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Martyn Pennington Head of Unit, EuropeAid

Martyn Pennington Head of Unit, EuropeAid. European Commission and World Bank Group Cooperation Paris, 25 May 2009. Summary. European Commission and World Bank Group co-operation: the last eight years key findings of evaluation and internal surveys the new Framework Agreement.

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Martyn Pennington Head of Unit, EuropeAid

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  1. Martyn PenningtonHead of Unit, EuropeAid European Commission and World Bank Group Cooperation Paris, 25 May2009

  2. Summary European Commission and World Bank Group co-operation: • the last eight years • key findings of evaluation and internal surveys • the new Framework Agreement

  3. 1. EC and WBG cooperationThe last eight years The original Framework Agreement was negotiated in 2001. What did co-operation between the European Commission and the World Bank Group look like in 2001? • Good operational co-operation, extensive parallel co-financing • Commission funds channelled through WBG in 2000 were just €11 million • Commission's reform of external aid management just beginning (EuropeAid created on 1 January 2001, deconcentration not yet launched)

  4. 1. EC and WBG cooperationThe last eight years Since then, much has changed in the international aid scene: • MDG's and focus on results • Paris Agenda and Accra Agenda for Action on aid effectiveness • scaling up • division of labour

  5. 1. EC and WBG cooperationThe last eight years • Thingshave changed at the European Commission…. • deconcentration • new Financial Regulations • concept of joint management – “four pillar” review • Transparency (publication of beneficiaries) • ….and at the World Bank Group • restructuring of trust fund management

  6. 1. EC and WBG cooperationThe last eight years Increase in the volume of funds channelled through the World Bank Group by the European Commission Commission funds channelled through the WBG in 2007 were € 530M but settled back in 2008 to around €270m

  7. 1. EC and WBG cooperationThe last eight years Most of our funding (84%) has been in seven large trust funds WB TFs’ contributions by the European Commission, 1999-2005 …but this means that just 16% is in the rest (about 62 TFs)

  8. 1. EC and WBG cooperationThe last eight years • Increased funding through international organisations brings increased scrutiny from: • European Parliament (discharge of accounts for 2006) • NGOs • Commission Services (eg. Internal audit) • EU Member States • European Court of Auditors

  9. 1. EC and WBG cooperationThe last eight years • Key questions are: • why does the Commission contribute to international organisations? (Member States can do this) • how does the Commission ensure funds are spent in accordance with EU policy? • how does the Commission ensure funds are spent for the agreed purpose? • The evaluation launched in 2007 gives some elements to answer

  10. 2. EC and WBG cooperationKey findings • The evaluation shows, in general, the advantages of working with the World Bank Group, especially: • it allows Commission to participate in global multilateral initiatives • it enables the Commission to provide funds in crisis and reconstruction situations where the donors adopt a multilateral approach, or when cooperation was interrupted • it promotes co-ordination (but there can be problems with small single-donor trust funds) • It brings added value in certain thematic areas, specific context/countries and in terms of expertise

  11. 2. EC and WBG cooperationKey findings • Reports from our Delegations on a regular basis on co-operation with international organizations show: • Total portfolio and how it is evolving • Extent to which policy dialogue takes place and how it influences programme design • Are we getting value for money – focus on impact, added value and results • The type of implementation issues that arise

  12. 2. EC and WBG cooperationKey findings • Cooperation with the WBG is important to the Commission and we want this to continue • The Framework Agreement has facilitated this cooperation – we needed to update it in the light of experience and to bring it in line with today’s world • Cooperation, more than ever, must demonstrate impact, results and added value

  13. 3. EC and WBG cooperationThe new Framework Agreement • Following preliminary consultations, the negotiation of the new Framework Agreement was launched in Washington in October 2008. • The negotiation was completed in six months and the new Agreement was signed in Brussels on 20 March 2009.

  14. 3. EC and WBG cooperationThe new Framework Agreement • Key elements of the new Framework Agreement: • The framework agreement is based on a standard format which the Commission proposes when channelling funds through an international organisation. (It is NOT a policy document). • It lays down the possible forms of cooperation between the institutions and the principles governing such cooperation. • It provides templates for Administration Agreements suitable for different funding situations. • It also foresees the possibility for the parties to co-operate without establishing a trust fund and provides for regular consultations on its implementation.

  15. 3. EC and WB cooperationThe new Framework Agreement Tools to strengthen implementation of the Framework Agreement: • Frequently Asked Questions • Annual reviews • Regular contacts

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