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Development and relations with African,Caribbean and Pacific StatesTogether for a better world
EC development financing instruments
Eero SaueA/2: Aid Effectiveness and
Relations with Member States
DG Development
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
Structure
1. EU in the Global Context
2. What are the EC’s external aid instruments
3. Briefly on EC procurement
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
Political Context
• MDGs
• European Consensus
• Paris Agenda
• ODA commitments
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
EU in the Global ContextGlobal Aid Flows 2008
49,468
18,031
6,493,275 2,75 2,194 1,397 0,24
83,8
0
10
20
30
40
50
60
EU 27 US Japan Canada Norway Australia Switzerland NewZealand
Total aid
€ b
illi
on
Source: European Commission and OECD
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
Breakdown of EU aidEU Bilateral disbursements
PT; 0,6%EL; 0,5%FI; 1,2%
LU; 0,5%
EU12; 2,0%IE; 1,5%
AT; 2,0%
BE; 2,3%
IT; 2,8%
DK; 3,1%
SE; 5,5%
ES; 7,8%
EC; 22,2%
DE; 15,2%
UK; 12,6%
NL; 9,1%
FR; 11,1%
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
2008 EC external aid budget
Commission budget inside EU: €124 bn (91%)
External aid: €12.8 bn(9%) EuropeAid EDF
fund: €4.8 bn (37%)
EuropeAid Budget: €4.6 bn
(37%)
Non-EuropeAid Budget: €3.3 bn
(26%)
EuropeAid implements external assistance. This excludes pre-accession aid, humanitarian aid, and Common Foreign and Security Policy (CFSP) aid. EC total budget includes European Development Fund (EDF). NB – 2008 provisional figures (April 09)
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
EC External Aid InstrumentsPolicy driven instruments: ► Instrument for Pre-Accession Assistance (IPA)► European Neighbourhood and Partnership Instrument (ENPI) ► Development Cooperation Instrument (DCI)► European Development Fund (EDF)► Economic Cooperation Instrument (ECI)► Instrument for Nuclear Safety Cooperation (INSC)► Human Rights and Democracy Instrument (EIDHR)
Crisis response instruments: ► Humanitarian Aid Instrument ► Macro-financial Assistance► Instrument for Stability
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
Geography of funds - 2008
EuropeAid spending per region, ACP including South Africa and Bananas
In M€
Africa, Caribbean,
Pacific: 3443M 60%
Latin America: 310M 5%
Asia: 673M 11%
Neighbourhood east: 318M
5%
Neighbourhood south: 1137M
19%
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
ENPIScope Country and region specific programmes (95 %)
Cross border cooperation (CBC) programmes on the external borders (enhanced by ERDF funding)
Region: 17 countries: Mediterranean, Eastern Europe, Russia, Caucasus, Near East
Funding 11.8 bln EUR 2007-13, average €1.68 billion per year
Examples Palestine, all national envelopes, Eastern Partnership, NIF
web http://ec.europa.eu/europeaid/where/neighbourhood/http://ec.europa.eu/world/enp/
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
DCI Geographic programmesScope: Country specific programmes
Funding: Average € 1.4 billion p.a.
Regions: Asia € 740 millionLatin America 380South Africa 140 Central Asia 100Middle East 70
ENPI (under thematic) 70,5
Examples: Primary education in India, Colombia, Peace Labs, Institution building in South Africa, development of SMEs in Kazakhstan, rule of law in Iraq
Web: http://ec.europa.eu/europeaid/where/
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
DCI Thematic programmes Funding Average € 800 million p.a.
Region All third countries except industrialised/pre-accession
Themes Investing in people € 150 millionEnvironment 120NSAs / local authorities 230Food security 240Migration / asylum 60
Examples: HR development in Fiji, food security in Niger, community dialogue in Lebanon, fight human trafficking
web http://ec.europa.eu/europeaid/what/human-social-development
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
10th EDFLegal Basis revised Cotonou Agreement:
Country and Region specific programmes Thematic programmes
Coverage 77 African, Caribbean, Pacific countries, OCTsFunding Total €22.682 billion
Average €3.7 billion per year Period covered 2008-2013
web http://ec.europa.eu/europeaid/where/acp/
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
The Programming Process
Strategy Papers
Strategy Papers
Multi-annual Indicative
Programmes
Multi-annual Indicative
Programmes
Action Programmes
Action Programmes
► Analysis of the situation
► Response strategy
►Priority sectors
► 7 years
► revised at mid-term
►normally attached to Strategy Papers
► set global and per priority allocations
► cover 3 – 4 years
►annual
► describe projects identified for financing
► define the budget per
project
►lead to EC decision & commitments of funds
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
EC procurement & grants
• Eligibility rules
• Financial Regulation
• Practical Guide (“PRAG”)http://ec.europa.eu/europeaid/work/procedures/implementation(practical_guide/index_en.htm
• EuropeAid funding opportunities http://ec.europa.eu/europeaid/work/funding/index_en.htm
Development and relations with African,Caribbean and Pacific StatesTogether for a better world
Summary
• EU donors = 27+1
• Same objectives, different instruments
• United in Diversity, for better impact
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