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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
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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
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Development and relations with African,Caribbean and Pacific StatesTogether for a better world
Political Context
• MDGs
• European Consensus
• Paris Agenda
• ODA commitments
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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
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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%
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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)
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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
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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%
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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/
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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/
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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
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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/
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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
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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
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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