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EC Response to Food Price Crisis
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  1. EC Response to Food Price Crisis Prague, February 2009 Marc Debois

  2. 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.

  3. 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

  4. Food Facility – Approval Process • 18 July – Commission Proposal • 4 December EP approval • 16 December Council approval • 31 December – Publication in OJ

  5. 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

  6. 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

  7. Commitment and Payment Appropriations (x € 1000)

  8. 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

  9. 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

  10. 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)

  11. 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

  12. 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

  13. 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