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EuropeAid
Gearing up toDeliver More, Better and Faster Aid:
the New EuropeanAid Effectiveness Package
Koos RichelleDirector GeneralEC EuropeAid
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EuropeAidOverview
• Part 1: EU aid policy developments
• Part 2: EC aid delivery
• Part 3: Donor co-ordination
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EuropeAidPart 1
EU aid policy developments
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EuropeAidEU aid policy developments
• No EU constitution in foreseeable future ?Limited impact on development work.
• New Development Policy Statement (DPS):
o replaces statement of 2000
o based on:increasing official development aid (ODA),aid effectiveness, predictability andpolicy coherence
• New Strategy for Africa
• New strategies for Caribbean and Pacific to follow
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EuropeAidEU aid policy developments
• Four new instruments to replace all existing programmes (TACIS, MEDA, ALA …):
o European Neighbourhood Instrument:Eastern Europe, Caucasus,South Mediterranean, Middle-East
o Development Co-operation Instrument:Asia, Central Asia, East-Jordan and Latin America
o Instrument for Stability
o Instrument for Nuclear Safety
• 10th European Development Fund (EDF):Africa, Caribbean and Pacific
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EuropeAidEU aid policy developments
Thematic programmes implemented throughNeighbourhood and Development instruments:
• Democracy and human rights
• Human and social development
• Environment and sustainable management of natural resources including energy
• Non-state actors and local authorities in development
• Food security
• Migration and asylum
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EuropeAidPart 2
EC aid delivery
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EuropeAidEC aid delivery
• 2005 record year onkey performance indicators
commitments, contracting, payments, speed
• Better aid delivery
Internal reforms completed:o delegations responsible for aid management,
o shift from input focus to output and impact,
o push for new aid modalities like budget support
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EuropeAidEC aid delivery
External assistance fundsCommission external assistance funds/year
0
2000
4000
6000
8000
2002 2003 2004 2005
Development
Enlargementand BalkansHumanitarianaid
Commitments, amounts in million euros
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EuropeAidEC aid delivery
2005 earmarked amounts: € 7.5 billion
• Africa, Caribbean, Pacific 3 511 m + 33% • Middle East/Mediterranean 1 075 m + 7%• Asia 834 m + 37%• Tacis 515 m + 2%• Latin America 329 m + 5%• South Africa* 155 m + 15%• Thematic Programmes & others 1 090 m + 5%
Increase of commitments with 54% since 2001
*Including € 18m accounting correction
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EuropeAidEC aid deliveryPayments: € 6.2 billion, up 9.5% from 2004
Budget
EDF
0
2.000
4.000
6.000
1997 1998 1999 2000 2001 2002 2003 2004 2005
Increase of payments with 52% since 2001
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EuropeAidEC aid deliveryAverage implementation years3.32, down from 3.55 in 2004
Total
Budget
EDF
0
1
2
3
4
5
6
1997 1998 1999 2000 2001 2002 2003 2004 2005
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EuropeAidPart 3
Donor co-ordination
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EuropeAidDonor co-ordination
The EU is not one donor,but 25 Member States and the Commission.
• The EU provides 52% of all development aidin the world.
• The Commission on its own, is the fifth largestdonor after the USA, Japan, UK and France.
• The Commission is the second largest donor of humanitarian aid.
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EuropeAidDonor landscape 2004
EU Donor Atlas, European Commission and OECD/DAC, 2006
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EuropeAidDonor co-ordination
• UN Millennium Development Goals:
• EU15 to reach 0.7% of Gross National Income (GNI) by 2015.
• EU10 to reach 0.33%.
• EU: planned increase should release by 2010 around € 30 billion in extra funding per year.
• New instruments discussions: € 3.4 billion in extra funding per year.
• So: EU Member States responsible for spending90% of the planned increase.
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EuropeAidAid via United Nations’ Organisations
EuropeAid Financial Contributions to the UN*: 1999 - 2005
261,35363,77
873,79
234,7
505,43
296,29
917,24
0100200300400500600700800900
1000
1999 2000 2001 2002 2003 2004 2005
year
€ m
illio
n
*including APIF, CICP, ECA, ECLAC, FAO, ICAO, ICTY, ICTR, ILO, IM O, ITC, ITU, LOFTA, OCHA, OHCHR, UN Secretariat, UNAIDS, UNCCD, UNCHS, UNCTAD, UNDCP, UNDP, UNEP, UNESCO, UNFPA, UNHCR, UNICEF, UNIDIR, UNIDO, UNIFEM , UNITAR, UNM AS, UNM IK, UNOCHA, UNODC, UNOG, UNOPS, UNRWA, UN Court o f Sierra Leone, UNTAET, WFP and WHO
(Source: AIDCO F4 15.06.2005)
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EuropeAidAid via World Bank
EuropeAid Financial Contributions to the WB Group*: 1999-2005
4,8 1,7
401,89
512,62
413,64
51,1456
0
100
200
300
400
500
600
1999 2000 2001 2002 2003 2004 2005
year
€ m
illio
n
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EuropeAidTrust Funds
0,00
50,00
100,00
150,00
200,00
250,00
300,00
350,00
400,00
AF IQ TSU NI RDC
no Trust Funds
UN (Trust Funds)
WB (Trust Funds)
Breakdown "Trust Funds" / "no Trust Funds" relating to main political cases (Afghanistan, Iraq, Tsunami, Nigeria (census), RDC (elections))
2004-2005
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EuropeAidOrganisations benefittingfrom EC funds
TOP 7 organisations benefiting from 100% EC funding
32%
59%
5%2%2%
EBRD+ICRD+InterpolICRDIOMWBUN
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EuropeAidDonor co-ordination
Three approaches to prepare Member States and Commission for the future:
1. Opening up of procedures
• Facilitating joint work:Now: pool-funding for sector support.Later (2007): Commission proposal allowing Member States to manage Community funds, and vice versa.
• More public-private work: more blending of funding (grants with loans), co-funding with private sector. Example: Water Facility.
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EuropeAid
2. Sector and budget support
• Setting targets:Commission pushing for 40 – 45% of 10th EDF for sector/budget support.
• Developing know how: examples:•Commission’s role in Public Finance Management
standards development•Commission leading in standards for assessment of
public institutions• strong cooperation with IFIs
3. Mapping
• Comprehensive mapping of where we are:start with infrastructure: from roads to IT.
• Infrastructure atlas of Africa.
Donor co-ordination
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EuropeAidFor more information
http://ec.europa.eu/comm/europeaid/index_en.htm