Annexes to SEC(2010)773 - Rapport annuel 2010 sur les politiques de développement et de l'aide extérieure de l'Union européenne et leur mise en oeuvre en 2009 - Main contents
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dossier | SEC(2010)773 - Rapport annuel 2010 sur les politiques de développement et de l'aide extérieure de l'Union européenne et leur mise en oeuvre ... |
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document | SEC(2010)773 ![]() |
date | June 28, 2010 |
6.1. Introduction to financial tables 180
6.2. Financial tables 183
6.3. Glossary 207
1.POLICY
1.1.Introduction
The year 2009 was a particularly challenging one for development, given the combined impacts of the global economic, financial, and food crises. It was also a pivotal year in the efforts to address the impact of climate change. As the biggest international donor providing almost more than half of global aid in 20091, the European Union and its members responded dynamically and flexibly to these challenges and opportunities. The 2009 mid-term review of Country Strategy Papers was particularly timely, providing an important opportunity for the European Commission to adapt and readjust it to evolving realities.
Although the global economic downturn of 2009 impacted developing countries in different ways and to varying degrees, the number of people living in absolute poverty in the developing world is expected to increase by 40-80 million compared to pre-crisis levels. In April 2009, the Commission issued a Communication on Supporting developing countries in coping with the crisis2 which includes EU measures to cushion its human impact. It is accompanied by four working documents that focus on financing for development; aid for trade; aid effectiveness; and the Millennium Development Goals (MDGs). In addition, the Commission is mobilising up to €500 million through an ad hoc vulnerability mechanism (so-called V-FLEX) to support the most vulnerable countries in the Africa-Caribbean-Pacific (ACP) group. The EU also strove to promote international coordination of external assistance through the development agenda of the G8, and G20 in London (April 2009), l’Aquila (July 2009) and Pittsburgh (September 2009).
As regards food security, the Commission worked hard to deliver very rapidly and efficiently the €1 billion Food Facility which was adopted in December 20083 in response to the food price crisis. Since then, the Commission has programmed and started implementing some €837 million worth of development aid that helps increase agricultural productivity, and provides social safety nets for the most vulnerable.
The EU has continued its efforts to make its aid more efficient. The Commission adopted an action plan in April 2009 to assess and monitor the progress made to implement the Accra Agenda for Action at both headquarters and delegation level. Together with Member States, the Commission adopted in November 2009 an operational framework on aid effectiveness containing measures to push forward the Paris and Accra agendas.
The year 2009 was also marked by increased efforts to address the impact of climate change. In the run-up to the Copenhagen climate negotiations in December 2009, the EU intensified its cooperation and dialogue with developing partners: a joint Commission-Presidency paper on climate change and development was prepared. The Commission issued a Communication on Stepping up international climate finance: A European blueprint for the Copenhagen deal4 to help developing countries combat climate change. Also in December, the EU agreed on "fast-start" funding of €2.4 billion annually for 2010-2012 to help developing countries to bridge capacity gaps, develop plans to cut carbon emissions, and prepare them for the larger-scale deployment of climate financing post-2012.
Other important publications in 2009 include the second report on policy coherence for development, adopted in September5, and the first-ever European Report on Development6.
1.2.Annual Policy Objectives
In 2008, the Commission's external action sought to achieve the following objectives:
- Implement the 12 Action Plans of the European Neighbourhood Policy (ENP) and to begin negotiations on a new enhanced agreement with Ukraine as well as new contractual arrangements with Libya and the Republic of Moldova (hereafter Moldova). Further engage with Russia on a new cooperation agreement. Continue to play an important part in the Quartet and to dedicate significant resources to the Middle East region.
- Deepen cooperation with ASEAN countries, China and India. Continue and, possibly, conclude the negotiations on the Association Agreements with the Andean Community, Central America and Mercosur.
- Increase the EU's contribution to promoting international security and stability to create the conditions needed for sustainable development. Improve preparedness and capacity to deal with crises in third countries.
- Implement the eight operational thematic partnerships of the Joint Africa/EU Strategy and work to help ACP countries integrate better into the world economy.
- Carry out an action plan based on the European Consensus on Humanitarian Aid to reinforce capacity to respond to humanitarian crises and challenges.
Substantial progress has been achieved in these different areas. In addition, to respond to emerging challenges during 2009, the Commission also took concrete steps to:
- Respond to the impacts of the global economic, financial and food crises.
- Address the impact of climate change on developing countries through cooperation, dialogue and innovative funding modalities.
- Make aid more efficient in line with the principles of increasing ownership and promoting capacity development in partner countries, ensure alignment of aid with national policy in beneficiary countries, and reduce the transaction costs of aid delivery.
1.3.Implementation of the European Consensus on Development
The European Consensus on Development7, which constitutes a milestone in the history of EU development cooperation, reflects the willingness of the European Union and its Member States to make a decisive contribution to poverty eradication and to achieve the Millennium Development Goals.
It affirms for the first time their common vision on development with, as the main components: more aid, better aid, improved policy coherence for development, and focus on Africa.
In 2009, four years after the adoption of the Consensus, the Commission undertook a preliminary assessment of its progress on a series of policy commitments. Key findings of the assessment pointed to stakeholder appreciation of the Consensus in particular for its clear strategic value. The Consensus is widely accepted and seen as a valuable reference for all development actors. It is thus considered as a baseline to steer the implementation of development policy.
The European Commission strengthened its efforts to ensure that the progress towards the Millennium Development Goals in recent years would not be impeded by the effects of the 'triple shock' from the food crisis, the volatility in fuel/commodity prices and the global financial and economic downturn. The succession of crises has entailed severe consequences in developing countries.
To tackle the effects of soaring food prices on developing countries, the EU adopted the Food Facility, a rapid response instrument providing €1 billion over a three-year period (2009-2011) to over 50 countries to bridge the gap between emergency relief and medium- to long-term development aid. Its chief objectives are: to encourage local food producers to increase supplies, to deal directly with the effects of volatile food prices on local populations, and to increase food production capacity and improve the way agriculture is managed in the longer term. In 2009, more than €837 million were allocated: €530.1 million to be implemented through international and regional organisations, €213.6 through non-state actors (grants) and development agencies (delegation agreements) and €93.7 under budget support operations. Implementation of the Food Facility Regulation is thus fully on track with the original planning and with the budgetary provisions. For further details 3.1
In addition, the EU was the first to react immediately after the G20 Summit in London to support developing countries in coping with the financial and economic crisis. In April 2009, the European Commission issued a Communication on Supporting developing countries in coping with the crisis. This proposed a set of comprehensive, timely, targeted and coordinated measures for the EU as a whole to cushion the human impact of the crisis and to boost economic growth in developing countries. These measures include, inter alia: honouring aid commitments and leveraging new resources; acting counter-cyclically; improving aid effectiveness; sustaining economic activity and employment; revitalising agriculture; investing in green growth; stimulating trade and private investment; working together for governance and stability; and protecting the most vulnerable. Many of these measures have already been or are being implemented, such as the ad hoc Vulnerability FLEX (V-FLEX) mechanism, the €1 billion Food Facility, the acceleration of the mid-term review of the 10th EDF and the adoption of the new guidelines on flexible procedures in cases of crises and emergency and post-emergency situations.
In a globalised and increasingly interdependent world, the response to crises needs to be global with particular attention to developing countries. The European Commission has therefore played a proactive role in various international fora (notably within the G8, the G20 and the UN) to ensure that the effects of the financial and economic crisis on the poorest countries were fully taken into account and that specific measures were decided to respond to their increased financing needs.
Hence, in close cooperation with the World Bank and the IMF, the European Commission has set up an ad hoc instrument to support the most vulnerable and least resilient ACP countries to enable them to maintain priority spending, notably in the social sectors. The V-FLEX will mobilise up to €500 million in 2009 and 2010 to provide grants to ACP countries where the loans from the international financial institutions (IFI) are insufficient or where potentially the IFI do not operate. €260 million were allocated for the V-FLEX in 2009 with a similar level of support anticipated for 2010. For further details