1. 11 th EDF Programming Agenda item 5: Agenda for Change

2. OVERVIEW 1. The need for change 2. The Agenda for Change

3. WHY THE NEED FOR CHANGE

4. WHY NEED FOR CHANGE? Treaty of Europe of Lisbon 1.12.2010 – Creation of EEAS. EU Delegations have 3 pillars; political, trade and aid roles. Now EU (not EC) Delegations potential for greater coherence between 3 pillars and 27 EU Member States (c.f One UN). In past EU tried to do everything, everywhere…. We can't. Too much focused on how much we spent rather than results achieved. EU seen as a charity giving gifts esp. in Africa Need investments that promote sustainable growth

5. WHY NEED FOR CHANGE? Realisation that donor funds are not enough (e.g energy) Poor use of grants funds (e.g for roads) Innovative use of funds; blending grants and loans; using granst to leverage loans; risk sharing etc) Want better political dialogue with beneficiary countries; genuine political and economic reforms in RoL and democracy. 13 ACP countries have higher GDPs than some EU Member States No more human resources (although reallocation)

6. THE AGENDA FOR CHANGE

7. AGENDA FOR CHANGE It is a break with past (8 th, 9 th, 10 th EDFs…) but poverty alleviate remains overall objective Aim is to increase impact of EU assistance through a number of guiding principles Ownership – use of National Development Plan (support country's vision) but also CSOs, trade unions, private sector will play vital role (record all meetings) Comprehensiveness and coherence – define EUs relationship under all instruments; EU delivers as one.

8. AGENDA FOR CHANGE Differentiation of EU aid – focus on countries most in need (implies fewer) where EU aid can have real impact (implies not all LDCs) Budget - 19 countries may no longer get bilateral aid ACP - 20 countries may no longer get bilateral aid but may still get regional and thematic assistance and loans Simplification of process - uses National Development Plans (if appropriate) no CSP needed. EU aid plugged more directly into development vision of country. Documents will be shorter (no long annexes!) Synchronisation and flexibility – dance to the rhythm of the NDPs and not EDF. Greater flexibility to respond to sudden changes (ad hoc reviews).

9. AGENDA FOR CHANGE Joint programming with EU MS (EIB) and others donors if possible. Improves coordination. Two levels: Joint analysis Joint response strategy (indicative allocations by donor by sector) Common results framework – where possible use countrys framework. If insufficient support should be provide within sector. Sector concentration max 3 sectors in any one country with narrow definition of sector. Reduce transaction costs for SZ and EU. Priority given to sectors in Agenda for Change. Choice based on need.

10. AGENDA FOR CHANGE Sectoral menu – reflects EU priorities; but selection based on need. 1.Democracy, human rights and rule of law Gender, tax, anti-corruption, CSOs and LAs, management of natural resources, public sector management. 2. Inclusive and sustainable growth Social protection, health and education and jobs (globally 20 % of 11 th EDF should be to social sectors) Promoting green low carbon economy, sustainable use of nat. resources

11. AGENDA FOR CHANGE Stronger business environment, deeper regional integration and global market integration. New ways of engaging with private sector (blending, risk share-mechanisms) Sustainable agriculture, fisheries, food security Sustainable energy (globally 20 % of 11 th EDF should be climate change related)