EuropeAid Gearing up to Deliver More, Better and Faster Aid: the New European Aid Effectiveness Package Koos Richelle Director General EC EuropeAid Overview • Part 1: EU aid policy developments • Part 2: EC aid delivery • Part 3: Donor co-ordination EuropeAid Part 1 EU aid policy developments EuropeAid EU aid policy developments EuropeAid • No EU constitution in foreseeable future ? Limited impact on development work. • New Development Policy Statement (DPS): o o replaces statement of 2000 based on: increasing official development aid (ODA), aid effectiveness, predictability and policy coherence • New Strategy for Africa • New strategies for Caribbean and Pacific to follow EU aid policy developments EuropeAid • Four new instruments to replace all existing programmes (TACIS, MEDA, ALA …): o o European Neighbourhood Instrument: Eastern Europe, Caucasus, South Mediterranean, Middle-East 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 EU aid policy developments Thematic programmes implemented through Neighbourhood 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 EuropeAid Part 2 EC aid delivery EuropeAid EC aid delivery EuropeAid • 2005 record year on key 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 EC aid delivery EuropeAid External assistance funds Commission external assistance funds/year Development 8000 Enlargement and Balkans Humanitarian aid 6000 4000 2000 0 2002 2003 2004 2005 Commitments, amounts in million euros EC aid delivery EuropeAid 2005 earmarked amounts: € 7.5 billion • • • • • • • Africa, Caribbean, Pacific Middle East/Mediterranean Asia Tacis Latin America South Africa* Thematic Programmes & others 3 511 m 1 075 m 834 m 515 m 329 m 155 m 1 090 m + + + + + + + Increase of commitments with 54% since 2001 *Including € 18m accounting correction 33% 7% 37% 2% 5% 15% 5% EC aid delivery Payments: € 6.2 billion, up 9.5% from 2004 6.000 4.000 EDF 2.000 Budget 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 ¾ Increase of payments with 52% since 2001 EuropeAid EC aid delivery EuropeAid Average implementation years 3.32, down from 3.55 in 2004 6 5 4 3 EDF Total Budget 2 1 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 Part 3 Donor co-ordination EuropeAid Donor co-ordination The EU is not one donor, but 25 Member States and the Commission . • The EU provides 52% of all development aid in the world. • The Commission on its own, is the fifth largest donor after the USA, Japan, UK and France. • The Commission is the second largest donor of humanitarian aid. EuropeAid Donor landscape 2004 EU Donor Atlas, European Commission and OECD/DAC, 2006 EuropeAid Donor co-ordination EuropeAid • 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 spending 90% of the planned increase. Aid via United Nations’ Organisations € million EuropeAid Financial Contributions to the UN*: 1999 - 2005 1000 900 800 700 600 500 400 300 200 100 0 917,24 873,79 505,43 363,77 234,7 261,35 296,29 1999 2000 2001 2002 2003 2004 2005 year *including A P IF, CICP , ECA , ECLA C, FA O, ICA O, ICTY, ICTR, ILO, IM O, ITC, ITU, LOFTA , OCHA , OHCHR, UN Secretariat, UNA IDS, UNCCD, UNCHS, UNCTA D, UNDCP , UNDP , UNEP , UNESCO, UNFP A , UNHCR, UNICEF, UNIDIR, UNIDO, UNIFEM , UNITA R, UNM A S, UNM IK, UNOCHA , UNODC, UNOG, UNOP S, UNRWA , UN Co urt o f Sierra Leo ne, UNTA ET, WFP and WHO (Source: AIDCO F4 15.06.2005) EuropeAid Aid via World Bank EuropeAid EuropeAid Financial Contributions to the WB Group*: 1999-2005 600 512,62 413,64 € million 500 401,89 400 300 200 100 4,8 1,7 1999 2000 56 51,14 2001 2002 0 year 2003 2004 2005 Trust Funds EuropeAid Breakdown "Trust Funds" / "no Trust Funds" relating to main political cases (Afghanistan, Iraq, Tsunami, Nigeria (census), RDC (elections)) 2004-2005 400,00 350,00 300,00 no Trust Funds 250,00 UN (Trust Funds) 200,00 WB (Trust Funds) 150,00 100,00 50,00 0,00 AF IQ TSU NI RDC Organisations benefitting from EC funds EuropeAid TOP 7 organisations benefiting from 100% EC funding 2% 2% 5% EBRD+ICRD+Interpol ICRD 32% 59% IOM WB UN Donor 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. EuropeAid Donor co-ordination 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. EuropeAid For more information http://ec.europa.eu/comm/ europeaid/index_en.htm EuropeAid