fourth meeting of acp ministers of finance economic planning senior officials meeting 11 12 november 2008

1. Fourth meeting of ACP Ministers of Finance & Economic Planning Senior officials meeting 11 � 12 November 2008 The Accra Agenda for Action: Implications for the ACP-EU Partnership? Doha process EPA negotiations EU joint Aid for Trade Strategy African process Key challenges Doha process EPA negotiations EU joint Aid for Trade Strategy African process Key challenges

2. Alignment with priorities Harmonization Result oriented 3 regional Aid for trade conferences LA/CA in Lima, Africa Dar 11october 1st Global Review in Geneva (nov 2007) Alignment with priorities Harmonization Result oriented 3 regional Aid for trade conferences LA/CA in Lima, Africa Dar 11october 1st Global Review in Geneva (nov 2007)

3. Part 1: IntroductionEfforts to improve aid since the start of the new Millennium Alignment with priorities Harmonization Result oriented 3 regional Aid for trade conferences LA/CA in Lima, Africa Dar 11october 1st Global Review in Geneva (nov 2007) Alignment with priorities Harmonization Result oriented 3 regional Aid for trade conferences LA/CA in Lima, Africa Dar 11october 1st Global Review in Geneva (nov 2007)

4. 2008 � a year to review past promises Achieving agreed goals: 2000 UN Millennium Declaration September 2008 New York Financing for development: 2002 Monterrey (+ODA: 1970 UNGA resolution) November 2008 Doha Aid effectiveness: 2002 Monterrey, 2003 Rome, 2005 Paris � September 2008 Accra

5. The five principles of the Paris Declaration Basic overview of the Paris Triangle on Aid EffectivenessBasic overview of the Paris Triangle on Aid Effectiveness

6. Progress made? (data from 33 partner countries, incl. EC + 14 EU states) 3/ For both technical cooperation and PIU there appears to be a wide dispersion between EU-donors and partner countries Globally Paris target (50%) on technical cooperation seems to be achievable EU (36%) is lagging behind global baseline (48%) and requires strong (joint) effort to achieve Paris target (50%) and even more for achieving the additional and ambitious EU target (�all�) Achieving the Paris PIU target (reducing stock of PIUs with 1221 to 611) seems to be a major challenge globally and for some EU-donors3/ For both technical cooperation and PIU there appears to be a wide dispersion between EU-donors and partner countries Globally Paris target (50%) on technical cooperation seems to be achievable EU (36%) is lagging behind global baseline (48%) and requires strong (joint) effort to achieve Paris target (50%) and even more for achieving the additional and ambitious EU target (�all�) Achieving the Paris PIU target (reducing stock of PIUs with 1221 to 611) seems to be a major challenge globally and for some EU-donors

7. Part 2: State of play in ACP-EU development cooperation Alignment with priorities Harmonization Result oriented 3 regional Aid for trade conferences LA/CA in Lima, Africa Dar 11october 1st Global Review in Geneva (nov 2007) Alignment with priorities Harmonization Result oriented 3 regional Aid for trade conferences LA/CA in Lima, Africa Dar 11october 1st Global Review in Geneva (nov 2007)

8. EU efforts on aid effectiveness beyond Paris Additional 4 EU commitments Provide all capacity-building assistance through co-ordinated programmes Channel 50% of government-to-government assistance through country systems Avoid establishment of new PIUs Reduce uncoordinated missions by 50%. Code of Conduct: Division of Labour 2007 Partner countries to take leadership Policy Coherence for Development 2005

9. Cotonou & AAA aid effectiveness Article 2 emphasis on ownership: �ACP states shall determine the development strategies for their economies and societies in all sovereignty� Operationalised in idea of Co-management Rolling Programming: EC-ACP dialogue to programme and shape support. Ongoing reviews of initial priorities + budget Joint-institutions to further shape ownership in practice Mutual Accountability Annual Review, MTRs, ETRs, �

10. EC support to aid effectiveness Continue to drive aid effectiveness agenda? Enhance complementarity among EU/EC? In-country/cross-country Division of Labour? EU self-assessment of respective added value? Enhanced use of country systems (S/GBS)? Monitor 2008 EU Council decisions e.g. MDG-contracts, ODA timetables? Support EU emerging donors (EU-12)? Promote PCD in EU-ACP cooperation? Fragile situations: more flexible procedures? Overall, EU progress: still cautious & too slow

11. EU priorities for Accra Agenda for Action (Council May 2008, para. 74) [1/2] Wherever relevant (& with emphasis on concrete & actionable proposals) Place aid effectiveness in development context Context of sustainable development, all 8 MDGs, importance of democratic governance & PCD. Accelerate implementation of PD commitments Partner countries� leading role highlighted Based on strong domestic accountability & democratic ownership. Recognise important role of civil society Overarching development goals & cross-cutting issues, HR, democratic governance, gender equality and environmental sustainability.

12. EU priorities for Accra Agenda for Action (Council May 2008, para. 74) [2/2] Promote aid predictability, division of labour (DoL), RBM, mutual accountability & use of country systems, Including 2 commitments on donor behaviour & capacity development proposed by partner countries. Improve cross-country complementarity & DoL Address funding imbalances � e.g. fragile situations Enhance in-country complementarity & DoL Adopt good practice principles. Consider how to measure progress in medium-term predictability & DoL. Address new issues related to emerging donors, new actors, climate change & food security. Ministerial meeting on 4 Sept in Accra: EU consensus with partner countries in negotiation

13. Part 3: Potential Impact of Accra High Level Forum on Aid Effectiveness on ACP-EU Cooperation

14. The road to Accra Critique of Paris Declaration Over-emphasis on �government-to-government� Non-State Actors largely absent in Paris Content considered too donor-driven Some partner country priorities absent The Accra process Goals: monitor implementation, look ahead, identify bottlenecks & deepen dialogue Ministerial Declaration, not a new PD But aimed at improving & enriching implementation Broad consultation process fed into agenda Different stakeholders & regional preparatory events Partner country priorities included in Agenda E.g. untying, conditionalities, predictability of aid

15. Content of AAA

16. Some problems with the AAA

17. The AAA & ACP-EU Cooperation (1/2)

18. The AAA & ACP-EU Cooperation (2/2)

19. Conclusions AAA has positive elements for ACP Effectiveness also vital for EU Aim to increase ODA & decrease staffing Improving effectiveness only solution EU also open to more ACP leadership Advantages in this for ACP But need for proactive approach Have to contend with resistance to change Also danger of fragmented change Biggest danger � business as usual