EC development financing instruments Eero Saue A/2: Aid Effectiveness and Relations with Member States DG Development

Structure EU in the Global Context What are the EC’s external aid instruments Briefly on EC procurement

Political Context MDGs European Consensus Paris Agenda ODA commitments

2000 MDGs

EU in the Global Context

Breakdown of EU aid

2008 EC external aid budget External aid: €12.8 bn (9%) EuropeAid EDF fund: €4.8 bn (37%) Non-EuropeAid Budget: €3.3 bn (26%) Commission budget inside EU: €124 bn (91%) EuropeAid Budget: €4.6 bn (37%) 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)

EC External Aid Instruments Policy 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

Geography of funds - 2008 EuropeAid spending per region, ACP including South Africa and Bananas

IPA (ELARG) Scope Transition assistance Institution building Cross-border cooperation Regional, rural & human resources development Region Albania, Croatia, Serbia, Macedonia, Montenegro, B&H, Kosovo, Turkey Funding Average €1.6 billion per year Examples Visa systems, border management, consumer protection Web http://ec.europa.eu/enlargement/index_en.htm

ENPI Scope 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/

DCI Geographic programmes Scope: Country specific programmes Funding: Average € 1.4 billion p.a. Regions: Asia € 740 million Latin America 380 South Africa 140 Central Asia 100 Middle 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/

DCI Thematic programmes Funding Average € 800 million p.a. Region All third countries except industrialised/pre-accession Themes Investing in people € 150 million Environment 120 NSAs / local authorities 230 Food security 240 Migration / 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

10th EDF Legal Basis revised Cotonou Agreement: Country and Region specific programmes Thematic programmes Coverage 77 African, Caribbean, Pacific countries, OCTs Funding Total €22.682 billion Average €3.7 billion per year Period covered 2008-2013 web http://ec.europa.eu/europeaid/where/acp/

EIDHR Scope Human rights Democracy (election observations) Rule of law Fundamental freedoms Region All third countries Funding Average €160 million per year Examples Rehabilitation of torture victims in Pakistan, support to Rwanda tribunal, fight against death penalty in China, promote indigenous peoples in Ecuador, election observation in Angola web http://ec.europa.eu/europeaid/where/worldwide/eidhr/

Instrument for Stability Scope - Crisis response and preparedness (RELEX) - Global and trans-regional border challenges (EuropeAid) Region All third countries except industrialised countries Funding Average €290 million per year Examples combating trafficking of radioactive material, fighting drug trade, mediation for peace Web http://ec.europa.eu/europeaid/where/worldwide/stability-instrument/

Instrument for nuclear safety cooperation Scope - Nuclear safety - Radiation protection, Nuclear material safeguards Region All third countries except industrialised countries Funding Average €75 million per year Examples promote nuclear safety in Soviet-designed reactors, improve mgt of radioactive waste Web http://ec.europa.eu/europeaid/where/worldwide/nuclear-safety/

The Programming Process Strategy Papers Multi-annual Indicative 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 * There is a specific strategy paper fro CBC.

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

Summary EU donors = 27+1 Same objectives, different instruments United in Diversity, for better impact