Development Operators from the New EU Member States:

1. Development Operators from the New EU Member States: Experiences, Trends and Challenges Ljubljana, 3-4 June, 2008

2. Development Operators from the New EU Member States: Experiences, Trends and Challenges “Challenges and Opportunities for development partners from NMS” A view by Franz Kaps, Senior Partnership Advisor (consultant), Europe and Central Asia Region, World Bank fkaps@worldbank.org

3. May 1, 2004 and January 1, 2007 • New EU Member States (NMS) and, thus, New Donors emerged • (Acquis Communautaire: Chapter 26 “External Relations” also refers to EU member countries’ development cooperation obligations) • Few NMS governments and negotiators took note of this membership requirement at time of negotiations

4. 2002 Monterrey Conference : ODA pledge by the EU • By 2006, increase the EU’s average ODA/GDP ratio to 0.39% • EC colleagues will probably produce tentative numbers, both for old and new member states • As regards NMS, the numbers may not be entirely accurate as comparator ODA data prior to EU accession probably incomplete or sometimes inaccurate • Numbers may not reflect aid programs administered by “technical” ministries • Numbers may not reflect important support by number of NMS NGOs in LDC, such as missionaries, in schooling, health and other social services • Thus, NMS likely not to match old member states’ ODA targets any time soon

5. Some NMS show true development cooperation (DC) commitment • Started to prepare early on national DC policies/strategies • Secured legal DC conditions • Set up national DC agencies, primarily at MoFA • Started to create/enhance DC implementation mechanisms • Launched public DC awareness campaigns

6. Some NMS may wish to attach greater priority and come up with new DC ideas • Like in some old MS, DC does not hold much priority at government level in a number of NMS • By contrast a number of NMS NGOs would like to engage in DC • However, they need government endorsement and (financial) support. There are targeted EU programs for NGO DC • Also, old MS can help: Austria started to establish strategic alliances with NMS: approached Hungary, Slovakia, Czech Republic and Poland to launch joint programs in Western Balkans and CIS

7. NMS DC challenges • Important that NMS show selectivity in terms of “countries and sectors of concentration”: start with few recipient partner countries and engage in few sectors where NMS have comparative advantage • Given limited human and budget resources, important that NMS “go slow” in setting up aid agencies • Important that there is only “one” national DC policy and avoid situation where some “technical” ministries run their own DC programs

8. NMS DC challenges (continued) • Strengthen Institutional and Human Capacity • MoFA (mostly) in charge of developing country specific DC policies, program/project design and supervision, monitoring and evaluation (M&E) procedures • Need to establish DC coordination procedures between MoFA (lead ministry?) and technical ministries • Establish an institutionalized mechanism for cooperation between government and national NGO DC structures

9. NMS DC challenges (continued) 2. DC Public Awareness Campaigns • Like in “old” MS, DC may not be popular in NMS. Need to launch public awareness campaigns. Engagement of NGOs essential, especially by those already engaged and experienced in humanitarian programs 3. Engage Business Community • Business community can be DC partner and beneficiary. Useful to organize seminars explaining to NMS business national DC programs and how to participate in EU and IFI tendering; should help raise NMS’ share in DC financing by EU and IFIs

10. NMS DC challenges: Regional DC approach DC cooperation normally bilateral effort between individual NMS and concerned recipient country. However, given only recently emerging NMS DC policies and programs and overall DC budget constraints, it may be advantageous to consider regional DC programs and efforts, involving one or more NMS, recipient country(ies) and IFI(s)

11. NMS DC challenges: Regional DC approach NMS may wish to consider joining forces, for instance together with World Bank, to establish tri-partite DC approach with third countries: • Share transition experience towards functioning market economies with countries such as Vietnam, Laos, Cambodia and/or African focus countries

12. NMS DC challenges: Regional DC approach DC in the Western Balkans, in particular, might offer such opportunities, especially when linked to assistWestern Balkan countries in their EU accession efforts in framework of Stabilization and Association Process (SAP): • Slovenia Center of Excellence in Finance (CEF) prime example for applying such approach in areas of is competence • World Bank Center for Financial Reporting Reform (CFRR), based in Vienna, does the same • Regional Cooperation Council for Southeast Europe (RCC), based in Sarajevo which is successor organization to Stability Pact for Southeast Europe (SP) should be key interlocutor for such regional approach

13. NMS DC challenges: Regional DC approach Sweden and Poland just came up with “Eastern Partnership” idea: • assist in particular Eastern European Neighborhood Policy (ENP) countries in areas such as democracy and rule of law, migration, trade, transport, environment, tourism and similar programs • here again, NMS’ EU integration experience of great relevance

14. NMS DC challenges:The role of national parliaments National parliaments play a key role: • They are in charge of approving the national budget, including the one for DC • Should be made aware of DC as a tool of national and EU foreign policy as well as of humanitarian aid (Recent Myamar cylone and China earthquake)

15. NMS DC challenges:The role of national parliaments (ctd) • NMS national parliaments, who have not already done so, may want to link up with Parliamentary Network on the World Bank (PNoWB) – www.pnowb.org – which provides forum for exchange among Parliamentarians from around the globe. Next PNoWB meeting takes place on June 3 and 4 in Tirana • Aside from EU integration issues, conference will be opportunity for an exchange of experiences between parliamentarians from NMS and those still aiming to join EU on what actions can be taken to achieve closer economic ties, reduce poverty, and improve cooperation between countries in the region • Conference should provide opportunity for DC operators from NMS on how to share their experience during EU integration process with Western Balkan countries

16. World Bank DC Capacity building support to NMS • In-country meetings between World Bank country offices and NMS DC representatives visiting “countries of concentration” and/or apprenticeship in World Bank country offices • March 2008 Washington workshop on “Strengthening the National Aid Framework – World Bank Perspective” • Sharing of country partnership strategies (CPS) for “countries of concentration” selected by NMS so as to provide NMS with relevant country background and challenges

17. Examples of World Bank supported Regional DC programs • Slovenia Center of Excellence in Finance (CEF) • Hungary Central European Land Knowledge Center (CELK)

18. Examples of Partners Assisting NMS in DC efforts prior to EU accession 1. EU member countries Sponsored Training (with WB participation): • Workshops during EU accession process (sponsored by Austria, Germany, Netherlands, Sweden and EC) on instruments of Development Cooperation; MDGs and PRSPs, Public Expenditure Programs; importance of Public Awareness Campaigns; etc. 2. CIDA (Canada) • Canadian $15 million Official Development Assistance in Central Europe (ODACE) Program 3. UNDP • Slovak-UNDP ODA Trust Fund 4. More to come