 25 should use its influence in the world to build dialogue, peace and development and to work for a more just world. The EU should not be guided by old-fashion geo-politics.
What the EU should strive for is strong, fair and equitable global governance and an international community created on the basis of binding commitments and the rule of law.
96. 96 Draft TREATY ESTABLISHING A CONSTITUTION FOR EUROPE Art. 3, 4
In its relations with the wider world, the Union shall uphold and promote its values and interests. It shall contribute to peace, security, the sustainable development of the earth, solidarity and mutual respect among peoples, free and fair trade, eradication of poverty and protection of human rights and in particular children’s rights, as well as to strict observance and development of international law, including respect for the principles of the United Nations Charter.
97. 97 The enlarged EU will combine an even richer spectrum of historical, cultural and political experiences in diverse socio-economic situations. This will add value to our cooperation programmes with developing countries and strengthen EU’s role in driving sustainable development policies in the future.
The coming months are a crucial time to make the political case for a strong and progressive EU role in international development cooperation.
98. 98 The EU has the power to influence the direction of globalisation
There are two ways to exercise that power:
The ultra-liberal way, without social and environmental concerns, which will marginalise many developing countries and globalise poverty; as a result, the world market economy could degenerate into predatory capitalism. Much of the protest against the new WTO negotiations is directed against a new round of more deregulation and neo-liberalism.
The responsible way, taking into consideration diverse regional realities, and the social cohesion of different societies, thereby contributing to the global improvement of economic and social well-being, preserving the environment and ensuring gender equity.
99. 99 Many elements of the second approach could be seen in the EU-ACP agreement. Due to the Amsterdam Treaty the EU has the intention to promote “the smooth and gradual integration of the developing countries into the world economy”.
But I miss a clear plea for an international socially just and environmentally sound market economy which could be an appropriate instrument to provide globalisation with a human face. ACP-EU relations must be part of the international community's overall strategy to minimise the negative effects of globalisation and to maximise the positive ones.
100. 100
The EU members have to participate more actively as a political entity in the multilateral system involved in development issues (World Trade Organisation, International Monetary Fund, World Bank, regional development banks, etc.).
The Union has the political clout needed to influence the powerful international organisations, to back an equitable and sustainable development model, and to underpin the further liberalisation of trade with carefully designed structural policies.
101. 101 Former Czech President Vaclav Havel :
"The time when Europe conquered the world is over. I hope the time is about to begin when Europe will stand as a source of inspiration to other parts of the world.”
102. 102 EU – One World
