THE DEVELOPMENT POLICY OF EUROPEAN UNION

1. THE DEVELOPMENT POLICY OF EUROPEAN UNION

2. Introduction History European Consensus on Development Policy Coherence Agenda for Change Intervention areas Millennium Development Goals Funding Local Authorities European Development Fund (EDF) EuropeAID Conclusion STRUCTURE

3. Development is a crucial European Union policy along with foreign, security and trade policies. The EU is the world’s largest donor of official development assistance. In 2011 the Commission presented its 'Agenda for Change’ and reform proposals for EU budget support which set out the approach to reduce poverty EU development is based on the European Consensus on Development The EU and developing countries aim to promote respect for human rights, fundamental freedoms, peace, democracy, good governance, and gender equality, the rule of law, solidarity and justice. INTRODUCTION

4. The primary objective of the development policy is to eradicate poverty in the context of sustainable development whilst achieving the United Nations Millennium Development Goals (MDGs) To obtain consistency of European policies with development objectives. The EU has committed to increasing the aid budget to 0.7 % of gross national product by 2015 – half of the increase in aid will be for Africa. Continue to prioritise support for the least-developed countries and the low- and medium-income countries. OBJECTIVES

5. The EU intends to create growth in developing countries so that they have the potential to bring themselves out of poverty. Consequently the aid will target; - Social protection - Health, - Education and jobs - The business environment - Regional integration and world markets - Sustainable agriculture and energy Ensure that Member States and the EU Commission create their strategies and programmes together OBJECTIVES

6. The Treaty of Rome introduced development aid into the European Communities framework This constituted the basis for the creation of the European Development Fund (EDF). 2000 the EU adopted the Contonou Agreement (CA) This broadened the scope of development policy to include the promotion of human rights, democratic principles and the rule of law. 2006 the European Consensus on Development outlined the EU development policy and defined the principles of the European Union’s development actions. HISTORY

7. Signed on the 20th of December 2005 This defines the general framework for the action of the EU and its member states. The EU Member States, the Council, the European Parliament and the European Commission agreed on a common EU vision of development EUROPEAN CONSENSUS ON DEVELOPMENT

8. Part One – sets out the objectives and principles. The main objective is to reduce poverty worldwide in the context of sustainable development To meet the Millennium Development Goals Takes the view that poverty reduction is closely associated with the objectives of good governance and respect for human rights. Also aims to achieve a balance between activities aimed at human development, the protection of natural resources and economic growth. EUROPEAN CONSENSUS ON DEVELOPMENT

9. Part Two - Implementation of Community development policy Community policy and the policies of the Member States must complement each other. The added value of the Community's policy is due to its expertise in dispensing aid, its role in promoting consistency between policies and best practice and in facilitating coordination and harmonisation, its support for democracy, human rights, good governance and respect for international law, and its role in promoting participation in civil society and North-South solidarity The community will concentrate its activities in: -Trade and regional integration -The environment and sustainable management of natural resources -Water and energy -Rural development, agriculture and food security -Governance, democracy, human rights and support for economic and institutional reforms -Prevention of conflicts and of state fragility -Human development and social cohesion and employment EUROPEAN CONSENSUS ON DEVELOPMENT

10. The EU aims to incorporate development co-operation objectives in non – development policies due to the realisation that some of the EU policies have a substantial impact outside of the EU, which can either contribute or undermine its development policy. Policy Coherence is part of the European Consensus on Development which was adopted in 2005. This is another important document of EU development policy along with the Mid-term report on policy Coherence for Development Every two years the Commission will report on the progress made on policy coherence for development by the EU in 12 areas. The aim is to encourage a continual progress based on feedback from developing countries, civil society and the European Parliament. POLICY COHERENCE FOR DEVELOPMENT

11. There are 12 areas identified where development should be focused in order to accelerate the European Unions progress towards the Millennium Development goals: trade Environment Climate change security agriculture bilateral fisheries agreements social policies (employment) migration research / innovation information technologies transport Energy In 2009 the EU made the Policy Coherence for Development more operational and decided to focus future policy coherence development on 5 areas: trade and finance climate change food security migration security POLICY COHERENCE FOR DEVELOPMENT

12. Unveiled in October 2011 and approved in 2012 The Commission presented its 'Agenda for Change' and reform proposals for EU budget support This set out a more strategic EU approach to reducing poverty and a more targeted allocation of funding. Aimed at focusing assistance on the 48 least-developed countries, mostly from sub-Saharan Africa. Places emphasis on improving governance and social protections in developing nations, supporting agriculture and expanding energy access. Complements the eight United Nations’ Millennium Development Goals. AGENDA FOR CHANGE

14. The European Consensus on Development illustrates the EU desire to eradicate poverty and help to create a more equitable and peaceful world. Theses nine areas are the primary focus of the EU: Trade and regional integration. Environment and the sustainable management of natural resources. Infrastructure, communications and transport. Energy. Rural development (territorial planning, agriculture and food security) Governance, democracy and human rights. Peace and security Human development. Social cohesion and employment. INTERVENTION AREAS

15. Trade and regional integration • 1.Aid for trade • Trade policy and regulations • Trade development • Trade-related infrastructure • Building productive capacity • Trade-related adjustment • Other trade-related needs • 2. Regional Integration • political stability • Prosperity • addressing common challenges • lack of regional/national ownership and institutional capacities • fragmented regional markets • insufficient economic diversification • inefficient infrastructure interconnections • no effective regional policies on sustainable development • 3. Economic Partnership Agreements • improve the business environment • build up regional markets • promote good economic governance

16. Trade and regional integration • 4.Private Sector Development • Improvement of the macroeconomic framework and regulatory environment for enterprise development • Investment and inter-enterprise co-operation promotion activities • Facilitation of investment financing and development of financial markets • Support for Small and Medium- sized Enterprises in the form of non-financial services • 5. The EU-Africa Forum • 6. Commodities • Reducing market instability in the short term • Reducing dependence in the long term

17. 2. Environment and the sustainable management of natural resources Climate change and developing countries • The EU action plan on climate change and development  ensures climate change is incorporated into all aspects of EU development policy.Its four priorities are: • raising the political profile of climate change • support for adaptation in developing countries • support for mitigation and sustainable development paths • developing administrative capacity in vulnerable countries • The action plan is funded through the Commission's geographical programmes for countries and regions, and its programme for the environment and sustainable management of natural resources.

18. 2. Environment and the sustainable management of natural resources Forest and illegal logging • A major problem for many timber-producing developing countries, illegal logging: • causes environmental damage • costs governments billions of dollars in lost revenue • promotes corruption • undermines the rule of law and good governance • and in some places has financed armed conflict. • Consumer countries contribute to these problems by importing timber and wood products without ensuring they are legally sourced. • In recent years, however, producer and consumer countries alike have paid increasing attention to illegal logging.

19. 2. Environment and the sustainable management of natural resources Forest and illegal logging EU response – FLEGT action plan • The FLEGT action plan – adopted in 2003 – combines measures in producer and consumer countries to facilitate trade in legal timber and eliminate illegal timber trading with the EU, through measures such as: • support for timber–producing countries • activities to promote trade in legal timber • promoting ethical public procurement policies FLEGT licensed timber and EU Member State Procurement Policies • support for private-sector initiatives to promote corporate social responsibility • safeguards for financing and investment • use of existing legislative instruments or adoption of new laws to support the plan • addressing the problem of conflict timber.

20. 2. Environment and the sustainable management of natural resources Sustainable Fisheries and Poverty Reduction • Fisheries and poverty reduction • With skyrocketing demand from the developed world leaving some 75% of the major marine fish stocks fully exploited, overexploited or depleted, more than a billion people in 40 developing countries are in danger of losing their main source of protein. • This dilemma goes right to the heart of the matter: balancing the risk of over-exploitation and the sector's potential to help reduce poverty. • The EU funds fisheries initiatives mostly covering regions rather than individual countries in ACP countries, aiming at: • helping coastal and island states to formulate and implement fisheries development policies • better management of aquatic resources.

21. 2. Environment and the sustainable management of natural resources Sustainable Fisheries and Poverty Reduction • The coherence issue • Fisheries agreements between the EU and developing countries have traditionally focused on access for EU vessels. But now the emphasis is on partnership, development and sustainable fisheries, in line with the integrated framework for fisheries partnership agreements • Reasons for the change of focus • Development issues have to be taken into account in relevant EU policies including fisheries policy. Fisheries agreements bring in significant income for developing countries, so it is important that agreements are consistent with those countries' development strategies. • The EU is committed to the goal of sustainable fisheries worldwide ? specifically to maintaining stocks at levels that produce the maximum sustainable yield or restoring depleted stocks to those levels by 2015. The EU also continues to support implementation of the FAO code of conduct for responsible fisheries and the FAO conservation and management compliance agreement. • The EU's common fisheries policy seeks development that is sustainable in environmental, economic and social terms, both inside and outside EU waters.

22. 2. Environment and the sustainable management of natural resources Sustainable Fisheries and Poverty Reduction • When concluding fisheries partnership agreements with developing countries, the EU aims to: • use only surplus stocks in their coastal waters, following sound scientific and technical advice • recognise their right to peruse policies aimed at increasing the local added value of their fisheries sector • work in partnership with to develop their fisheries industry (particularly control, monitoring and surveillance, and stock assessment) • ensure that the EU's financial contributions to developing countries are transparent and comply with the EU?s own budget rules and development policy • follow the logic of the country development strategies drawn up under the Cotonou Agreement between the EU and ACP countries. • Before negotiating partnership agreements, the EU carries out sustainability impact assessments and monitors the situation to make sure it is properly aware of the financial, economic, institutional, environmental and social implications of the fisheries agreement for the partner country.

23. 3. Infrastructure, communications and transport Infrastructure: How the EU helps Transport - cheaper and better servicesBetter maintained transport assets, new trade corridors without borders and barriers, better and safer roads, competitive rail services, efficient ports including modern fisheries infrastructure and services meeting appropriate sanitary requirements, safe seas and ports, and safe, secure and efficient skies and airports. Water and sanitation - sustainable use of finite resourcesMeeting basic needs and improving integrated water-resources management at local, river basin/catchment, national and cross-border levels.

24. 3. Infrastructure, communications and transport • Energy - sustainable and affordable servicesBetter policy frameworks, more institutional capacity, better power generation, cross-border interconnections, grid extension and rural distribution • Information/communication - access to affordable technology • Developing broadband infrastructure and non-commercial e-services linked to regional and national networks. Information and Communication Technologies ( ICTs) touch all sectors of life from education (e-learning) to government (e-government). • The EC fund investment in the sector is in comparison to the other sectors limited because the ICT sector is in the hands of the private sector; EU funding is low compared to the other sectors. Instead, the EU's contribution to the sector concentrates on regulatory reformregulatory reform and administrative capacity-building , to create an equal playing field in order to ensure private companies sector can enter the market in secure conditions.

25. 4.Energy • The EU Energy Initiative for Poverty eradication and Sustainable Development • The European Union Energy Initiative was launched at the 2002 World Summit for Sustainable Development in Johannesburg as a joint commitment by the EU Member States and the Commission to give priority to the important role of energy in poverty alleviation. • The Initiative is a framework for policy dialogue with developing countries and other partners, and also for specific actions and partnerships, supported by the Commission and Member States, and developed in close collaboration with Developing Countries. The EUEI celebrates its 10th anniversary in 2012. • The EUEI has made energy a higher priority in EU development policy, being instrumental in the launching of the EU-Africa Energy Partnership and the creation of some specific instruments such as: • The ACP-EU Energy Facility • The COOPENER Programme • The EUEI Partnership Dialogue Facility

26. 4.Energy • The EU-Africa energy partnership • The Africa-EU Energy Partnership (AEEP) is one of the eight partnerships of the Africa-EU Joint Strategy adopted by African and European Heads of State and Government in Lisbon in December 2007. • Under this partnership of equals, the two continents share their knowhow and resources, tune their complementary interests and closely link their policies to meet the energy challenge hand in hand. • With a focus on energy issues of strategic importance, the AEEP is structured as a long term framework for political dialogue and cooperation between Africa and the European Union (EU), reflecting their mutual needs.  

27. 4.Energy • The EU-Africa energy partnership • The overall objective of the AEEP is improved access to reliable, affordable, cost-effective, climate friendly and sustainable energy services for both continents, with a special focus on achieving the MDGs in Africa. • In order to achieve its overall objective, the AEEP will focus its efforts on concrete, realistic, visible targets to be attained by 2020, as agreed by the First High Level Meeting of the AEEP held in Vienna on 14–15 September 2010. • Specific initiatives will focus on six priority areas: • Energy access; • Energy security; • Renewable energy and energy efficiency; • Institutional capacity building; • Scaling-up investment; and • Dialogue

28. 5. Rural development (territorial planning, agriculture and food security) • EU policy on rural development in developing countries is based on its paper Fighting Rural Poverty , which seeks to reduce poverty, increase food security and protect natural resources. • The paper identifies six policy goals: • supporting economic policies aimed at broad-based growth • ensuring more equitable access to land, markets and services • education and training • sustainable use of natural resources • managing risks and providing safety nets • building more effective, accountable, decentralised and participatory institutions

29. 6. Democracy and Human rights • The European Union believes that democracy and human rights are universal values that should be vigorously promoted around the world. • They are integral to effective work on poverty alleviation and conflict prevention and resolution, in addition to being valuable bulwarks against terrorism. • Having into force on 1 January 2007, the European Instrument for Democracy and Human Rights (EIDHR) is the concrete expression of the EU's intention to integrate the promotion of democracy and human rights into all of its external policies.

30. 6. Democracy and Human rights • Democracy and Human rights is funded through geographic programmes and thematic instruments: • Geographical instruments: • the implementation of the policy at national and regional level is supported by the European Development Fund (in the African, Caribbean and Pacific countries), the Development Co-operation Instrument (in Latin America, Asia and South Africa), and the European Neigbourhoud & Partnership Instrument (in the neighbouring regions), • Thematic instruments: • mainly through the European Instrument for Democracy and Human Rights, which works with and through civil society organizations in countries where there is no direct cooperation with the government; but also through other thematic instruments.

31. 7. Peace and Security • EU development work uses non-military means to support the peaceful resolution/prevention of armed conflict through negotiations, demobilisation, demilitarisation, etc. • It also supports: • good policing • the rule of law (availability of judges, lawyers, etc.) • civil administration (establishing a group of experts), • civil protection (experts and emergency teams which can be mobilised at very short notice).

32. 7. Peace and Security • Conflict prevention is backed up through: • trade policy • development policy • cooperation and association agreements • social and environmental programmes • humanitarian assistance (ECHO) • cooperation on justice and home affairs. • In post-conflict states, the EU supports disarmament and arms-control measures in the framework of the UN Conference on Disarmament, relating to: • small arms and light weapons • conventional weapons • biological weapons • chemical weapons • It also supports international efforts to ensure nuclear safety.

33. 8. Human development • Human development covers the following themes: • Education • Children rights • Health • Culture • Employment and Social Cohesion • Gender equality

34. 9. Social cohesion and employment • Employment in EU development policy • The European experience shows that social cohesion is a driver of economic growth, not a hindrance. Accordingly, EU development policy seeks to ensure that globalisation creates jobs that come with fair conditions. • Commission action • Working document on employment - proposes national and regional solutions and seeks debate on how national EU development policies can best promote employment, under the ILO's decent work initiative. • EU development consensus prioritises "employment and social cohesion". • EU regional strategies. • EU "Investing in people" programme • Decent work - EU policy paper - includes chapter on development.

35. 9. Social cohesion and employment • Strategic partnership with ILO • Since 2004, the EU and the International Labour Organisation have been working together to devise common strategies on development issues of mutual interest, e.g: • promoting core labour standards, especially on education and child labour, in trade-related policies, capacity building and training • corporate social responsibility • social dialogue , drawing on e.g. the ILO-PRODIAF programme-employment strategy to reduce poverty • migration, especially the brain-drain and its financial implications • social protection.

36. MILLENNIUM DEVELOPMENT GOALS

37. Not all the developing countries have made equal progress, and some areas and regions are significantly behind. Further efforts are required in order to achieve all 8 Millennium development goals by 2015 The Commission therefore proposes to: - establish annual action plans to optimise the implementation of Official Development Assistance; - strengthen the EU accountability mechanism, - enact national legislation for setting Official Development Assistance targets. In addition, other international donors need to increase their contribution to be in line with EU Official Development Assistance. MILLENNIUM DEVELOPMENT GOALS

38. To accelerate progress towards the MDGs the Commission proposes to: - target countries and populations which are furthest behind, and least developed countries (LDCs); - target the goals that are the furthest behind and improve the impact of European policies, particularly in health, education, food security and gender equality. - encourage ownership of MDGs by partner countries by incorporating these goals into their own development strategies. - promote the mobilisation of domestic resources and strengthen partner countries’ tax systems - encourage regional integration and trade which will help to stimulate growth and jobs - encourage innovative sources of funding - support climate change adaptation and mitigation strategies in partner countries - create long-term security conditions, as many of the developing countries are in fragile situations as a result of armed conflicts MILLENNIUM DEVELOPMENT GOALS

39. MILLENNIUM DEVELOPMENT GOALS • Focus on Africa • Many parts of sub-Saharan Africa are falling far behind the rest of the world in terms of reaching the Millennium Development Goals. • The Commission aims to focus on Africa and support African States so that they hold the primary responsibility for their own development. • This will be done by: • - improving Africa’s governance • - interconnecting Africa’s networks and trade; • Regional infrastructure networks and services need to be created and sustained so that economic growth and trade become competitive and Africa’s exporters can find their place in the global market. The Europe-Africa partnership on infrastructure has been created as a result. • - The EU will support initiatives that aim to create equitable societies, access services, decent work and environmental sustainability.

40. The European Union is the biggest donor of development aid in the world. The European Union as a whole (member states plus Commission-managed funds) accounts for around 55 % of the total global aid. The European Commission is responsible for the management of €11 billion of aid per year. EU development assistance comes from the EU budget (around 70%) and the European Development Fund (EDF) (around 30%) FUNDING

41. FUNDING • EU development aid and other financial expenditures are determined every 7 years in framework budget reviews • The Financial Perspectives (2014-2020) are the EU's multi-annual financial framework review. • A significant share of EU aid is delivered in the form of budget support such as financial transfers to government budgets in developing countries. • The EU should look to other innovative ways of financing development such the blending of grants and loans.

42. FINANCING DEVELOPMENT • Financing for Development promotes an integrated approach to development finance, including mobilising domestic and international resources for development, increasing trade capacity and investment, Official Development Assistance, innovative financing sources and mechanisms, aid and development effectiveness, debt sustainability, financing climate and biodiversity actions. • The entities which are eligible for funding are, inter alia, the following: • partner countries and regions, and their institutions; • decentralised bodies in the partner countries (municipalities, provinces, departments and regions); • joint bodies set up by the partner countries and regions with the Community; • international organisations; • EU agencies; • certain entities and bodies of the Member States, partner countries and regions and any other third country in so far as they help to achieve the objectives of this Regulation.

43. FINANCING DEVELOPMENT • Article 39 of the Regulation repeals the regulations relating to: • access to Community external assistance; • promoting gender equality in development cooperation; • the AENEAS programme; • the fight against poverty diseases in developing countries; • reproductive and sexual health and rights in developing countries; • aid to uprooted people in Asian and Latin American developing countries; • the conservation and sustainable management of tropical forests and other forests in developing countries; • full integration of the environmental dimension in the development process; • development cooperation with South Africa; • decentralised cooperation; • co-financing operations with European non-governmental organisations; • food-aid policy and food-aid management; • financial and technical assistance to, and economic cooperation with, the developing countries in Asia and Latin America.

44. In recent years there has been importance placed on local authorities as key actors in development The commission has proposed a European strategy aimed at strengthening participation in the design and implementation of European development policy. Local authorities bring added value to the development process by: - Their ability to bring together different stakeholders to work together - To increase public awareness - Their knowledge of local needs and expertise in sectors relative to poverty reduction such as urbanisation, water and sanitation. - Their direct experience in territorial development LOCAL AUTHORITIES AND DEVELOPMENT ASSISTANCE

45. Created in 1957 by the Treaty of Rome and launched in 1959 The European Development Fund (EDF) is the main mechanism for providing Community development aid in the African, Caribbean and Pacific (ACP) countries and the overseas countries and territories. The fund covers - economic development, - social and human development, - regional cooperation and integration. EUROPEAN DEVELOPMENT FUND (EDF)

46. How much money is available? - The 10th European Development Fund has a budget of €22 682 million: - 97% of the total to ACP countries - 1% to OCTs - 2% to the Commission as support expenditure for programming and implementation of the fund The amount for the ACP countries is divided into 81% to the national and regional indicative programmes 12% to intra- ACP and intra- regional cooperation 7% to investment facilities In comparison to the 9th EDF, there is an increased share of the budget aimed at regional programmes. There is now the innovation "incentive amounts" which is extra resources countries can earn by improving their governments such as improvements to the management of their financial, tax and legal systems. EUROPEAN DEVELOPMENT FUND (EDF)

47. This fund is an extra - budgetary fund and therefore funded by the Member States, is subject to its own financial rules and managed by a specific committee. There has been requests for the fund to be included in the EU budget in order to increase public control, transparency and effectiveness. Some funds in the 10th EDF have been put aside for unforeseen needs such as humanitarian and emergency assistance. The EDF consists of - grants managed by the Commission - risk capital and loans to the private sector which are managed by the European Investment Bank - the FLEX mechanism which is aimed at remedying the adverse effects of instability of export earnings. EUROPEAN DEVELOPMENT FUND (EDF)

48. Who is available for funding? natural and legal persons from ACP States and EU Member States, international organisations within regional initiatives - all natural and legal persons from a country participating. Proposals and tenders - each of them will specify in related documents the eligibility criteria EUROPEAN DEVELOPMENT FUND (EDF)

49. EuropeAID • EuropeAid Development and Cooperation is responsible for designing European development policy and delivering aid throughout the world. •  EuropeAid delivers aid through a set of financial instruments with a focus on ensuring the quality of EU aid and its effectiveness. • An active and proactive player in the development field, we promote good governance, human and economic development and tackle universal issues, such as fighting hunger and preserving natural resources.

50. EuropeAID DEVELOPMENT AND COOPERATION • Designing EU development policies • Development Policies • The European Consencus on Development • Policy coherence on development • Intervention Areas • Cross cutting issues • 2. Governance and Human Rights • Governance • Human rights and democracy • Civil society and local authorities • Security and conflicts • Migration and asylum