EuropeAid 1 EuropeAid: tasks, performance and challenges ahead Koos Richelle Director General EuropeAid Cooperation Office Nicosia, 4 th May 2009

EuropeAid 2 1 The EU development aid context

EuropeAid 3 The external aid context Policies, instruments 2000 UN 8 Millennium Development Goals, fixing poverty reduction objectives for OECD Paris Declaration, 60 recipients and 50 donors on aid effectiveness 2005 European Consensus, the EU development policy, tying Member States and Commission 2007 EU Code on Division of Labour 2008 Accra High Level Forum on aid effectiveness 2008 Doha Conference on financing for development.

EuropeAid 4 EU and EC aid implementation EU the largest donor in the world donors together responsible for 60% of all development aid (2008: 48,6 billion) USA provides 22% European Commission on its own: Second largest donor of humanitarian aid Third largest donor of development aid (11%, after USA and Germany) Present in aprox. 140 countries Based on OECD/DAC preliminary figures 2009

EuropeAid 5 The EC and the external aid budget 2008 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)

EuropeAid 6 Official Development Assistance Percentage of Gross National Income: actual 2008, forecast 2010, objective Source: OECD DAC where available. EC data base on MS information to the EC or the DAC for EU DAC Average: 0.42% in 2008 compared with 0.38% in 2007

EuropeAid 7 2 EuropeAid: Tasks

EuropeAid 8 EuropeAid Tasks Responsible for implementing external aid programmes across the world Aims to deliver development aid in an efficient and effective way Responsible for translating policies into practical aid actions and for developing new ways of aid delivery Responsible for the steps of aid delivery: identification, feasibility, financial decisions and controls, tendering, contracting, monitoring and evaluation

EuropeAid 9 3 EuropeAid Performance More aid

EuropeAid 10 EuropeAid paid out in 2008: 7 billion EDF Budget Record year for project implementation

EuropeAid 11 Geographic distribution of funds 2008 EuropeAid spending per region, ODA and OA, ACP including South Africa and Bananas

EuropeAid 12 Distribution of funds by horizontal programme 2008 * Thematic programmes include: non-state actors & local authorities, investing in people, gender, environment, migration and food security

EuropeAid 13 4 EuropeAid performance Better aid

EuropeAid 14 Better aid New AIDCO programmes as of 2007 Average annual commitments Neighbourhood, 17 countries 1.6 bn 10th EDF, 78 countries / OCTs 3.7 bn Development, 48 countries 1.4 bn Development, sugar, 18 ACP countries 180 mn Development, thematic 800 mn Human rights & Democracy 160 mn Stability (post crisis) 290 mn Nuclear safety 75 mn

EuropeAid 15 Example 1 10 th European Development Fund (EDF) ScopeBased on Cotonou agreement: Country specific programmes Horizontal programmes Region78 African, Caribbean, Pacific countries and OCTs FundingAverage 3.7 billion per year StartJuly 2008 ExamplesInfrastructure projects, rural development, institution building, HIV/AIDS, education web

EuropeAid 16 Example 2 Neighbourhood instrument (ENPI) ScopeCountry specific programmes Cross border cooperation with EU Member States Region17 countries: Mediterranean, Eastern Europe, Russia, Caucasus, Middle East FundingAverage 1.6 billion per year ExamplesPalestine, Eastern Partnership web

EuropeAid 17 Example 3 Thematic Programmes FundingAverage 960 million p.a. RegionAll third countries except industrialised / pre-accession ThemesDemocracy & human rights 160 million Investing in people 150 Environment120 NSAs / local authorities230 Food security240 Migration / asylum 60 Exampleshelp for rape victims in Botswana, election observation in Mauritania, eco-systems in Chad web ec.europa.eu/europeaid/what/human-social-development

EuropeAid 18 Better aid: general budget support Budget support delivered in around 55 countries Direct transfer of funds to treasury General support, or for a specific sector Starting points: poverty reduction strategy, independent audit, functioning parliament, minimum level accountability in-country Focus on public finance management Country review on agreed indicators: e.g.: unemployment rates, school participation Output focus: more or less corruption?

EuropeAid 19 Better aid: quality assessment & evaluation Quality feedback at Design stage Screening of project ideas through Quality Support Groups – 99% of amounts screened in 08 Quality feedback at Implementation stage Results oriented monitoring – ROM 2008: 149 countries visited: 1249 reports 71% good performance, 6% major problems Quality feedback after projects end In-depth evaluations ex-post 2008 findings include: good relevance and EC added value in regional programmes, but problems with sustainability and heavy procedures

EuropeAid 20 Better aid: aid effectiveness

EuropeAid 21

EuropeAid 22 What is aid effectiveness? Aid effectiveness entails improving the coordination, management, delivery and complementarity of development co-operation activities to ensure the highest development impact. Devised by donors and partner countries to support the achievement of the Millennium Development Goals In order for aid to become more effective, both donors and partner countries need to act

EuropeAid 23 5 Challenges 2009 and beyond

EuropeAid 24 Outlook 2009 – aid effectiveness Follow-up to the Accra Agenda for Action Use Country Systems: channel 50% of aid to public sector through country system In-country Division of Labour: implement now Untying Aid: elaborate plans to further untie aid Conditionality: agree conditions based on national development strategies Predictability: 3-5 yr forward info on expenditure Transparency: regular public disclosure EuropeAid ACTION PLAN to deliver

EuropeAid 25 Outlook 2009: developments & challenges Quality: More focus on results-orientation, data quality Institutional change: New Commission, New EP. Lisbon Treaty (?) Review: mid-term review of the financial framework, strategy papers, instruments Responding to the international context: financial crisis, food crisis. Challenges, but opportunities to revamp ideas?

EuropeAid 26 THANK YOU