Ec response to food price crisis
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EC Response to Food Price Crisis. Prague, February 2009 Marc Debois. EC Response to Food Price Crisis. Two main lines: Mitigate negative effects on poorest consumers . Assistance can take various forms: Food assistance Macro-economic assistance Safety nets

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EC Response to Food Price Crisis

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EC Response to Food Price Crisis

Prague, February 2009

Marc Debois


EC Response to Food Price Crisis

Two main lines:

  • Mitigate negative effects on poorest consumers. Assistance can take various forms:

    • Food assistance

    • Macro-economic assistance

    • Safety nets

  • Encourage agricultural supply response. Assistance a.o.:

    • Input provision

    • Supportive physical and institutional structure

    • Longer term: agricultural sector reforms, research etc.


Financial responses to ‘Food Price Crisis’

Several Instruments (short-medium response):

  • Humanitarian Instrument:

    • Upfront use of existing budget

    • Additional allocation of €140 million

  • FSTP

    • Re-allocations in 2008 → € 50 million

    • Allocated to 12 priority countries

  • 10th EDF, B-envelope

    • Mobilization of € 200 million

    • Allocated to 30 ACP countries

    • Mainly macro-economic response and urban safety nets

  • Food Facility

    • € 1 billion


Food Facility – Approval Process

  • 18 July – Commission Proposal

  • 4 December EP approval

  • 16 December Council approval

  • 31 December – Publication in OJ


Characteristics Food Facility (1)

Aim:

  • rapid and direct response to the volatile food prices in developing countries, addressing primarily the period between emergency aid and long-term development cooperation.

    Primary objectives:

    • Encourage a positive supply response of the agricultural sector

    • Support activities to respond rapidly and directly to mitigate the negative effects of volatile food prices

    • Strengthen the productive capacities and the governance of the agricultural sector


Characteristics Food Facility (2)

Eligible Measures:

  • Measures to improve access to agricultural inputs and services;

  • Safety net measures;

  • Other small-scale measures aiming at increasing production based on country needs: microcredit, investment, equipment, infrastructure and storage; as well as vocational training and support to professional groups in the agricultural sector.

    Eligible Entities:

  • DCI list of entities

  • ‘appropriate balance’ between IO/ROs and others


Commitment and Payment Appropriations (x € 1000)


Programming (1)

Overall Plan:

  • Coverage:

    • List of target countries

    • Indicative allocations

    • Indication of measures and eligible entities

  • Target dates:

    • Sent to DCI Committee 18/2

    • DCI Committee 3/3

    • Commission Decision 18/3


Programming (2)

First set of Measures

  • Will precede overall plan (agreement EP-Council-Commission)

  • Coverage:

    • Measures for value of about € 315 million

    • 23 countries

    • Only with IOs

  • Foreseen Timing:

    • Send to DCI Committee 2/2

    • DCI Committee meeting 17/2

    • Commission Decision 5/3


Programming (3)

Second set of measures

  • Coverage:

    • Most of remaining countries

    • Most of remaining 2009 commitments

    • Mix of eligible entities

      • IOs/ROs

      • NSA + EU national agencies (call)

      • National Governments (incl. BS)

      • other

  • Timing: after overall plan agreement (March)


Programming (4)

At later stage:

  • 2009 – Some commitments through Regional Organisations

  • Commitments for 2010 budget (€ 170 million):

    • January 2010

    • Will need faster operations → where feasible budget support


Implementation (1) – General Aspects

  • AIDCO Task Force

  • Support to be concluded by end 2011 (incl. last payments)

    • Short-term activities

    • Distinct (first) phase of longer-term activities

  • Country/region-specific approach, following needs assessments and plans


Implementation (2)

Monitoring

  • By implementing agencies

  • UN HLTF (central + country level)

  • EC:

    • Task Force + Delegations

    • Additional ROM exercise

    • Special Study 2009

      Reporting

  • Interim Report on measures taken: December 2009

  • Annual Report on Development Cooperation

  • Final report – no later than 31 Dec. 2012


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