Annexes to COM(2011)414 - Annual Report 2011 on the EU's development and external assistance policies and their implementation in 2010 - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2011)414 - Annual Report 2011 on the EU's development and external assistance policies and their implementation in 2010. |
|---|---|
| document | COM(2011)414  |
| date | July 6, 2011 |
During 2010, the Commission delivered budget support programmes (€495 million) to Africa for poverty reduction with a continued strong focus on the MDGs. It also continued efforts to combat the short-term fiscal impact of the economic crisis on the most vulnerable countries through the Vulnerability FLEX instrument which allows poverty-focused programmes to be maintained in the face of tighter fiscal constraints. The EU has been active in fighting hunger in Africa via its food facility and specific food security projects. Many EU projects in the region also directly target health-related MDGs. The EU continued its action in fragile countries and plays a leading role in sectors like democratic governance, justice, security sector reform, infrastructure, public financial management and rural development.
Relations with the EU’s neighbours in eastern Europe and the southern Mediterranean progressed in 2010 in economic terms, but not enough in terms of democratic reforms and human rights. This was the conclusion of a Commission evaluation of the European Neighbourhood Policy (ENP) and the fourth set of ENP reports[5] adopted in May. These show clearly the benefits partner countries derive from the relationship with the EU. Progress was significant in transport, energy, climate change, research and development and health and education. In the eastern partnership region, negotiations on an enhanced association and free trade agreement with Ukraine continued while negotiations for association agreements opened with Moldova, Armenia, Azerbaijan and Georgia. The seventh round of the slow-moving negotiations for a new agreement with Russia, which is not part of the ENP, finished in December. In the southern neighbourhood, a summit took place with Morocco in March to mark its “advanced status” as an EU partner. Two attempts to hold a Union for the Mediterranean summit, first in June and then in November, failed.
EU assistance to the ENP region focused on job creation, improving the investment climate, good governance, developing social infrastructures and support for administrative, economic and social reforms. The most difficult social situation remains that of the occupied Palestinian territory where, despite humanitarian assistance, the socio-economic indicators did not improve in 2010, leaving more than 30% of the Palestinian population still living in poverty.
During 2008-2010, the Neighbourhood Investment Facility (NIF) supported 35 projects in transport, environment, and energy as well as social and private sectors with NIF grants totalling €260 million. This helped to mobilise €9.4 billion of investment from international financial institutions.
EU relations with Asia are increasingly complex. The economic and political emergence of Asian countries produces dramatic changes affecting the balance of global relations. The EU held summit meetings with China in October and with India in December. Many contacts took place regionally e.g. with ASEAN (Association of SouthEast Asian Nations) and bilaterally. Cross-cutting issues like the environment and climate change were important themes. Partnership or free trade agreements have been signed or are under negotiation with India, Indonesia, Mongolia, the Philippines and Vietnam.
Asia’s economic vitality and rapid industrialisation as embodied by China and India are impressive. But although an expanding middle class has benefited considerably, Asia is still home to two thirds of the world’s poor. Development assistance is therefore still high on the EU’s Asian agenda, targeting poverty reduction, health and education.
Central Asian transition countries enjoyed significant growth rates over the past decade but have been considerably affected by the recent crisis. EU assistance focused on raising living standards, developing the social sector and providing a social safety net. It also seeks to improve the rule of law and public governance. An Investment Facility for Central Asia has been created, focusing on blending grants and loans in energy, environment, small and medium enterprises and social infrastructure.
The annual EU summit with Latin America and the Caribbean took place in Madrid in May. After six years of stalemate, negotiations on an association agreement between the EU and Mercosur resumed, with several negotiation rounds and a timetable set for 2011. The summit launched the Latin America investment facility (LAIF) and endorsed the conclusion of negotiations for an association agreement with Central America and of a trade agreement between the EU and Colombia and Peru. The fight against drugs also featured in EU contacts with Latin American partners, particularly the cost of anti-drug operations and measures to deal with the transit of drugs from Latin America to Europe via west Africa. In May, the European Commission adopted its first-ever country strategy paper for Cuba, to serve as the basis for future bilateral cooperation.
An average of 40% of the Latin American population still lives in poverty. In 2010, the Commission adopted 24 actions in Latin America with a total value of €356 million. The most important areas concern the fight against poverty, social cohesion, mutual knowledge and understanding, sustainable development, the fight against drugs, and trade and the private sector.
Integrating cross-cutting issues
Throughout the year, the EU worked with development partners on cross-cutting issues which affect all strands of EU development policy. The EU aims to make these issues an integral part of all development activities. Two of these were addressed at conferences in Nagoya and Cancun on new regimes for biodiversity and climate change. The Nagoya negotiations ended with a protocol on access to genetic resources and a strategic plan for 2011-2020. The Cancun conference adopted a package of decisions, putting the negotiations for a new international post-Kyoto climate regime back on track after the inconclusive 2009 Copenhagen meeting.
Democratic governance is another cross-cutting issue where the EU has provided sector-specific support and carried out information and awareness-raising activities. Governance is a recurring subject in policy dialogue with partner countries. It is essential for a sound investment climate, good public finance management, reducing corruption and strengthening institutions.
Gender equality is one of the five principles underlying EU development policy. In June, an EU action plan for gender equality and women’s empowerment in development was adopted. It aims to reinforce the EU’s efforts to advance gender equality in developing countries and the achievement of the MDGs. The action plan, which covers the period 2010-2015, will ensure that gender issues are part of the annual and multi-annual planning for EU development programmes and projects.
The European Instrument for Democracy and Human Rights (EIDHR) funds human rights projects and initiatives around the world in the context of relevant EU policies. It is the concrete expression of the EU’s intention to integrate support for democracy and human rights into all its external policies. The EIDHR sets aside part of its budget for small-scale projects in individual countries. Among its priority issues are women and children’s rights and the protection of minorities. The EIDHR also organises election observation missions and election assistance projects. In 2010, this activity concerned nearly 20 countries, mainly in Africa, at a total cost of €100 million.
Food security
In May, the EU adopted a new policy framework for food security[6]. It is based on helping local farmers and smallholders in needy countries around the world, assisting vulnerable population groups and drawing up regional agriculture and food security policies. The new policy framework carries forward the themes of the EU’s rapid-response food facility which is providing €1 billion to 50 target countries in 2009-2011. The full amount had been committed by the end of 2010, with 80% already disbursed.
In 2010, the EU also provided food and other emergency assistance to more than 150 million people hit by natural or man-made disasters in 80 countries around the globe. The final budget was more than €1 billion.
The way ahead
The slow exit from the global crisis, the higher food and energy prices, and popular pressures for democratic change, especially in some Mediterranean/Middle Eastern countries, have created a new context for EU development policy in 2011 and beyond. Responding to these challenges, while implementing aid priorities, will be a major task in 2011.
Among these priorities is the follow-up to the MDG summit to ensure that the development policy of the EU and its Member States has the greatest possible impact in attaining these objectives. The EU is committed to speeding up the process to bring the MDGs within reach between now and 2015. On climate change, the EU will follow up on the Cancun Agreement and cooperate with developing countries partners in preparations for the next post-Kyoto negotiations in Durban in December 2011. The EU is focusing its fast-start funding on climate mitigation and on supporting adaptation efforts of the least-developed countries (LDCs) and small island developing states. The UN Conference on Sustainable Development in June 2012 will provide the EU with an occasion to advance its objective of promoting a transition towards a greener economy in developing countries.
The EU will also prepare its position for the high-level aid effectiveness meeting in Busan in November and the fourth UN conference on Least Developed Countries in Istanbul in May.
Besides reinforcing its aid cooperation with the US, Japan and the international financial institutions, the EU will strongly support emerging economies as development partners. Their role includes South-South programmes and projects as well as triangular cooperation with traditional donors. The European Commission will participate in the follow-up activities to the G20 summit in Seoul in November via its development working group. It will also promote further cooperation on development with China and Africa.
Internally, the European Commission has set an ambitious reform programme for 2011 through a series of policy initiatives, including the follow-up to consultations on the future of EU development policy. The aim is to turn it into a catalyst for building the internal capacity of developing countries to generate inclusive and sustainable growth and mobilise their own economic, natural and human resources in this direction. A communication later in 2011 will set the framework for EU development assistance until 2020.
The Commission will also issue communications on budget support and on investment and growth in developing countries. It will publish reports on official development assistance (ODA) by the EU and Member States, and on the coherence of development policy with other EU policies, assessing EU performance on five major issues: the integration of developing countries in the world economy, food security, climate change, migration and security. During 2011, the Commission will also prepare proposals for the structure of EU budget spending, including the allocation for development assistance, for the financial period 2014-2020.
Institutionally, the changes brought in by the Lisbon Treaty should contribute to better programming and management of EU aid. The most relevant are:
- the nomination of a High Representative for Foreign Affairs & Security Policy who, as a Commission Vice-President, is responsible for ensuring the consistency of the Union's external action and who also chairs the Foreign Affairs Council;
- the creation of the European External Action Service (EEAS) which serves the HR/VP, the President of the European Council and the Commission;
- new possibilities for enhanced cooperation among Member States and joint programming.
This new structure, together with adequate financial resources for the 2014-2020 period, will reinforce the EU’s status as a main international actor and supporter of global development.
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[1] COM(2010)163 final, 21.04.2010
[2] SEC(2010) 421 final, 21.04.2010
[3] COM(2010) 629 final
[4] COM(2010) 586 final, 19.10.2010
[5] COM(2010) 207, 12.05.2010
[6] COM(2010) 126 final, 31.3.2010 and COM(2010) 127 final 31.3.2010